Selling packaged drinking water higher than the MRP could lead to possible loss of additional revenue, government told SC.

New Delhi: Restaurants, hotels, multiplexes etc will have to pay fine or even face jail terms for selling mineral water bottle above maximum retail price (MRP), government has told the Supreme Court.

As per a TV news report, the Ministry of Consumer Affairs in response to  a petition filed by the Federation of Hotel and Restaurant Associations of India (FHRAI) has informed the apex court that the sale of  packaged water over MRP may also lead to tax evasion.

Since the hotel purchases the mineral water bottle at a certain price, selling it higher than the MRP could lead to possible loss of additional revenue to the government in the form of service tax or excise duty, government has reportedly told the SC.

It may be recalled that in October last year Food and Consumer Affairs Minister Ram Vilas Paswan had said that sale of packaged water and soft drinks above MRP (Maximum Retail Price) — including at airports, multiplexes and hotels — would attract stringent penal actions like fines and jail term.

In a series of tweets, he wrote:

“Charging above MRP is violation of the law. But we still see at airports, multiplex and hotels, that packaged water is sold at more than the MRP. This needs to be stopped,” Paswan had said.

Source By: http://zeenews.india.com/companies/jail-term-fine-for-selling-mineral-water-above-mrp-report-2065279.html

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