In re Cafe Blue Bottle Patna’s (CCPA Delhi)
Central Consumer Protection Authority (CCPA) took suo motu cognizance of a consumer grievance registered on the National Consumer Helpline (NCH) on 8 April 2025 concerning the levy of a service charge in addition to CGST and SGST by a restaurant in Patna. The consumer supported the complaint with a bill dated 7 April 2025 showing the disputed charge.
The CCPA noted that, by a judgment dated 28 March 2025, the Delhi High Court had upheld the validity and enforceability of the CCPA Guidelines on service charges and had categorically held that mandatory service charges are contrary to law, while voluntary tips at the consumer’s discretion are permissible only if not added by default to the bill. Following this judgment, the CCPA initiated action against complaints relating to involuntary levy of service charge.
Acting under Sections 18(2) and 19 of the Consumer Protection Act, 2019, the CCPA conducted a preliminary inquiry. The inquiry revealed that the restaurant had levied a service charge on the consumer’s bill and that the amount had not been refunded. Observing continued levy of service charge despite the High Court judgment and the Guidelines issued on 4 July 2022, the CCPA issued a notice on 30 April 2025 calling for an explanation.
