In Re Fiesta Barbeque Nation (Barbeque Nation Hospitality Limited) (CCPA Delhi)
The Central Consumer Protection Authority (CCPA) took suo motu cognizance of a grievance registered on the National Consumer Helpline (NCH) through Docket No. 6953654 dated 29.03.2025 regarding the levy of service charge, in addition to CGST and SGST, by Fiesta Barbeque Nation (Barbeque Nation Hospitality Limited). The proceedings were initiated after the Delhi High Court, by judgment dated 28.03.2025 in National Restaurant Association of India & Ors. v. Union of India & Anr., held that restaurants must adhere to the CCPA Guidelines on levy of service charge, upheld the applicability of those guidelines, declared mandatory levy of service charge contrary to law and violative of the guidelines, and observed that CCPA was free to enforce them.
Acting under Sections 18(2) and 19 of the Consumer Protection Act, 2019, the CCPA issued a notice dated 25.04.2025 alleging violation of the Consumer Protection Act, 2019 and the Guidelines to Prevent Unfair Trade Practices and Protection of Consumer Interest with Regard to Levy of Service Charge in Hotels and Restaurants dated 04.07.2022.
In its reply dated 30.04.2025, the restaurant acknowledged the powers of the CCPA, stated that the consumer had sought refund of a service charge of ₹335, initially offered adjustment during a future visit, and subsequently received a direct refund on 16.04.2025 after approaching the National Consumer Helpline. The restaurant submitted that proof of refund was uploaded on the NCH portal and that the grievance was disposed of on 22.04.2025. It further stated that following the Delhi High Court’s final judgment dated 28.03.2025, it had completely stopped charging service charge at its restaurants and that service charges collected prior to the judgment were being refunded whenever requested. It also sought an opportunity of personal hearing.
