In exercise of the
powers conferred by Section 72 read with Sections 17, 28 and 29 of the Andhra
Pradesh Excise Act, 1968 (Andhra Pradesh Act 17 of 1968) the Governor of
Telangana hereby makes the following rules. (1)
These
rules may be called the Telangana Microbrewery Rules, 2015. (2)
They
shall extend to whole of the State of Telangana. (3)
They
shall come into force at once. These rules shall apply for the grant of
Licence for establishment and functioning of Microbreweries and conditions
governing thereof. (1)
In
these rules, unless the context, otherwise requires:- (a)
"Act"
means the Andhra Pradesh Excise Act 1968, (b)
"Bar"
means the privilege granted under this Act to an establishment where food is
served, for sale of Indian Made Foreign Liquor and Foreign Liquor, in loose for
consumption on the licensed premises. (c)
"Beer"
includes ale, stout, porter and all other fermented liquors usually made from
malt. (d)
Draught
Beer: means Bulk Beer (filtered and carbonized and ready for bottling) drawn
from a Vat /Barrel/ Cask or any other vessel before pasteurization is called
Draught Beer. (e)
"Dry
day" means a day on which no liquor shall be served in the licensed
premises; (f)
"Form"
means a form appended to these rules. (g)
"Highway"
means a national Highway or a State Highway but shall not include the part of
the National Highway or State Highway which passes within the limits of a
Municipal corporation, Municipal council or the Gouthan in any village or
Panchayat area; (h)
"Licence"
means licence granted under these rules; (i)
"Licensee"
means holder of such licence; (j)
"License
Fee" means annual license fee as shown in the schedule appended to these
rules and includes proportionate licence fee. (k)
"Licence
period" means a period of 12 months beginning from the 1st October of the
year and ending with 30th of September of the succeeding year or part thereof. (l)
"Microbrewery"
means a small brewery with an installed capacity of not more than one thousand
liters per day in a place having built-up area with spacious dining hall and
parking facility, where Draught Beer is manufactured and the same is served to
their customers for consumption within the premises. (m)
"Population"
means the figure of population as officially published in the latest census. (n)
"Permit"
means permit issued under these rules. (o)
"Standalone
Microbrewery" means a small brewery where draught beer is manufactured and
served exclusively. (2)
The
words and expressions used but not defined in these rules shall have the
meanings assigned to them in the Andhra Pradesh Excise Act, 1968. A licence in Form-MB-2B, may be granted to an
establishment licensed by the local authority to serve food such as a Hotel or
a Restaurant or having 2B/TD1/TD2 licenses for the sale of Indian Made Foreign
liquor and foreign liquor in glasses or pegs for consumption within the
licensed premises but not for sale of Indian Made Foreign liquor and foreign
liquor for removing it out of the licensed premises. Such licence may be
granted in the establishment functioning in GHMC municipalities and within a
belt area of 5 kms of the periphery of such municipal corporations and in
Tourism Centers (except places of religious tourism) as notified by the
Department of Tourism of the State Government or Central Government. (1)
A
person intending to establish a Microbrewery may submit an application in
Form-MB-1A to the Commissioner of Prohibition & Excise enclosing a challan
of ` 5,000/- and No objection certificate from local body competent to issue to
get prior clearance. (2)
The
Commissioner having due regard to requirement and other factors as he deems
fit, may grant prior clearance in Form-MB-2A to such of the applicants covered
under sub-rule (1). Provided that, the grant of prior clearance
shall not confer any right on the applicant for grant of licence in Form-MB-2B.
The holder shall not claim any compensation or loss in case licence in Form
MB-2B is not granted. (3)
The
holder of prior clearance in Form MB-2A shall erect the equipment and obtain
licence within 90 days, failing which the prior clearance will expire and money
paid vide sub-rule (1) above shall be forfeited. (4)
As
soon as the equipment is installed the holder of prior clearance shall submit
an application in Form-MB-2A for grant of licence in respect of Microbrewery to
the Commissioner along with challan towards licence fee. (5)
The
Commissioner of Prohibition & Excise, after making such enquiry as he may
think necessary, to ascertain the bona fides of the applicant and verifying the
particulars furnished in the application should examine the suitability of the
premises for granting Microbrewery. (6)
The
Commissioner of Prohibition and Excise may grant the licence after causing such
enquiry as he may deem fit. (7)
The
applicant before issue of the licence shall execute a counter-part agreement In
Form-6 MB, on the stamp paper of requisite value as per provisions of the
Indian Stamp Act, 1899. (1)
A
licence in Form-2 MB shall not be granted, (i)
Unless
the premises has:- (a)
a
minimum plinth area of 1000 Sq. meters. Out of which minimum 100 Sq. meters for
serving area and minimum 100 Sq. Meters for restaurant and minimum 300 Sq.
