The central legal point established in the judgment is the interpretation of the applicability of the provisions of the Standards of Weights and Measures (Enforcement) Act, 1985 and the Standards of Weights and Measures Act, 1976 to the storage tank and bulk meter, and the requirement for calibration.

By Court: In this writ petition, the petitioner has prayed for quashing (i) Letter No. 1529 dated 23.12.1999 (Annexure-1) (ii) Letter No. 506 dated 23.8.1999 and Letter No. 222 dated 23.2.2000 (Annexure-3), whereby the respondents have directed the petitioner to calibrate flow meter / bulk meter and storage tank installed for the purpose of storing petroleum products at the Dhanbad depot of the petitioner.

2. The petitioner is a Government Company under the Ministry of Petroleum and Natural Gas Department. It deals in processing, sale and supply of petroleum products throughout the country. In order to facilitate distribution, sale and supply of petroleum products, the petitioner-Company has established depots throughout the country including the district of Dhanbad. The petroleum products in the depots are stored underground and aboveground storage tanks. From the said storage tanks, the petroleum products are supplied through tank lorries to various retail dealers. The storage of petroleum products is strictly maintained and controlled by the petitioner-Company. The supply made through the tank lorries is measured by Dip-Rod. The Dip-Rod is required to be calibrated, verified and stamped by the weight and measure authorities under the provisions of Standards of Weights and Measures (Enforcement) Act, 1985 [hereinafter referred to as ‘the said Act of 1985’]. The storage tanks installed in the depots are huge in size. It is not manually possible to remove such tanks from the place of installation. In order to regulate and control the outflow of products from huge tank to the tank lorry, the petitioner-Company has introduced the device flow meter / bulk meter in the storage tank. Those meters are not used as weights and measures so as to attract the provisions of the said Act of 1985. Those meters are used for internal convenience and are never used in course of transaction. The storage tank and bulk meter are not required to be calibrated, as required under Section 24(1) of the said Act of 1985.

3. Ignoring the said fact, the respondents sent Letter No. 1529 dated 23.12.1999 (Annexure-1) asking the petitioner to calibrate the storage tank and produce the relevant papers concerning the storage tank, failing which the petitioner was threatened with prosecution for violating the provision of Section 24(1) of the said Act of 1985.

4. The petitioner replied to the said letter stating, inter alia, that the storage tank is not a measuring instrument for any commercial transaction and the same is not required to be calibrated.

5. Although the respondents had no reason to send such notice, they had also issued Letter No.506 dated 23.8.1999 in the form of a show cause in the petitioner's Ranchi office, asking the petitioner regarding the use of bulk meter / Dip-Rod in filling oil from tank lorry to the storage tank.

6. The petitioner had again replied that the storage tank is not used as measurement instrument and the stock in the tank is measured by Dip-Rod.

7. Brushing aside the said reply of the petitioner, the respondents again sent Letter No. 222 dated 23.2.2000 (Annexure-3) asking the petitioner to calibrate the storage tank.

8. Learned counsel for the petitioner submitted that the impugned letters are wholly arbitrary, illegal and without jurisdiction and the same have been unnecessarily sent to the petitioner only to put them to harassment and embarrassment. The impugned letters are, thus, liable to be quashed.

9. The writ petition has been opposed by the respondents stating, inter alia, that the impugned letters were issued to the petitioner as they violated the provisions of the Standards of Weights and Measures Act, 1976 (hereinafter referred to as ‘the said Act of 1976’) and the Standards of Weights and Measures (Enforcement) Act, 1985. The petitioner-Company is dealing in the commercial transaction through the said depot, which comes under the purview of the provisions of Standards of Weights and Measures Act, 1976