Understanding LMPC and Its Importance:

The application of legal requirements to measurements and gadgets for measuring is known as Legal Metrology. It ensures accuracy, fairness, and transparency in trade and commerce. The Legal Metrology (Packaged Commodities) Rules, often abbreviated as LMPC, specifically govern the packaging and labelling of commodities, ensuring consumers receive accurate information about the products they purchase.

The LMPC Certificate is a mandatory certification for manufacturers, importers, and packers of pre-packaged commodities. This certificate ensures that household items are correctly labelled with essential information such as weight, price, manufacturer details, and more. Compliance with LMPC guidelines not only protects consumers from misleading information but also enhances the credibility and marketability of the products.

Key LMPC Guidelines for Household Items:

1. Accurate Labelling:

   – Every package must bear a label clearly stating the identity of the commodity, net quantity, month and year of manufacture, and the retail sale price (MRP).

   – The label must also include the name and address of the manufacturer, packer, or importer, along with customer care contact details.

2. Standard Units of Measurement:

   – The net quantity of the commodity must be declared in standard units of weight, measure, or number as per the Legal Metrology Act, 2009.

   – Dual declarations (metric and non-metric units) are permissible, but the metric units must be prominently displayed.

3. Font Size and Clarity:

   – The information on the label must be in a legible font size and easily readable by consumers.

   – The font size of the net quantity declaration must be proportional to the size of the principal display panel.

4. Packaged Date and Expiry Date:

   – The month and year of manufacture or pre-packaging must be mentioned.

   – For perishable items, the expiry date or best-before date must also be included.

5. MRP Declaration:

   – The Maximum Retail Price (MRP) inclusive of all taxes must be declared. No additional charges should be imposed beyond the MRP.

   – If the product is part of a promotional offer, the original MRP must still be displayed alongside the discounted price.

Steps to Obtain the LMPC Certificate

1. Legal Metrology Registration:

   – The first step towards obtaining a Legal Metrology Certificate for Importers is to register under the Legal Metrology Act, 2009. This registration is essential for all manufacturers, importers, and packers dealing with pre-packaged commodities.

2. Application Submission:

   – An application must be submitted to the Director of Legal Metrology or the Controller of Legal Metrology of the respective state.

   – The application should include details about the applicant, the type of commodity, manufacturing facilities, and a sample of the proposed label.

3. Document Verification:

   – The application must be accompanied by necessary documents such as proof of business registration, identity and address proof of the applicant, and details of the manufacturing or packing unit.

   – The authorities will verify the documents and may conduct an inspection of the premises if required.

4. Label Approval:

   – The proposed label must comply with the LMPC Certification guidelines. The authorities will review the label to ensure all mandatory declarations are included and accurately presented.

   – Any discrepancies or omissions must be rectified before proceeding further.

5. Issuance of LMPC Certificate:

   – Upon successful verification and approval, the Legal Metrology Certificate will be issued to the applicant.

   – This certificate must be renewed periodically, and any changes in the label or packaging must be reported to the authorities.

Legal Metrology Registration for Importers:

Importers of household items also need to comply with the LMPC Registration guidelines. In addition to the general requirements, importers must ensure the following:

– Importer Details:

  – The importer’s address as well as name have to be included on the label.

  – The importer must have a valid import-export code (IEC) and be registered under the Legal Metrology Act, 2009.

– Country of Origin:

  – The label must clearly state the country of origin of the commodity.

  – This information is crucial for transparency and helps consumers make informed choices.

– Compliance with Indian Standards:

  – Imported commodities must comply with Indian standards and regulations.

  – Any deviations or non-compliance can lead to rejection of the consignment or penalties.

Importance of Legal Metrology Certificate for Household Items:

1. Consumer Protection:

   – The LMPC Certificate ensures that household items are accurately labelled with essential information, protecting consumers from misleading claims and ensuring they get value for their money.

2. Market Credibility:

   – Products with an LMPC Certificate gain credibility in the market, enhancing consumer trust and brand reputation.

   – Compliance with legal standards demonstrates a commitment to quality and transparency.

3. Regulatory Compliance:

   – Penalties, product recalls, and reputational harm to the brand may result from noncompliance.

   – Non-compliance can lead to fines, product recalls, and damage to the brand’s reputation.

4. Fair Trade Practices:

   – The Legal Metrology Certificate promotes fair trade practices by ensuring all products are measured and labelled accurately.

   – This fosters a level playing field for businesses and enhances consumer confidence in the marketplace.

Challenges in Obtaining the LMPC Certificate:

1. Complex Regulations:

   – The LMPC guidelines involve intricate details and strict compliance requirements.

   – Businesses need to stay updated with any changes in regulations to ensure ongoing compliance.

2. Documentation and Verification:

   – The application process requires thorough documentation and verification, which can be time-consuming and cumbersome.

   – Ensuring all documents are in order and meeting the inspection criteria can be challenging.

3. Label Design and Approval:

   – Designing a label that meets all LMPC guidelines while being visually appealing can be a challenge.

   – Any errors in the label can lead to delays in approval and additional costs for reprinting.

