THE MADHYA PRADESH FOREIGN LIQUOR RULES, 1996

[THE MADHYA PRADESH FOREIGN LIQUOR RULES, 1996][1]

PREAMBLE

In exercise of the powers conferred by sub-section (1) and clauses (d), (e), (f), (g) 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, application and commencement.

(1)     These rules may be called the Madhya Pradesh Foreign Liquor Rules, 1996.

(2)     They shall apply to import, export, transport, sale, manufacture, compounding, blending, bottling, possession, etc., of foreign liquor including registration of labels pasted on the bottles or containers.

(3)     These rules shall come into force with effect from first April, 1996.

Rule - 2. Definitions.

In these rules unless the context otherwise requires,

(1)     "Authorised Excise Officer" means the excise officer authorised by the Excise Commissioner of Madhya Pradesh;

(2)     "Club" means a society of persons associated together for a social intercourse or for any related purpose except acquisition of gain and registered under any enactment relating to registration of societies;

[2][(2-A) "Commercial Club" means the club run for the acquisition of gains or for commercial purpose by a company, firm, an association of persons or any other concern.]

(3)     "Compounding" means the preparation of foreign liquor by the addition of flavouring or colouring agent or both, to spirit;

(4)     "Permit" means a permit issued under these rules and includes a pass and an authorisation;

[3][(5) "Officer-in-charge" means an officer of the excise department not below the rank of Sub-Inspector appointed as officer in charge in respect of an F.L. 9, F.L. 9A, F.L. 10A, F.L. 11 licence or foreign liquor warehouse;]

(6) "Verification" means

(i)       Examining of the seals of the bottles, containers, receptacles, etc. forming the consignment of foreign liquor, to confirm that they have not been tampered, and

(ii)      Ascertaining that the quantity, the number of bottles, containers or receptacles, the date, batch number of manufacture etc. of foreign liquor being transported, exported, imported, manufactured, sold, stocked etc. tally with the details mentioned in the permit or the records maintained therefor.

(7)  "Division" as referred to in these rules shall mean such territorial division comprising such districts as notified for the purpose by the State Government from time to time;

[(8) "On licence" means a licence under which the consumption of liquor at the licensed premises is permitted.

(9) "Off licence" means a licence under which the consumption of liquor at the licensed premises is not permitted.]

[4][(10) "Foreign Liquor Warehouse" means a warehouse established on such conditions as determined by the State Government to store and thereafter issue foreign liquor.]

[5][(11)] The words and expressions used but not defined in these rules,

shall carry the meaning as have been assigned to them in the Madhya Pradesh Distillery Rules, 1995.

Rule - 3. Grant of licence for manufacture and bottling of foreign liquor.

(1)     A person intending to construct and run a manufactory or bottlery shall make an application to the State Government through the Excise Commissioner, notifying his scheme and giving all relevant details.

(2)     An application made under sub-rule (1) shall be accompanied by a challan in token of payment of prescribed fee deposited into the treasury.

(3)     The State Government may, if satisfied about the bonafides of the proposed scheme of the applicant, accord sanction and issued a 'Letter of Intent' which shall be valid for one year from the date of communication, unless its validity is extended beyond one year.

(4)     The 'Letter of Intent' communicated under sub-rule (3) shall not confer any right or privilege for grant of a licence and is liable to be revoked or withdrawn at any time in public interest after giving its holder a notice to show cause against such action and after giving him an opportunity of hearing, if he so desires.

(5)     No compensation for any damage or loss shall be payable when a 'Letter of Intent' is revoked or withdrawn under sub-rule (4).

(6)     The holder of 'Letter of Intent' shall not sell transfer or sub-lease it or enter into any arrangement with any other person for the construction or working of manufactory or bottlery in pursuance of the said 'Letter of Intent' without the previous sanction of the State Government.

(7)     An application, in the prescribed form, for approval of the plant and machinery and map of the building, shall be submitted to the Excise Commissioner.

(8)     Every application referred to in sub-rule (7) shall be accompanied by

(i)       Copy of the 'Letter of Intent' issued by the State Government;

(ii)      Project report of the proposed manufactory alongwith details regarding the plant and machinery and map of the manufactory building;

(iii)     Any other certificate or authorisation or clearance required from Central Government, a local body, Town and Country Planning Department, Madhya Pradesh Pollution Control Board and any other Department of the State Government, under any enactment or rules in force.

