Legal Metrology (Packaged Commodities) Rules, 2011 amended - S. 4A of CEA, 1944 in turmoil?
LEGAL Metrology (Packaged Commodities) Rules, 2011 have been amended by Notification No. GSR 359(E) dated 06.06.2013 issued by the Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs), New Delhi.
The definition of the terms ‘industrial consumer' & ‘institutional consumer' have been independently notified as separate rules 2(bb) and 2(bc). Earlier they were appearing as Explanation (ii) and (i) to Rule 3 of the Rules. The result of this amendment would be that these definitions would now be applicable to the entire Packaged Commodities Rules instead of being restricted to Rule 3.
The definition of ‘retail package' contained in rule 2(k) now omits the proviso clause meaning to say that a ‘retail package' would now include an ‘industrial' as well as an ‘institutional consumer' as the ultimate consumer.
The above changes have come in to effect from 06.06.2013.
Synopsis of the changes in tabular format :
Sl. No. | Particulars | Definition prior to 06.06.2013 | Definition on and from 06.06.2013 |
|---|---|---|---|
1 | Industrial consumer - Insertion of new rule 2(bb) | Contained in Explanation (ii) to Rule 3 - “industrial Consumer” means the industrial consumer who buy packaged commodities directly from the manufacturer for use by that industry | “industrial consumer” means the consumer who buys packaged commodities directly from the manufacturer for use by that industry; |
2 | ‘institutional consumer' - insertion of new rule 2(bc) | Contained in Explanation (i) to Rule 3 earlier - “institutional consumer” means the institutional consumer like transportation, Airways, Railways, Hotels, Hospitals or any other service institutions who buy packaged commodities directly from the manufacturer for use by that institution. | “Institutional consumer” means any institution which hires or avails of the facilities or service in connection with transport, hotels, hospitals or such other service institutions which buy packaged commodities directly from the manufacturer for use by that institution; |
3 | Rule 2(k) | “Retail package” means the packages which are intended for retail sale to the ultimate consumer for the purpose of consumption of the commodity contained therein and includes the imported packages: Provided that for the purpose of this clause, the expression ‘ultimate consumer' shall not include industrial or institutional consumers; | Proviso to clause omitted. |
Hopefully, with these changes, Section 4A of the Central Excise Act, 1944 prescribing MRP based valuation for Notified goods would breathe easy or is it going to be in turmoil.
But is the CBEC aware of these changes and will it issue any clarification on the implications thereof?
Notification No. GSR 359(E) dated 06.06.2013 [Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs), New Delhi]