The District Consumer Disputes Redressal Commission, Ludhiana, has directed Café Elizabeth III, South City, to refund Rs 52.50 charged as service charge to a consumer, along with 8 per cent interest from January 24, 2026, till payment. The Commission also awarded Rs 10,000 as composite compensation and costs.The order was passed by Commission president Sanjeev Batra and member Monika Bhagat on a complaint filed by Rishabh Gupta, a resident of Haibowal Kalan.The café, despite being served notice, failed to appear before the Commission and was proceeded against ex parte.According to the complaint, Gupta visited the café with his friends on January 24 and ordered a pizza and a diet Coke. The diet Coke was supplied in an unopened can. However, the bill included a 5 per cent service charge of Rs 52.50, besides GST, taking the total bill to Rs 1,155.The complainant objected to the service charge and requested the café staff to remove it. However, the café representative allegedly refused, stating that charging the amount was the establishment’s usual practice. The complainant subsequently served a legal notice on February 6, but received no relief.The Commission observed that the Central Consumer Protection Authority (CCPA) guidelines issued on July 4, 2022, prohibit hotels and restaurants from automatically or by default adding a service charge to bills. The guidelines also prohibit collection of the charge under any other name and make it clear that consumers cannot be compelled to pay it.The Commission held that the complainant’s right to be informed under the Consumer Protection Act had been violated. It observed that the service charge was separately included in the bill and was allegedly imposed on the consumer before he could leave the restaurant.The Commission also referred to a March 28, 2025, judgment of the Delhi High Court in National Restaurant Association of India and Others versus Union of India and Another, which upheld the CCPA guidelines and observed that service charge or tip is a voluntary payment and cannot be made compulsory.Besides refunding Rs 52.50 with interest, the Commission directed the café to pay Rs 10,000 as composite compensation and costs. It also ordered the establishment to modify its software-generated billing system and remove the default addition of service charge, or any charge under another name.The directions are to be complied with within 30 days of receipt of the order.