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LIST OF PROVISIONS AND CASES MRP

1) LEGAL METROLOGY ACT SECTION 36(1)- Whoever manufactures, packs, imports, sells, distributes,
delivers or otherwise transfers, offers, exposes or possesses for sale, or causes to be sold, distributed,
delivered or otherwise transferred, offered, exposed for sale any pre-packaged commodity which does not
conform to the declarations on the package as provided in this Act, shall be punished with fine which may
extend to twenty-five thousand rupees, for the second offence, with fine which may extend to fifty thousand
rupees and for the subsequent offence, with fine which shall not be less than fifty thousand rupees but which
may extend to one lakh rupees or with imprisonment for a term which may extend to one year or with both.

2) Over-charing is also considered to be an unfair trade practice, as defined under the Consumer Protection
Act.
A) Section 11(1) - No person shall, in relation to any goods, things or service,- «(I) quote, or make
announcement of, whether by word of mouth or otherwise, any price or charge, or (b) issue or
exhibit any price list, invoice, cash memo or other document, or (c) prepare or publish any
advertisement, poster or other document, or (d) indicate the net quantity ofa pre-packaged
commodity, or (e) express in relation to any transaction or protection, any quantity or dimension,
otherwise than in accordance with the standard unit of weight, measure or numeration.

3) section 34 - Whoever sells, or causes to be sold, delivers, or causes to be delivered, any


commodity, article or thing by any means other than the standard weight or measure or number,
shall be punished with fine which shall not be less than two thousand rupees but which may extend
to five thousand rupees and, for the second or subsequent offence, with imprisonment for a term
which shall not be less than three months but which may extend to one year, or with fine, or with
both.

List of Cases / relevant articles-

1) Quick Heal Technologies Private ... vs State Of Chhattisgarh And Ors on 2 November, 2015
2) https://economictimes.indiatimes.com/wealth/spend/is-your-restaurant-
overcharging-you-in-the-name-of-gst-learn-how-to-decode-the-
bill/articleshow/59559831.cms

3) https://indiankanoon.org/doc/7942451/
“"After giving our thoughtful consideration, we are of the considered opinion that
no one can charge more than the MRP and MRP includes all taxes including
VAT/other taxes. When MRP is including all taxes then VAT/other taxes cannot
be charged separately. Meaning thereby that MRP includes VAT and after
discount no VAT can be charged, so on discounted product also VAT cannot be
charged if VAT is included in MRP.

4) A similar question arose for determination before the Hon'ble State Consumer
Disputes Redressal Commission, U.T. Chandigarh in First Appeal No.210 of
2015, decided on 01.09.2015 in case titled as "Shoppers Stop and others
Versus Jashan Preet Singh Gill and Others", wherein it has been held that no
one can charge more than the MRP and MRP includes all taxes including
VAT/other taxes. When MRP is including all taxes then VAT/other taxes cannot
be charged separately. In a recent decision in Appeal No.61 of 2016, decided on
18.02.2016, in case titled as "Benetton India Private Limited Vs. Ravinderjit
Singh", the Hon'ble State Consumer Disputes Redressal Commission, U.T.
Chandigarh, while dismissing the appeal filed by the Appellant (Benetton India
Pvt. Limited) has held that if it is clearly mentioned as MRP inclusive of all taxes,
charging of extra VAT or tax, is certainly against the trade practice.

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