Meters for plant. (b)
a
separate Restaurant within the licensed premises for consumption. (c)
Sanitary
equipment like wash basin, water closet. (d)
Facility
for cooking and serving complete meals of good quality to the consumers as
licensed by local authority. (e)
Air
conditioning or Air cooling facility where draught beer is consumed. (f)
A
minimum of 200 Sq. mts shall be provided for parking. (ii)
Within
100 meters from educational institution recognized by the Government, places
for public worship such as Temples registered by the Endowments Department,
Mosques registered with the Wakf Board, Churches and Hospitals. Provided that in the limits of Municipal
Corporations and within the belt area of 5 Kms of the periphery of Municipal
Corporations, the distance restriction mentioned above shall be 50 meters. (iii)
Within
500 meters of predominantly residential area but licenses may however be
sanctioned if the proposed premises is located on a main road used for shopping
purposes. Provided that the restrictions in clauses (i)
to (iii) shall not be applicable to Star Hotels (3 Star and above) certified by
the Tourism Department of the State or Central Government. (iv)
within
50 meters of a Highway (v)
Unless
the applicant produces the permission or the no objection certificate from the
local authority concerned for sale of draught beer at the premises by the
applicant. (vi)
Unless
the applicant produces the lease deed on a Stamp paper for the proposed
licensed premises from the owner of the premises. (vii)
Unless
the applicant produces the NOC from the PCB as required for small scale
industries. Explanation:- For the purpose of this rule- (a)
"Place
of public worship" means a temple registered with the Endowment
Department, Mosque registered with Wakf Board and Church and includes such
other religious institutions, as the State Government may by order specify in
this behalf; (b)
"Educational
Institutions" means any Primary school, Middle School and High School
recognized by the State Government or Central Government, Junior College or any
College affiliated to any University established by law: (c)
"High
Way" means National High way or State Highway and shall not include the
part of the National Highway or State Highway which passes within the limits of
Municipal Corporation, Municipal Council or the Gouthan in any village or
Panchayat area. (d)
"Hospital"
means any hospital which is managed or owned by a local authority, State
Government or Central Government or any private hospital having a provision of
at least thirty (30) beds. The distances referred above shall be
measured from the midpoint of the entrance of the proposed Bar premises along
with the nearest path by which pedestrian ordinarily reaches to the midpoint of
the nearest gate of the institution or a place of public worship, if there is a
compound wall and if there is no compound wall to the mid-point of the nearest
entrance of the Institution/place of public worship or to the entrance of the
first house of the predominantly residential area. The following persons are not eligible for
grant of licenses:- (i)
persons
below the age of twenty one years, (ii)
persons
who are undercharged insolvents or who have been convicted of offences under
the provisions of the Act or the Customs Act, 1962 or Narcotics Drugs and
Psychotropic Substances Act, 1985 (Central Act 61 of 1985) or convicted under
Andhra Pradesh intoxicating liquors (Prohibition of Advertisements) Act, 1978
or convicted of non-bailable offences or are habitual offenders. (iii)
Persons
suffering from leprosy or other contagious disease only in cases where such
persons have to handle the stocks of liquor or beer in premises or elsewhere
personally, (iv)
Defaulters
in the payment of excise revenue to the Government. In case the licence holder fails to operate
the microbrewery according to specifications and quality standards, the licence
granted shall be liable for cancellation without compensation for any damage or
loss. (1)
Every
Microbrewery shall be valid for one year commencing from 1st October ending
with 30th September of the succeeding year, subject to payment of licence fee
as prescribed. Provided that the licence issued on or after
the 1st October shall be valid up to the 30th September of the succeeding year. Provided that a licence granted for a part of
the licence period shall be valid for such period as may be specified by the
licensing authority. Provided further that every licensee shall
commence his business from 1st October or such other date as may be specified
in the licence and shall keep the Microbrewery open every day during the hours
fixed till the expiry of the licence period with sufficient stock of draught
beer unless the closure of the Microbrewery is ordered by the competent
authority for the period specified. (a)
The
licence fee shall be ` 3,00,000/- per annum. (b)
The
licensee shall furnish a security deposit of an amount of ` 1,00,000/- in the
shape of Bank Guarantee (Form-MB-BG)/ Fixed Deposit Receipt/Cash issued by any
scheduled Bank in the name of Commissioner. If a licence is surrendered in the middle of
the licence period, the deposits and the Licence fee paid shall be forfeited to
the Government. The licence fee shall be paid into the
concerned Government Treasury in the District in which the licensed premises is
