Legal Metrology Act, 2009 makes its presence felt in Section 4A of CEA, 1944

NEW DELHI, FEB 28, 2011: SECTION 4A of the Central Excise Act prescribes MRP based assessment in respect of the goods notified in terms of notification 49/2008-CE(NT) dated 24.12.2008 as amended.  These notified goods are also listed in the Third Schedule to the Central Excise Act, 1944 so as to bring them under the ambit of section 2(f)(iii) of the CEA, 1944.

Section 4A (1) mandates the following:-

“(1) The Central Government may, by notification in the Official Gazette, specify any goods, in relation to which it is required, under the provisions of the Standards of Weights and Measures Act, 1976 (60 of 1976) or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such goods, to which the provisions of sub-section (2) shall apply.”

Incidentally, Legal Metrology Act 2009 enacted on 14th January, 2010 has repealed the over three-decade-old cumbersome Standards of Weights & Measures Act, 1976. 

The new features of the Act are:

+ Appointment of Government approved Test Centers for verification of weights and measures.

+ Allowing the companies to nominate a person who will be held responsible for breach of provisions of the Act.

+ Simplified definition of Packaged Commodity and more stringent punishment for violation of provisions.

It was, therefore, but natural that reference to the new Act finds its place in section 4A of the CEA, 1944.

Clause 59 of the Finance Bill, 2011 carries out the requisite amendment by substituting the words and figures “Standards of Weights and Measures Act, 1976” with the words and figures “Legal Metrology Act, 2009” and makes it effective from 1st day of March, 2011.

One may be curious to know as to why this amendment in section 4A of the CEA, 1944 has been carried so late in the day.

Anxiety aside, the reason being that the new Act was to become operative only after the Rules there under were notified. And these rules since notified are to come into force with effect from 1st March 2011.

It also needs mention that the ‘repeal clause’ contained in Section 57 of the Legal Metrology Act, 2009, has saving sub-clauses contained in Section 57(2) and (3) that protects all notifications, rules and orders made under the old Act as continuing to have effect even under the new dispensation.

Welcome aboard!