TaxTMI 
TaxTMI 
2015 (12) TMI 991
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....of Rules 32 of the Legal Metrology (Packaged Commodities) Rules, 2011 in so far as it is inconsistent with the provisions of the Legal Metrology Act, 2009 and is ultra - vires the Act; (ii) Issue a writ, order or direction thereby clarifying that Rules issued by Respondent No.1 will be applicable to inter-state trade and commerce and those issued by Respondent No.2 will be applicable to intra-state trade and commerce; (iii) Issue a writ, order or direction thereby direction Respondent No.3 to compound the offence of the petitioner by accepting compounding fee as laid down in Rule 25 of the Delhi Legal Metrology (Enforcement) Rules, 2011. " 2. As could be seen from the material available on record, the petitioner"s premises was inspected by the team of the Legal Metrology, Government of NCT of Delhi on 22.11.2013 and it was found that one of the packets containing rechargeable LED flash lights did not bear the word "Rs./ Rs.". In other words, the MRP shown on the package was not prefixed with symbol "Rs./Rs." but it was merely shown "MRP 299.00". Accordingly an inspection report/memo dated 22.11.2013 was issued by the respondent No.3/Asst. Controller of Legal Me....
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.... may extend to one year or both. Section 48 of the Act provides that any offence punishable under Section 25, Sections 27 to 39 and Sections 45 to 47 may either before or after the institution of the prosecution be compounded on payment for credit to the Government of such sum as may be prescribed. 6. Section 52 of the Act empowers the Central Government to make Rules by notification for carrying out the provisions of the Act. Power has been conferred on the State Governments also under Section 53 of the Act to make rules after consultation with the Central Government to carry out the provisions of the Act. 7. In exercise of the power conferred under Section 52, the Central Government made the Rules called the Legal Metrology (Packaged Commodities) Rules, 2011 (hereinafter referred to as "the Packaged Commodities Rules"). Rule 6 of the Packaged Commodities Rules provides for the declarations to be made on every package and as per Clause (e) of Rule 6(1), every package shall bear thereon the retail sale price of the package. The word "retail sale price" has been defined under Rule 2(m) as under:- "2 (m) "retail sale price" means the maximum price at which the commodit....
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....d in exercise of the power so conferred, the Government of NCT of Delhi made the Rules called the Delhi Legal Metrology (Enforcement) Rules, 2011 (hereinafter referred to as "the State Rules"). Rule 25 of the State Rules provides that the fee for compounding of offences committed under the Act shall be as prescribed in Schedule XI. As per the said Schedule, the compounding fees for the offence under Section 18(1) of the Act shall be Rs. 2,500/-. 11. In the case on hand, the allegation is that Rule 6 of the Packaged Commodities Rules has been contravened by the petitioner. It is not in dispute that the same is punishable under Section 36 of the Act. In terms of Section 48 of the Act, the said offence may be compounded either before or after the institution of the prosecution on payment of such sum as may be prescribed. The word "prescribed" has been defined under Section 2(o) of the Act as prescribed by Rules made under the Act. As noticed above, rules have been made by both the Central Government and the Government of NCT of Delhi and there are specific provisions prescribing the compounding fees under both the sets of Rules. 12. The question that requires consideration is wh....
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.... distribute, deliver, offer, expose or possess for sale any pre-packaged commodity unless such package is in such standard quantities or number and bears thereon such declarations and particulars in such manner as may be prescribed. (2) Any advertisement mentioning the retail sale price of a pre-packaged commodity shall contain a declaration as to the net quantity or number of the commodity contained in the package in such form and manner as may be prescribed." 36. Penalty for selling, etc., of non-standard packages. - (1) Whoever manufactures, packs, imports, sells, distributes, delivers or otherwise transfers, offers, exposes or possesses for sale, or causes to be sold, distributed, delivered or otherwise transferred, offered, exposed for sale any pre-packaged commodity which does not conform to the declarations on the package as provided in this Act, shall be punished with fine which may extend to twenty-five thousand rupees, for the second offence, with fine which may extend to fifty thousand rupees and for the subsequent offence, with fine which shall not be less than fifty thousand rupees but which may extend to one lakh rupees or with imprisonment for a ter....
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.... prescribed. It is also clear that the Director or Legal Metrology Officer as may be specifically authorized by him as well as the Controller or Legal Metrology Officer specifically authorized by him are competent under Section 48 to exercise the power of compounding the offence under Section 36. 17. In the case on hand, the inspection was conducted by the Assistant Controller. However, the offence alleged is contravention of Rule 6(1)(e) of the Packaged Commodities Rules made by the Central Government in exercise of the powers conferred under Section 52(2) of the Act. By the date of the inspection in question, sub-rule (3) of Rule 32 of the Packaged Commodities Rules has already been inserted by amendment dated 06.06.2013 prescribing the compounding amount for the offences specified therein including contravention of Section 36(1) of the Act for which the compounding amount shall be Rs. 25,000/-. 18. The alleged offence being contravention of the provisions of the Packaged Commodities Rules made by the Central Government, it appears to us that the respondents are justified in applying Rule 32(3) of the Packaged Commodities Rules for fixing the compounding fees. It may be add....