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        2020 (1) TMI 1574 - HC - Indian Laws

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        Industrial-use packaged goods are excluded from Rule 6 declarations, even when sold through stockists. Packaged commodities specially marked for industrial use and intended for specialised industrial consumers fall outside Rule 6 of the Standards of Weights ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Industrial-use packaged goods are excluded from Rule 6 declarations, even when sold through stockists.

                              Packaged commodities specially marked for industrial use and intended for specialised industrial consumers fall outside Rule 6 of the Standards of Weights and Measures (Package Commodities) Rules, 1977. The scheme of the Rules, including the definitions of retail package, retail sale, ultimate consumer, industrial consumer and institutional consumer, excludes packages packed exclusively for use as raw material or for servicing an industry from the declaration requirement, and Rule 34(a) expressly reinforces that exclusion. Sale through stockists does not alter the industrial character of the goods where the end use remains industrial, so non-compliance notices based on Rule 6 are unsustainable.




                              Issues: Whether the requirement of Rule 6 of the Standards of Weights and Measures (Package Commodities) Rules, 1977 applies to a manufacturer selling packaged goods intended for industrial use through a stockist.

                              Analysis: The packaged welding products were expressly marked for industrial use and were intended for specialised industrial consumers rather than ordinary household consumers. The scheme of the Rules, including the definitions of retail package, retail sale, ultimate consumer, industrial consumer and institutional consumer, shows that packages specially packed for the exclusive use of any industry as a raw material or for servicing an industry are excluded from the operation of Rule 6. Rule 34(a) also expressly excludes such packages from the declaration requirement. The fact that the goods were sold through stockists did not change their character where the end use remained industrial and the statutory exclusion applied.

                              Conclusion: Rule 6 was not applicable to the goods in question, and the notices issued for non-compliance were without authority and unsustainable. The challenge to the notices failed, and the appeal stood rejected in favour of the respondent.

                              Ratio Decidendi: Packaged commodities specially packed for the exclusive use of industry and meant for industrial consumers fall outside the declaration requirements of Rule 6, even if sold through stockists.


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