MADHYA PRADESH COUNTRY SPIRIT RULES, 1995

MADHYA PRADESH COUNTRY SPIRIT RULES, 1995[1]

PREAMBLE

In exercise of the power conferred by sub-section (1) and clauses (d) and (h) of sub-section (2) of Section 62 of the Madhya Pradesh Excise Act, 1915 (No. II of 1915), the State Government hereby makes the following rules, the same having been previously published as required by sub-section (3) of the said Act, namely

Rule - 1. Short title, Scope and Commencement.

(1)     These rules may be called The Madhya Pradesh Country Spirit Rules, 1995.

(2)     They shall come into force with effect from 1st April, 1995.

(3)     They shall apply to the manufacture, bottling supply, Transport, Import, Export and sale of country spirit of Madhya Pradesh.

Rule - 2. [Definitions.

In these rules unless the context otherwise requires.

(a)      "Manufacturing Warehouse" means a bonded liquor Warehouse wherein rectified spirit for the manufacture of country liquor is received, stored, blended/reduced, bottled at issue strength, sealed and issued to retail licencies or storage warehouse;

(b)      "Storage warehouse" means a bonded liquor warehouse wherein bottled country liquor is received from a "manufacturing warehouse" for storage and issuance to retail licencies;

(c)      "Warehouse" means "manufacturing warehouse" or "storage warehouse";

(d)      "On licence" means a licence under which the liqour can be consumed on the licensed premises;

(e)      "Off licence" means a licence under which the liquor cannot be consumed on the licensed premises;

(f)       "Warehouse Officer" means an Excise Officer not below the rank of Sub-Inspector in-charge of a warehouse;

(g)      The words and expressions used but not defined in this rule shall carry the meaning assigned to them in the Madhya Pradesh Distillery Rules, 1995][2].

Rule - 3. Grant of Licence.

(1)     (a) A licence in from C.S. 1 for manufacture, bottling and wholesale supply of country spirit may be granted by the Excise Commissioner after approval of the State Government. It shall commence on such date as may be specified therein and be in force for such period as the State Government may decide and shall be for such area or areas as may be determined by the Excise Commissioner from time to time.

(b) [3][Licence in Form C.S. 1 shall be granted by the Excise Commissioner as aforesaid on payment of fee in advance at the rate of one lakh rupees for a period of one year's licence or such proportional amount of fees for the period of licence to be granted.]

The licensee shall be required to deposit additional amount of Rs. 5 lacs as security in cash or in any other form as may be directed by the Excise Commissioner for the due observance of conditions of licence, provisions of the Act and the rules made thereunder and orders issued by State Government or Excise Commissioner. The Excise Commissioner may ask for additional sum as security amount not exceeding Rs. 10 lacs as and when he deems it necessary in circumstances of repeated breaches of conditions of increase in area of supply and the licensee shall comply with such order with in 15 days of its communication to him.

(2)     No licence shall be granted unless the applicant furnishes required security as specified in clause (b) of sub-rule (1) for the fulfilment of all the conditions of licence.

[4][(3) This licence confers exclusive right to manufacture Country Spirit by essencing, colouring, flavouring, reducing, blending etc. at the "manufacturing warehouses" and to supply it in sealed bottles, to retail licensees through warehouses].

(4)   The cost price of country liquor to be paid to the supplier will be decided through the tender procedure or in any other manner as determined by the State Government. The spiced(Masala) liquor shall be manufactured in the manner provided in the Schedule appended to the licence as approved by the Excise Commissioner from time to time and the licensee shall be paid according to the rate determined by the State Government.

(5)   The licensee shall not hypothecate, sell, mortgage, transfer or sub-lease his licence in C.S. 1 or enter into partnership for the working of the said licence, without the previous permission in writing of the Excise Commissioner which shall be endorsed on the licence.

Rule - 3-A. [Manufacture of Country Spirit for export.

(1)     A licence in Form C.S. 1-A, may be granted to a holder of D-1 licence by the Excise Commissioner for manufacture and bottling of Country Spirit exclusively for export on payment of an annual licence fee to be fixed by the State Government from time to time.

