Thursday, March 24, 2011

Features of Legal Metrology act

Features of Legal metrology act

The Legal Metrology Act , 2009 , enacted on January 13, 2010, which is to be notified shortly along with rules, will not only affect the trade practices related to weights and measures but will also be relevant for the central excise law.

The new law seeks to repeal the over three-decade-old cumbersome Standards of Weights & Measures Act, 1976. The new Act will have such impact because Section 4A of the Central Excise Act, 1944, levies duty on specified goods that are mandatorily required to carry the retail sales price (RSP) under the present Standards of Weights & Measures Act, 1976, on the pre-package commodities.

The significant changes that are discernible between the earlier and the new leaner version of the legislation include pre-packaged commodities being defined in the Act itself rather than in the rules, and the same now being linked with the quantity rather than the value.

Other salient features include appointment of government-approved test centres for verification of weights and measures. The test centres will verify weights and measures made in India as well as imported ones. A wrongful reporting by such centres will attract a penalty under the Act.

No imported weight and measure can be used in the country once the Act is enforced without being subjected to such verification. Further, the import of non-conforming standard weights and measures is prohibited even if it is imported singularly or as part of component of a machine. This means that no weighing machine giving measurement in pounds can be imported.

There is also a requirement under Section 18(2) that every advertisement about a commodity while mentioning the price should also quote the net quantity. Therefore, for the first time, an attempt is being made to even regulate advertisements in relation to price and quantity.

An interesting feature of the new Act is that Section 49 deals with offences by companies. It provides for nomination of a separate director to deal with matters relating to the new Act and to be made responsible for a violation under the Act. Such nomination is required to be communicated to the controller or other authorised officer. This may mark a new beginning in the drafting of new legislation, whereby the responsibility through nomination can be fixed even on the higher management. The experience gained through the Satyam episode is finding expression in legal drafting.

Apart from simplifying the definition of pre-packaged commodities by excluding from its purview packages meant for testing, examining or inspecting the commodity, the new Act also has stringent penalties in place for manufacturers, packers, importers, sellers and distributors of non-standard pre-packaged commodities, with the penalty for third-time offenders at `1 lakh or one year imprisonment or both.

The Act also has an overriding provision contained in Section 3 through a non-obstante clause. However, as far as Section 4A of the Central Excise Act, 1944, is concerned, an amendment in the text is desirable because of the likely change in nomenclature of the legislation. The excise law mentions the old Standards of Weights and Measures Act, 1976, that is set to be repealed.

But even with the mention of the repealed Act and rules made thereunder, the legal position may not change much under excise law because 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 protect all notifications, rules and orders made under the old Act as continuing to have effect even under the new dispensation.

Therefore, the changes brought in by the Legal Metrology Act, 2009, are unlikely to have an effect on those assessees of the central excise who are computing their duties on the basis of retail price quoted on the packages, even with or without immediate amendment.

By Somesh Arora (advocate and former commissioner of Customs and excise)

LLP name change procedure

Steps involved for change in the name of a company:

Please find below the procedure for altering name clause of Memorandum and Articles of Association of the company:

Step 1 : Board meeting for deciding the agenda for change in name

The Board of directors of a company should first consider the need and reason for changing name of the company.

Step 2 : Seeking No Objection Certificate

Company should seek No Objection Certificate from similar named company (If Applicable)

Step 3 : Seeking name availability for proposed new name from the ROC

An application in e-Form 1A is required to be made along with necessary filing fee of Rs. 500 to the ROC for getting confirmation regarding availability of the proposed new name. The Registrar shall intimate the applicants about the status of availability of name.

Step 4 : Approval of members in general meeting

After getting name availability confirmation from the ROC, the Board shall convene a general meeting of members for the purpose of getting member’s approval through passing special resolution under section 21. The resolution so passed shall be subject to approval of the Central Government. (powers have been delegated to the Registrar of Companies).

As change of name of company involves amendment in Memorandum (MOA) and Articles of Association (AOA) etc., so special resolutions also required to be passed for alteration of MOA and AOA.

