{"id":5310,"date":"2020-09-24T16:09:06","date_gmt":"2020-09-24T16:09:06","guid":{"rendered":"https:\/\/lexforti.com\/legal-news\/?p=5310"},"modified":"2021-01-17T05:23:03","modified_gmt":"2021-01-17T05:23:03","slug":"hotels-and-restaurants-allowed-to-charge-a-price-higher-than-mrp-on-water-bottles","status":"publish","type":"post","link":"https:\/\/lexforti.com\/legal-news\/hotels-and-restaurants-allowed-to-charge-a-price-higher-than-mrp-on-water-bottles\/","title":{"rendered":"Hotels and restaurants allowed to charge a price higher than MRP on water bottles"},"content":{"rendered":"\n<p>Sabareesh Pillay | School of Law, University of Mumbai Thane Sub-Campus | 24th September 2020<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_47_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-6a2d4cbe6da40\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-6a2d4cbe6da40\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lexforti.com\/legal-news\/hotels-and-restaurants-allowed-to-charge-a-price-higher-than-mrp-on-water-bottles\/#Federation_Of_Hotel_And_Restaurant_Associations_Of_India_Vs_Union_Of_India\" title=\"Federation Of Hotel And Restaurant Associations Of India Vs Union Of India\">Federation Of Hotel And Restaurant Associations Of India Vs Union Of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lexforti.com\/legal-news\/hotels-and-restaurants-allowed-to-charge-a-price-higher-than-mrp-on-water-bottles\/#FACTS\" title=\"FACTS:\">FACTS:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lexforti.com\/legal-news\/hotels-and-restaurants-allowed-to-charge-a-price-higher-than-mrp-on-water-bottles\/#ISSUE\" title=\"ISSUE:\">ISSUE:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lexforti.com\/legal-news\/hotels-and-restaurants-allowed-to-charge-a-price-higher-than-mrp-on-water-bottles\/#PETITIONER_CONTENTION\" title=\"PETITIONER CONTENTION:\">PETITIONER CONTENTION:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lexforti.com\/legal-news\/hotels-and-restaurants-allowed-to-charge-a-price-higher-than-mrp-on-water-bottles\/#RESPONDENT_CONTENTION\" title=\"RESPONDENT CONTENTION:\">RESPONDENT CONTENTION:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lexforti.com\/legal-news\/hotels-and-restaurants-allowed-to-charge-a-price-higher-than-mrp-on-water-bottles\/#JUDGEMENT\" title=\"JUDGEMENT:\">JUDGEMENT:<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Federation_Of_Hotel_And_Restaurant_Associations_Of_India_Vs_Union_Of_India\"><\/span><strong>Federation Of Hotel And Restaurant Associations Of India Vs Union Of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FACTS\"><\/span><strong>FACTS:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em>In this case, a writ petition was filed against various hotels and restaurants by the federation of hotel and restaurant associations of India- The petitioner. The concern of the petitioner was that, hotels and restaurants were charging higher price than the Maximum Retail Price (MRP) of Packaged drinking water and that this was against the law as according to the law, no commodity should be charged higher than the Maximum Retail Price. It was alleged that the hotels and restaurants charged higher than the MRP in the garb of providing service and ambience.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ISSUE\"><\/span><strong>ISSUE:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em>Under section 57 of the Legal Metrology Act, 2009 and under section 366 (29A) (F) of the Constitution of India.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PETITIONER_CONTENTION\"><\/span><strong>PETITIONER CONTENTION:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em>The petitioner citing Section 366 (29A) (F) of the Indian constitution:<\/em><\/p>\n\n\n\n<p><em>&nbsp;\u201c tax on the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made\u201d&nbsp;<\/em><\/p>\n\n\n\n<p><em>Said that, according to this law no extra charges should be charged in the name of transfer or supply of goods. So the restaurants and hotels should not be allowed to charge higher amounts.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RESPONDENT_CONTENTION\"><\/span>RESPONDENT CONTENTION:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em>The respondent contended that all the jurisdictional allegations made by the plaintiff is not valid as in context of the section as according to the section 57 of legal metrology act, that particular section has already been revoked and also emphasized on the concept of the possibility to divide the \u201cservice element\u201d, which is the dominant element, from the \u201csale element\u201d, it is clear that such specific contracts cannot be the subject-matter of sales tax legislation and there is not a particular definition on how to differentiate it. So, there is no curse of action that should be taken against the restaurant or hotels.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"JUDGEMENT\"><\/span>JUDGEMENT:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em>The single bench of Justice R.F Nariman gave the judgment that, charging higher prices of packaged drinking water than that of the MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions as the customer does not only come to the hotel or restaurant to buy the bottled water but also for other things which includes the service and ambience of the particular hotel or restaurant and the customer is aware of these things, thus no action can be taken against the respondents. Thus, the wit petition was dismissed by the Supreme Court.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sabareesh Pillay | School of Law, University of Mumbai Thane Sub-Campus | 24th September 2020 Federation Of Hotel And Restaurant Associations Of India Vs Union Of India FACTS: In this case, a writ petition was filed against various hotels and restaurants by the federation of hotel and restaurant associations of India- The petitioner. The concern [&hellip;]<\/p>\n","protected":false},"author":167,"featured_media":5312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[66,101,26],"tags":[2188],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Hotels and restaurants allowed to charge a price higher than MRP on water bottles - LexForti<\/title>\n<meta name=\"description\" content=\"charging higher prices of packaged drinking water than that of the MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lexforti.com\/legal-news\/hotels-and-restaurants-allowed-to-charge-a-price-higher-than-mrp-on-water-bottles\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hotels and restaurants allowed to charge a price higher than MRP on water bottles - 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