4. Periodic Renewals:

   – The Legal Metrology Certificate must be renewed periodically, requiring businesses to maintain continuous compliance.

   – Any changes in packaging or labelling must be reported and approved, adding to the administrative burden.

Tips for Smooth Legal Metrology Registration:

1. Understand the Guidelines:

   – Thoroughly understand the LMPC guidelines and ensure your packaging and labelling meet all requirements.

   – Consult with experts or legal advisors if needed to avoid any compliance issues.

2. Prepare Accurate Documentation:

   – Ensure all necessary documents are complete and accurate before submission.

   – Double-check details to avoid any discrepancies that could delay the approval process.

3. Design Compliant Labels:

   – Work with professional designers who are familiar with LMPC guidelines to create compliant labels.

   – Pay attention to font size, clarity, and the inclusion of all mandatory declarations.

4. Stay Updated:

   – Keep abreast of any changes in Legal Metrology regulations and update your processes accordingly.

   – Regularly review your packaging and labelling to ensure ongoing compliance.

The Role of LMPC in Enhancing Consumer Trust:

Consumer trust is paramount in the marketplace, and the LMPC Certificate plays a crucial role in building and maintaining that trust. By ensuring accurate and transparent labelling, the LMPC guidelines empower consumers to make informed decisions about the products they purchase. This not only protects consumers from fraudulent practices but also promotes fair competition among businesses.

Conclusion:

The LMPC guidelines for household items are essential for ensuring compliance, consumer protection, and market credibility. Obtaining the Legal Metrology Certificate through proper Legal Metrology Registration is a critical step for manufacturers, importers, and packers of pre-packaged commodities. While the process may involve challenges, the benefits of compliance far outweigh the difficulties. By adhering to LMPC guidelines, businesses can enhance consumer trust, avoid legal penalties, and promote fair trade practices.

At LegalRaasta, we assist businesses in navigating the complexities of Legal Metrology Registration and obtaining the LMPC Certificate. Our team of experts provides comprehensive support to ensure your products meet all regulatory requirements and achieve market success. Contact us today to learn more about our services and how we can help you stay compliant with LMPC guidelines for household items.

The post Best Practices To Acquire Legal Metrology Certificate For Household Items appeared first on LegalRaasta Knowledge portal.

Understanding EPR for Medical Devices

Extended Producer Responsibility (EPR) Certification is a policy approach that shifts the responsibility of waste management from municipalities and consumers to producers. This approach mandates that producers take accountability for the entire lifecycle of their products, from design and production to disposal and recycling. For medical devices, this responsibility becomes even more critical due to the sensitive nature of the waste generated and its potential hazards.

The Importance of EPR Registration:

EPR registration is essential for manufacturers and importers of medical devices for several reasons:

1. Environmental Protection: Medical devices can contain hazardous materials that pose significant risks to the environment. Proper management through EPR ensures these materials are disposed of or recycled safely.
2. Regulatory Compliance: Adhering to EPR regulations is mandatory in many countries. Serious fines and reputational harm may arise from noncompliance.
3. Corporate Responsibility: EPR registration demonstrates a company’s commitment to sustainable practices and corporate social responsibility, enhancing its reputation among consumers and stakeholders.

Requirements for EPR Registration for Medical Devices:

The requirements for EPR registration can vary depending on the country and specific regulations. However, some common elements include:

1. Producer Identification: The producer must be identified, which can include manufacturers, importers, and brand owners. In many jurisdictions, the term “producer” encompasses anyone who places medical devices on the market.
2. Product Information: Detailed information about the medical devices, including their composition, lifespan, and potential environmental impact, must be provided. This information is crucial for determining the appropriate waste management strategies.
3. EPR Plan: Producers must develop an EPR Certification for Medical Devices plan outlining how they will manage the end-of-life disposal of their products. This plan should include strategies for collection, recycling, and safe disposal.
4. Financial Responsibility: Producers are often required to demonstrate their financial ability to manage the waste generated by their products. This can include setting up financial guarantees or participating in collective schemes.
5. Reporting and Record-Keeping: Regular reporting on the quantities of medical devices placed on the market and the waste collected and treated is typically required. Maintaining accurate records is essential for compliance and audit purposes.

The Role of EPR Consultants:

Navigating the complexities of EPR registration for medical devices can be challenging. This is where EPR consultants come into play. An EPR consultant specializes in helping producers understand and comply with EPR regulations. 

1. Regulatory Guidance: EPR consultants provide up-to-date information on relevant regulations and help producers interpret and apply these rules to their specific circumstances.
2. Plan Development: Consultants assist in developing comprehensive EPR plans that meet regulatory requirements and optimize waste management processes.
3. Implementation Support: From setting up collection schemes to establishing recycling partnerships, EPR consultants offer practical support in implementing EPR strategies.
4. Compliance Assurance: By conducting audits and reviews, EPR consultants ensure that producers remain compliant with EPR regulations, helping to avoid penalties and legal issues.
5. EPR Certificate for Importers: Importers of medical devices must obtain an EPR certificate to demonstrate their compliance with EPR regulations. EPR consultants guide importers through the certification process, ensuring all requirements are met.

