NATIONAL RESTAURANT ASSOCIATION & ORS. V. UNION OF INDIA & ANR [ W.P.(C) 10683\/2022] along with W.P.(C) 10867\/2022
BENCH: JUSTICE PRATHIBA M SINGH<\/p>\n\n\n\n
COURT: DELHI HIGH COURT<\/p>\n\n\n\n
JUDGEMENT DATE: MARCH 28, 2025<\/p>\n\n\n\n
In a key judgment, the Delhi High Court ruled that service charge or tip is a voluntary payment by the customer and cannot be charged compulsorily by restaurants or hotels on food bills. The Court thus upheld the guidelines issued by Central Consumer Protection Authority (CCPA) in 2022, prohibiting hotels and restaurants from levying service charges \u201cautomatically or by default\u201d on food bills.
\u201cIn fact, for the consumers, the collection of service charge is proving to be a double whammy i.e., they are forced to pay service tax and GST on the service charge as well. This position cannot be ignored by the Court,\u201d the Court said. It further observed that \u201cService charge or TIP as is colloquially referred, is a voluntary payment by the customer. It cannot be compulsory or mandatory. The practice undertaken by the restaurant establishments of collecting service charge that too on a mandatory basis, in a coercive manner, would be contrary to consumer interest and is violative of consumer rights.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
NATIONAL RESTAURANT ASSOCIATION & ORS. V. UNION OF INDIA & ANR [ W.P.(C) 10683\/2022] along with W.P.(C) 10867\/2022BENCH: JUSTICE PRATHIBA M SINGH COURT: DELHI HIGH COURT JUDGEMENT DATE: MARCH 28, 2025 In a key judgment, the Delhi High Court ruled that service charge or tip is a voluntary payment by the customer and cannot be […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5030","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n