Chapter II — Dealers, inspection and permissible error

Rule 18. Provisions relating to wholesale dealer and retail dealers

(1) No wholesale dealer or retail dealer or importer shall sell, distribute, deliver, display or store for sale any commodity in the packaged form unless the package complies with in all respects, the provisions of the Act and these rules.

(2) No retail dealer or other person including manufacturer, packer, importer and wholesale dealer shall make any sale of any commodity in packed form at a price exceeding the retail sale price thereof.

(3) Where, after any commodity has been pre-packed for sale, any tax payable in relation to such commodity is revised, the retail dealer or any other person shall not make any retail sale of such commodity at a price exceeding the revised retail sale price, communicated to him by the manufacturer, or where the manufacturer is not the packer, the packer, and it shall be, the duty of the manufacturer or packer as the case may be, to indicate by not less than two advertisements in one or more newspapers and also by circulation of notices to the dealers and to the Director in the Central Government and Controllers of Legal Metrology in the States and Union Territories, the revised prices of such packages but the difference between the price marked on the package and the revised price shall not, in any case, be higher than the extent of increase in the tax or in the case of imposition of fresh tax higher than the fresh tax so imposed:

Provided that publication in any newspaper, of such revised price shall not be necessary where such revision is due to any increase in, or imposition or, any tax payable under any law made by the State Legislation:

Provided further that the retail dealer or other person, shall not charge such revised prices in relation to any packages except those packages which bear marking indicating that they were pre-packed in the month in which such tax has been revised or fresh tax has been imposed or in the month immediately following the month aforesaid;

Provided also that where the revised prices are lower than the price marked on the package, the retail dealer or other person shall not charge any price in excess of the revised price, irrespective of the month in which the commodity was pre-packed.

(4) Nothing in sub-rule (3) shall apply to a package which is not required, under these rules to indicate the month and the year in which it was pre-packed.

(5) No wholesale dealer or retail dealer or other person shall obliterate, smudge or alter the retail sale price, indicated by the manufacturer or the packer or the importer, as the case may be, on the package or on the label affixed thereto.

(6) The manufacturer or packer or the importer shall not alter the price on the wrapper once printed and used for packing.

(7) All retailers who are covered under the Value Added Tax (VAT) or Turn Over Tax (TOT) and dealing in packaged commodities whose net content declaration is by weight or volume or a combination thereof shall maintain a electronic weighing machine of at least accuracy class III, with smallest division of at least 1 g, with facility to issue a printed receipt indicating among other things, the gross quantity, price and the like at a prominent place in their retail premises, free of cost, for the benefit of consumers and the consumers may check the weight of their packaged commodities purchased from the shop on such machine.

Rule 19. Inspection of quantity and error in packages at the premises of the manufacturer or packer

(1) With a view to ascertaining whether any package or lot of packages complies with provisions of these rules in all respects, the Director, Controller or any Legal Metrology Officer empowered to inspect under section 15 of the Act (hereafter referred to as in these rules as the "authorized person") may examine the packages and carry out the tests at the premises of the manufacturer or where the manufacturer is not the packer, of the packer and when he carries out such examination or tests, he shall draw samples from such lot of packages, in such manner and in such number as are specified in the Fifth Schedule and the tests aforesaid shall be carried out in accordance with the method specified in the Sixth Schedule.

(2) The Director, Controller or any Legal Metrology Officer shall enter in the Form set out in the Seventh Schedule, the detailed results of the tests carried out by him under sub-rule (1) and shall obtain, on the said Form, the signature of the manufacturer or, as the case may be, of the packer, or his authorized agent, or, in the absence of both, or on their refusal to affix such signature, the signature of a competent witness and copy of the data sheet containing the result shall be given to the manufacturer or packer, as the case may be.

(3) On the completion of the examination and tests carried out under sub-rule (1), the Director, Controller or any Legal Metrology Officer shall make a report indicating therein his findings with regard to the declarations required to be made under these rules and as to the net quantity actually contained in the sample packages and the extent of error, if any, noticed by him and furnish a copy of such report to the manufacturer or the packer, as the case may be.

