RESTAURANTS, HOTELS CAN SELL BOTTLED WATER ABOVE MRP: SC
NEW DELHI: The Supreme Court allowed hotels and restaurants on Tuesday to sell bottled drinking water and packaged food at more than the maximum retail price (MRP) printed on these items.
The court rejected the government’s argument that overcharging for pre-packed or packaged products was an offence under the legal metrology act, which attracts a fine of ₹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. NEW DELHI: India suffered a macroeconomic setback on Tuesday with retail inflation unexpectedly accelerating to a 15-month high of 4.88% in November and industrial production slowing to 2.2% in October.
Retail inflation, which rose 3.58% in October, quickened the month after mainly on account of rising fuel and food prices. While fuel price inflation accelerated to 7.9%, food price inflation was up 4.4% in November.
Separate data released by the government showed that India’s factory output, measured by the Index of Industrial Production (IIP), slowed in October from an upwardly revised 4.14% in September.
While inflation data revealed the growing downside risk of rising crude oil prices, the deceleration in factory output suggests the turnaround in investment and demand is yet to resume in earnest.