PREAMBLE In exercise of the powers conferred by section 17-C, 17-D read with section 54 of the Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937), the Governor of Tamil Nadu hereby makes the following rules for regulating the grant of exclusive or other privilege for supply by wholesale of Indian made foreign spirit in the State of Tamil
Nadu. These rules may be called the Tamil Nadu Indian Made Foreign Spirits (Supply by Wholesale) Rules, 1981. In these rules, unless the context otherwise requires,-- (a) "Act" means the Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937); (b) "Assistant Commissioner" means the Assistant Commissioner of Prohibition and Excise appointed for each district; (c) "bottled liquor" means liquor put in bottles, and corked, sealed and labelled, by the manufacturer before issue for sales; (d) "depot" means licensed premises in which stocks of bottled liquor are kept for sale by wholesale by the licensee; (e) "Form" means a form appended to these rules; (f) "Government" means the Government of Tamil Nadu and "State" means the State of Tamil Nadu; (g)
1"licence" means a licence granted for the privilege under section 17-C of the Act for selling by wholesale of bottled liquor to retailers and the words "licensed" or "licensee" shall be construed accordingly;] (h) "liquor" for the purpose of these rules means, Indian-made Foreign Spirit; (i) "medicated wines" means wines in which some medicinal substance or preparation has been dissolved or mixed or which have been, or may be, from time to time, notified as such by the Commissioner in the Tamil Nadu Government Gazette, it does not include arishtas and asavas. (a) The Commissioner may, subject to the approval of the Government, fix the number and places in which depot for the sale by wholesale of bottled liquor to retailers shall be located. (b) The Commissioner may, as and when he considers necessary, call for applications from the intending persons to submit their applications for the grant of privilege of supplying by wholesale of bottled liquor and the licence, within a specified period. The notice calling for such applications shall be published in the Tamil Nadu Government Gazette and in the newspaper
specified by the Commissioner at least 10 days in advance of the last date fixed for the receipt of such applications. (c) The notice referred to in sub-rule (b) shall contain the following matters, namely:-- (i) The name of place and the locality where the depot is to be located; (ii) The last date and time for the receipt of application; (iii) The authority before whom the application shall be filed; (iv) Special conditions, if any, governing the licence; and (v) Any other matter which the Commissioner may consider necessary for information of the intending applicant. (a) Any person
2[desirous] of getting the grant of any privilege and taking a licence for sale by wholesale of bottled liquor may apply to the Commissioner in Form FW. A-1 within the time specified in the notice published under sub-rule (b) of rule 3. (b) Every application shall be affixed with the Court-fee label to the value of rupees two and accompanied by a treasury receipt in proof of the payment of application fee of Rs. 200/- (Rupees two hundred only) and the payment of licence fee of Rs. 25,000/-(Rupees twenty-five thousand only) for the grant of privilege of supplying by wholesale of bottled liquor together with the true copies of the location plans and the plan of the building, in triplicate: 3[Provided that, if under any circumstances, the true copies of the location plans and the plan of the building in triplicate cannot be furnished along with the application, they shall be produced at the time of the enquiry to be made by the Commissioner under rule 6]. (c) The building where the wholesale depot is to be located shall be of pucca construction with sufficient space and separate rooms for storing the bottled liquor safely. No portion of such building shall be made of, or constructed by, any thatched material. While granting privilege of supplying by wholesale of bottled liquor and the licence under section 17-C, the Commissioner shall take into consideration the following matters, namely:-- (a) The suitability of the applicant for the grant of licence; (b) Whether the applicant is a person who will abide by the provisions of the Act and the rules made thereunder; (c) the suitability of the site and building selected or to be constructed where the wholesale depot is to be located; and (d) whether the application is made bone fide on behalf of the applicant himself or in benami of any other person. (a) After the expiry of last date for the receipt of applications, the Commissioner may make such enquiries, as he considers necessary in regard to the particulars furnished in the applications received. After taking into consideration the matters specified in rule 5, the Commissioner may grant the privilege of supplying by wholesale the bottled liquor or reject any application: 4Provided that no privilege shall be granted except the prior approval of the Government.] (b) Upon the grant of the privilege under sub-rule (a), the Commissioner shall issue a licence. The licence issued under subsection (2) of section 17-C shall be in Form FW.L. The licence shall not be transferable: Provided that in the event of the death of the licensee, the person succeeding to the possession of the wholesale depot may use the licence as if it had been granted to himself: Provided further that no licence shall be used after the date of expiry of its validity without renewal. 