Hotels & restaurants can sell bottled water above MRP, rules SC
13 Dec 2017 12:07 AM IST
New Delhi: The Supreme Court on Tuesday held that hotels and restaurants are not bound by the maximum retail price (MRP) when they sell bottled mineral water.
A bench led by Justice Rohinton F Nariman held that provisions of Legal Metrology Act would not be applicable in selling bottled water in hotels and restaurants and therefore, no prosecution can be launched against them for selling above MRP.
The court noted that composite elements of sale and service are there in hotels and restaurants where consumers also enjoy the ambience, invested into by these commercial establishments.
"It is not a case of simple sale. Nobody goes to a hotel to buy or take away a bottle of mineral water," observed the bench. It rejected the government's argument that even a sale in hotels would require mandatory compliance with the provision of the Act and that there would be jail term and fine for selling above MRP.
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