Chili’s stops levying service charge | chandigarh | Hindustan Times
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Chili’s stops levying service charge

Waking up from slumber, the UT administration finally started to act against restaurants and hotels illegally levying service charge.

chandigarh Updated: Dec 02, 2014 09:27 IST
Saurabh Duggal

Waking up from slumber, the UT administration finally started to act against restaurants and hotels illegally levying service charge.


After HT in its columns highlighted that some of the city eateries are violating the UT administration’s order of declaring levying of service charge as illegal, the excise and taxation department on Monday conducted a surprise inspection in all eating joints at Elante Mall. Chili’s restaurant, which had continued levying the service charge despite the UT administration’s order, has stopped levying it from December 1.

A department team also visited a Sector 26-based restaurant, Whistling Duck, and scanned their old bills where they had levied service charge.

“We conducted surprise checks at all eating joints in Elante Mall and collected their bills. We are not going to spare any eating joint indulging in the malpractice of charging service charge. We will penalise them under the VAT Act and impose heavy penalty,” UT assistant excise and taxation commissioner RC Bhalla said.

“The Chili’s management informed our team that from December 1 they stopped levying the service charge. But we will not spare them for their previous violations. It will take some time as we are working on it. We will issue notice to them and subsequently penalise them,” Bhalla added.

“The UT’s order to crack the whip on the eating joints that are levying service charge is in the larger public interest. The constitution of a team of VAT officers to check the violators on their premises clearly evidences that the outcry of the public has been heard at last,” said advocate Ajay Jagga.


P’kula DC, too, seeks report

Deputy commissioner (DC) Vivek Atray on Monday asked the deputy excise and taxation officer to make a report of all restaurants and eateries charging service tax from customers. Talking to the HT over phone, he stated, “I have asked for a report on such eateries from the officials concerned. After receiving the list, we will follow the rules and will decide the further course of action.”