(4) If it appears from the report referred to in sub-rule (3) that —

(a) the statistical average of the net quantity contained in the packages drawn as samples is lesser than the quantity declared on the packages or on the labels affixed thereto; or

(b) any such package shows an error in deficiency greater than the maximum permissible error,

the Director, Controller or any Legal Metrology Officer shall, if for good and sufficient reason, requested by the manufacturer or packer or his authorized agent, so to do, take out as soon as may be practicable, fresh samples and carry out fresh tests in accordance with the provisions of these rules and where fresh tests are made, the Director, Controller or any Legal Metrology Officer, as the case may be, shall collect a fee of rupees two thousand five hundred for carrying out fresh test.

Provided that where fresh tests are carried out, no package contained in the lot, which was previously tested under this rule, shall be sold or distributed by the manufacturer or packer, as the case may be, unless the provisions of the sub-rule (5) or as the case may be, sub-rule (6), are complied with.

(5) (a) Where, as a result of any test carried out under this rule, it is found that any package contained in the lot does not conform to all or any of the provisions of the Act or of these rules, the manufacturer or the packer shall make a cent per cent check of the packages contained in the lot and pick out from the lot the packages which conform to all the provisions of the Act and of these rules.

(b) When the Director, Controller or any Legal Metrology Officer is satisfied that the packages picked out by the manufacturer or packer conforms to all the provisions of the Act and of these rules, he shall authorize the sale, distribution or delivery of such packages.

(c) Where, as a result of such cent per cent check by the manufacturer or packer, any package is found to be not conforming to all or any or of the provisions of the Act or of these rules, such package shall not be sold, distributed or delivered until it has been re-packed, re-processed or relabeled, as the case may be, in accordance with the provisions of the Act and of these rules.

(6) A lot of packages shall be approved for sale if, and only if, as a result of the tests carried out under this rule, it is found that —

(a) the statistical average of the net quantity contained in the sample packages is equal to, or more than, the quantity declared on the package or on the label affixed thereto;

(b) the extent of error in deficiency in none of such sample packages exceeds the maximum permissible error;

(c) each such package bears thereon or on a label affixed thereto the declarations required to be made under these rules.

(7) The requirement of mandatory declarations on the packages shall be ensured either at the factory level or at the depot of the factory.

(8) For non-compliance of the provisions of this rule, action may be taken after seizing five representative samples of the packages as evidence and the rest of the packages may be released (once compliance is ensured) by the manufacturer or the packer, as the case may be.

Rule 20. Action to be taken on completion of inspection at the premises of the manufacturer or packer

(1) If it appears from the report referred to in sub-rule (3) of rule 19 that —

(a) the statistical average of the net quantity contained in the packages drawn as samples under that rule is lesser than the quantity declared on the packages or on the labels affixed thereto, or any such package shows an error in deficiency greater than the maximum permissible error, or

(b) any such package does not bear thereon or on label affixed thereto the declarations to be made under these rules,

the Director, Controller or any Legal Metrology Officer shall take the following action, namely:—

(i) seize the packages drawn by him as samples and shall take adequate steps for the safe custody of the seized packages until they are produced in the appropriate court as evidence;

(ii) based on the evidence initiate action for violations of the provisions of the Act and these rules:

Provided that no such action shall be taken if fresh tests are carried out under sub-rule (4) of rule 19, but if after such fresh tests any such error or omission as is referred to in this sub-rule is detected, the Director, Controller or any Legal Metrology Officer shall take appropriate action as specified in this sub-rule in accordance with the provisions of the Act against the manufacturer or, as the case may be, the packer.

(2) The disposal of the seized packages shall be made in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974).

Rule 21. Inspection of quantity and error in packages at the premises of the wholesale dealer or retail dealer

(1) Ordinarily, any test in relation to the net quantity contained in a package shall not be carried out at the premises of the retail dealer or the wholesale dealer, unless —

(i) a complaint is received by the Director or the Controller or any Legal Metrology Officer to the effect that the package sold or delivered to the complainant does not contain the quantity declared on such package or on the label affixed thereto;

(ii) the Director or the Controller or any Legal Metrology Officer has reason to suspect that any package has been tampered with or that there has been any pilferage or leakage of the commodity contained in the packages;

(iii) the Director or the Controller or any Legal Metrology Officer and any package, or any label affixed thereto, does not bear thereon all or any of the declarations which are required to be made under these rules.

