Selling Mineral Water Above MRP Will Attract Fine, Jail Term: Centre to Supreme Court

The government said that charging over and above MRP is not only against consumer interest but also lead to tax evasion.

New Delhi, December 12: The Centre has told the Supreme Court that selling bottled mineral water above the maximum retail price (MRP) will result in monetary penalty and jail term for the management of restaurants, hotels, multiplexes etc. The government said that charging over and above MRP is not only against consumer interest but also lead to tax evasion.

“Sale of packaged water over MRP by hotels and restaurants may have implications regarding tax evasion as a bottle purchased by a hotel at cost price, which should be sold at MRP or less, is being sold at much higher prices, leading to possible loss of additional revenue to the government in the form of service tax or excise duty etc,” the government said, News18 reported.

A petition was filed by Federation of Hotel and Restaurant Associations of India (FHRAI). In response to it, the Ministry of Consumer Affairs has submitted an affidavit stating that overcharging for pre-packed or prepackaged products was an offence under the Legal Metrology Act.

According to Section 36 of Legal Metrology Act, anyone caught selling, distributing or delivering any pre-packaged commodity that does not conform to the declarations on the package shall be punished with fine up to Rs 25,000 for the first offence. For second offence, the fine can increase to Rs 50,000 and thereafter can attract a fine of up to Rs 1 lakh or imprisonment for one year or both.

A Bench headed by Justice Rohinton F Nariman will take up the matter for hearing on Tuesday.