Step 5 : Registration of Special Resolution with ROC through form-23 (Section-192)

As desired by section 192 (4)(a) Company shall also file certified copy of the special resolution along with explanatory statement (If Applicable) with ROC through form-23 within 30 days of general meeting.

Step 5: Filing of form-1B with ROC u/s 21

In accordance with section 21 an application in form 1B is to be made to the ROC (Powers delegated to the ROC by Central Government) for approval of change of name of the company along with requisite fee.

Main objects for business developer and infrastructure

To carry on trade or business in India and abroad as
contractors builders land and estate agents land
developers surveyors architects consulting engineers
decorators, house owners and house seller estate
manager and to acquire flats and offices and sell them
and to acquire land and building on leasehold or
freehold, agricultural or non agricultural, interest
in land/ TDR and to built develop construct on those
lands residential commercial or industrial buildings
and sell the same on ownership basis or to transfer
such buildings to societies, companies or any other
person and to undertake and execute civil, mechanical,
electrical and structural works contracts and sub
contracts in all their respective branches.



2. To carry on the business of, civil engineers, architects, surveyours, designers, town planners, estimators, valuers interior and exterior decorators, general and govt. civil contractors of immovable properties including building, highways, roads, earthways, bridges, tunnels, waterways, sea-ports in general and under BOT system and all types of structural and pilling engineering work, interior designing and graphic.

3. To engage in the business (whether manufacturing, buying, selling or acting as agents) of engineering, contracting and construction, including the design, manufacturing, construction, erection, alteration, repair and installation of plants, buildings, ways, works, systems and mechanical, electrical and electronic machinery,equipment apparatus and devices and to manufacture, buy, sell, deal, in and process any materials required for engineering, contracting and construction.

Main objects for infrastructure development

To purchase, sell, own, develop, improve, let, take on lease, exchange, assign, hire or otherwise acquire and/or dispose off or let out or give on rent lands of any tenure or interest therein and to develop, erect, construct and furnish Industrial, Residential, Commercial, Social, Rural and/or Urban Townships or Estate, Farm Houses and to rebuild, enlarge, alter and improve existing structures and works thereon and to act as town planners and civil contractors and to carry on the business of Real Estate Developer, property dealers and colonisers and for such purpose to prepare estimates, design, plans and specifications.

To carry on the business of builders and colonizers, Land Lords or proprietors, brokers, occupiers, lessers, Managers, Contractors with the possession of all kinds of buildings whether residential, commercial, cinema houses, Malls, Multiplexes, Hotels, motels, factories, workshops and estates in India or elsewhere.

To purchase, sell, own, develop, improve, let, take on lease, exchange, assign, hire or otherwise acquire and/ or dispose off or let out or give on lease lands and immovable properties of any tenure or interest therein and to develop, erect, construct and furnish house, multistoried flats, buildings or shops, Malls, Multiplexes and to rebuild, enlarge, alter and improve existing houses, buildings, shops and works thereon and to act as building contractors.


To build, plan, establish, maintain buy, sell, colonise, construct or otherwise create infrastructures for public conveniences such as electrification, sanitation, roads, sub-ways, play grounds, play houses, play rooms, schools, colleges, hospitals and nursing home buildings, shops, Malls, Multiplexes, offices, crutches, hostels, family planning and other centers, community centres, barat ghars, hotel buildings, parks, post offices, dispensaries, telephone exchanges, power stations, bus terminals, depots, ration and other fair price shops, petrol pumps, service stations water works, water ways and such other services as may be required.


Main objects for business developer and infrastructure

NFRASTRUCTURE DEVELOPMENT

To carry on in India or elsewhere the business to undertake development of infrastructure work on build, operate and transfer basis as contracted form the Central Government, various State Governments, Union Territories, cantonments, local authorities, gram panchayats, autonomous bodies, and other Government departments and to develop, construct, run repair, maintain, decorate, improve, remodel, build, operate and manage roads, bridges, highways, railways, waterways, gaslines, airports, docks, ports, jetties, gardens, public places, buildings, and other structures, developments, utilities etc. and to operate and transfer the same to the Government as per agreement and to do all other acts and things as may be necessary from time to time.

Admissibility of entries in the books of account

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