(9)     The Excise Commissioner may, if satisfied that the applicant has fulfilled the requirements of sub-rule (8), approve the map, plant and machinery of the project for the construction and working of the manufactory.

(10)   The applicant shall report to the Excise Commissioner, the date on which the construction of the building and erection of the plant and machinery are completed.

(11)   In case the applicant fails to submit the completion report as contemplated in sub-rule (10) within a period of one year from the date of approval by the Excise Commissioner under sub-rule (9), the approval so granted, shall be liable to be withdrawn without compensation, for any damage or loss :

Provided that, if the Excise Commissioner is satisfied that there is sufficient cause for not constructing and completing the works as per approved plan within the period of one year, he may, for reasons to be recorded in writing, grant extension of time for such period, as he may deem fit.

(12)   When the Excise Commissioner is satisfied that the construction of the building and erection of the plant and machinery are complete in all respects, he may, subject to the prior approval of the State Government, grant a licence for the manufacture of foreign in Form FL 9 or FL 9-A for a period of one year, on payment of such annual licence fee as prescribed by the State Government. The licence may be renewed every year on payment of the prescribed fee as aforesaid, subject to due observance of the provisions of the Act, and rules made thereunder and conditions of the licence.

(13)   No alteration or addition shall be made, without the prior permission of the Excise Commissioner, in or to the buildings of the manufactory or the plant and machinery provided that minor additions or alterations may be made by the licensee under intimation to the Excise Commissioner.

(14)   The licensee shall furnish, when required, security fixed by the Excise Commissioner from time to time, for due observance of the provisions of the Act, rules made and orders issued thereunder.

(15)   The licensee shall not hypothecate, sell, mortgage, transfer or sub-lease the licence or enter into any partnership for the working of the licence, without the previous permission in writing of the Excise Commissioner. Such permission, if granted, shall be endorsed on the licence.

Rule - 4. Manufacture and bottling of foreign liquor under franchise arrangement.

A licensee, who holds a licence in Form FL 9-A, shall before he begins manufacturing and bottling of any brand of foreign liquor under a franchise agreement with original manufacturer or owner of such brand outside Madhya Pradesh, furnish a copy of such franchise agreement with the original manufacturer or owner, alongwith all relevant details. Similarly, if a franchise agreement made with the original manufacturer or owner of a brand is validly terminated by the franchiser or the franchisee, the franchisee shall forthwith report the fact of such termination to the Excise Commissioner and stop manufacture of the brand concerned under the franchise agreement.

Rule - 5. Procurement of spirit and storage thereof.

(1)     A licensee holding a licence in Form FL 9 or FL 9-A shall procure spirit for the preparation of foreign liquor by transporting it in accordance with the procedure laid down in Rule 14 and Rule 15(2). He may however, be permitted by the Excise Commissioner in special circumstances to import spirit in accordance with the procedure laid down in Rule 10 and Rule 15(1).

(2)     All spirit vats and vessels shall be of such quality, size, shape and material as approved by the Excise Commissioner. They shall be properly gauged and their gauging table shall be prepared by the Authorised Excise Officer. The licensee shall provide calibrated gauging rods etc. and assist in gauging of the aforesaid vats and vessels. Use of ungauged vats and vessels shall be totally prohibited.

(3)     Each vat or vessel shall have legibly painted on it in English or in Hindi, its number, capacity and the use to which it is applied and its details shall be properly registered by the officer-in-charge.

(4)     Store vats shall be kept in a room or building provided with only one aoor. Such room or building shall be designated as the 'Spirit Room' or a 'Warehouse', and shall be kept under revenue lock.

Rule - 6. Quality control.

(1)     All spirit used in the manufacture of foreign liquor shall be of such standard and quality as may be prescribed or approved by the Excise Commissioner.

(2)     All the containers for storing, blending, reducing, maturing and compounding the spirit shall be kept clean. Water used shall be pure and potable. No ingredient noxious to health shall be added to the spirit stored. The colouring, flavouring, essencing, aromatic agents etc. used for compounding the spirit, shall be of good quality, fit for human consumption and not deleterious to health.

