IN THE HIGH COURT AT CALCUTTA
SHAMPA DUTT (PAUL), J.
M/s. Flemingo Duty Free Shop Pvt. Ltd. & Ors. – Appellants
Versus
Shri Kaushik Bhattacharya & Anr. – Respondents
CRR 819 of 2019
Decided on : 24-04-2024
Legal Metrology Act - Duty Free Shops - Section 36(1) of the Legal Metrology Act, 2009 read with Rule 32 (3) of the Legal Metrology (Packaged Commodities) Rules, 2011 - The judgment discusses the application of the Legal Metrology Act to goods sold in duty free shops at international airports, emphasizing the jurisdictional limitations and the obligations of duty free shop operators. The court quashed the proceedings, citing lack of jurisdiction of the complainant and the serious nature of the alleged offences.
Fact of the Case:
The petitioners, duty free shop operators, were charged with offences under the Legal Metrology Act for selling goods with packaging deficiencies at an international airport duty free shop. The trial court dismissed their discharge application, leading to the present revision.
Finding of the Court:
The court found that the complainant lacked authority to initiate proceedings against the petitioners for alleged offences that took place in a duty free shop at an international airport, beyond the customs frontiers of India. The court quashed the proceedings, citing lack of jurisdiction of the complainant.
Issues: The main issue was the jurisdictional authority of the complainant to initiate proceedings against the duty free shop operators for alleged offences under the Legal Metrology Act, given that the duty free shop was located beyond the customs frontiers of India.
Ratio Decidendi: The court held that the complainant did not have the authority to initiate proceedings against the duty free shop operators for alleged offences that took place in a duty free shop at an international airport, beyond the customs frontiers of India. The lack of details on the packaging of goods raised concerns about consumer safety.
Final Decision: The court allowed the revision, quashing the proceedings in the case under Section 36(1) of the Legal Metrology Act, 2009 read with Rule 32 (3) of the Legal Metrology (Packaged Commodities) Rules, 2011. The court also directed the judgment to be sent to the Commissioner of Customs and the Central Board of Excise and Customs for necessary action.
JUDGMENT :
Shampa Dutt (Paul), J.
1. The present revision has been preferred praying for quashing of the proceeding in Case No. C- 163 of 2016 under Section 36(1) the Legal Metrology Act, 2009 read with Rule 32 (3) of the Legal Metrology (Packaged Commodities) Rules, 2011 pending before the Learned Additional Chief Judicial Magistrate, Barrackpore, North 24 Parganas, West Bengal.
2. The Petitioner No.1 is a company within the meaning of the provisions of the Companies Act, 2013 and engaged in the business of operation of Duty Free Shops to deal in Duty Free Goods at Netaji Subhash Chandra Bose International Airport, Kolkata and at other 9 airports and 6 seaports in India. The Petitioner No.2 is an erstwhile officer of the Petitioner No.1. The Petitioner No. 3 is presently employed with the petitioner no.1 at its office at NSCBI Airport, Kolkata.
3. Case no. C-163 of 2016, has been initiated on the basis of complaint filed by the opposite party before the Court of the Learned Additional Chief Judicial Magistrate, Barrackpore, North 24 Parganas, alleging commission of offences by the petitioners punishable under Section 36(1) the Legal Metrology Act, 2009 read with Rule 32 (3) of the Legal Metrology (Packaged Commodities) Rules, 2011.
4. The allegations leveled in the said petition of complaint are to the effect that:-
b) The Petitioner no.2 was asked to produce five numbers of group package of Marlboro cigarettes for inspection.
c) On inspection of the five packages produced by the petitioner no.2, the complainant detected deficiency/defects in the packages as follows:-
i. Name and address of the manufacturer, packer and importer was not mentioned in the package.
ii. Maximum Retail Price was not mentioned in the packages.
iii. Consumer Complaint Address was not mentioned in the packages.
d) The complainant seized the packages and kept the same in the official custody of the petitioner no.2 under Bond of Custody.
e) It is alleged that the use of the packages contravenes the provisions of Rule 6 (i) (a) and (e), Rule 6 (2), Rule 18 (i) of the Legal Metrology (Packaged Commodities) Rules, 2011 read with Sections 1 and 18 (1) the Legal Metrology Act, 2009 and punishable under Section 36 (1) the Legal Metrology Act, 2009 read with Rule 32(3) of the Legal Metrology (Packaged Commodities) Rules, 2011.
5. The discharge application filed by the petitioners was dismissed by the trial Court vide order dated 05.11.2018 without recording any reason on the merits of the application and on the ground that the proceedings cannot be dropped at the stage of plea.
6. Hence the revision.
7. It is stated by the petitioners that upon a perusal of the afore-mentioned complaint, it would transpire that the instant case is based on the allegation that the packages sold by the Petitioner No. 1 at the duty free shops situated in the International Airport, contravenes the provisions of Rule 6 (i) (a) and (e), Rule 6 (2), Rule 18 (i) of the Legal Metrology (Packaged Commodities) Rules, 2011 read with Sections 1 and 18(1) the Legal Metrology Act, 2009. These offences are punishable under Section 36 (i) of the Legal Metrology Act, 2009 read with Rule 32(3) of the Legal Metrology (Packaged Commodities) Rules, 2011.
8. It is also stated that the Petitioner No. 1 has been granted the necessary approvals by the Foreign Investment Promotion Board to carry on the business of duty free shops all over India.
9. The Petitioner No.1 operates a Duty-free Shop at the Netaji Subhash Chandra Bose International Airport for which it has signed a license agreement with the Airport Authority of India.
10. The petitioner No. 1 has been granted License by the jurisdictional Commissioner of Custo
Directors of a logistics company cannot be prosecuted under the Legal Metrology Act without the company being made an accused, as they are not involved in manufacturing or labeling.
Allegations do not satisfy requirement of Sub-Rule 1 of Rule 18, hence question of raising same as a defense would not at all arise.
Cosmetics imported without regulatory license are prohibited goods upon entering territorial waters, ineligible for warehousing or re-export, and liable to seizure and confiscation under Customs Act.
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