Rule 21 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 21 deals with testing packages at a shop or wholesale godown rather than at the factory. It starts from a default: ordinarily no net quantity test is done at a dealer's premises. It then lists the exceptions, what the officer checks, what happens if a package is short, and how a dealer is protected where a pack says "when packed".
Net quantity tests at a retail or wholesale dealer are not ordinarily carried out, unless there is a complaint and the officer has reason to suspect tampering, pilferage or leakage, or a package lacks required declarations. If a package is short by more than the maximum permissible error, the officer seizes it and acts against the dealer under the Act. A pack marked "when packed" is protected from punitive action against the dealer where the shortfall is due to environmental conditions. Missing declarations let the officer enquire about the source.
The default and the exceptions: rule 21(1)
The first sub-rule says that "ordinarily" a test of the net quantity in a package "shall not be carried out at the premises of the retail dealer or the wholesale dealer", unless a complaint is received by the Director, Controller or a Legal Metrology Officer who has reason to suspect that a package has been tampered with, or that there has been pilferage or leakage of the commodity, and a package or its label "does not bear thereon all or any of the declarations which are required to be made under these rules". The sentence is long and joined by "and", and the consolidation does not make it entirely clear whether every condition is cumulative. Read the gazette wording if your case depends on it.
What is clear is the policy: the place to test net quantity is the manufacturer's or packer's premises under rule 19, with a full lot and Fifth Schedule sampling. A shop test is the exception and needs a reason. "Retail dealer" and "wholesale dealer" are defined in rule 2(j) and (q); a retail dealer directly sells to consumers, including a wholesale dealer who makes direct sales.
If a shop visit has already happened and you want help with the next step, our legal dispute resolution service can review the seizure papers with you.
Sub-rule by sub-rule
| Sub-rule | What it says |
|---|---|
| 21(1) | Default: no net quantity test at a dealer's premises, except on complaint and suspected tampering, pilferage or leakage, or missing declarations |
| 21(2) | The officer verifies whether the quantity in the package matches the declared quantity and, if less, whether the deficiency is more than the maximum permissible error |
| 21(3) | If the deficiency in any package kept for sale is more than the maximum permissible error, the officer seizes it and takes appropriate action against the dealer under the Act |
| Proviso to 21(3) | "When packed" legend: no punitive action if the officer is satisfied after testing that the deficiency is due to environmental conditions |
| 21(4) | If the quantity conforms, or any deficiency is within the maximum permissible error, the retailer may sell at a price based on the quantity found |
| 21(5) | If required declarations are missing, the officer may enquire about the source from which the dealer received the package |
Rule 21(2) and (3): the test and the seizure
Sub-rule (2) sets the question for the officer: does the quantity match the declaration, and if it is less, is the shortfall more than the maximum permissible error for that commodity? The error limits are in the First Schedule (see rules 22 and 23).
Sub-rule (3) applies to a package "kept or stored for sale, distribution or delivery" at the dealer's premises where the error in deficiency is more than the maximum permissible error. The officer "shall seize such package and take appropriate action against the retail dealer or the wholesale dealer, as the case may be, in accordance with the provisions of the Act". The penalty for selling a pre-packaged commodity that does not conform to its declarations is in section 36 of the Act; see section 36. Rule 21 does not itself state a penalty. It should be noted that the rule speaks of a single package found short, unlike rule 20 for the manufacturer, which works on column 4 counts over a sample.
The "when packed" proviso
If a package bears the legend "when packed", the proviso says that "no punitive action shall be taken against the retail dealer or wholesale dealer" if the officer, after the necessary test, is satisfied that the deficiency in the net quantity is due to environmental conditions. Rule 22(3) adds that the Director, Controller or Legal Metrology Officer determines, for any commodity whose net quantity is allowed to be qualified by the words "when packed", the reasonable variations that may occur because of environmental conditions.
Two points follow from the text:
- The protection is for the dealer, not the manufacturer. The proviso says nothing about the manufacturer or packer.
- It applies only where the pack carries the legend, and only where the officer is satisfied after testing. The text does not say which commodities may carry the legend; that is for the Director, Controller or Legal Metrology Officer to determine under rule 22(3).
Rule 21(4) and (5)
Sub-rule (4). Where the test shows the pack conforms, or the deficiency is within the maximum permissible error, the retailer may sell or deliver the commodity "at the price determined on the basis of the quantity found on such tests". So a slightly short pack within tolerance can be sold, but the price follows the quantity found. Rule 18(2) bars selling above the retail sale price; see rule 18 on wholesale and retail dealers.
Sub-rule (5). Where a package or its label lacks any required declaration, the officer may "make such enquiries as to the source from which such package was received" by the dealer as the officer thinks fit. This points the enquiry up the chain, to the supplier, rather than away from the dealer, but the rule does not say that a dealer is excused from action. The dealer should keep purchase bills.
Practical examples
Example 1. A retailer stocks a sealed 1 kg pack. After a complaint of leakage, an officer tests one pack and finds the net quantity below the declared quantity by more than the maximum permissible error. Rule 21(3) allows seizure and action against the retailer. If the pack reads "when packed" and the officer, after testing, is satisfied the loss is due to environmental conditions, the proviso bars punitive action against the retailer.
Example 2. A wholesaler holds cartons of small packs with no manufacturer address on the label. Under rule 21(5) the officer may ask where the wholesaler got them. The wholesaler's purchase invoices become the route to the source.
Need help after a shop inspection?
A retail or wholesale inspection can turn on the complaint, the "when packed" legend and the purchase papers. Our legal dispute resolution service can help you review the seizure record and prepare a response under the Rules.
Key takeaways
- Net quantity tests at a dealer's premises are the exception, not the rule.
- A package short by more than the maximum permissible error can be seized and action taken against the dealer.
- "When packed" packs protect the dealer where the shortfall is due to environmental conditions.
- Within-tolerance packs can be sold at a price based on the quantity found.
- Missing declarations allow the officer to enquire about the source.
- Keep purchase bills; the Rules are as amended up to March 2022, so check later amendments.
Read next
- Rule 19 of the Packaged Commodities Rules, 2011: Inspection at manufacturer or packer premises
- Rule 20 of the Packaged Commodities Rules, 2011: Action after inspection
- Rule 18 of the Packaged Commodities Rules, 2011: Wholesale and retail dealers
- Reply to show cause notice: Legal Metrology draft
Disclaimer: Based on the Legal Metrology (Packaged Commodities) Rules, 2011 (as amended up to March 2022; check later amendments), read with the Legal Metrology Act, 2009 (Act 1 of 2010), as on 30 September 2026. The Jan Vishwas (Amendment of Provisions) Act, 2023 (in force) and the Jan Vishwas (Amendment of Provisions) Act, 2026 (in force only from the date the Central Government notifies) amend the Act's penalty and procedure sections, not rule 21. State Legal Metrology rules, later amendments and notifications change; verify the current position before acting.