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2009 (1) TMI 521

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..... facturer of sports goods including Footwear has its authorised dealers in Belgaum, amongst others, in all parts of this country. On 29-3-2006, and 5-4-2006, the 4th respondent is said to have searched the showroom of the petitioner s distributor M/s. Square Cut and M/s. Foot Mark, respectively, and seized shoes in packages said to be in violation of Sections 39, 63 of the Standards of Weights and Measures Act, 1976 (for short Act ) read with Rules 33(v) and 23(1) of the Standards of Weights and Measures (Packaged Commodities), Rules, 1977 (for short PC Rules ). The inspection, it is said, disclosed that the package in which the shoe was packed, did not contain the Maximum Retail Price (M.R.P.) inclusive of all taxes, in violation of Section 2(r) and Section 39 and 63 of the Act and PC Rules. The 4th respondent issued the notice dated 8-4-2006 and 26-5-2006 Annexure- C , in each of the writ petitions, pointing out to the contravention of law and informing the petitioner that the violations were compoundable under Section 73 of the Act and directed its appearance before the Compounding Authority, failing which a complaint would be lodged before the Jurisdictional Magistrate. Hence, .....

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..... Department of Commerce relating to import policy mandates that all packaged products subject to the PC Rules when packed and sold in domestic market in accordance with all the provisions of the said rules when imported into India. Having regard to the salient features of the Act and the laudable objective behind which it was enacted, to subserve the customer and to standardise the rates, the petitioner s shoes sold in packaged form when taken out for testing or examination, does not change its character as a packaged commodity. 4. Sri S.K. Sahiji Pal, Learned counsel for the petitioner advances the following contentions : (i) the notification dated 26-9-1977 of the Central Government bringing into force Sections 1, 2, 3, 39 and 83 of the Act w.e.f. 26-9-1977, it is contended, does not specify the classes of goods and therefore, is not a notification in the eye of law as mandated by the Parliament covering the petitioner s products. It is further contended that though Section 83(2)(zd) empowers the Central Government to make rules in respect of any other matter which is required to or may be prescribed, and in the absence of a notification covering the products of the petitio .....

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..... Court in Titan Watches Limited (supra) followed the view of the Division Bench of the Bombay High Court in Kataria s case (supra) in so far as it relates to the reasons, findings and conclusions that the notification dated 26-9-1977 bringing into force Sections 1, 2, 3, 39 and 83 of the Act was sufficient and did not require a separate notification for different class of goods under Clause (d) of sub-section (3) of Section 1. In the present day scenario of market trends and technological advancements, it is well nigh impossible for the Central Government to issue notifications to bring into fold new classes of goods manufactured by hour and the day. If the contention of the learned counsel for the petitioner is accepted, it would lead to a narrow interpretation and cause hardship rendering the application of the act impracticable. The Courts must give a purposive interpretation of Section 1(3) of the Act, in view of the laudable object in framing the Act which is in the larger interest of the consumer at also to standardise the rates applicable to the product when put up for retail sale throughout the country. This, I am afraid, cannot be achieved by applying the rule of ejusdem g .....

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..... t be altered without the package or its lid or cap, as the case may be, being opened or undergoing a perceptible modification and the expression package , wherever it occurs, shall be construed as a package containing a pre-packed commodity; Explanation I : Where any such weight or measure is, or other goods are, delivered to a carrier or other bailee for transmission, the movement of such weight, measure or other goods shall, for the purposes of sub-clause (ii), be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee. Explanation II : Where the movement of any such weight, measure or other goods commences and terminates in the same State, it shall not be deemed to be a movement of such weight, measure or other goods from one State to another merely by reason of the fact that in the course of such movement it passes through the territory of any other State; 10. Indisputably, in packaged form commodities excluding statutory exceptions, are governed by Sections 1, 2, 3, 39 and 83 of the Act brought into force w.e.f. 26-9-1977, while Rule 2A, makes Chapter-II of the PC Rules applicable to all pre-pac .....

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..... ened from the package so that the customer tests it but having regard to the Explanation (1) to Ride 2(l), it is amply clear that the petitioner s product falls within the definition of the term pre-packed commodity. In that view of the matter, I am not persuaded to accept the view taken by the Division Bench of the Bombay High Court in Kataria s case holding that sun glasses exposed for retail sale after being removed from the cartons would not fall within the definition of the term pre-packed commodity. 15. In the light of Rule 2A making Chapter-II applicable to all pre-packed commodities while Rule 3 makes the chapter applicable to packages intended for retail sale meant for consumption by individual or group of individuals or any other customer, the petitioner s products placed for retail sale in package of single units, cannot escape from the applicability of the Act and the PC Rules. Rule 6 requires every package to make certain declarations including retail sale price. There is also no dispute that the declaration was partly made on the package by printing Maximum Retail Price (M.R.P.) without printing the price inclusive of taxes. No exception can be taken to the acti .....

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