Restaurants, hotels can sell bottled drinking water above MRP, says SC
December 13, 2017 08:13
The Supreme Court allowed hotels and restaurants on Tuesday to sell bottled drinking water and packaged food at more than the maximum retail price printed on these items.
The court rejected the governments argument that overcharging for pre-packed or packaged products was an offence under the legal metrology act, which attracts a fine of Rs 25,000 or a jail term.
A bench headed by Justice Rohinton Nariman said the provisions of the law will not apply to hotels and restaurants, and these establishments cannot be prosecuted for selling such items above the MRP.
It is not a case of simple sale. Nobody goes to a hotel to buy or take away a bottle of mineral water, the bench observed, hearing a petition by the Hotels and Restaurant Association of India.
Advocate Sameer Parikh, appearing for the hoteliers association, said the law does not apply as selling packaged drinking water or food involves a service element, including ambience, cutlery and service.
The ministry of consumer affairs, which had filed an affidavit before in the case, had argued that selling above the MRP could lead to tax evasion and loss of revenue for the government.
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