(2)     The Country Spirit shall be manufactured and bottled in a separate bottling hall within the distillery premises as mentioned in the Schedule appended to C.S.-1-A licence.

(3)     The licensee shall deposit the amount of prescribed duty leviable on the total quantity of bottled Country Spirit being exported or furnish a Bank Guarantee for an equal amount from any local branch of a Nationalised Bank. After the receipt of the verification report from the officer-in-charge of the importing unit, the next consignment of bottled country spirit involving the same or lesser amount of duty may be exported on the strength of the same cash-deposit of Bank Guarantee. If the verification report is not received in a month from the date of despatch of the consignment, the leviable duty shall be recovered from the cash deposit made or Bank Guarantee furnished.][5]

Rule - 4. Manufacture and Bottling.

(1)     The Country Spirit shall be of good quality and of such specification as may be determined by Excise Commissioner. It shall be subject to Chemical Analysis, and if found substandard or unfit for human consumption, it shall be redistilled or rejected and destroyed as the case may be, under the orders of the Excise Commissioner or on officer authorised by him in this behalf. The Warehouse Officer may stop, pending the orders of the Excise Commissioner, issue of country spirit which he considers defective and may on every such occasion take samples of such country spirit at the cost of the licensee for sending them for purposes of chemical analysis, without delay.

(2)     (a) The warehouse building which can accommodate atleast one month's requirements of liquor shops attached to each warehouse shall be arranged by the licensee himself under the directions from the Excise Commissioner. If warehouse building belongs to the State Government, the licensee shall be bound to pay necessary rent of the building or buildings occupied by him on the appropriate terms and conditions determined by the Public Works Department of the State and shall also, execute a Lease Deed in the form prescribed in Appendix 54 of the Public Works Deptt. Manual, Volume II, within a period of one month of intimation of the grant of this licence. The lease shall be terminated on the expiry of the period of his licence. The licensee shall not be entitled to get any rent from the Government for Hemp Drugs, Opium etc. stored in any warehouse by the Government. Equipment connected with the supply, storage, gauging, handing and issue of country spirit, including vats, casks, tanks, pumps, pipes, locks, corks, gauging rods, measures, vessels, etc. shall be of the patterns and designs approved by the Excise Commissioner.

(b) Arrears of rent, if any, shall be recoverable from the cost price bills of liquor payable to the licensee every month.

(3)     The Excise Commissioner may close any warehouse or require the licensee to open and start any warehouse or warehouses. The Excise Commissioner may also transfer [6][any warehouse in the supply area] and add it to the supply area of any other licensee. Similarly, other warehouses in the State may be added to the schedule and the licensee shall have to supply country spirit to the additional warehouse at the rates mentioned in the Schedule. The licensee shall not be entitled to claim any increase in the cost of spirit on account of the above changes, nor shall the licensee be entitled to any relaxation in any of the conditions of the licence granted to him.

(4)     [7][(a) The licensee shall maintain at each "manufacturing warehouse" a minimum stock of bottled liquor and rectified spirit equivalent to average issues of five and seven days respectively of the preceding month. In addition, he shall maintain at each "storage warehouse" a minimum stock of bottled liquor equivalent to average issue of five days of the preceding month:

Provided that in special circumstances, the Excise Commissioner may reduce the above requirement of maintenance of minimum stock of rectified spirit and/or sealed bottles in respect of any "manufacturing warehouse" or "storage warehouse"].

(b) The C.S. 1 licensee shall maintain at each [8][Manufacturing warehouse] such minimum stock of empty-bottles as may be fixed by the District Excise Officer of the concerned district.

(5)     All vessels in the [9][manufacturing warehouse] whether used as spirit vats or water vats, shall be so placed as to admit of the contents being accurately gauged or measured. These vessels shall be gauged in such manner as the Excise Commissioner may from time to time direct and no vessel shall be used as spirit vat or water vat until it has been gauged and the gauging has been checked and approved by the District Excise Officer.

