SC splashes water on MRP stickers: Hotels and Restaurants can sell bottled water higher than its retail price

New Delhi, December 13: Supreme Court has made hotels and restaurants free bees as they will be able to sell bottled water higher than its MRP. The Apex Court rejected Centre's stand saying hotels can't be prosecuted for selling bottled water above MRP.

It is not an offence to sell the bottled water at a higher rate than MRP because at the end of the day they are providing service to the customers says SC. The Central Sgovernment had argued that overcharging for pre-packed or packaged products was an offence under the Legal Metrology Act, which attracts a fine of Rs 25,000 or a jail term.

The ministry of consumer affairs, which had filed a case which argued that selling above the MRP could lead to tax evasion and loss of revenue for the government.

Sale of packaged water over MRP by hotels and restaurants may have implications regarding tax evasion as a bottle purchased by a hotel at cost price, which should be sold at MRP or less, is being sold at much higher prices, leading to possible loss of additional revenue to the government in the form of service tax or excise duty.

The debate against MRP of bottled water is since 2003 in which Delhi’s Hotel association had approached Delhi High Court in which the Delhi High Court had rejected the plea to sell bottled water above the MRP rates. The case was approached in the Apex Court, which was pampered by the Court in the favor of petitioners.