Is Dealer License Mandatory under Legal Metrology?

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Is Dealer License Mandatory under Legal Metrology?

Weights and measurements play an important role in our life. If you’re wondering.. “how?”, you should consider their importance during our routine health check-ups, sports competitions, medical check-ups for a government job, checking fever, etc. Imagine the consequences in case of there being even a minor mistake in the result provided by the weighing or measuring product.

The Legal Metrology legislation makes it mandatory for the individuals and companies involved in trading and marketing of weights and measures to acquire a dealer license in India. The provisions of the Legal Metrology legislation must be followed properly in order to obtain the dealer license. 

What is a Legal Metrology Dealer License?

According to Section 2(b) of the Legal Metrology Act, 2009, the term “dealer” has been defined as any person dealing directly or otherwise in the purchase, sale, supply or distribution of weight or measure in exchange of cash / commission / remuneration / deferred payments with a commission agent / importer / a manufacturer who sells, supplies, distributes or otherwise delivers any weight or measure items manufactured by him to any person who is other than a dealer.

As per the Legal Metrology Act, every person who is involved in the trade of items of weight and measures shall apply for a dealer license. Additionally, a manufacturer/importer willing to act as a dealer for a commodity shall mandatorily obtain not only the dealer license but also the manufacturer / importer license.  

The license is granted by the controller of legal metrology. The timeline for the license’s approval and the application fee structures varies from one state to another. Each license is valid for a minimum of one year and a maximum of five years. It is important to note that the dealer can only trade the weights and measurement items in the state that has granted him the license, and it is his sole responsibility to acquire another license for trading in a different state. In case of non-compliance, he will attract penalties and in certain cases, his license might get canceled.

Role of the Legal Metrology Department 

The Legal Metrology Department is a part of the Ministry of Consumer Affairs, Food and Public Distribution. It is responsible for putting several rules and norms in India regarding the activities which are concerned with the weight and measure items, and one of them is dealer license. To obtain this license, every individual or company is required to follow the provisions of the State Legal Metrology (Enforcement) Rules, 2011 of the Legal Metrology Enforcement Rules, 2010.

The Legal Metrology (General) Rules, 2011 specifies the weighing and measuring instruments which are approx. 40 in total, such as petrol pumps, electronic weighing instruments, water meter, sphygmomanometer, weighbridges, clinical thermometer etc. Such instruments are commonly used by various industries, traders, hospitals and several government and non-government organizations for the purpose of weighing and measuring and the end results of the weighing and measuring is directly for the benefit/welfare of the general public. These weighing and measuring instruments are verified by the State Government officers periodically, with the help of Standard Weights and Measures and the procedure prescribed in the Rules.   

Series of steps involved in Dealer License’s acquisition under Legal Metrology

This license is provided by the state where the dealer wants to do business of items for weights and measurements. For obtaining the dealer license, the following procedure is involved:

• The state controller of the Legal Metrology Department of the concerned state grants the dealer license which enables the dealer to operate his business in the state. The license is obtained under the Section 23 of the Legal Metrology Act of 2009.
• Many state governments in India have provided the online facility for the dealer license’s application. However, some states may not have this facility and the individuals and businesses need to submit the application for dealer license offline.
• The procedure involves an inspection done by the legal metrology officers of the zonal state. They recommend the application for the final issuance of the dealer license after they physically verify the documents and the application. In addition to this, these inspection officers might also ask whether the address on which the dealer license is applied is a residential address or a commercial one. The latter is more commonly accepted by the legal metrology department.
• In many states, a copy of the dealer agreement is also needed from the original tools manufacturer for which the dealer applied the license.
• In addition to the above, the government of some states may also ask for a copy of NOC from the manufacturer of weight and measure items.

Provisions for the Dealer License

The regulations as well as the enforcement for the production of items of weights and measures is governed by the Legal Metrology Act. The act clearly states all the provisions for the Dealer License, which are mentioned below:

Possession of the Dealer License

A dealer must not manufacture, repair or sell any weight or measure equipment unless he owns a valid dealer license issued by the Controller of Legal Metrology. In order to obtain this license, a prescribed format has to be followed.

Filling of the Application 

Once a dealer has filed the application of the dealer license, the controller can either approval or reject the application. Moreover, he is also authorized to suspend or cancel a license registered with the legal metrology department in case the dealer is performing any illegal activities or not complying with the legal metrology rules and regulations. The dealer is allowed to be heard and can appeal to the controller in such a case if he believes that there has been a misunderstanding.

Validity and Transferability of the License

The license is valid for a minimum of one year and a maximum of five years unless it is surrendered by the dealer or canceled by the controller of the legal metrology. It is possible for a dealer to transfer his license to another person but only after the prior approval has been received from the controller. 

Maintenance of the Transactional Records

It is mandatory for the dealer to maintain all the transactional records related for the manufacture, repair, sale, purchase and transfer of the weights and measures. Also, these records must be produced if asked for by an authorized person of the government.

Legal consequences for an Unauthorized Dealer

Dealers who are engaged in weights and measures’ sales and manufacture without having a valid dealer license can get imprisonment up to 1 year along with a fine of Rs. 10,000. Hence, it is advisable to obtain this license and comply with the legal metrology rules and regulations to avoid penalties and promote fair trade practices in the country.

Conclusion

Any dealer that wants to handle the business of weights and measures has to get a dealer license as a legal requirement before he can handle such a business. The dealer license is mandatory, according to the Legal Metrology legislation, and there is no alternative to it. The regulations for the instruments weights and measures are clearly defined and rigid and need to be complied with to avoid legal consequences which can include not only fines but also imprisonment in certain cases.

The dealer license of the legal metrology helps to promote fair trade and helps the individuals and companies to grow their businesses. If you need assistance in applying for a dealer license for your business, do not hesitate to get in touch with our experienced team leaders at Registrationwala. It might turn out to be one of your life-changing decisions. 

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