TaxTMI 
TaxTMI 
2009 (4) TMI 820
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.... sold for a maximum retail price of Rs. 50 instead of Rs. 58.50 (inclusive of taxes); thus stating that there was a benefit of Rs. 8.50 to the Consumer. It is said, that the above scheme was being pursued in strict compliance with the relevant provisions of the 'Act and the Rules' and that no contravention of any provisions of law was intended or pursued in any manner. 3. While so, the petitioner was served with Ext. P2 Show cause notice stating that the petitioner had committed an offence under Section 39(5) of the Act and Rule 5 of the Rules, read with Section 33 of the Standards of Weights and Measures (Enforcement) Act 1985. This was replied by the petitioner vide Ext. P3, explaining the facts and circumstances, also producing the requisite materials, asserting that the action pursued by the petitioner was strictly in compliance with the relevant provisions of the statute and that no offence was committed at any point of time as alleged; which was more so, when the concerned packet was a 'multi-piece package' containing all the endorsements and declaration as stipulated by the Rules including the 'additional declaration' under Rule 17. 4. On receipt of Ext. P4 reply, the ....
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...., measure or number in which any commodity is, or reasonably comparable commodities are, being packaged for sale, distribution or delivery and such undue proliferation impairs in the opinion of that Government, the reasonable ability of the consumer to make a comparative assessment of the prices after considering the net quantity or number of such commodity, that Government may direct the manufacturers and also packers or distributors to sell, distribute or deliver such commodity in such standard quantities or number as may be prescribed. Rule 5 "5. Specific commodities to be packed and sold only in standard packages. - On and from the commencement of these rules, no person shall pre­-pack, or cause or permit to be pre-packed any commodity for sale, distribution, or delivery except in such standard quantities as are specified in relation to that commodity in the Third Schedule. Provided that the Central Government may, if it is satisfied that for any technical or mechanical reason it is not possible to pre-pack any commodity in the standard quantities specified in the Third Schedule, authorise the pre-packing of such commodities in such quantiti....
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....ackage containing "5 toilet soap cake, net weight 20g each of total net weight of 100g' is a multi-piece package:". The definition clearly shows that the instance of retail sale can either be as 'individual unit' or the 'package as a whole' and it does not stipulate that both the limbs should be satisfied simultaneously. In other words, the provision does not insist that only in a circumstance when the package in question will provide the retail sale, both as 'individual unit' and also as the 'package as a whole'; that the package would come within the definition of 'multi-piece package'. The observation made by the respondents that the individual units contained in the package are not properly packaged or labelled enabling to be sold as individual units and hence that the package containing the 3 units cannot be considered as a 'multi-piece package' is totally alien to the scope and object of the statutory prescription. 10. Another important aspect to be noted is that the concept of 'multi- piece package' had never struck the mind of the 2nd respondent when Ext. P2 show-cause notice was issued; for the obvious reason that the charge alleged was only t....
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....e made on multi-piece packages :- (1) Every multi-piece package shall bear thereon, in addition to the declaration required to be made under any other provisions of these rules, a declaration of- (a) the number of individual pieces contained thereto : (b) the retail sale price of the multi-piece package". Provided that where individual pieces contained in a multi-piece package are packaged or labelled separately and are capable of being sold separately, each piece shall bear thereon a declaration as to the quantity and the retail sale price thereof. (2) If the individual pieces contained in the package do not carry retail sale price, it shall carry a declaration that they are not intended for retail sale. The proviso to sub-rule (1) of Rule 17 clearly says that the individual pieces contained in the 'multi-piece package' shall contain a declaration as to the quantity and the retail price, to be shown separately, only if such individual pieces are packaged or labelled separately and are capable of being sold separately. In other words, if the individual pieces are not in....
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....s'. It was held by the Bench that the Declaration in the case of 'multi-piece package', to be made under Rule 17(2) ) is on the 'multi-piece package' ('it'), stating that the individual units ('they') contained therein were not intended for retail sale. This being the position, there is absolutely no merit or substance in the contentions raised by the respondents holding that the package in question is not a 'multi-piece package' and that Rule 17 is not attracted to the case in hand. 15. The impugned proceedings are further sought to be justified by the respondents stating that the product manufactured and distributed by the petitioners is having a net weight of '225' gm and hence is of 'non-standard' quantity, involving violation of the specification under Clause 17(c) of the 3rd schedule referred to in Rule 5 of the Rules. The Counter Affidavit dated 4-12-02 filed by the 2nd Respondent (on behalf of the 1st and 2nd respondents) says that the quantity being 225 gms, "instead of 200 gms or 250 gms", there is clear violation of Section 39(5) of the Act and Rule 5 of the Rules. In other words, the idea and understanding of the respondents is that, since Cla....