TaxTMI 
TaxTMI 
2001 (8) TMI 131
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....oods less amount of abatement...." 4.The petitioner alleges that from the date of issue of the notification, it has "started paying and depositing Central Excise duties on the maximum retail price State-wise as applicable for the Refrigerators...." However, the "respondents are harassing the petitioner (by) requiring them (it) to print the MRP (Maximum Retail Price) on the outer cartons of the Refrigerators manufactured by" it. It requested the respondents to allow it "not to print/indicate the retail price on the cartons of the Refrigerator". Having received no reply, it has approached this Court through the present writ petition. 5.The petitioner's case is that the Refrigerators are not "a packaged commodity". The provisions "of the Standards of Weights and Measures Act, 1976 (hereinafter referred to as the 1976 Act) or the Rules made thereunder" are not applicable. The issue is already pending in various High Courts of the country. Even interim relief has been granted to it. Thus, it cannot be required "to declare on the package the retail sale price of such goods". On this basis, the petitioner prays that the notification dated March 1, 2000, a copy of which has been produced....
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....rt bound to stay the operation of the notification dated March 1, 2000 and to direct the respondents to desist from implementing its requirements on the ground that writ petitions are pending in different High Courts wherein certain directions have been given? Reg : (i) 8.Mr. Sarin contended that a Refrigerator is not sold in a packaged form. The provisions of the 1976 Act or the Rules framed thereunder are not applicable. Thus, the action of the respondents in including Refrigerators in the notification dated March 1, 2000 issued under Section 4A of the Excise Act, is illegal. Is it so? 9.First the 1976 Act. Why was it enacted? What was the purpose? 10.In view of the "rapid advances made in the field of science and technology", a "practical system of units of weights and measures, suitable for adoption for all the signatories to the Metre Convention was evolved". India is a signatory to the Convention. After the convention, the Central Government had constituted a committee. As a result of the recommendations made by the Committee, the Standards of Weights and Measures Act, 1956 was replaced by the 1976 Act. The enactment was inter alia intended to provide for "consumer protec....
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....such unit or weight, measure or number as may be prescribed." 13.A perusal of the above provisions shows that whenever a commodity is contained in any form of packing, a 'wrapper or otherwise', the buyer should be able to get complete information regarding the identity, quantity in terms of weight or measure and the price etc. by a mere look at the item. It should not be necessary for the buyer to make inquiries or to open the carton to ascertain the specifications or the price. Similarly, the authorities under the Act would be in a position to check whether the goods conform to the declaration made on the wrapper or packing. The purpose is obviously to protect the consumer. In case the goods do not conform to the declared standards, the manufacturer can face trouble. 14.Mr. Sarin contended that a Refrigerator is not a packaged commodity. Is it so? 15.The petitioner's own case in paragraph 3 of the petition is that "the Refrigerators are packed in polythene covers, thermocol etc. and placed in hard-board cartons....". Mr. Sarin says that this packing is done to protect the goods "from being damaged in transit from the Factory at Faridabad to the Warehouse and thereafter from the....
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....rent in any manner. 18It is undoubtedly true that a. customer who goes to a dealer to buy a Refrigerator shall check it before he pays the price. He might even test it. For this purpose, the dealer shall have to necessarily remove the packing. However, this is of no consequence. The Act postulates that the goods can be inspected by the Director or any person authorised by him even while the goods are lying "in any premises or are in the course of transportation from one State to another". A specific provision in this behalf is contained in Section 29. Section 30 further provides for forfeiture etc. 19.In the present case, it is the admitted position that the petitioner actually transfers the goods from the factory to the Warehouse and/or to the dealer. The goods can be inspected during the course of transportation or while these are lying in the warehouse or any other premises. How would the carton containing a Refrigerator be different from a card-board box containing bottles of medicines or ampules of injection? In no way. In fact, it was not even suggested on behalf of the petitioner that the goods are not in a packaged form at the time of transport etc. The position cannot ch....
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....ay be sold to the ultimate consumer and includes all taxes local or otherwise, freights, transport charges, commission payable to dealers, and all charges towards advertisement, delivery, packing, forwarding and the like, as the case may be, and the price is the sole consideration for such sale. Explanation 2. - (a) Where on the package of any excisable goods more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price for the purposes of this section. (b) Where different retail sale prices are declared on different packages for the sale of any excisable goods in packaged form in different areas, each such retail sale price shall be the retail sale price for the purposes of valuation of the excisable goods intended to be sold in the area to which the retail sale price relates". 22.A perusal of the above provision shows that in case of excisable goods which are covered under the provisions of the 1976 Act or the Rules made thereunder, the Central Government can issue a notification in the Official Gazette and then the excise duty is levied on the basis of the retail price minus the amount of abatement allowed by th....
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....rs of stay have been issued. These are binding on the respondents. Thus, in view of Section 10 of the Code of Civil Procedure, the proceedings in the present writ petition have to be stayed. 27.Undoubtedly, the principles embodied in the provisions of the Code of Civil Procedure are normally followed by the courts in proceedings under Article 226 of the Constitution. These ensure uniformity. 28.What is the principle behind Section 10? In simple words, the provision debars the court from trying a dispute which is already pending between the same parties in earlier proceedings before the same or another court in the country. The proceedings in the subsequent suit are required to be stayed. 29.According to the petitioner, the issue is already pending before the High Courts of Bombay, Kerala and Madras. That being so the proceedings in the present writ petition should be stayed. As a result, no order can be passed. 30.It deserves notice that the petitioner itself has instituted the proceedings in different High Courts including the present proceedings in this Court. If the argument as raised is accepted, the proceedings should have been stayed at the threshold. However, the petitio....