(6)     Blending or reduction of plain spirit may be permitted in the store vats, provided the blending or reduction is done in the presence of the Warehouse Officer and under his supervision. Water used for reduction must be pure and the licensee must comply with the directions of the Warehouse Officer regarding the essences, food colours, water or any other material used for the purpose.

[10][(7) Operations connected with the filling of bottles with liquor for issue shall be conducted in bond under the supervision of the [11][manufacturing warehouse] Officer in separate room called the Bottling room for liquor, set apart for the purpose within the [12][manufacturing warehouse] premises. Bottled spirit shall be stored in separate room called the 'Store for bottled liquor' set apart for the purpose within the [13][manufacturing warehouse] premises near the bottling room. The bottling room and the bottled spirit store-room shall be secured in such manner as the Excise Commissioner may approve. In the bottling room, bottling vats may be erected and spirit stored therein.

[14](8) Liquor shall be bottled at the strength specified by the Excise Commissioner from time to time. Bottling shall be done during the ordinary working hours of the [15][manufacturing warehouse]. If the licensee has reduced the strength of spirit by blending or otherwise, he shall not bottle/pack the spirit until 48 hours after operations are completed but in case of emergency the [16][manufacturing warehouse] Officer may permit relaxation of above rule but gauge and proof shall in no case be taken until after the lapse of two hours.

[17](9) The bottles to be brought in use for supply of country spirit shall be of standard pattern and specifications as prescribed by the Excise Commissioner from time to time.

(10) On receipt of the consignments of empty bottles at the [18][manufacturing warehouse], they shall be opened in the presence of the [19][manufacturing warehouse] Officer, who shall examine the bottles. At the time of examination of the bottles, the [20][manufacturing warehouse] officer may reject any bottle which is not in sound condition or of the description given in sub-rule (9).

(11) The bottles which are so rejected shall be removed from the [21][manufacturing warehouse] immediately by the licensee.

(12) Cleaning, filling, Corking, Sealing, Labeling, Stocking and issuing of bottles shall be done to the satisfaction of the Excise Commissioner by the licensee under the supervision and direction of the Officer-in-charge of the [22][manufacturing warehouse] in the following manner and in such other manner as the Excise Commissioner may direct from time to time

(a)      Each Bottle shall be thoroughly cleaned and effectively capped or corked. The licensee shall make his own arrangements for water required for washing and cleaning purpose.

(b)      Labels to be pasted on bottles shall be of quality and design as specified by the Excise Commissioner. The licensee shall have to get the labels approved by the Excise Commissioner prior to their use in Warehouses.

(c)      The labels mentioned in clause (b) above, shall also show in bold print in Hindi the price of the empty bottles refundable to the purchaser, on their return to the retail vendor.

[23][(d) The name of the "manufacturing warehouse", "storage warehouse" if any and district of the destination shall be printed on the label which shall also carry the date of bottling rubber-sealed on it clearly].

(e)   The licensee may be required to seal the bottle in the manner prescribed by the Excise Commissioner from time to time. In addition to sealed glass bottles the Excise Commissioner may introduce the system of packing of country liquor in Poly Pouches in such quantity, as may be directed by him and the licensee shall be bound to comply with the said system.

(13) If the sealing, labeling etc. are not of the detailed specifications as mentioned above or as directed, the Excise Commissioner may direct that sealing charges at such reduced rates may be paid as may be prescribed by him and his decision thereon shall be final.

Rule - 5. Supply.

(1)   (a) On demand by the retail vendor and upon proof of payment into treasury of the issue price recoverable for it, the licensee shall supply to the retail vendors potable spirit of good quality in such quantity and at such of the prescribed strength as may be required.

(b) Any retail vendor may raise an objection regarding the quality of spirit before taking delivery. All such objections shall be submitted to the Warehouse Officer whose decision thereon shall be final and binding on the parties.

(2)     The issue price to be recovered from the retail vendors for the country spirit supplied to them from any of the Warehouse of the licensee shall be such as the State Government may from time to time determine at it shall be lawful for the State Government to alter the rates so determined at any time and from time to time, during the currency of this licence, and no retail licensee shall be entitled to any concession, compensation, or remission on account of such alteration ordered by the State Government.