5Notwithstanding anything contained in these rules, the Tamil Nadu Consumers' Cooperative Federation shall, on an application made in Form FW A1, be entitled to the grant of the privilege of, and licence in Form FW.L. for supplying by wholesale of bottled liquor to the-- (1) Co-operative Wholesale Consumer Stores and their branches in the State of Tamil Nadu, holding licence for retail sale of bottled liquor; (2) Co-operative Primary Stores and their branches in the State of Tamil Nadu holding licence for retail sale of bottled liquor; and (3) Co-operative Marketing Societies and their branches in the State of Tamil Nadu holding licence for retail sale of bottled liquor 6[Provided that the Commissioner may, in special circumstances, to be recorded in writing, grant the Tamil Nadu Consumer Co-operative Federation the privilege of supplying wholesale of bottled liquor to persons holding licence for retail sale of bottled liquor for any specified period.] 7(1) Every licence granted under rule 6
5[or 6-A], shall be subject to the provisions of the Act, the rules made thereunder and the terms and conditions of licence. 8(2) The licensee shall get the supply of bottled liquor from such manufacturers and at such quantities as the Commissioner may, after taking into account the need of the retailers, direct, from time to time. 9If, at any time after the issue of the licence, the site and building specified in the licence ceases to be available to the license due to reasons beyond his control, the Commissioner may, with the prior approval of the Government, permit the license to change over to any other site and building approved as suitable by the Commissioner for the location of the wholesale depot and conduct of business of sale by wholesale of bottled liquor by the license and make necessary amendments to the licence in this regard. Before getting the licence under rule 6
10[or 6-A], the applicant shall deposit a sum of Rs. 25,000/- (Rupees twenty-five thousand only) by way of security deposit for the due observance of the conditions of licence. The licence granted under rule 6
10[or 6-A], shall not valid beyond the 31st March of the year in which it is granted, but may be renewed from financial year to financial year. (a) An application for renewal of licence granted under rule 6
10[or 6-A] shall be made 3[in Form F.W.A.I] at least thirty days before the date of expiry of the validity thereof: Provided that the Commissioner may admit an application preferred after the expiry of the said period of thirty days, but before the expiry of the
11[licence, if] he is satisfied that the licensee has sufficient cause for not filing the application in time. (b) Every application for renewal shall be affixed with a Court-fee label to the value of rupees two and shall be accompanied by-- (i) a treasury receipt in proof of the payment of fee prescribed under sub-rule (b) of 4; and (ii) the full description of the site and the building referred to in sub-rule (b) and (c) of rule 4. If there are any alteration or addition to the building subsequent to the grant or renewal of the licence, a certificate from the officer in-charge of the
unit as to the correctness of such alteration or additions shall also be filed. (c) The Commissioner may refuse to renew a licence, if he satisfied that the licensee has violated or failed to comply with the provisions of the Act, the rules made thereunder or the terms and conditions of the licence: Provided that the Commissioner shall not pass any order refusing the renewal of licence unless the licensee had been given a reasonable opportunity of being heard. (d) Any licensee who has failed to apply for renewal before the date of expiry of the licence shall stop running the business of wholesale, vend on the expiry of the licence period. Where an application for renewal of licence has been made after the last date specified in
2[rule 10-(a)] but before the expiry of licence and admitted by the Commissioner under the proviso to
2[rule 10-(a)] as additional fee of 25 per cent of the licence fee payable under sub-rule (b) of rule 4 shall also be paid. No liquor shall be imported by the holder of the licence except under an import permit in Form FW.1.P. issued by the Commissioner under these rules and in accordance with the terms and conditions subject to which such import permit is issued.
