IMPORTANT POINT
The verification provisions of the Standards of Weights and Measures Acts apply only to weights or measures used in commercial transactions, not for internal fuel storage.

JUDGMENT :

The writ petition is preferred by a Government of India undertaking, involved in the production of blood bags, Cu-T etc. The grievance voiced in the writ petition is with respect to the decision taken by the 3^rd respondent to calibrate the tanks installed in the premises of the petitioner in view of Sections 24(1) and (2) and 3(j) of the Standards of Weights and Measures (Enforcement) Act,1985 ( for short, the ‘Enforcement Act’) and Section 2(z) of the Standards of Weights and Measures Act, 1976 (For short, ‘the Act 1976’).

2. It is the case of the petitioner that, the petitioner had installed a storage tank having capacity of 20,000 liters for the purpose of storing the furnace oil in their factory in 1995. Two storage tanks for storing High Speed Diesel having a capacity of 10,000 litres and 8,000 litres were installed in the year 2001. It is further stated that, the petitioner is using the furnace oil and High Speed Diesel stored in the tanks mentioned above only as fuel in the Boiler and DG sets, which are not raw material for the production of blood bags and Cu-T, the products manufactured by the petitioner. The petitioner is not involved in the selling of the furnace oil and High Speed Diesel stored in the said storage tanks or supplying the same to any other third party. The petitioner purchases furnace oil and HSD from the Cochin Refineries Ltd and BPCL, which are then transported to the petitioner’s factory by the petitioner through a contractor.

3. While so, the petitioner received Ext.P1 demand notice dated 09.02.2004 from the first respondent informing that, the storage tanks comes under the definition of Sections 2(V) and (Z) of the Act 1976 and Section 3(J) of the Enforcement Act and requesting to take urgent steps to get the storage tanks calibrated by the Legal Metrology Department at the earliest. Thereafter, the 1^st respondent issued a demand dated 03.03.2004 whereby, directed to remit an amount of Rs.77,318/-. Being aggrieved by that, the petitioner preferred an appeal under Section 69 of the Enforcement Act before the 2^nd respondent. Whereas, the 2^nd respondent as per order dated 11.04.2005 upheld the demands covered by Exts.P1 and P2 as per Ext.P3. Being aggrieved by that, the petitioner filed a Revision Petition under Section 69(5) of the Enforcement Act before the 3^rd respondent. By order dated 09.05.2006, the revision petition was also dismissed, which is produced as Ext.P4.

4. According to the petitioner, the tanks which are installed by the petitioner is only for the purpose of storing the furnace oil, which is not a commercial purpose as contemplated under the provisions of Section 24 of the Enforcement Act. Going by Section 24 of the Enforcement Act, it stands for verification and stamping of any weights or measures in the custody or control of a person in circumstances indicating that, such weight or measure is being, or is intended or likely to be, used by him in any transaction or for industrial production or for protection, shall, before putting such weight or measure into such use, have such weight or measure verified at such place and during such hours as the controller may, by general or special order, specifiy in this behalf. On the strength of this provision, it is contented by the learned Counsel for the petitioner that, the tanks which are stored by the petitioner are used only for the purpose of storing furnace oil and high speed diesel.

5. Furnace oil is only used as a fuel to the boilers used in the production and not as a raw material. Similarly, High Speed Diesel which is purchased by the petitioner is used as fuel for DG sets, which is also not used as a raw material for the production. Moreover, it is also brought to the attention of this Court that, the objective of the Act provided in the beginning of the Act is as follows;

“This is an Act to establish standards of weights and measures, to regulate inter-state trade or commerce in weights, measure and other goods which are s