Case: M/S. Indra Photographic Co. Ltd Vs. Mr. H.D. Shourie

Third Schedule and the Sixth Schedule of these rules :Provided further that such declaration shall not be necessary in the case of packages of these commodities which are not specified in the Third Schedule but are packed in qualities of 50g, 100g, 200g, 500g, 1kg., 2kg., 5kg., or in multiple of 5 kg. Or in 50 ml., 100 ml., 200 ml., 500 ml., 1 liter, 2 litres, 5 litres and in multiple of 5 litres.(f) the sale price of the package;(g) where sizes of commodity contained in the packaged are relevant, the dimensions of the commodity contained in the package and if the dimensions of the different pieces are different, the dimensions of each such different piece;(h) such other matters as are specified in these rules :Provided that -(a) no declaration as to the month and year in which the commodity is manufactured or pre-packed shall be required to be made on -(i) any bottle containing liquid milk, liquid beverages containing milk as an ingredient, soft drink, ready-to-serve fruit beverages, or the like, which is returnable by the consumer for being re-filled;(ii) any package containing bread and any uncanned package of (a) vegetables, (b) fruits, (c) ice cream, (d) butter, (e) cheese, (f) fish, (g) meat or (h) any other like commodity; (iia) liquid milk in pouches; (iii) any package containing metallic product;(iv) any cylinder containing liquefied petroleum gas or any other gas; (v) any package containing chemical fertilizer;(B) wherein any packaging material bearing thereon the month in which any commodity was expected to have been pre-packed is not exhausted during that month, such packaging material may be used for pre-packing the concerned commodity produced or manufactured during the next succeeding month and not thereafter, but the Central Government may, it is satisfied that such packaging material could not be exhausted during the period aforesaid by reason of any circumstances beyond the control of the manufacturer or packer, as the case may be, extend the time during which such packaging material may be used, and, where any such packaging material is exhausted before the expiry of the month indicated thereon, the packaging material intended to be used during the next succeeding month may be used for pre-packing the concerned commodity;(c) no declaration as to the sale price shall be required to be made on - (i) any uncanned package of (a) vegetables, (b) fruits, (c) ice-cream (d) cheese, (e) butter, (f) fish, (g) meat or (h) any other like commodity; (ii) any bottle containing liquid milk, liquid beverages containing milk as an ingredient, soft drink, ready-to-serve fruit beverages, or the like, which is returnable by the consumer for being re-filled; (iii) any bottle containing alcoholic beverages, or spirituous liquor; (iv) any package containing animal feed exceeding 15 kg or 15.1; (v) any package containing a commodity for which controlled price has been fixed by or under any law for the time being in force.Explanation I. The month and the year in which the commodity is pre-packed may be expressed either in words, or by numerals indicating the month and the year, or by both.Explanation II. Liquid milk does not include condensed milk.(2) Every dealer or other person who makes a retail sale of any commodity in packaged form shall, where local taxes have to be added to the price indicated on such package by the manufacturer or the packer, display prominently at a conspicuous place of the premises in which he carries on his retail sale, the rates at which local taxes are leviable in respect of the commodities sold in packaged form." 6. It is contended that sub-rule(2) of Rule 6 alone was applicable in the case because the goods in the form of Kodak films were being sold by the distributor and not by the manufacturer. it is further contended that sub-rule(1) of Rule 6 is applicable to the manufacturers alone. We are not satisfied with such submission. Accepting such a plea would result in frustrating the provisions of the 1986 Act and thereby encourage the retailers or distributors of foreign made goods to charge prices according to their convenience without letting the consumer know the actual price of the commodity. A perusal of Rule 6(1) of the Rules clearly shows that the stress of the sub-rule is upon the package and not upon the person manufacturing or selling the package. The provisions of sub-rule (2) apparently appear to be in addition to the obligations cast upon the manufacturer and the dealer under sub-rule (1) of Rule 6 of the Rules. We are also no impressed with the argument of the learned counsel for the appellant that before is amendment on 8.8.1986, Sub-rule (2) as it then stood cast such an obligation to display the price but not thereafter. By amendment provisions of sub-rules (2) and (3) appears to have been incorporated in sub-rule (2) only by deleting sub-rule (3). The superfluous and additional words existing in sub-rule (2) before its amendment were rightly deleted in view of the specific provisions of Chapter II comprising rule 3, 4, 5 and 6 as noted herein earlier. The declares are, therefore, obliged to comply with the provisions of sub-rule (1) of Rule 6 of the Rules notwithstanding the confusion if any conceived by them under Rule 6(2) before its amendment.7. During the course of the argument the learned counsel appearing for the respondent has shown as some packages of the Kodak films wherein the maximum retail price inclusive of all taxes has already been displayed. It is worth noticing that on those packages a specific mention is made of "not for resale outside India." It appears that the product of Kodak films, a multi-national company are being manufactured and distributed in India, thus neither the manufacturer nor the distributor or retailer can escape the liability of complying with the provisions of Rule 6 of the Rules.8. After examining the matter from various aspects, we do not find any infirmity or illegality in the order of the National Commission requiring interference.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]We are also no impressed with the argument of the learned counsel for the appellant that before is amendment on 8.8.1986, Sub-rule (2) as it then stood cast such an obligation to display the price but not thereafter. By amendment provisions of sub-rules (2) and (3) appears to have been incorporated in sub-rule (2) only by deleting sub-rule (3). The superfluous and additional words existing in sub-rule (2) before its amendment were rightly deleted in view of the specific provisions of Chapter II comprising rule 3, 4, 5 and 6 as noted herein earlier. The declares are, therefore, obliged to comply with the provisions of sub-rule (1) of Rule 6 of the Rules notwithstanding the confusion if any conceived by them under Rule 6(2) before its amendment.7. During the course of the argument the learned counsel appearing for the respondent has shown as some packages of the Kodak films wherein the maximum retail price inclusive of all taxes has already been displayed. It is worth noticing that on those packages a specific mention is made of "not for resale outside India." It appears that the product of Kodak films, a multi-national company are being manufactured and distributed in India, thus neither the manufacturer nor the distributor or retailer can escape the liability of complying with the provisions of Rule 6 of the Rules.8. After examining the matter from various aspects, we do not find any infirmity or illegality in the order of the National Commission requiring interference.