12[The route by which the liquor shall be transported from the point of arrival within the State to its destination shall be specified in the import permit by the Commissioner. It will be open to the Commissioner to provide necessary escort during the transport of the liquor within the State. The cost of the escort shall be borne by the person transporting the liquor. The treasury receipt in support of payment of the excise duty or countervailing duty, as the case may be, and the vend fee shall be enclosed along with the application for import permit.] (1)
13Transport of liquor or medicated wine from one place to another in the State shall be under the cover of a
transport permit in Form FW.T.P. issued under these rules and subject to terms and conditions of such transport permit. (2)
14The authority issuing the permit shall also specify in the permit the route by which the consignment should be transported under the permit. It will be open to the
Commissioner to provide necessary escort during the transport of the consignment within the State. The cost of the escort shall be borne by the person transporting the consignment.] No person or institution shall possess and sell in wholesale any liquor except in accordance with the provisions of these rules and under the terms and conditions of a licence in Form FW.L. under these rules. In addition to excise duty, a vend fee at the rates specified below shall be collected from the holder of a wholesale licence under these rules:-- (a) Liquor for consumption as ordinary alcoholic beverage. Rate at which vend fee is to be levied per bulk litres. Rs. P. 1. Spirits, liquors, champagne and other wines classified by the Commissioner as sparkling wines containing more than 42 per cent of proof spirit. 2.00 2. Wines of all other kind. 1.00 3. Beer, Cider and other fermented liquor. 0.35 (b) Brandy and medicated wines for medical purposes. 1. Brandy and medicated wines whose alcoholic content is equivalent to......per cent or more of proof spirit. 1.00 2. Medicated wines whose alcoholic content is less than 42 per cent of proof spirit but not less than 20 per cent of proof spirit. 0.50 3. Medicated wines whose alcoholic content is less than 20 per cent of proof spirit. No vend fee. Note.-- (a) The quantities of liquor and medicated wine shown in the accounts maintained under these rules shall be expressed in terms of litres and milli litres. (b) Notwithstanding the provision of clause (a), in the case of bottled liquor, the quantities of liquor for purposes of sale or levy of vend fee shall be reckoned according to the following scale. Containing of bottles. To be reckoned as. (1) (2) (i) Bottles containing not more than 150
milli- litres. One-fifth of 750
milli-litres. (ii) Bottles containing more than 150 milli-litres but not more than 185
milli-litres. One-fourth of 750
milli-litres. (iii) Bottles containing more than 185 milli-litres but not more than 250
milli-litres. One-fourth of 750
milli-litres. (iv) Bottles containing more than 250 milli-litres but not more than 375
milli-litres. Half of 750
milli-litres. (v) Bottles containing more than 375 milli-litres but not more than 560
milli- litres. Three-fourth of 750
milli-litres. (vi) Bottles containing more than 560 milli-litres but not more than 750
milli-litres. One bottle of 750
milli-litres. (1) The licensee shall get his stock of bottled liquor from all or any of the blending units allotted to him by the Commissioner or other officer authorised by him in this behalf. He shall pay to the blending units, the cost of bottled liquors, in addition to any other duty or fee payable under
15[any rules made] under the Act. (2) Supplies shall be obtained only on indents in Form FW. Id. The form of indent shall be in printed forms bound in books in triplicate and machine numbered consecutively. The indent shall be prepared in triplicate using carbon paper. One copy of the indent shall be retained by the indenter and the second copy sent to the Assistant Commissioner of the district in which the indenting licensee is. The original of the indent shall be sent to the blending unit through the Assistant Commissioner. In the cases of imports from other States, the indenting licensee shall make his own arrangements to get supplies under the cover of the import permit issued to him. (1)
16Supply of issue of liquor shall be made only on indents in Form FW. Id. received from the holders of licences under these rules or from the holders of licences and requisition from holders of authorities issued under
