FEDERATION OF HOTEL AND RESTAURANT ASSOCIATIONS OF INDIA vs UNION OF INDIA AND ORS. THROUGH ITS SECRETARY

The Supreme Court upheld the Delhi High Court's ruling that the Standards of Weights and Measures Act, 1976, and related regulations do not apply to services rendered in hotels and restaurants, particularly regarding the pricing of packaged water. The Court emphasized that the transaction is predominantly a service rather than a sale of goods, thus allowing hotels to charge above the Maximum Retail Price (MRP) for bottled water. The judgment clarified that the enforcement of the new Act remains subject to future adjudication, ensuring that the previous ruling does not impede the application of new legislation.