(3)     The licensee shall have to establish his own laboratory within the licensed premises. Such a laboratory shall be well equipped, manned by qualified technical personnel and the expenditure incurred on it shall be borne by the licensee. Sample of every batch of foreign liquor manufactured and ready for bottling shall be analyzed in the laboratory before it is bottled. The issue of a batch shall be allowed only when the sample of foreign liquor is found fit for human consumption. An attested photocopy of every such chemical analysis or test report shall be provided to the officer-in-charge free of cost. The samples shall be drawn under the supervision of and in the presence of officer-in-charge of the manufactory or bottlery.

(4)     (a) The officer-in-charge of the manufactory or bottlery may stop, pending the order of the Excise Commissioner, issue of foreign liquor which he considers not of good quality and may, on every such occasion take samples of such spirit or foreign liquor at the cost of the licensee for sending them for chemical analysis or test to the departmental laboratory or any other authorised laboratory.

(b) Excise Commissioner may also direct taking of samples at random of bottled foreign liquor and the officer-in-charge shall draw samples in accordance with the directions issued by the Excise Commissioner in this regard and send them to the departmental or authorised laboratory for chemical analysis or test.

(c) Spirit or foreign liquor, found sub-standard or unfit for human consumption on chemical analysis or test, shall be rejected and destroyed or disposed of in any other manner under the orders of the Excise Commissioner or an officer authorised by him for the purpose. The Excise Commissioner may also permit redistillation in such cases.

Rule - 7. Bottling of foreign liquor.

(1)     All operations relating to the filing of bottles with foreign liquor shall be conducted under the supervision of the officer-in-charge. Bottled foreign liquor shall be stored in a separate room or rooms called the 'store for bottled liquor', which shall be secured with a revenue lock. In the bottling room, bottling vats may be kept or erected and foreign liquor manufactured may be stored therein. All spirit vats must be secured with revenue locks.

(2)     Foreign liquor manufactured and bottled will be of such strength as specified by the Excise Commissioner from time to time. However, for bottled foreign liquor, a deviation margin upto 1 degree, from the proof strength declared on the label glued to it, will be permitted.

(3)     Every bottle of foreign liquor shall be properly capped and sealed before being transferred to the store.

(4)     The licensee shall paste a label registered with the Excise Commissioner, displaying all the particulars enumerated in sub-rule (1) of Rule 9, to every bottle after filing it with foreign liquor.

Rule - 8. Sale of foreign liquor.

(1)     Categories of licences.Licences for the sale of foreign liquor shall be of the following categories and the mode of grant of these licences shall be as indicated hereunder :

[6][(a) F.L. 1 (Licence for retail sale of foreign liquor in sealed bottles, not to be consumed on the premises).

The licence in Form F.L. 1 shall be granted individually on fixed basic licence fee and licence fee, by inviting applications for each shop, and if the number of applications are more than one then by disposing of applications by draw of lottery or in such other manner as the State Government may direct from time to time. The F.L. 1 licensee shall sell foreign liquor in sealed bottles to consumers and to F.L. 3, F.L. 4, F.L. 4-A and F.L. 5 licensees :

Provided that if no application is received, then the State Government may grant licence in such other manner as directed by general or special order.]

[7][(aa) Omitted]

[8][(aa-1) Omitted]

[9][(aa-2) F.L. 1 AAAA (licence for retail sale of foreign liquor in sealed bottles with permission to consume it on the licensed premises) Procedure prescribed in clause (a) above for the disposal of F.L. 1 licence shall apply mutatis mutandis to the disposal of this licence also. The holder of licence in Form F.L. 1 AAAA shall sell foreign liquor to consumers which may be consumed on the licensed premises and shall sell foreign liquor only in sealed bottles to F.L. 3, F.L. 4, F.L. 4-A, and F.L. 5 licensees.]

(aaa) F.L. 1-B(AHATA-Licence).

The licence, which may be granted to an F.L.1 or F.L.1-A licensee only, shall permit consumption of [10][foreign/country liquor] within any premises or AHATA which shall be adjunct to the premises of F.L. 1 or F.L. 1-A licence, specifically mentioned in the schedule annexed to the licence.

[11][(aaaa) F.L. 1-D (Licence for sale of Beer in sealed bottles/containers, not to be consumed on the premises.

The licence may be granted on such terms and conditions and the manner as prescribed by the State Government by general or special order.]