Process of EPR Registration for Medical Devices:

The EPR registration process can be broken down into several key steps:

1. Initial Assessment

The first step involves assessing the producer’s current practices and identifying the specific External Producer Responsibility Registration requirements applicable to their products. This assessment helps in understanding the scope of work needed for compliance.

2. Data Collection

Accurate data collection is crucial for EPR registration. Producers must gather detailed information about their medical devices, including quantities produced, imported, and sold. Additionally, information on the materials used and their environmental impact is necessary.

3. EPR Plan Development

With the help of an EPR consultant, producers develop an EPR plan outlining their waste management strategies. This plan should cover collection methods, recycling processes, and safe disposal practices. Financial provisions for these activities must also be included.

4. Submission of Application

The External Producer Responsibility Registration application, along with the EPR plan and necessary documentation, is submitted to the relevant regulatory authority. This application must be thorough and accurate to avoid delays or rejections.

5. Certification and Approval

Upon review of the application, the regulatory authority may request additional information or clarifications. Once satisfied, the authority issues an EPR certificate, confirming the producer’s compliance with EPR regulations. Importers must also obtain this certificate to demonstrate their adherence to EPR requirements.

6. Implementation

With the External Producer Responsibility certificate in hand, producers must implement their EPR plan. This involves setting up collection and recycling systems, training staff, and partnering with waste management companies. It is crucial to continuously monitor and enhance these procedures.

7. Reporting and Auditing

Regular reporting to the regulatory authority is a key requirement of EPR registration. Producers must submit periodic reports detailing the quantities of medical devices placed on the market, the waste collected, and the methods used for recycling and disposal. Audits may be conducted to verify compliance.

Merits of EPR Registration for Medical Devices:

1. Environmental Impact Reduction: EPR registration ensures that medical devices are managed in an environmentally responsible manner, reducing their impact on the ecosystem.
2. Regulatory Compliance: Adhering to External Producer Responsibility regulations helps producers avoid legal issues and penalties, ensuring smooth business operations.
3. Reputation Enhancement: Demonstrating a commitment to environmental responsibility can enhance a company’s reputation among consumers, investors, and other stakeholders.
4. Cost Savings: Efficient waste management and recycling processes can lead to cost savings in the long run, offsetting the initial investment in EPR compliance.
5. Access to Popular Markets: Compliance with EPR regulations is often a prerequisite for market access in many regions. Obtaining an EPR certificate for importers is essential for conducting business in these markets.

Challenges in EPR Registration for Medical Devices:

Despite the benefits, there are several challenges associated with EPR registration for medical devices:

1. Complex Regulations: External Producer Responsibility Certification regulations can be complex and vary significantly across regions. Staying updated with these regulations and ensuring compliance can be challenging.

2. Financial Burden: The costs associated with EPR compliance, including setting up collection and recycling systems, can be substantial. Small and medium-sized enterprises, or SMEs, can be especially affected by this.

3. Data Management: Accurate data collection and reporting are essential for EPR Certificate compliance. Managing this data can be resource-intensive and require robust systems.

4. Consumer Participation: Implementation of effective EPR Registration relies on consumer participation in collection and recycling programs. Educating and motivating consumers to participate can be challenging.

5. Technological Limitations: Recycling certain medical devices can be technologically challenging due to the complexity and hazardous nature of the materials involved.

Conclusion

EPR registration for medical devices is a pivotal aspect of modern waste management practices, ensuring that manufacturers and importers take responsibility for the entire lifecycle of their products. By adhering to EPR regulations, producers can significantly reduce the environmental impact of medical devices, ensure regulatory compliance, enhance their corporate reputation, and achieve cost savings through efficient waste management processes.

Engaging the services of an EPR consultant can simplify the process, providing expert guidance on regulatory requirements, plan development, and implementation. Additionally, obtaining an EPR certificate for importers is crucial for accessing markets where EPR compliance is mandatory.

While challenges exist, including complex regulations, financial burdens, and the need for accurate data management, the benefits of EPR registration far outweigh these obstacles. By fostering a culture of environmental responsibility and leveraging technological advancements in recycling and waste management, producers can make substantial contributions to sustainability.

Through continuous improvement and collaboration with stakeholders, the EPR framework can lead to a more sustainable and environmentally friendly future for the medical device industry. By committing to EPR principles, producers not only comply with regulations but also play a vital role in protecting our planet for future generations.

The post Quick Steps for EPR Registration of Medical Devices appeared first on LegalRaasta Knowledge portal.

The Centre for Development of Imaging Technology created EGROOPS (C-DIT). The EGROOPS platform offers the following services to its consumers:

• New Partnership Firm Registration
• New Society Registration
• Society Registration Status
• Firm Registration Status
• Change of Firm Address
• Change of Society Address
• Change of Partners

Steps to be taken before Registration on EGROOPS

The applicant wanting to register a partnership firm using EGROOPS must validate the suggested name as a preliminary step. It will not be allowed if the proposed name is similar or identical to an existing firm, Limited Liability Partnership, corporate name, or trademark. (The proposed name should not be confusingly similar to or identical to an existing firm, LLP, company, or trademark.)