(3)     (a) Subject to the sanction of the Excise Commissioner the C.S. 1 licensee shall be entitled to recover from the retail vendors sealing charges at the time of issue of country spirit from the Warehouse.

(b) The licensee shall be entitled to recover from the retail vendors an amount per bottle on account of its deposit as may be determined by the Excise Commissioner from time to time.

(c) The licensee shall take back empty bottles in sound conditions returned by the retail vendors and return the deposit amount in full mentioned in clause (b) above.

(d) In the event of there being any dispute between the licensee and the retail vendors regarding the condition of the empty bottles, the same shall be referred to the Warehouse Officer and his decision thereon shall be final and binding on the licensee and the retail vendors.

(4)     [24][(a) In the event of the licensee's failure to supply spirit/sealed bottles as required under these rules, or to maintain the minimum stock of spirit and/or sealed bottles at the manufacturing/storage warehouses as prescribed or when the stock of spirit/sealed bottles at any warehouse in the area falls so low that in the opinion of the Assistant Commissioner/District Excise Officer authorised by the Excise Commissioner may purchase rectified spirit and/or country liquor in sealed bottles at the prevalent open market rate].

(b) In the event of such failure continuing, the Excise Commissioner may also detach warehouse or warehouses from the area of the licensee and order attachment of the same to any other area. The licensee shall not be entitled to any remission, compensation or any other claim against such an order.

(c) In the event of the failure of supply of country spirit by the licensee to the retail vendors in accordance with their demands, the licensee shall be required to pay such losses and damages to the retail vendors and Government as may be determined by the Excise Commissioner. The decision of the Excise Commissioner shall be final and binding on the licensee.

(d) On demand by the Excise Commissioner or any District Excise Officer authorised by the Excise Commissioner, the D-1 or C.S. 1 licensee shall forthwith dispatch such quantity of spirit as may be required from him to any other warehouse in the State.

Rule - 6. Transport.

(1)     No spirit shall be received into any [25][manufacturing warehouse] unless accompanied by a pass from the Officer incharge of the Distillery or the [26][manufacturing warehouse] whence they have been transferred or by a special pass authorizing their receipt into the [27][manufacturing warehouse] or, if the spirit be imported by a pass from such officer or person as the Excise Commissioner may from time to time prescribe.

(2)     All spirit received into [28][manufacturing warehouse] shall be gauged and proved as soon as possible after arrival and the supply contractor shall thereupon become responsible for it as per rules.

[29][(3) The transport of Country Spirit from a warehouse to a retail Country Spirit shop under licence C.S. 2-A shall be done on the basis of an authority issued by the concerning warehouse officer, whereas transport of Country Spirit from a retail shop under licence C.S. 2-A to a [30][shop holding licence of C.S. 2B. FL. 1A or F.L. 1AAA] attached to it, shall be carried out under a pass in Form C.S. 4 issued by the Circle Sub-Inspector, Transport pass authorising transport of spirit under sub-rule (1) shall be in Form C.S. 5.]

Rule - 7. Import.

No country spirit shall be imported into this State without authorisation from the Excise Commissioner. The Excise Commissioner may prescribe the conditions and the form of the pass under which such country spirit may be imported.

Rule - 8. Export.

(1)     On receipt of an application, the Excise Commissioner may after such enquiry as he may consider necessary and on being satisfied, allow the export of country spirit from this State.

(2)     The application for export shall be accompanied with a permit or 'No Objection Certificate' from the Excise Authorities of State of Import.

[31][(3) The export permit, which shall be in Form C.S. 6, shall be issued by the Officer-in-charge of the distillery].

(4)   Above mentioned export pass shall be issued upon proof of payment of permit fee @ 30 paise per proof litre.

Rule - 9. Sale.

