TIOL-DDT 935 · Friday, 22 August 2008 · story 2 of 6

Standards of Weights and measures – industrial/institutional consumers

As per the Explanation to Rule 2A of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977,

a) Institutional consumer .– Means those consumers who buy packaged commodities directly from the manufacturers/packers for service industry like transportation [including airways, railways],hotel or any other similar service industry.

b) Industrial Consumer – Means those consumers who buy packaged commodities directly from the manufacturers/packers for using the product in their industry for production, etc.

There has been a request from the Trade to include intermediaries within the scope of industrial consumers/institutional consumers.

The Department of Consumer Affairs has clarified that,

The manufactures/importers are primarily responsible for making declarations on the package. Accordingly, the declaration/non-declaration of information on the package as required under the Rules, as the case may be, can be decided at their level only, depending upon the requirement of the Rules. Alternately, the intermediaries in the supply chain are not supposed to make/alter declaration on the package.

So any proposal to include intermediaries in the 'Explanation' to industrial consumers/institutional consumers is prone to misuse.

So the Department regrets that it cannot concede to this request.

Is there any Excise implication to this in the context of MRP valuation?

No. WM-10(8)/2005 of the Department of Consumer Affairs , Dated: May 12, 2008