In the recent past, we had informed that Rule 3 of the Legal Metrology (Packaged Commodities) Rules, 2011 states that the provisions of chapter relating to packages intended for retail sale would not apply to packaged commodities meant for industrial or institutional consumers. The said Rule in explanation includes hotels/restaurants under institutional consumers.

This is to further inform members that the Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs) has made amendments vide notification G.S.R. 385(E) dated 14th May 2015 to the Legal Metrology (Packaged Commodities) Rules 2011, wherein the definition of ‘Institutional Consumer’ has been changed as follows:

“Institutional Consumer” means the institution who hires or avails of the facilities or services in connection with transport, hotel, hospital or other organisation which buy packaged commodities directly from the manufacturer or from an importer or from wholesale dealer for use by that institution, and the package shall have declaration ‘not for retail sale’.

With introduction of this declaration condition, the issue of whether to charge at MRP or above MRP for packaged commodities (water, beverages etc.) would be dictated by the absence or presence respectively of the above mentioned declaration ‘not for retail sale’.