THE HONOURABLE SMT. JUSTICE T. MADHAVI DEVI WRIT PETITION NO.16485 OF 2016

O R D E R

This Writ Petition is filed seeking a Writ of Mandamus declaring the proceedings of respondent No.3 in case No.150/TC/2014-15, dated 21.08.2015 requiring the petitioner to get registration under the provisions of the Legal Metrology Act, 2009 and the Legal Metrology (Packaged Commodities) Rules, 2011 as illegal, arbitrary, without jurisdiction and ultra vires the provisions of the Act and the Rules and further declare that the appellate order of respondent No.2 contained in Lr.No.3488/T1/2015 dated 06.01.2016 confirming the above proceedings as illegal and arbitrary and consequently to set aside the same and quash S.T.C.No.14 of 2016 on the file of the I Additional Judicial First Class Magistrate, Sangareddy, Medak District, and to direct the respondents not to interfere with the manufacturing activity of the petitioner and to pass such other order or orders.

2. Brief facts leading to the filing of the present Writ Petition are that the petitioner is a private limited company engaged in the manufacture of industrial gases such as Oxygen, Nitrogen, Argon and medicinal gases including Oxygen, having its plant and machinery at Plot No.1, 2 & 3, Phase IV, IDA Patancheru, Medak District. The petitioner manufactures liquefied gases and sells the same as industrial and medicinal gases. The petitioner claims to possess the necessary licenses and registrations under the applicable laws. It is submitted that the products manufactured by the petitioner can be used only for two purposes i.e., either for industrial purpose by industrial users or for medical purposes for the institutional uses.

3. It is submitted that respondent No.3 issued a show cause notice dated 05.03.2015 calling upon the petitioner to explain as to why it has not obtained registration under the provisions of the Legal Metrology Act, 2009, (for short, ‘the Act’) and the Legal Metrology (Packaged Commodities) Rules, 2011, (for short, ‘the Rules’) as the petitioner is manufacturing/packing the industrial gases. It was alleged that the petitioner has contravened Section 18 of the Act read with Rule 27 of the Rules. The petitioner was also informed about the option to get the said offence compoundable under Section 48 of the Act. In response thereto, the petitioner submitted a detailed explanation on 18.04.2015 explaining the process of manufacture and also objecting to the necessity of registration under the Rules since the petitioner’s activity was exempted from the applicability of the Rules in terms of Rule 3 of the Rules. However, without considering the said explanation, respondent No.3 has passed the order dated 21.08.2015 rejecting the claim of exemption by the petitioner by further observing that there was clear cut violation under the packaged commodities Rules. Challenging the said order, the petitioner preferred an appeal before respondent No.2 under Section 50 of the Act, but the same was also dismissed vide orders dated 06.01.2016. Therefore, the petitioner filed the present writ petition. It is submitted that respondent No.3 has also initiated criminal prosecution against the petitioner and its directors in S.T.C.No.14 of 2016 on the file of the I Additional Judicial First Class Magistrate, Sangareddy and that the said proceedings are nothing but abuse of process of law since the petitioner was pursuing legal remedies about the applicability of the provisions of the Act and the Rules to its establishment. Challenging the order of the appellate authority confirming the order dated 06.01.2016, the present Writ Petition has been filed.

4. Learned counsel for the petitioner reiterated the grounds raised in the writ affidavit and submitted that as the gas manufactured by the petitioner is supplied to the industrial and the institutional users and is not for retail sale, it is not governed by the Act and the Rules made thereunder. It is specifically mentioned that the petitioner is