The State Consumer Disputes Redressal Commission, Chennai, has ruled that a proposed seller, after receiving the entire cost for a product, fails to make delivery and raises a plea of non-payment of tax or any other unsustainable defence, then they are guilty of unfair trade practice under the Consumer Protection Act.
The judgment came in a case relating to the non-delivery of an automatic paper cup making machine.
As per court proceedings, Rafa M. Amala had ordered the machine from Manjulakshmi, Proprietrix, M/s. Maruthi Tech, Sivakasi, in 2011 at an agreed cost of ₹5.90 lakh. The buyer had paid the amount and alleged the seller had not delivered the product while the seller said the buyer had not paid the VAT and Service Tax.
Ms. Amala had moved the District Consumer Disputes Redressal Forum in Virudhunagar which ruled in her favour in 2015 and directed Ms. Manjulakshmi to…