the Tamil Nadu Liquor (Licence and Permit) Rules, 1981 accompanied, wherever necessary by transport permits issued by the competent authority. The quantity of liquor issued or sold by the licensee shall be so regulated that the limits, if any, fixed for possession at a time and in a month or other period in the respective licence or authority are not exceeded. To ensure this, the licensee shall, at the time of supply, make an endorsement on the licence (on the fly-leaf thereof) or authority, as the case may be, showing the date of issue and the quantity of liquor supplied. In the case of supply made to the licensees in Form FL.1, FL.2, FL.3, FL.3A, FL.4, FL.4-A, FL.5 and FL.6 the transport of consignment to the respective licensed premises shall be covered by transport permits in Form FW.T.P. prescribed in these rules or in Forms F.T.P.1 prescribed in the Tamil Nadu Liquor (Licence and Permit) Rules, 1981, as the case may be, issued by the Assistant Commissioner of the district concerned from which the consignment is transported or by the Excise Supervisory Officer specially authorised in this behalf by the Collector of the district concerned. In the case of supplies made to authority holders, under the Tamil Nadu Liquor (Licence and Permit) Rules, 1981, the transport of each consignment shall be covered by a transport permit in Form F.T.P.1 issued by the licensee if he is in the same district as the authority holder and by the Assistant Commissioner of the district concerned from which the liquor is trans-ported or by the Excise Supervisory Officers specially authorised in this behalf by the Collector of the district concerned in other cases. In the transport permits, the authority issuing them shall specify the route by which the consignment shall be transported. It shall be open to the Assistant Commissioner to require the transport of the liquor to be done under escort provided by him. The cost of the escort shall be born by the person transporting the liquor.] (2) The consignments of liquor imported or transported under cover of import or transport permits shall be opened only at the time of verification by officer of the Prohibition and Excise Department authorised by the Commissioner, for the purposes and shall be taken into account by the licensees only after such verification. Each bottle shall be affixed with an adhesive excise label by the said officer at the time of such verification. The licensee shall have no share or interest in the business of retail shops. The licensee shall submit to the Assistant Commissioner on the first of each month a transcript of the entries in his accounts relating to preceding month and shall submit such other information as the Excise Officer may demand. No allowance for breakage shall be ordinarily allowed in transport from the blending unit or storage in the depot. The Commissioner may, however, if he is satisfied that the quantity lost might not have been passed into consumption, condone the loss. (a) The licence except where no business under the licence is transacted shall be displayed in a conspicuous place in the licensed premises. A signboard shall be affixed in front of the premises showing the kind and number of the licence and the hours of business under it. The hours of business specified by the licence shall in no case be less than six hours, excluding an hour's interval for rest where paid assistants are employed. No business shall be transacted before 7 a.m. or after 10 p.m. at the licensed premises. (b) The licensed premises shall, in case where business under the licence is transacted, be kept open for business or for inspection by authorised officers on all days except weekly holidays under the provisions of the Tamil Nadu Shops and Establishments Act, 1947 (Tamil Nadu Act XXXVI of 1947) or the Weekly Holidays Act, 1942 (Central Act XVIII of 1942) on which the Commissioner may order closure. The licensee may also of his own accord close the licensed premises during any riot or disturbances in the neighbourhood. The licensee shall not be entitled to any compensation on account of the closure of the licensed premises
1[under this rule.] The sale or possession within the licenced premises of any article other than the liquor authorised for sale in the licence issued under these rules shall be strictly prohibited. The depot building shall not be used for conducting any other business. (1) Every bottle or other receptacle containing liquor that has been compounded or blended in India shall bear labels showing the liquor as having been compounded or blended and bottled in India. Bottled liquor shall
be in bottles sealed, wired and secured by caps or corks with the top of the neck of the bottle covered by metallic foil. Each bottle shall bear the label of the manufacturer. The licensee shall not alter either the nature of the bottled liquor purchased by him or the labels on the bottles. (2) Ever bottle or other receptacle shall bear labels containing the following slogans.-- Where the bottle or other receptacle received from the manufacturer does not bear such label, the licensee shall arrange to affix such a label containing the said slogans. (3)