(2) Where any test is carried out in pursuance of the provisions of sub-rule (1), the Director, Controller or any Legal Metrology Officer shall verify whether the quantity contained in the package corresponds to the quantity declared on such packages or any label affixed thereto and where quantity contained in package is less than the declared quantity, whether the deficiency is more than the maximum permissible error in relation to that commodity.

(3) Where the Director, Controller or any Legal Metrology Officer finds on a test carried out under this rule that the error in deficiency in any package kept or stored for sale, distribution or delivery at the premises of the retail or wholesale dealer is more than the maximum permissible error in relation to that commodity, he shall seize such package and take appropriate action against the retail dealer or the wholesale dealer, as the case may be, in accordance with the provisions of the Act:

Provided that where the package bears the legend 'when packed', no punitive action shall be taken against the retail dealer or wholesale dealer if the Director, Controller or any Legal Metrology Officer is satisfied after necessary test that the deficiency in the net quantity contained in package is due to environmental conditions.

(4) Where as a result of any test made under this rule, it is found that the net quantity contained in the package conforms to the declared quantity or where there is a deficiency, such deficiency is not more than the maximum permissible error, the retail dealer shall be at liberty to sell or deliver or distribute such commodity at the price determined on the basis of the quantity found on such tests.

(5) Where, as a result of any test made under this rule, it is found that any package, or any label affixed thereto, does not bear thereon all or any of the declarations required to be made under these rules, it shall be lawful for the Director, Controller or any Legal Metrology Officer to make such enquiries as to the source from which such package was received by the whole sale dealer or the retail dealer as the case may be, as he may think fit.

Rule 22. Establishment of maximum permissible error on package

(1) The maximum permissible error in relation to the commodities shall be such as is indicated in the First Schedule.

(2) While establishing the maximum permissible error in relation to the net quantity of commodities contained in packages, due account shall be taken of the following causes which may lead to variation in quantity, namely:—

(a) variations caused by unavoidable deviation in weighing, measuring or counting the contents of individual packages that may occur in good packaging practice;

(b) variations caused by the ordinary and customary exposure to conditions, such as, climate, transport, storage or the like that normally occur in good distribution practice after the commodity is introduced in trade or commerce; and

(c) variations due to the nature of packaging material or container.

(3) The Director or Controller or the Legal Metrology officer shall determine, or cause to be determined, in relation to any commodity, the declaration in respect of the net quantity of which is permitted to be qualified by the words 'when packed'; the reasonable variations which may take place by reason of the environmental conditions.

Rule 23. Deceptive packages to be repacked or in default to be seized

(1) If, on the determination of the quantity contained in the sample packages, the Director or Controller or the Legal Metrology officer finds that the quantity contained in the package agrees with the declaration of the quantity made on the package or label thereon but the package is a deceptive package, he shall require the manufacturer or the packer, as the case may be, to repack and re-label such package and in the event of the omission or failure on the part of the manufacturer or the packer, as the case may be, to repack or re-label such deceptive package, in accordance with the standards established by or under these rules, seize them, take appropriate punitive action in accordance with the Act and take adequate steps for the safe custody of such packages until they are produced in a court as evidence.

Explanation: For the purpose of this rule, 'deceptive package' means a package which is so designed as to deliberately given to the consumer an exaggerated or misleading impression as to the quantity of the commodity contained therein, except where bigger dimensions of the package can be justified by the manufacturer or the packer, as the case may be, on the ground that such dimensions are necessary for giving protection to the commodity contained in such package or for meeting the requirements of the machine used for filling such package.

(2) If the seized packages contain any commodity which is subject to speedy or natural decay, the Director or Controller or the Legal Metrology officer shall dispose of the commodity in accordance with the rules made under the Act.

Amendment history