located. Where a licence stands cancelled or suspended
for any violation of the rules and conditions of licence, the Commissioner of
Prohibition and Excise may order forfeiture of the deposit/Bank Guarantee
furnished by the licensee either in full or in part depending upon the nature
of violation and such forfeited deposit/Bank Guarantee shall be made good by
the licensee within the time fixed by the Commissioner of Prohibition and
Excise. In case the licensee fails to make good the extent of forfeited
deposit/Bank Guarantee within the time fixed the licence automatically stands
cancelled. (a)
The
Commissioner of Prohibition and Excise shall be competent to grant microbrewery
License in the prescribed Form-2 MB. (b)
Brand
Registration:- (1)
The
licensee shall submit an application in Form. MB-1R to the Commissioner duly
affixed with Court fee stamp of requisite value as per the provisions of Indian
Stamp Act, 1899 and shall enclose with ten copies of each variety of brand
sought to be registered. (2)
No
application referred in sub-rule (1) shall be entertained unless the licensee
remits the brand/brands fee of ` 1,000/- (Rupees One Thousand only) and the
challan in support of the payment is produced with the application. (3)
The
licensee shall also get the brand/ brands re-approved for each licensed year by
paying the brand/brands fee specified in sub-rule (2). (4)
The
Commissioner of Prohibition and Excise, on receipt of such application and
after causing an enquiry, if necessary, and on being satisfied that there is no
objection to approve the brand and that the conditions laid down in sub-rule
(2) have been fulfilled, may approve the label in Form-MB 2R. One copy shall be
sent to the Telangana State Beverages Corporation Limited and one copy shall be
retained for further use by the Commissioner of Prohibition and Excise in his
office. One copy shall be sent to local SHO, One copy shall be sent to Local
Prohibition and Excise Superintendent concerned, One copy shall be sent to
Deputy Commissioner of Prohibition and Excise concerned, One copy shall be sent
to Director of Enforcement, Telangana State, Hyderabad. (5)
The
brand/brands fee once remitted and the brand was duly approved it shall not be
refunded or adjusted for any reason including withdrawal or cancellation of
contract by the Telangana State Beverages Corporation Limited or non-issue of
purchase orders. (6)
The
manner and the contents of the brand/brands shall be in the form as may be
specified by the Commissioner from time to time. (i)
Installed
Capacity of microbrewery shall not exceed 1,000 bulk liters per day (ii)
The
draught beer so produced shall not be bottled/sold outside the premises. The
draught beer shall be served in glasses or pitchers. (iii)
The
finished product in the storage tanks is removed on site consumption as and
when required. (iv)
The
shelf life of the beer manufactured in microbrewery shall be 36 hrs only. (i)
Organic
Chemistry (or) (ii)
Bio-Chemistry
(or) (iii)
Specialisation
in Alcohol Technology. (iv)
Must
hire full time head brewer with at least 7 years industrial experience and must
be certified by reputed brewing educational programme. Foreign work experience
and foreign educational institutions are accepted. (v)
The
analysis report of the chemist shall be countersigned by authorized officer. (vi)
Chemist
shall be responsible for specifications and quality of the beer and safety. (vii)
The
sample from each bottle shall be sent to the Chemical Examiner for cross check. An electronic flow meter shall be installed
between the fermentation tanks and storage tanks and the flow meter shall be
under the supervision of brewery inspector. The flow meter should be as per
specifications as fixed by the Commissioner of Prohibition & Excise. The excise duty shall be paid at such rates
as may be specified by the Government from time to time. 50% of Excise Duty, VAT and other applicable
levies chargeable per one year on the installed capacity shall be paid in
advance. Payment of Excise Duty, VAT and other applicable Levis on the produced
beer shall be on the basis of monthly invoice raised by Telangana State
Beverages Corporation Limited. (1)
The
licensee shall sell the draught beer only at the premises specified in the
licence. (2)
No
change or alteration of the licensed premises shall be made during the licence
period without the prior approval of the Commissioner of Prohibition and
Excise. (3)
No
shifting of the licensed premises shall ordinarily be permitted during the
licence period from one location to another. However, the shifting of the
licensed premises under Form-2 MB may be considered by the Commissioner of
Proh& Excise if the shifting of the original licensed premises of Hotel and
Restaurant is permitted by the local authority. The proforma licence shall be exhibited in a
conspicuous place in the licensed premises. The Licensee shall also exhibit the
approved drawings/plan of the licensed premises for verification by the
Inspecting authorities. (1)
The
Licensee shall transact business along with the supply of food in the
Restaurant as per the timings specified in Rule 15 of the Telangana Excise
(Grant of licence of selling by bar & conditions of licence) Rules, 2005 or
as notified by the Government from time to time. TELANGANA MICRO BREWERY RULES,
2015
PREAMBLE