Using a similar or identical name to register a partnership firm could lead to legal issues in the future. As a result, it’s a good idea to check the availability of a name and do a trademark search before applying for registration. In general, there are two critical steps:

• Check the availability of the company name
• Carry out a trademark search.

As a matter of priority, we’d want to expand on the importance of choosing an appropriate name for your Partnership Firm. When choosing a name for their company, they should keep the following rules in mind:

• The firm’s name should not be too similar, identical, or comparative. If it’s too similar, it’ll be tough to tell it apart from an existing company providing similar work (with the same or similar name). This check is necessary to avoid any misunderstandings. The reasoning behind this is that the firm’s goodwill may be tarnished or destroyed if another firm obtains a similar name.
• The name of a partnership firm should not contain words like Empress, Empire, Crown, Emperor, or words inferring or communicating the endorsement, endorsement, or support of the government, except when the State Government gives its assent for the use of such words as a component of the firm name, as per section 58(3) of the Indian Partnership Act, 1932.

Partnership Firm Registration Procedure

The steps to register a partnership firm utilising the EGROOPS platform are as follows.

Step 1: Navigate to EGROOPS’ main page.

Step 2: On the right side of the EGROOPS homepage, click the “New firm registration” button and fill out the relevant information.

Step 3: When the data feed is finished, click the submit button at the bottom of the form. You will see a number and password created by the system on your screen after you click the submit button. The identical phone number and password will be emailed to the mobile and email addresses you supplied when entering the information.

Step 4: Go to the EGROOPS portal and sign in (by using the username and password provided in the 3rd step). Once you’ve logged in, you’ll be able to access the application that’s required for partnership business registration. After the application has been launched, go to the link in the middle of the screen to register a new partnership firm.

Step 5: Enter the preferred name for the partnership firm as well as the address.

Step 6: Now you must provide the partners’ information and upload any necessary supporting documents. The EGROOPS platform accepts four different types of partners:–

• Normal partner
• Power of attorney holder
• Minor partner and

Different details would have to be provided depending on the type of partner chosen. Name, Gender, Age, Address, Guardian details, Mobile number, and other details are required in the form for normal/minor partners.

Note: In the event of a corporation, one individual will be chosen to represent the corporation in all legal actions. In the section provided on the form, the data of the person representing the company must be filled. After you’ve filled out the partner information and uploaded the relevant documents, you’ll need to click the add partner button to add other partners to the firm.

Step 7: After all Partners have been entered, click the “Add Business Place” button to fill in the data of the firm’s other branches (if any).

Step 8: Once the partner and place of business information, as well as the required papers, have been successfully updated, you can pay the online registration fees for the partnership firm registration. The payment can be made both online and offline:

• Money order
• Cash payment
• e-Payment

Choose the most convenient payment method for you and begin the payment procedure.

Step 9: Once the payment has been received, you will receive a message confirming the payment as well as a reference number for future use. Your registered mobile number and email address will receive the same message. After that, the applicant must get the application attested by a Gazetted officer, a practising Advocate, an Income-Tax officer, an Honorary Magistrate, or a practising Chartered Accountant.

Note that if your application is refused, it will still be displayed in your EGROOPS account. By login into their EGROOPS account, the registered person can see the denied application. After correcting the error, the registered person must resubmit the application.

Step 10: If the registration was successful, click “Print Acknowledgement” to print the acknowledgement. The PDF form for the firm registration certificate can be viewed and downloaded from the same location.

Read, also: Dissolution of Partnership Firm

The post EGROOPS – Registration of Partnership Firms Kerala appeared first on LegalRaasta Knowledge portal.

Process of Impeachment of President  in India

A charge against the President has to be supported by at least 50 sitting members of either house. A resolution for removal will have to be passed by a two-thirds majority in both houses of parliament. However, before removing him/her from office, he/she can be given an opportunity to defend himself/herself by answering each accusation that is brought against his/her office; this would be done through each house of parliament acting as a court (hearing all evidence), and then voting on whether they agree with the changes made. If the house does not hold a vote on the charges, then by default the president would be considered as acquitted and that would conclude any proceedings against him/her.

The President cannot take part in any such proceedings and is suspended from their office during this time. The Vice-President of India takes their place during such an event.

The Constitution specifies that the presiding officer – Vice-President – shall preside at all sittings in which he takes part, but does not specify his role. Consequently, controversy has existed over the years about the role of the presiding officer and other procedural aspects during impeachment proceedings. The power to impeach a President is vested in the Lok Sabha (House of People), Speaker / Chairman, and Council of Ministers by two-thirds majority vote, where necessary through Parliament Acts No. 29 & 35 of 1950 and 1952 respectively.

However, if no vice president is present at that time, then the Speaker of Lok Sabha presides over the house as a speaker not as a temporary President until the new president assumes office through the proper process. In case the sitting President faces charges after losing the majority in Lok Sabha but before the adjacent election so as to render him incapable of functioning further i.e., vitiated mandate, then the election may be conducted earlier than scheduled by UPSC Commission.

If a motion for removal fails to get two-thirds in favor in both houses even after following all the steps then this particular impeachment becomes null and void.

