LMD recovers Rs 50000 fine from steel manufacturing firm for overcharging

LMD recovers Rs 50000 fine from steel manufacturing firm for overcharging

POONCH, OCTOBER 17: Legal Metrology Department Poonch today imposed a fine of Rs. 50000 on a Steel Products manufacturing firm for charging and promoting extra GST over and above printed MRP on non-standard packs which is not only a penal Offence under Consumer Protection Laws but also under Legal Metrology (Packaged Commodities) Rules, 2011.

Assistant Controller, Kewal Krishan said that a case was registered against the firm after a routine Departmental inspection team detected that the general interest of consumers was being compromised and the purchasers were made to pay over and above MRP (Inclusive of all taxes) on some sealed packs of hardware which were offered for sale in the market carrying declarations of MRP with extra GST.

He said as per provisions of Law, no amount over and above Maximum Retail Price (MRP) can be charged as the MRP itself is inclusive of all kinds of taxes including GS. Basically, the MRP printing on the products is the maximum ceiling limit below which a consumer can bargain with the traders for the best settlement of purchase agreement and accordingly make an informed decision.

Earlier, the firm was booked and taken to task by issuing legal notice for grossly violating law and promoting dealers in open market adopting anti-consumer practices by charging over and above MRP on the pretext of Extra GST.

The defaulting party admitted to the lapses and requested the department for compounding of the offence. The Assistant Controller on written submission compounded the case and realized an amount of Rs.50000 into the government exchequer.