2010 (7) TMI 733 - HC - Indian Laws

Retail sale confiscatioin of goods - declaration as required under Rules 6 and 6(1A) of the Standards of Weights and Measures (Packaged Commodities) Rules 1977 - Retail sale to the ultimate consumer for the purpose of consumption of the commodity contained therein. - Proviso to Rule 2(p) further clarifies that the ultimate consumer shall not include industrial or institutional consumers which means retail package means the packages which are intended for retail sale and which are not meant for industrial or institutional consumers. The packages in question are seized from a retail shop which prima facie means the packages were meant for retail sale to a retail consumer - Held that - packages were seized in the retail outlet. Industrial consumers will have to buy the packaged commodities directly from the manufacturers or packers for using their products in the industry only then the provisions of Rule 6 is exempted. Hence the provisions of Rule 6 are applicable to the matter on hand Petition fails and the same is dismissed.

Summary

Issues:
1. Quashing of proceedings in C.C. No. 5280/2009 pending on the file of 7th Additional Chief Metropolitan Magistrate, Bangalore.

Analysis:
The petitioner sought to quash the proceedings related to the seizure of two packages of industrial sewing machine needles imported and distributed by GBA. The Inspector of Legal Metrology seized the packages for not carrying the required declaration under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. The petitioner argued that since the packages were meant for industrial consumers, the provisions of Rule 6 regarding declarations were not applicable. However, the court found that the definition of "retail package" as per Rule 2(p) indicated that packages intended for retail sale to ultimate consumers needed to comply with the declaration requirements.

The court examined Rule 2(A) and 3, which exempt packaged commodities meant for industrial consumers or institutional consumers from certain provisions. It clarified that industrial consumers are those who buy directly from manufacturers, and thus, the requirements under Rule 6 for declarations may be exempted in such cases. The court emphasized that for exemptions to apply, industrial consumers must purchase directly from manufacturers, knowing details like the manufacturer's identity, rates, quality, and weight of the product. As the seized packages were from a retail shop, meant for retail sale to consumers, the court concluded that Rule 6 provisions applied in this case, dismissing the petitioner's argument for quashing the proceedings.

In summary, the judgment highlighted the distinction between packages intended for retail sale and those meant for industrial consumers directly from manufacturers. It underscored that the requirements for declarations under Rule 6 apply to packages intended for retail sale, emphasizing the importance of compliance with legal metrology standards for consumer protection. The court's decision to dismiss the petition was based on the clear applicability of Rule 6 to the seized packages from a retail outlet, emphasizing the need for adherence to legal requirements in packaging and selling commodities.