Article 61(1) says that the executive powers shall be exercised by President “either directly or through officers subordinate to him”. This means that if a public official act against the law or Constitution he can be tried for his offense under Article 61(2).

Upon conviction by majority vote in each House, the President ceases to hold office immediately as if s/he vacated it. This is however subject to a caveat as stated in Article 71: “Provided that where such a resolution has been passed by both Houses of Parliament before the expiration of his term of office, he shall continue to hold office until the date on which a resolution disapproving the declaration is passed by both Houses of Parliament.” This means that if a President is removed from office through an impeachment process, then the next President would assume office immediately and not remain in power until the elected Vice-President takes the oath.

The above procedure was tested first in 1969 when then-incumbent President Dr. Zakir Hussain died in office, while the process of his impeachment was underway. The then Prime Minister Indira Gandhi decided to act as interim president till the presidency has been vacated for the rest of her term. However, later constitutional amendments were made to amend this issue whereby now during such event, where the post of President falls vacant due to death or otherwise, elections are held within six months to elect a new President that there may not be any further political vacuum.

In July 2014, the Vice-President of India, Mohammad Hamid Ansari completed his second term after which O. P. Kohli assumed office as acting President until former Indian Administrative Service officer Pranab Mukherjee was elected and sworn in as the thirteenth President of India on 25 July 2012, to serve a five-year term. Subsequently, Mahmud Ansari completed his full five-year term on 11 August 2017 and became the First Chairperson of the National Authority for Chemical Weapons Convention from 12 August 2017 till date. As per provisions of Article 83 read with Second Schedule of Constitution’s Fifth Amendment Act 1976, Pranab Kumar Mukherjee is currently serving as 13th Vice President of India from 29 July 2017 after 9th President of India, Pranab Mukherjee has retired from his office.

Impeachment in India was introduced in its constitution through the ‘Constitution (Twenty-sixth Amendment) Act, 1971’.

Under this article when a charge is supported by at least 50 sitting members then either house may discuss further proceedings against him/her. The President can also be impeached by a special majority of each house, in which case the end of the proceedings and he/she is removed from office.

The article requires that all charges against the president have to be supported by a 50-member panel or more, after which the issue is taken up for discussion. A two-thirds majority vote at this stage ends the proceedings and results in removal from office. However, if a simple majority of sitting members support the charge sheet, only then will further proceedings take place whereupon no vote would be held until all evidence has been presented. In such an event, a two-thirds absolute majority of votes cast at the end shall result in the removal of the president.

At present, there is no mechanism to impeach the President of India. All past efforts to introduce the mechanisms were thwarted by Rajya Sabha (Council of States, or Upper House of Parliament) on the pretext that one man cannot be allowed to ruin the reputation of the Presidency itself. However, Lok Sabha (House of People, or Lower House of Parliament), the lower house has passed a motion recommending impeachment against president KR Narayanan for taking bribes in an arms deal during his tenure as Indian president. Since then no attempts have been taken yet by anyone to file a motion against any president so far.

The President of India is elected by members of an electoral college consisting of MPs and state legislators for a five-year term. The Constitution states that no person shall be eligible for election as President unless he or she has completed 35 years of age, has been a citizen of India for at least 10 years, and is qualified for election as a member of the Lok Sabha (lower house). The President’s role and powers are largely ceremonial. In addition, the President is also the formal head of all foreign diplomatic missions and is charged with overseeing the country’s armed forces.

Article 124(4) and (5) were changed in 2019 by the parliament. President can be impeached now if he is accused of crimes during his tenure as President or while holding office either as president or vice-president. But these changes will only come into effect after the passing of The Constitution (Eighty-second Amendment) Bill 2019 that has been approved by the cabinet with some amendments by PM Modi along with his cabinet.

Conclusion

The Indian Parliament can do an impeachment against the president when there are charges like commission (creation) of any offense (including bribery), violation in oath, etc., in connection with his job under Article 124(4) and gross misconduct in respect of the discharge of official duties under Article 215(1). The Indian president cannot do self-impeachment; so, there should be a public petition to the Parliament for impeachment against him under Article 124(4) and 215(1).

An impeachment procedure has been introduced as part of the Constitution to deal with cases of misbehavior or incapacity of a President. It is not considered “good practice” by those who have been examining what might be included in the second generation of human rights instruments (such as an international code on good practice and conduct for heads of state), since it involves parliamentary interference with judicial independence and integrity.

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A delay happens when a lawsuit or application is not submitted within the statute’s time limit or limitation period. The suit or application will not be accepted by the court(s)/respective authorities if it is filed after the statute of limitations has expired.

Under some conditions, the statutes provide for the condonation of delays in cases, appeals, or applications. If the party filing the suit, appeal, or application can show that there was a good reason for the delay that resulted in the limitation period expiring, the court/respective body can excuse the delay by admitting the suit/application.

Condonation of Delay under Limitation Act, 1963

The Limitation Act of 1963 establishes the time restriction for filing a lawsuit. It specifies what should be included and excluded when determining the statute of limitations for a lawsuit or appeal. The condonation of delay is addressed under Section 5 of the Limitation Act. It states that the court can accept any appeal or application filed after the limitation period if the appellant or applicant demonstrates that he has good reason for not filing the appeal or application within the time restriction.

