CIR NO.843/01/2007-CX, DT. 17/01/2007
Bulk sale of ice-cream to hotels/restaurants- Applicability of provisions of Standards of Weight & Measures(Packaged Commodities) Rules,1977
1. I am directed to refer to
Circular No. 625/16/2002–CX, dated 28th February, 2002. Para 4 of the said Circular gave an example that in respect of bulk sale of ice-cream to hotels/restaurants, which are not meant for retail sales as such, the provisions of the Standards of Weights and Measures Act will not apply.
2. Para 7 of the said Circular is reproduced below for ease of reference:
“7. Instances of dispute could arise between the department and the assessee as to whether, in respect of a particular commodity/transaction, the assessee is exempted from declaring the retail price or not. In case of such doubt a clarification may be obtained from the concerned Deptt. (generally the Metrology Deptt.) of the State Government.”
3. In response to a reference made by this Department to Weights & Measure Unit, Department of Consumer Affairs, Director (Legal Metrology) has opined that bulk sale of ice-cream in packages to hotel/catering industry etc., is not covered under Rule 34(a) of the Standards of Weight & Measures (Packaged Commodities) Rules, 1977 as ice cream cannot be treated as raw material and therefore the provisions of the standards of Weights and Measures Act and Packaged Commodities Rules, 1977 shall apply.
4. In view thereof, and in the light of para 7 of Circular No. 625/16/2002–CX , dated 28th February, 2002, it stands clarified that bulk sale of ice cream in packages to hotel/catering industry etc. is required to comply with the provisions of Standards of Weight & Measures (Packaged Commodities) Rules, 1977, and accordingly, the assesee is required to declare the retail sale price on such packages.
5. Trade and Field formations may be suitably informed.
6. Hindi version will follow.
7. Receipt of this Circular may kindly be acknowledged.
(Gaurav Sinha)
Under Secretary (CX.I)
F. No. 6/44/2000-CX.I
Presented by eximkey.com