The Supreme court said when hotels and restaurants sell food and drinks, they also render a
service, making it a composite transaction with composite billing and MRP rates cannot be
insisted upon for such entities.
The court in its judgement said there are a whole lot of other services that go with being served
in hotels and restaurants and prosecution under the Legal Metrology Act for alleged breach of
MRP prices cannot be launched.
According to reports, the government in its affidavit against FHRAI had said that charging more
than the MRP for pre-packaged or pre-packed products in hotels and restaurants was an offence
under the Legal Metrology Act.
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