Now hotels can sell water bottles above MRP | Fusion - WeRIndia

Now hotels can sell water bottles above MRP

Now hotels can sell water bottles above MRP

MRP refers to the maximum retail price at which sellers can sell something.

Even though, it is clear that they cannot sell above the MRP, many sellers and shop owners simply ignore it and sell in their own way.

People who visit cinema halls might have experienced this in their life. The sellers have no fear to sell above MRP even with the existence of rules.

But, now in a shocking ruling, the Apex Court yesterday stated that hotels and restaurants can sell mineral water bottles above MRP in response to the affidavit submitted by the Ministry of Consumer Affairs.

It was also said that hotels and restaurants are not bound by the MRP in case they sell bottled mineral water as the provisions of Legal Metrology Act will not be applicable for them.

Hence, they cannot be prosecuted even if they sell packaged water bottles above MRP.

Earlier, the central government had told Court that those who sell bottled mineral water above MRP would have to pay monetary penalty. They will also get imprisonment for this offence.

The argument of government is that selling above MRP is tax evasion and loss of revenue which could have been received in the form of service tax or excise duty.

However, the Supreme Court’s version is different with it.

It says that no consumer goes to hotel to buy a mineral water bottle. So, it does not come under simple sale.

The Court also stated that composite elements of sale and service are mixed in this matter, and hotels invest in commercial establishments which are enjoyed by the consumers.

So, they can sell water bottles above the specified price. This allows restaurants to earn more profits by stealing publicly which is going on secretly so far.

Image credit: Photo by Sara Dubler on Unsplash (Free for commercial use)

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