TVS ELECTRONICS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) M /s. TVS Electronics Limited (TVs Electronics, for brevity) and their General Manager filed instant writ petition questioning communications of respondents 4 and 5 (Inspectors of Legal Metrology, Tenali and Vijayawada respectively) informing that petitioners have committed offences under Section 39 of the Standards of Weights and Measures Act 1976 (for brevity, the Act) and Rule 23 (1) of the Standards of Weights and Measures (Packaged Commodity) Rules 1977 (hereafter, Package Rules) punishable under Section 67 and Rule 39 (1) of Package Rules. By impugned communication, petitioners were also informed that alleged offence is compoundable under Section 73 of the Act. If petitioners so desire, it was advised; they may pay necessary compounding fee within fifteen (15) days. Petitioners contend that the Act and Package Rules have no application to electronic printers (inkjet/laser/dot Matrix printers etc) manufactured and marketed by them and that impugned communications are without authority or jurisdiction. Thus the case involves an interesting question as to whether electronic printers manufactured and marketed by TVS Electronics are "packaged commodities" within the meaning of Package Rules and for non-compliance with Rules and specifications, TVS Electronics has committed compoundable offence as contended by Department of Legal Metrology, Government of Andhra Pradesh.

(2.) THE following brief fact of the matter is necessary to appreciate the question involved. TVS Electronics (a company registered under the Companies Act 1956) is engaged in the business of import, manufacture, distribution and sale of computer peripherals like inkjet printers, DOt Matrix printers, printer cartridges etc. , which are marketed in various States including Andhra Pradesh. Printers which are imported and/or assembled in their manufacturing unit in Tamil Nadu are distributed through their marketing outlets in various States, to retail dealers who sell them to needy customers through their sales staff. Electronic printers are fragile and are sensitive. Therefore they are protected by keeping in bubble fill covers, packing in well-insulated material to protect from damage. A consumer cannot readily use electronic printers. Computer compatible software drivers are to be installed before electronic printers are made useable. Just buying a printer from a retail dealer of TVs Electronics without proper installation of software is futile. They are ordinarily not sold 'off the shelf and are marketed as a single unit and not in lots of more than one piece.

(3.) UNION of India, first respondent, filed counter affidavit opposing writ petition. The contents thereof are as follows. Personal Computers (PCs), Printers and Printer accessories marketed and distributed by petitioners in pre-packed form, attract provisions of Package Rules. The products are manufactured in one State and sold throughout country. Therefore they come under inter-State transactions. Petitioners require to comply with provisions of the Act and Rules. Even if petitioners' products are sold as a single piece, they attract provisions of the Rules. Therefore it is necessary to make declaration on the package with regard to name and address of manufacturer, name of commodity, quantity, month and year of package as well as retail sale price in the form of MRP inclusive of ail taxes. Petitioners have not complied with provisions of Rules 4 and 6 of Package Rules and therefore action initiated against them is legally valid. The PCs and printers of petitioners fall under the definition of "pre- packed commodity" as per Rule 2 (l) of Package Rules. Non-compliance with provisions of the Act attracts penal provisions. Third respondent filed counter affidavit. Various averments therein are similar to counter averments of first respondent and therefore it is not necessary to re-summarise, except referring them at appropriate place whenever necessary. Rival submissions