We wish to apprise you regarding status of case SOM v. Subhash Arjundas Kataria, Civil Appeal No. 1117 of 2010, before the Supreme Court. In this case, the High Court had held that sunglasses are not pre-packaged commodity and hence the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 do not apply to sunglasses. Government challenged the High Court ruling before the Supreme Court. Thereafter, two-member Bench of the Supreme Court referred the issue to a Larger Bench for adjudication due to contrary views taken in the case of Whirlpool of India Limited v. UOI, 2007 (218) ELT 167 (SC).

Recently, Larger Bench of the Supreme Court observed that the respondent agreed for compounding of offence for not making requisite declarations. Basis this, the Court held that the High Court ought not to have decided issue on merits. The Supreme Court also did not comment on merits of the case.

NITYA Comments: The issue as to whether sunglasses and similar products packed in presence of consumer, qualify as pre-packaged commodity or not, has been in debate for long. There are diverse judgements on this issue. The Supreme Court in the case of Whirlpool of India Limited (supra), held refrigerator to be pre-packaged commodity even if tested before customer for sale. The Bombay High Court in the case of Titan Industries Limited v. UOI, AIR 2006 BOM 336, held that watches do not qualify as pre-packaged commodity. On the other hand, the Delhi High Court in the case of Reebok India Company v. UOI, 2009 (242) ELT 207 (DEL), held footwear to be pre-packaged commodity which are removed from package for trial purposes. The recent amendment prescribing declarations to be provided on garments sold in loose has added to confusion. 

In our view, where goods are meant only for display and packed in presence of customer, they would not qualify as pre-packaged commodity under the Legal Metrology law. As the Supreme Court has not decided the issue on merits, confusion is expected to persist for long.

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