In exercise of the powers conferred by Section 71 of
the Karnataka Excise Act, 1965 (Karnataka Act No. 21 of 1966), read with
Sections 43 and 44 of the said Act, the Government of Karnataka makes the
following rules, the draft of the same having been previously published as
required by sub-section (1) of Section 71 of the said Act, in Notification GSR
No. 470 in Part IV-2C(i) of the Karnataka Gazette, Extraordinary, dated 19th
October, 1967, namely: (1) These rules may be called
the Karnataka Excise (Confiscated Articles Disposal) Rules, 1967. (2) They shall extend to all the
areas of the State of Karnataka, where the Karnataka Excise Act, 1965 is in
force. (3) They shall come into force
at once. (1)
Confiscated potable liquor, if it is in sealed bottles or
in other receptacles, the contents of which may reasonably be believed not to
have been tampered with, shall be disposed off in the following manner, namely: (i)
Such liquor shall be disposed off by public auction after
fixing a reserve price which shall be not less than seventy-five per cent of
the ordinary local price of such liquor (excluding taxes and duties) in the
case of bottled liquor with the seals intact and fifty per cent of the ordinary
local price of such liquor (excluding taxes and duties) in the case of loose
liquor, to the highest bidder provided that the bid offered does not exceed the
maximum price, if any, fixed by the Government or Excise Commissioner and that
such bidder holds a licence to sell liquor under the Karnataka Excise Act or the
rules and orders made thereunder. (ii)
If no adequate bid is received in auction, a report shall
be made to the Excise Commissioner for orders regarding its disposal and the
goods disposed off as per the orders. (2)
All other confiscated liquor, except potable spirits,
rectified spirit and absolute alcohol shall be destroyed and potable spirits
and rectified spirits and absolute alcohol shall be sent to the Excise
Commissioner for redistillation or such other disposal as he may deem fit. All confiscated denatured spirit other than that in
bottles bearing the seal of an Excise Officer shall be destroyed if it is less
than five litres. The denatured spirit in bottles bearing the seal as aforesaid
shall be sold by public auction to the highest bidder provided he holds a licence
for the retail sale of denatured spirit. In all other cases a sample of such
denatured spirit shall be sent to the Chemical Examiner to the Government of
Karnataka for analysis as to whther it conforms to the specification of
denatured spirit permitted for sale. If the analysis shows that the confiscated
denatured spirit conforms to such specifications, it shall be sold to the
highest bidder provided he holds a licence for the wholesale sale of the
denatured spirit. If no adequate bid is received in auction, a report shall be
made to the Excise Commissioner for orders regarding its disposal and it shall
be disposed off in accordance with those orders. If the analysis shows that the
confiscated denatured spirit does not conform to the specifications, a report
shall be made to the Excise Commissioner and the denatured spirit disposed off
as per the orders. All confiscated methyl alcohol or higher alcohol
shall be destroyed. (1)
All confiscated toilet preparations, perfumes and essences
containing alcohol other than essences used in the manufacture of potable liquors
shall be sold by public auction: Provided that where such articles are not of the nature, quality and substances
which they purport to be, they shall be destroyed. (2)
Essences containing alcohol used in the manufacture of
potable liquors shall be destroyed, if they are found not fit for use by the
Chemical Examiner. Confiscated toddy and neera shall be destroyed. (1)
All confiscated hemp and intoxicating drugs other than
Ganja and Bhang shall be destroyed. (2)
All confiscated Ganja and Bhang if less than fifty grams in
weight shall be destroyed. (3)
All confiscated Ganja or Bhang which on examination is
found to be unfit for human consumption shall, with the previous sanction of
the Excise Commissioner, be destroyed. (4)
All confiscated Ganja or Bhang, if fifty grams or more in
weight, and found not unfit for human consumption shall be sent to the
Officer-in-charge of the State Huzur Treasury, Bangalore or such other Officer
as the Excise Commissioner may nominate. (5)
The Officer referred to in clause (4) shall utilise the
