9911796707
TMI Blog2020 (1) TMI 1574X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the case are that, respondent No.1 herein is a joint venture company between Larsen & Tourbo Limited and respondent and the non-resident Messer Eutectic Castolin Group. Respondent No.1 is engaged in manufacturing welding products such as electrodes, brazing roads, powders and fluxes and selling thereof. These welding products are used mainly in repairs and maintenance work on costly industrial equipments and these are not meant for use in conventional fabrication work. A specialized welding technology process which has been patented as "Eutectic Castolin Welding Process" is used. Respondent No.1 is selling the products to its associate company and selling agent, respondent No.2. The business division of respondent No.2 is selling thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asures (Package Commodities) Rules, 1977 (for short 'the PC Rules'). The respondents were received with the notice dated 11.09.2007 from appellant No.2. The respondents gave a reply to the said notice and explained that the provisions of the Standards of Weights and Measures Act, 1976 (for short 'the Act') and the PC Rules are not applicable to the packages of welding electrode products as these are meant for industrial consumers. These products are very costly in comparison to normal products used by fabricators and not economical for the small users. The respondents again received one more notice dated 26.10.2007 from appellant No.2 informing the respondents that they were directed to appear before him on 05.11.2007 before the authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of Rule 2(p) that the ultimate consumer shall not include industrial or institutional consumer, provided that the same package is bought by such consumer directly from the manufacturer/packer for using the product in their industry for production, etc., as produced in Rule 2- A(b). They further contended that the packages in question seized by the appellants are retail packages and the process involved is retail sale and the notice issued by the appellants are just and legal and the same is as per law and the respondents have failed to comply with the provisions of the Act and Rules. Therefore, no case for striking down the provisions of the Act nor for quashing the impugned notice is made out and sought for dismissal of the writ pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not correct. 7. The learned single Judge has framed the following point for consideration: "Whether the requirement of Rule 6 is to be complied with by a manufacturer who sells his packaged goods to an industrial consumer through a stockiest? 8. The learned single Judge was pleased to observe that the word 'consumer' is not defined under the Act or the Rules and considered the word 'consumer' from the dictionary. As per the Black's Law Dictionary, Eighth Edition, the word 'consumer' is defined as a person who buys the goods or services for personal, family or household use, with no intention of resale, a natural person who uses products for personal rather than business purposes. The words 'consumer product' is defined as an item of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the package, as contained in Rule 6(1)(b). 11. The learned single Judge considering the definitions of 'retail package', 'retail sale', 'retail sale price' and considering Clause (a) of Rule 34 of the Rules held that Rule 34 expressly exclude the application of Rule 6 to any package containing a commodity if the making on the package unambiguously indicates that it has been specially packed for the exclusive use of any industry as a raw material or for the purpose of servicing any industry, mine or quarry. The packages meant for industry, mine or quarry, did not fall within these Rules. 12. From the perusal of the Rule 2-A, the explanation expressly states that 'For the purpose of this rule' and then gives the meaning of institutional c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ail package is meant, excluded institutional or industrial consumer. Thus, it is clear that the protection under this Act is confined only to individuals and persons who are eking out livelihood by self employment and not to institutional and industrial consumers or consumers who purchase goods in large quantities. 14. In the present case, respondent No.1 is a manufacturer of industrial product. On the packet, it is expressly stated that it is meant for industrial use. The product which is manufactured by them is high end industrial welding products, such as electrodes, brazing rods, powders and fluxes. Respondent No.2 is their selling agent and selling these products through a network of stockiest spread all over India, 90% of the sales a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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