Sale of water bottles -

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This discussion explores the legality of selling water bottles for more than their printed MRP, especially in hotels and restaurants. While it's generally not allowed, a Supreme Court judgment by Justice R.F. Nariman clarified that hotels can charge more. This is because customers are paying for the overall experience, including service and ambiance, not just the bottled water itself. Therefore, if the bottle is part of a service, a higher price can be charged.

R S Sai Kumar

R S Sai Kumar (Querist)
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28 September 2021 Is it permissable to sell water bottle for Rs.30, where as the MRP is Rs.20?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 September 2021 Not permissible GST is also included in MRP.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 September 2021 Some STAR hotels, charging more than MRP, in the name of service charges.. but do not fall in trap, as they open the bottle & serve on a plate!

R S Sai Kumar

R S Sai Kumar (Querist)
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28 September 2021 If the water bottle sold for Rs.30 is restaurants , is it permissable ? I heard that there is a supreme court judgement in this regard

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 September 2021 The single bench of Justice R.F Nariman gave the judgment that, charging higher prices of packaged drinking water than that of the MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions as the customer does not only come to the hotel or restaurant to buy the bottled water but also for other things which includes the service and ambience of the particular hotel or restaurant and the customer is aware of these things, thus no action can be taken against the respondents.

R S Sai Kumar

R S Sai Kumar (Querist)
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29 September 2021 Thank you all for the replies