Ganja and Bhang sent to him, under the said clause for issue in packets to
permit holders. Any Ganja or Bhang out of the stock sent to him, if found by
him to be unfit for human consumption shall with the previous sanction of the
Excise Commissioner be destroyed by him. (6)
The said Officer shall maintain a register showing proper
accounts of the receipts and subsequent disposal of the confiscated Ganja and
Bhang sent to him under clause (4). (1)
Confiscated mhowra flowers and molasses, if deemed fit for use, may be sold to any person holding a
licence for sale of the same under the Act
or any rules, regulation or order made thereunder. (2)
Wnere mhowra flowers
or molasses cannot be so sold, they shall be destroyed. Whenever any confiscated articles or hemp has to be
destroyed in conformity with these rules, it shall be destroyed in the presence
of the Magistrate or officer ordering the confiscation or forfeiture, as the
case may be, or in the presence of the Excise Officer not lower in rank than
that of an Inspector. (1)
All confiscated articles other than those dealt within the
preceding rules shall, unless "otherwise directed by the Excise
Commissioner, in any particular case, be put up to auction and sold to the
highest bidder, but if there is no bid, they shall be destroyed. (2)
Stills and all implements and apparatus for the manufacture
of liquor or intoxicating drugs shall be broken up or otherwise rendered
useless for such manufacture before being offered for sale. (3)
Confiscated utensils and such other articles of metal
shall, if the Excise Commissioner so orders, be brdken up or rendered useless before
they are offered for sale. The sale or other disposal of confiscated articles
shall be deferred till the period of limitation for appeal against the order of
the Court, Excise Commissioner, Deputy Commissioner or any other Officer
ordering confiscation has expired or if an appeal is made against such order,
till the appeal is finally disposed off: Provided that: (a)
in the case of a confiscated animal, the sale shall not be
so deferred unless the owner thereof deposits with the Deputy Commissioner or
other authorised Officer such sum as that Officer deems to be sufficient for
the feeding and upkeep of such animal, till the end of the period required for
preferring an appeal or till the disposal of such appeal as the case may be; (b)
if the article confiscated is liable to speedy and natural
decay or if the disposal thereof would be for the benefit of the owner, it may be
sold immediately and if the sale of such thing is not advantageous to the
owner, the Deputy Commissioner or other authorised Officer may direct it to be
destroyed. If an order of confiscation of any intoxicant or
hemp or other thing b e reversed on appeal, such articles, hemp or thing or the
sale proceeds thereof and the balance of the amount if any deposited for
feeding, upkeep or safe custody thereof after deduction of the expenditure, if
any, incurred in its maintenance shall be returned to the owner thereof, or his
duly authorised agent. If no one appears within two months from the date of
order on appeal to claim such article, hemp or thing or the sale proceeds
thereof, the same shall be handed over to the police for disposal in accordance
with the provisions of the Kamataka Police Act, 1963. Intoxicants and hemp in respect of which an offence
has been committed and the offender is not known or cannot be found and
intoxicants and hemp which are found unclaimed in Railways and in the Post
Office shall when forwarded to the Excise Commissioner or the Deputy
Commissioner be dealt with under these rules. Any intoxicant, hemp, mhowra flowers or molasses and
any other property if any confiscated in a case compounded under Section 45 of
the Act shall be disposed off in accordance with these rules. All rules corresponding to these rules framed under
any of the Acts repealed under Section 72 of the Karnataka Excise Act, 1965 are
hereby repealed: Provided that such repeal shall not affect the
previous operation of the said rules and anything done under the said rules
shall be deemed to have been done under these rules.KARNATAKA
EXCISE (CONFISCATED ARTICLES DISPOSAL) RULES, 1967
Subject to the
provisions of the Karnataka Excise Act, 1965, when any article, animal or thing
is duly confiscated either by the order of Court or otherwise, such article,
animal or thing shall be made over to the peputy Commissioner for disposal or
be disposed off according to these rules.