How to obtain a Dealer License under Legal Metrology?

In India, selling any weight and measurement items is regulated under the Legal Metrology Act, 2009. The free sales of any weight and measurement items in India are not allowed. Still, it is regulated by the respective State Governments in which the seller of such weight and measurement products is operating its business, per section 23, of the Legal Metrology Act, 2009. Every dealer of weight and measurement products must get a license from its respective zonal of the Legal Metrology Authority of its state. Before commencing the sales of any weight and measurement products.

Products falling under the Authority of the Legal Metrology Department

Legal Metrology has clear and strict rules about weighing and measuring instruments. All manufacturers, importer dealers, and repairers require a valid license from the authority of the Legal Metrology Department before conducting their respective activities.

Tools like thermometers, balances, weighing scales, hygrometers pressure monitors, measuring tapes, etc., fall within the authority of the Legal Metrology Department.

Overall, we can say that any device designed for weighing or measuring any product in a certain sum on the imperial or metric scale is within the Legal Metrology Jurisdiction.

Dealer License under Legal Metrology Act

The Dealer License applies to a person or company complicated in the trading & marketing of weights and measures. For getting the Dealer License, an applicant shall obey the provisions of State Legal Metrology (Enforcement) Rules, 2011 under the Legal Metrology Enforcement Rules, 2010^[1].

Required Form for filing to obtain Dealer License under Legal metrology

• To apply a new application for a Dealer License in weights and measurements, Form LD-1 by schedule-IIA is required.
• The renewal of the Dealer’s License Form LD-2 by schedule-IIB is required and issued using the Form LD-3 according to schedule III.

The procedure of Obtaining a Dealer License under Legal Metrology

• The state controller of the Legal Metrology Department of the respective states where such a dealer is operating his business grants the Dealer License obtained under section 23, of the Legal Metrology Act, 2009.
• In India, many State governments have an online process for applying the dealer, and some states have an offline method. However, in all cases, the dealer license issuance process is not entirely online.
• As it involves inspection by the zonal state Legal Metrology Officers. Only after the physical verification of document the legal metrology officer will generally recommend the application for the final issuance of the Dealer License.
• Many states, while applying for the dealer license, ask for a copy of the dealer agreement from the original tools manufacturer for which the dealer is applying for the dealer license.
• Further, the government authority may also ask for a copy of the No Objection Certificate (NOC) from the manufacturer of weight and measurement products.

Note: apart from the documents, the Legal Metrology Officer will also ask whether the address on which the dealer license is applied is a commercial address or a residential address, as commercial address is generally acceptable by Legal Metrology Department.

Documents required to obtain Dealer License under Legal Metrology

Following are the documents required to attach with the Form LD-1 to apply for a dealer license under Legal Metrology:

1. Business Proof of the Applicant Entity.
2. PAN & GST of the Applicant Entity.
3. PAN Card &Aadhar Card of promoters of the Applicant Entity.
4.  NOC from the property owner of the Applicant Entity in the Case of rented business premises.
5. Copy of duly registered rent agreement in Case of leased business premises.
6. NOC from the original weight and measuring instrument manufacturer whose products the dealer will sell.
7. Dealership Agreement with the actual weight and measuring equipment manufacturer whose products the dealers will sell.
8. Copy of Modal Approval of the weight and measure that you intends to sell.

Note: The receipt (Original Treasury challan) of the fee of 100 rupees is only to be paid into the Department account.

Issuance of a DealerLicense under Legal Metrology

After receipt of Form LD-1 duly annexed with all the documents mentioned above, the licensing department will duly inspect the application along with the necessary documents. If the application form and attachments are correct as required, the department will grant a dealer license within 30 days of such receipt.

Still, there might be a probability that the department will refuse the application due to non-compliance with all or any of the requisites. The applicant will duly communicate the reason for such rejection within 15 days. The procedure of issuing the dealer license, to the max, will be completed within the scheduled time.

The renewal process of Dealer License under Legal Metrology

For the dealer license renewal, an applicant must submit Form LD-2 by schedule-IIB. An applicant must submit 100 rupees for the dealer license renewal under Legal Metrology.

Note: If the applicant is a summons for objections, cutting of newspaper wherein a notice is given must be filed with the authority concerned within 7 days.

Conclusion

Decisive, we see that Legal Metrology has definite and stringent rules related to weighing and measuring instruments. Any importer, dealer, and manufacturer dealing in weight and measure equipment shall get the license.

Read our Article:Verification and Stamping by Legal Metrology Inspector: An Overview