The Definition of Condonation

The phrase “condonation” denotes that the offence (ignorance of the Act’s period law) is impliedly discarded, and the case will proceed as if no offence has occurred.

The period prescribed under Limitation Act, 1963

The time limit is set forth in Schedule 1 of the Act. In general, it goes like this:

• A suit dealing to accounts, contracts, suits relating to moveable property, recovery of a lawsuit under a contract, and so on has a three-year time limit.
• Suits relating to possession of immovable property have a 12-year statute of limitations, while suits relating to mortgaged property have a 30-year statute of limitations.
• For tort suits, the time limit is one year (3 years for compensation in certain cases). In the event of appeals under the Civil Procedure Code and the Criminal Procedure Code, the time limit is 30 to 90 days.

Jurisdiction type

The Court has the option of forgiving the delay and allowing the appeal to proceed. The Court has discretionary jurisdiction, and even if the adequate cause has been demonstrated, the party is not entitled to a delay condonation because the decision is up to the Court.

The Limitation Act does not define the term “sufficient reason.” It varies depending on the circumstances. Depending on the facts and circumstances of each case, the court has broad discretion in determining what constitutes adequate cause. The Limitation Act, on the other hand, allows for the forgiveness of delays in all applications save those submitted for the execution of decrees and orders.

In G. Ramagowda v. Special Land Acquisition Officer, it was decided that the term “sufficient cause” should be applied broadly in order to achieve substantial justice.

Rule 3A

The 1976 Amendment Act added Rule 3A to the code. It states that if an appeal is brought after the time limit has expired, an application must be filed. The application must provide sufficient justification for the delay in filing an appeal. The Privy Council recommended this rule.

The practice of admitting such appeals subject to a limitation opinion was condemned by privy – council, which emphasised the importance of establishing a system for resolving the final determination of the question of limitation before admission of appeal.

In the case of State of M.P. v. Pradeep Kumar, the Supreme Court noted two goals of this rule:

-To notify an appellant who is filing a time-barred appeal that his action will not be considered unless it is accompanied by an application demonstrating sufficient grounds.

-To inform the appellant that he may not be required to be present because a condition precedent to hearing their appeal is the condonation of delay.

The Limitation Act’s General Principles

The following are the two main ideas that the Limitation Act is based on:

• Interest republican ut sit finis lithium: Litigation comes to a conclusion for the public benefit after a protracted chain of appeals. Continued appeals could be compared to opening a floodgate that results in more wrongs than rights.
• Vigilantibus non-dormentibus Jura subvenient: The law helps those who are alert and not sleeping. Those who are oblivious to their rights will not be helped by the law. You must file a lawsuit before the statute of limitations expires. The law will not punish you for being careless.

Instances in which condonation is permissible-

• Changes in the law have occurred since then.
• The person who files the lawsuit or appeal may be imprisoned.
• The person who files the lawsuit, appeal, or application is ill.
• Pardanashin women.
• The opposition party is illiterate.
• The writ petition is still pending, so there is a delay.
• The party is a member of a minority group with minimal money.

Condonation of Delay under the Companies Act of 2013

Section 460 of the Companies Act of 2013 allows for the forgiveness of a company’s delay in filing an application or document. Section 460(a) of the Act says that if an application is necessary to be filed with the Central Government under any section of the Act and is not filed within the time limit, the Central Government may excuse the delay if the reasons are documented in writing.

Section 460(b) of the Act stipulates that if a document is needed to be filed with the Registrar of the company under any section of the Act and is not filed within the time limit, the Central Government may forgive the failure.

 Exceptions of condonation of delay

There are a few exceptions to the scope of the notion of delay condonation (Section 5):

• Only criminal proceedings are covered under the doctrine.
• Only appeals and applications are covered by the doctrine, which excludes “suit.”

Except in the case of an application under Order XXI of the Code of Civil Procedure, 1908. All appeals and applications are covered by the doctrine.

Procedure for condonation of delay

If a corporation misses the deadline for filing an application or document, it must apply to the Central Government for a delay condonation under Section 460 in order for the delayed application or document to be accepted.

The steps are as follows:

• The corporation must hold a Board meeting and issue a resolution approving the delay condonation application that will be filed with the Central Government.
• Authorize the company’s Secretary, Chief Financial Officer, or any other director to file an application with the federal government.
• The corporation must submit a Form CG-1 to the Central Government, along with a copy of the Board resolution authorising the filing of the application and other appropriate papers, requesting a delay condonation.
• The application will be scrutinised by the Central Government, which will then issue an order either accepting or rejecting it.
• The Central Government’s order, along with the relevant documentation and fees, must be filed with the Registrar in Form INC-28. The appropriate documents for which the delay is excused, as well as the fees and SRN of Form INC-28, must be filed.

For condoning company delays, the Central Government has introduced programmes such as the Company Law Settlement Scheme, 2014, Condonation of Delay Scheme, 2018, Companies Fresh Start Scheme, 2020, and LLP Settlement Scheme, 2020, using the powers granted to it under Section 460.