[12][(b) Omitted.]

(c) FL 3(Hotel Bar Licence).

FL 3 licence holder may sell foreign liquor for consumption on the licensed premises to residents of such hotels for their own use or that of their guests and other casual visitors, with meals and snacks. This licence may be granted to hotels having both lodging and boarding facilities of such scale and standard as may be determined by the State Government.

(d) FL 4(Civilian Club Licence).

A civilian club holding FL 4 licence may possess and sell foreign liquor for consumption on the licensed premises by bonafide members of such club or their guests.

[13][(dd) FL 4-A(Commercial Club).

A commercial club licence may be granted to a company, firm, association of persons or any other concern which possesses atleast five of the facilities listed below of which facilities Nos. (a-1) and (a-2) are a must:

(a-1) Swimming pool;

(a-2) Gymnasium having not less than 12 items for physical exercise;

(a-3) Badminton hail;

(a-4) Billiards/pool table;

(a-5) Table tennis hall;

(a-6) Squash Court;

(a-7) Cards room;

(a-8) Lawn tennis Court.

The licensee may possess foreign liquor at the licensed premises and sell it thereat to members of the club or their bonafide guests when accompanied by the member of the club].

(e) FL 5(Occasional Licence).

FL 5 licence holder may possess and sell foreign liquor at dances, sports or other forms of public occasions of purely temporary nature for consumption on the premises specified in the schedule attached with the licence.

(f) FL 6(Military Canteen Wholesale Licence).

A military canteen holding FL 6 licence, may possess and sell foreign liquor in wholesale to FL 7 or FL 8 licensees. The licensee shall procure its requirements either by purchase from [14][FL 9, FL 9-A or FL 10-A] licensee or by importation.

(g) FL 7(Military Canteen Retail Licence).

A military canteen approved by and attached to Armed Forces, Border Security Force, Indo-Tibetan-Border Police, [15][Central Industrial Security Force, Central Reserve Police Force] or any other Para-military force notified by the State Government holding FL 7 licence may possess and sell foreign liquor to FL 8 licensee or to the bonafide defence and police personnel who are duly authorised under the relevant regulations to make such purchases from such canteens. Sales shall be in sealed bottles, consumption on the premises shall be prohibited. The licensee shall procure its stocks by taking issues from FL 6 licensee.

(h) FL 8(Military Club Licence).

A military club holding FL 8 licence, may possess and sell foreign liquor in a club or mess run for military or para-military personnel for consumption on the licensed premises by bonafide members of the said club or mess or their guests.

(i) FL 9(Bottling Licence).

Holder of an FL 9 licence which may be granted for bottling of foreign liquor, may manufacture and bottle foreign liquor by blending, compounding and reducing spirit. The licensee may sell or transfer foreign liquor to FL 6 [16][x x x] and FL 11 licensees including the licensees of other States. He shall pay bottling fee at the prescribed rate.

[17][(j) F.L. 9A (Special Bottling Licence).

The licence may be granted to such F.L.9/ [18][B-3] licensee who has been franchised (authorised/ conferred franchise) for bottling specified labels or brands of foreign liquor/Beer by the owner of such labels or brands when foreign liquor/Beer of such labels or brands was or is already being manufactured any where outside Madhya Pradesh at the time of or before franchising of the concerned F.L. 9/B-1 A licensee by the owner of the labels or brands. The Licence shall also be required to be taken by an F.L. 9/B-1A licensee, who wants to manufacture or manufactures foreign liquor/Beer of any labels or brands belonging or owned by the F.L. 9/B-1-A licensee himself if foreign liquor/Beer of such labels or brands was or is already being manufactured anywhere outside Madhya Pradesh.]

[19][(k) Omitted.]

[20][(k-1) F.L.10A (Outside manufacturer's central godown licence).

This licence shall be granted to a licensee holding an appropriate licence for the manufacture of foreign liquor outside Madhya Pradesh. This licence may be granted at the divisional headquarters only i.e. Indore, Bhopal, Jabalpur, Gwalior, Ujjain, Sagar, Rewa, such licence may be granted for one or more said divisions. The licensee shall be permitted to import/stock without payment of duty only those labels of foreign liquor that are being manufactured outside Madhya Pradesh under an appropriate licence and which are registered with the Excise Commissioner, Madhya Pradesh under Rule 9. He shall sell his stock without payment of duty to an F.L. 6 licensee or may transfer/transport it to 'foreign liquor warehouse' for being stored therein.]

