SC allows hotels and restaurants to sell bottled water and packaged products over MRP
New Delhi, Dec 13 (IBNS): Hotels and restaurants will now be able to sell bottled water and other packaged products over the maximum retail price (MRP) after the Supreme Court on India ruled in favour of a petition filed by Federation of Hotel and Restaurant Associations of India *FHRAI) against the Union of India, according to media reports.
The apex court on Tuesday said that since hotels and restaurants render a service and transactions are part of a composite bill, so they cannot be governed by the Legal Metrology Act.
The Central government, in its affidavit, had said that charging more than MRP for pre-packaged water and other pre-packed products by hotels and restaurants was an offence under the Legal Metrology Act, and would attract monetary penalties and jail terms for the offenders, according to reports.
Tweeted FHRAI, "The SC has finally setlled the issue of MRP in Hotels & Restos. In the appeal filed by FHRAI against the UOI , the SC has held that service of MRP items above MRP is nt violative of Legal Metrology Act or under thr erstwhile SWM Act. The Delhi HC sngl Judges ordr has been cnfrmd."
The Standards of Weights and Measures (SWM) Act was repealed by the Legal Metrology Act in 2010.
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