These schemes acknowledged the delay and permitted businesses to file their yearly documents after the deadline had passed with little or no penalty or punishment. However, these programmes were only in place for a limited time, generally, one year, during which time the company could take advantage of the schemes and file the late paperwork with the Registrar.

Under the income tax Act of 1961 

The Income Tax Act of 1961, Section 119(2)(b), allows for the delay of any application or claim filed under the Act to be waived. It provides that the Central Board of Direct Taxes (CBDT) has the jurisdiction to authorise any income-tax authority to accept an application or claim for a deduction, exemption, refund, or another relief under the Income Tax Act after the time limit set forth in the Act has expired. If the CBDT believes it is necessary to avert genuine hardship to the party, it will authorise income tax officials to accept any application or claim. The income tax authority will accept a late claim if making the claim by the required deadline was truly impossible.

Conclusion

The Law of Limitation and the Condonation of Delay are two powerful tools for efficient litigation and case resolution. The Law of Limitation ensures that a complaint is submitted within the time limit in order to avoid unnecessary delays, and it is the embodiment of the phrase, Vigilantibus non-dormentibus Jura subvenient. On the other side, condonation of delay protects the statute of limitation by prohibiting certain situations in which the delay in filing the complaint is justified, i.e. can be justified by having “sufficient reason.”

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An equalization levy was introduced in India to tax digital transactions. This levy is charged for business-to-business transactions. The central government through a notification dated 30th October 2016, imposed Equalization Levy on “E-commerce B2B” transactions effected outside India by non-resident having a place of business or carrying on business or profession within India.

The e-commerce B2B transactions include any supply of goods or services or both by a non-resident to another non-resident and include inward supplies from an unregistered supplier and outward supplies to an unregistered recipient. The definition of e-commerce refers only to the electronic mode i.e., internet/ broadband/ optic fiber cable networks, etc., and not to the general digital environment.

What all services/ goods are covered under Equalisation Levy?

This includes any sale for which money changes hands, including media space trading, display ads, website purchases, or any other type of digital advertising.

How is it levied?

It’s a simple process where the advertiser will have to pay this levy upfront to the Indian government. The overseas e-commerce company will not be dealing with the tax part at all. Having said that, they may or may not pass on this additional charge to you, but ultimately it would be your responsibility as an advertiser to find out and take care of it.

Background  of Equalisation Levy

Equalisation Levy was introduced by the Indian Government with the aim of taxing businesses that carry out digitally trading activities (i.e. revenue collected from India via any means like Google play, Apple App Stores etc). Applicable only to companies whose revenue exceeds Rs 1 crore per year, and they would have to charge tax at 6% on an interstate supply made by these businesses through e-commerce platforms

The equalization levy is being imposed on the foreign e-commerce companies that are selling their products in India. This has been done to bring parity with the Indian marketplaces that are selling abroad. Earlier, this levy was applicable only when a company had more than 20 lakhs rupees in sales in India. But the recent budget decided to lower this limit down to 10 lakhs rupees.

The idea, which India introduced in 2016 with the intention of taxing the digital transactions i.e. the income accruing to foreign e-commerce companies from India, is aimed at validating earlier complaints made by domestic online retailers such as Flipkart and Snapdeal that their foreign counterparts were profiting from an unfair edge due to a lack of regulation on internet-based marketplaces.

Equalisation Levy is an ad valorem tax for foreign e-commerce companies based on the annual value of digital transactions. This means that it is levied as a percentage of Gross Merchandise Value (GMV) i.e., the total cost of products sold and delivered within or outside India through online marketplaces like Amazon and eBay through their Indian subsidiaries or arms.

How does Equalisation Levy function?

As per Section 9(4) of the Finance Act 2016: “There shall be charged for each financial year commencing on or after 01st April 2017, a tax (hereafter referred to as Equalisation Levy) equal to six percent of the value of total online advertisement revenue payable to non-resident service providers, thereby making the levy applicable only on companies that are registered outside India.”

The Department of Revenue had laid down in an explanatory memorandum that: “it would be appropriate to levy such taxes only on B2B transactions and not on transactions involving the sale by consumers. As such, unlike in the case of similar tax provisions, there is no provision for recovery or collection from individual customers.”

However, it can be noted that although this e-commerce tax has been imposed since April 1, 2017, and also affects foreign e-commerce firms like Alibaba and Amazon along with homegrown ones Flipkart and Snapdeal; it has received a significant amount of backlash from American giants. There are complaints that it is unconstitutional, discriminatory, and aimed at protecting domestic players.

The services provided by foreign e-commerce companies after June 1st, 2016 will now be taxed as per Indian laws. The Indian government believes that these e-commerce companies have been avoiding taxes that are payable on their income. In order to avoid this payment, they have been setting up offices in the country and trying to sell their products directly. Now with these new rules applicable, the online companies will not be able to escape paying tax for what they earn from India. Foreign e-commerce companies who are also registered in India under the Companies Act, will be liable to pay tax at 6% of their turnover. The companies not registered in India under the Companies Act, but have been issued a valid certificate to run business in India by the Government, will be taxed at 9%. This will not only lead to an increase in bitcoin price but also provide impetus to Indian e-commerce companies who fear that these foreign e-commerce players would wipe out competition with their large capital and economies of scale.