(l) FL 11Licence (Wholesale licence of foreign liquor).

The licensee shall stock and sell only such foreign liquor on which duty at the prescribed rate has been pre-paid and shall sell foreign liquor to such licensee/ clubs as directed by the Excise Commissioner. He may also be allowed to import foreign liquor under Rule 10(2). No licence in Form FL 11 shall be granted or renewed in the State, if the "auction-money-adjustment-system" of grant of licences in Form FL 1-A is in operation as described in Rule 11(A) of General Licence Condition Rules.

[21][(2) Period of licences and their renewal.

Licences in Forms [22][F.L.-1AAAA], F.L. 1B, F.L. 2, F.L. 3, F.L.4, F.L. 5, F.L. 6, F.L. 7, F.L. 8, F.L. 9, F.L. 9A, and F.L. 11 may be granted for one year and in Form F.L. 5 for a particular occasion On prepayment of licence fee fixed by the State Government which may be revised from time to time. All these licences including licence in Forms F.L. 9, F.L. 9A and F.L. 11 but excluding licence in Form F.L. 5 will be subject to renewal every year on payment of the prescribed licence fee, subject to good

conduct and clean records of the licensee and due observance of licence conditions. Provisions of Act and rules made thereunder. The licences in Forms F.L. 1, F.L. 1AAA, [23]F.L.-1AAAA], F.L. 1B, F.L. 1D, F.L. 10 and F.L. 10A shall be granted for a period of one year or a shorter period unless directed otherwise by the State Government.]

[24][(3) Licensing Authorities.

Licences in Forms F.L. 4, F.L. 4A, F.L. 9, F.L. 9A, F.L. 10A and F.L. 11 shall be granted and issued by the Excise Commissioner. F.L. 2 and F.L. 3 licences shall be granted by the Collector as per the guidelines laid down by the State Government. Collector shall also be the licensing authority for F.L. 1, F.L. 1A, F.L. 1AAA, F.L. 1B, F.L. 1D, F.L. 5, F.L. 6, F.L. 7 and F.L. 8 licences.]

[25][(4) Omitted]

(5) Procedure for application and sanction of the licences.

Application for the grant of any licence cited in sub-rule (1) shall be submitted to the licensing authority specified in sub-rule (3), who may, after necessary enquiries and observing the procedure prescribed by the State Government, or the Excise Commissioner, may grant licence if the applicant is found suitable or refuse to grant the licence.

(6)    Attachment of certain licences with the nearest FL 1, FL 1- A, [26][x x x ] FL 1-AAA [27][x x x] or FL 10-A licences.

(a) FL 2, FL 3, FL 4, FL 4-A or FL 5 licensee shall purchase [28][foreign liquor (excluding beer)] from such FL 1, FL 1-A, [29][x x x ] or FL 1-AAA licensee of the district [30][and shall purchase beer from such F.L. 1D licensee] as may be specified by the Collector in accordance with the general directions of the Excise Commissioner or State Government. Purchase of such brands or labels, that are not available with any FL 1, FL 1-A, [31][x x x ] or FL 1-AAA licensee of the district, from any similar licensee of any other neighbouring district of the State, may be authorised by the Excise Commissioner in special circumstances.

[32][(b) Omitted]

(7) 20Restriction regarding stocking and sale on certain licensees.FL

2, FL 3, FL 4, FL 4-A, FL 5 and FL 8 licensees shall be permitted to sell foreign liquor only from open bottles in glasses or pegs for consumption on the licensed premise's and foreign liquor thus sold, shall not be removable therefrom, [33][omitted.]

(8) All licensees to obtain transport permit.

Every licensee shall obtain permit in the prescribed form for transporting foreign liquor to his licensed premises.

The rule making power as contemplated under the rules stood vested in the "Corporation" which had to be exercised in the manner in which the Corporation is required to take decision under the law. [Baboo Lal Shivhare v. Municipal Corporation, Givalior, 2001 (1) MPHT 35 at 36, 37 (MP)(Gwalior Bench). See also Lalchand Jaiswal v. Municipal Corporation, Murwara (Katni), 2000 (1) MPJR 106].