17Every bottle or the receptacle procured from the manufacturers in the State of Tamil Nadu shall also bear label containing the words "For sale in Tamil Nadu only" printed on the rear side of the label. In respect of stock imported into the State of Tamil Nadu from the other States, the importers shall ensure that the words "For sale in Tamil Nadu only" are printed on the rear side of the bottles. Specimen copies of the labels shall be sent to the Commissioner beforehand and only the form of labels approved by the Commissioner shall be used.] The licensee shall be prohibited from rectifying spirits by purifying, colouring, flavouring or mixing any material therewith and from blending foreign liquor and Indian made foreign spirits. The licensee shall be prohibited from bottling liquor. The minimum strength at which Indian made foreign spirits may be sold under the licence
1[issued under these rules] shall be 35 degrees under proof for gin and 25 degrees under proof for all other kinds of spirits. When Indian-made foreign spirits are imported from other States in India, the licensee shall produce proof of the strength thereof, or send samples of the liquor to the Commissioner for test in the laboratory in order to ascertain their strength. The liquor shall be sold only if they conform to the minimum saleable strength. If it is found that the licensee is suffering from leprosy or any other contagious disease, he shall not be allowed to continue to hold the licence, nor shall any person suffering from any such disease is employed by the licensee in any capacity in the licensed premises. No person convicted under the Indian Penal Code (Central Act XLV of 1860) or under the Act or in the rules made thereunder shall be employed in any capacity in the licensed premises. The licensee shall keep the licensed premises and all appurtenances thereto in a clean and decent condition. True accounts of all transactions under the licence shall be maintained from day-to-day in ink, in the Forms FW. Ac.1, FW. Ac.2 and FW.Ac.3. All indents, bills, invoices, permits, etc., relating to purchase and sale of liquor under the licence shall be kept filed carefully and chronologically in support of the accounts. The accounts, bills, invoices, permits and other vouchers relating to the accounts shall be preserved for a period of five years from the date of expiry of the licence to which they relate. They shall be produced for inspection or check before any officer authorised to inspect the licence whenever required and shall be handed over to such officer on a receipt being given therefor. The licensee shall be bound by all additional rules relating to the sale of bottled liquor by wholesale to the retail shop-keepers, which may be issued, from time to time, under the Act or any law which may hereafter be enacted and other orders or directions issued by the Commissioner, from time to time. The licensee shall cause persons employed by him in the transport, storage, sale and issue of bottled liquor from and to his business premises to comply with all such rules, orders and directions. 18Notwithstanding anything contained in these rules and the exercise of similar powers by the Assistant Commissioner, the Revenue Divisional Officer are authorised in their jurisdiction to inspect the licences issued under these rules, and enter into and inspect the depot to check the accounts, take stocks, test the strength of any liquor that may be kept in the depot, take samples of such liquor for chemical test or analysis
and exercise all such powers as may be deemed necessary to ensure that the licensee conforms to the terms and conditions of the licence granted to him.] An inspection in Form G.I.B. shall be maintained at the licensed premises for the use of the Inspecting Officer. Instructions regarding the maintenance of this book are given in the book itself and they shall be strictly adhered to. The book shall be handed over to the licensing authority or any inspecting officer
on demand, on a receipt given therefor. (1) The Commissioner may, without prejudice to any other proceedings which may be taken against the licensee by an order in writing, suspend or cancel the licence or forfeit the deposit made under these rules, if the licensee or any person in his employment contravene any of the provisions of the Act or the rules made thereunder or the conditions of the licence. Before proceeding under these rules, the Commissioner shall give the licensee a notice in writing stating the ground on which it is proposed to take action and requiring him to show cause against it within such time not exceeding fourteen days as may be prescribed in the notice. (2) Notwithstanding anything contained in sub-rule (1) above, the Commissioner may cancel any licence without any notice, if the licensee is adjudged as an insolvent by a competent Court. The provision of sections 13 and 14 and Chapter V of the Act shall apply mutatis mutandis to a breach of all or any of these rules. The Government or the Commissioner with the previous approval of the Government, may exempt any person or class of persons from the operation of any of these rules.
16. Procuring stocks from authorised blending units.--
Print Judgement