Country spirit may be sold in retail exclusively in sealed bottles, under a licence issued by the Collector in [32][Form C.S. 2, or C.S. 2-A or C.S. 2-B or C.S. 3 or F.L. 1A or F.L. 1AAA] :

[33][Provided that the licence in Form C.S. 2-B shall be granted by the Collector for a year on pre-payment of licence fee as prescribed by the State Government from time to time].

Rule - 10. Permissible Wastages.

The limits for various kinds of permissible wastage and the margin of deviation of strength shall be as provided in Rule 6 of Madhya Pradesh Distillery Rules, 1995.

Rule - 11.

The licensee shall be bound by General or Special Orders which may be issued by the Excise Commissioner from time to time.

Rule - 12. Penalties.

(1)     Without prejudice to the provision of the conditions of the C.S. 1 licence and save where provision is expressly made for any other penalty in these rules, the Excise Commissioner may impose upon C.S. 1 licensee a penalty not exceeding Rs. 50,000/- for any breach or contravention of any of these rules or the provisions of Madhya Pradesh Excise Act, 1915 or rules made thereunder or orders of the Excise Commissioner and may further impose in the case of continued contravention an additional penalty not exceeding Rs. 1,000.00 for every day during which the breach or contravention is continued.

(2)     In the event of failure to maintain the minimum stock of rectified spirit and bottled stock of liquor in the warehouse as prescribed in Rule 4 (4) (a) of these rules the [34][Collector] may impose a penalty not exceeding Rs. 2/- per proof litre on the C.S. 1 licensee for the quantity found short of the minimum prescribed stock. This penalty shall be payable by the licensee irrespective of the fact whether any loss has actually been caused to the Government or not.

(3)     [35][Deleted]

(4)     In the event of failure to despatch the spirit requisitioned under Rule 5 (4) (d), the D-1 or C.S. 1 licensee shall be liable to such penalty not exceeding Rs. 2/- per proof litre impossible by the Excise Commissioner on the quantity of spirit thus short supplied.

(5)     The Excise Commissioner may suspend or cancel the licence under Section 31 of the Act and may also black list the licensee upon a breach or contravention of any of these rules or of the provisions of Act or of the rules made thereunder. The licensee shall be liable for any loss caused to Government as a result of such suspension or cancellation of the licence.

Rule - 13. Disposal of the Balances and the Warehouse Plant.

(1)     On the expiry of the C.S. 1 licence, the outgoing licensee shall sell and the incoming licensee shall purchase all the sanctioned warehouse plants including its vats, corking, capsuling, machines etc. at a price fixed by the valuation committee appointed by the Excise Commissioner for the purpose. The incoming licensee shall also purchase the liquor, empty bottles, the sealing materials etc. in stock on the day of expiry of the licence at the rates applicable to the outgoing licensee. The payment shall be made to the outgoing licensee within a month of such date. This procedure will also apply when any C.S. 1 licence is cancelled during the currency of the licence or any warehoused is delisted in detached from the area of such licensee.

(2)     C.S. 1 licence granted under these rules, shall be subject to further condition that if during the currency of the licence the policy of total or partial prohibition is introduced in the whole of any part of the area and as a result of which the total quantity of liquor expected to be supplied is reduced, the licence shall stand terminated or get automatically modified to that extent, from the date of introduction of the said policy. The licensee shall not be entitled to any compensation whatsoever for any loss sustained by him on that account.

(3)     If during the currency of the licence or at its expiry the policy of total or partial prohibition is introduced in the whole or any part of the area, and consequently any warehouse or warehouses are to be closed, it shall be the responsibility of the licensee to dispose, of the sanctioned warehouse plant, the stock of liquor, sealing materials etc. that are in stock on that day. If the C.S. 1 licensee is unable to dispose of such stock within a month of such date, the Excise Commissioner shall make orders about their disposal including their destruction, which shall be binding on the licensee.

Rule - 14. Repeal.

All rules corresponding to these rules in force immediately before their commencement are hereby repealed in respect of matters covered by these rules. Provided that any order made or action taken under the rules so repealed shall be deemed to have been made or taken under the corresponding provisions of these Rules.