Effect on the Indian Economy

The imposition of the Equalisation Levy has been hailed as a way to level the playing field for domestic e-commerce players. While there have been cases of regulation-abuse by foreign e-commerce companies, critics believe that this move might work against India’s interests in the long run i.e., loss of Foreign Direct Investment (FDI).

It is argued that those who also provide platforms for digital advertising such as Google or those offering cloud services such as AWS could be significantly affected by Equalisation Levy as it falls under “Online Advertisement”. However, some experts feel that levy would not affect all companies equally, even though it does increase the cost of operations.

“The Equalisation Levy would also mean that foreign e-commerce players may transfer some lower value items which attract Equalisation Levy to other group companies outside India who are not liable for this levy, so there is an opportunity loss”, adds Eric Smith.

Effect on Foreign Companies i.e., American Tech Giants

American tech giants have already raised their voices against this levy stating that it violates international treaties and anti-discrimination norms. However, the government claims that it has no basis in bilateral agreements with America or any basis in law at present.” Any trade agreement will be done only after Parliament gives its approval”, said Commerce Minister Nirmala Sitharaman when questioned about the violation of India-US Trade Policy.

American tech companies have already voiced their concerns regarding this tax through official statements and media coverage. There are also speculations of them taking up the issue with Mark Zuckerberg if they feel that Facebook too will be affected by this tax.

Effect on Indian E-commerce Market

The Equalisation Levy is expected to affect marketplaces such as Flipkart and Snapdeal more than homegrown e-commerce companies such as Amazon. This is due to the fact that most of the current complaints against foreign players are only leveled by them while some had been turned down in favor of homegrown companies like Aditya Birla Group’s Idea Cellular and Vodafone India (which faced an Rs. 3,500 crore tax demand from Indian government).

These rising tensions between India and American tech giants may force them to go for innovation in their product frameworks rather than seeking help from outside sources. This would also mean that they will not be able to compete with local startups which had been the focal point of their product framework.

However, this levy is also expected to affect other platforms which are involved in online advertisement such as Google and Facebook would also be significantly affected by Equalisation Levy. This may further escalate the tension between India and American tech companies. For this reason, Eric Smith suggests that the Indian Government should work with these companies to come up with an amicable solution.

The main reasons for this act are that foreign e-commerce companies were not paying taxes on the income they earned. It was also feared that these companies could end up dominating the Indian market like Alibaba did in China, eBay in Russia, and Rakuten in Japan. The government feels that local players should be given the same opportunity as international online shopping sites in order to compete in a fairway. This will also help boost revenue collections in a country where tax evasion is a big headache for government officials.

It is important to note here that this levy is only applicable on business-to-business transactions and not business to customer ones. This would mean that any transaction made from an Indian seller’s website or app to another Indian buyer would be exempted. :

Equalisation Levy has already been imposed though it is yet to yield any fruitful results for the government exchequer. It will be interesting to see how this levy unfolds in the future considering the already tense relations between India, American tech companies and their impact on global e-commerce markets.

The Goods and Services Tax (GST) Council has approved the principle of imposing an ‘equalization levy’ on cross-border digital transactions, a move aimed to ensure that all goods and services are taxed at the same rate whether it is domestically produced or sourced from outside.

This will be part of a slew of measures decided by the council to prevent multinational companies from trying to evade taxes in their home markets through transfer pricing – a practice where the intra-group supply of goods and services takes place at prices that do not reflect those prevailing in the open market.

The equalization levy is expected to bring into tax revenues those firms which route transactions through low-tax or zero-tax countries such as Singapore, Mauritius or Cyprus to reduce their global tax liability.

Conclusion

An equalization levy is introduced with the intention of taxing digital transactions i.e. the income accruing to foreign e-commerce companies from India. It is aimed at taxing business-to-business transactions.

This new levy has been brought in to provide a level playing field for domestic players while they compete against foreign companies in the country. It will help streamline taxes across sectors while tackling double taxation of digital commerce.

The Indian government had earlier notified that it would be imposing this tax but did not specify when it would go into effect. However, there are provisions to exempt certain small value transactions from the levy.

This new tax has been met with a lot of displeasure from foreign companies operating in India who feel that it will only create an unfair playing field for them since they already pay taxes in their home countries too . To quell these fears, the government has stated that if a business is registered and paying taxes in another country, then no E-commerce Levy needs to be paid. Also, small value transactions of less than 500 rupees have been exempted from this rule. For such purchases, no payment is required under this levy. The proceeds from the levy will go to the Consolidated Fund of India and would be utilized for welfare schemes.

Since there is no law dealing with either setting up of a subsidiary or payment of taxes on digital transactions done within India, e-Commerce companies could use this loophole to offer suppliers services without any hassle. With the imposition of an equalization levy, however, this would not be possible as they would be taxed heavily if they do not utilize money received in India.

Related Posts:

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