Swaminathan K, B.Com LL.B (Hons.), School of Law, SASTRA Deemed To Be University, Thanjavur
ABSTRACT:
Service Charge in the hotel and restaurant industry has been subject to various controversies and differing opinions. Whether Service Charges can be levied by the Hotel ? Whether Service Charge is Voluntary? or Whether it is for the betterment of Industry? Are questions that always existed in the industry for a very long time. With various complaints issued by the aggrieved Consumer, various guidelines issued by the authority and the various pronouncements given in this regard by the appropriate adjudicating authority, there is a settled position in law when it comes to the levy of service charge by Hotels and Restaurants on their consumers. This short article aims at covering the various nuances involved behind the issue regarding service charge, and the current position in law regarding its validity.