Rule - 9. Registration of labels.

(1)     No foreign liquor shall be transported within, imported into, exported from and sold within Madhya Pradesh, unless the following legends and details are printed on the labels pasted to the bottles of foreign liquor :

(a)      "Consumption of liquor is injurious to health".

(b)      "For sale in Madhya Pradesh only" or "Duty not paid in Madhya Pradesh" as the case may be.

(c)      Batch No., Month and year of manufacture.

(d)      Name and place of distillery, manufactory or bottlery.

(e)      Alcoholic contents and proof strength. (f) Brand with contents.

(f)       Registration No. of the brand/label. [34][(h) Minimum selling price as directed by the Excise Commissioner.]

(2)     Only such bottles or cans of foreign liquor, with labels showing legends/details as specified in sub-rule (1) duly registered with the Excise Commissioner in accordance with sub-rules (3) and (4) may be sold in, transported within, imported into, or exported from Madhya Pradesh :

Provided that the labels manufactured by any bottling licensee of Madhya Pradesh that have been approved by the Excise Commissioner before the commencement of these rules, shall be deemed to have been duly registered under sub-rules (3) and (4) :

[35][Provided further that the labels registered for each manufactory or the labels approved by the Excise Commissioner before the commencement of these rules, which shall be deemed to have been duly registered under sub-rules (3) and (4) shall be compulsorily renewed every year. Annual renewal fees for each label/labels shall be such as may be prescribed by the Government. No label/labels shall be used by any manufacturer unless it has been duly registered or renewed. If any label /labels are cancelled by the Excise Commissioner under rules (6) on the ground that such label/labels has caused or are causing losses to state revenue, then owner of such label/labels shall not be entitled for registration of any new label for a period of one year beginning with the date of cancellation of that label/labels.]

(3)     [36][Licensee shall make an application to the Excise Commissioner for registration/renewal of label/labels alongwith the fee as prescribed for each kind of label. Three printed copies of the label to be registered and a challan in proof of payment of the prescribed registration fee, deposited in the treasury of the district shall be enclosed alongwith the application. The format of the label shall contain the details mentioned in sub-rule (1). An application for renewal of label/labels shall be filed alongwith the challan of prescribed fee before the end of current year mentioning details of prior registration and renewal.]

(4)     [37][On receipt of application for Registration of label/labels, the Excise Commissioner, may make such enquiry as he deems proper, if he is satisfied that the pre-requisites specified in sub-rule (3) have been complied with and there is no objection to such registration, he may register it. No such label/ labels shall be registered which bears similarity or resemblance to any prevalent label of any other manufactory]

(5)     A label as aforesaid in sub-rule (1) shall not have any figure, symbol, picture, insignia, etc. that looks obsence or that may offend the religious feelings of any particular class or hurts the sentiments or pride of any group, community or institution. In case of a dispute whether a label is obscence, offensive or hurtful, the matter shall be referred to the Excise Commissioner and his decision thereon shall be final and binding.

(6)     The Excise Commissioner may order cancellation of registration of a label made under sub-rule (4), if liquor sold under any such registered label is found sub-standard or if he is convinced that the sales under that label are causing financial losses to the State Government or if he is satisfied that the label is obscene, outrageous or hurtful. He shall, however, before passing such an order, given the affected licensee an opportunity to make a representation against such proposed cancellation. Consequent upon such cancellation, the Excise Commissioner may also pass suitable order regarding disposal of the stocks of the cancelled label held by any licensee and the State Government shall not be liable to pay any compensation to the licensee for any loss or damage. [38][The procedure regarding the disposal of stocks and for any loss or damage to the licensee in consequence of non renewal of labels, shall be the same as is applicable after cancellation of the label/labels.]

Rule - 10. Import of foreign liquor.

(1)     No foreign liquor shall be imported into Madhya Pradesh without prepayment of duty except under and in accordance with no objection certificate and/or a permit to be obtained or issued as described below :

(a)      No-objection certificate for the import of foreign liquor may be granted to FL 6 and [39][FL-10-A] licensees on prepayment of import fee at the prescribed rate. No-objection certificate shall be in Form FL 21.

(b)      Import of only those labels of foreign liquor shall be permitted which are registered with the Excise Commissioner under Rule 9.

(c)      Excise Commissioner or an officer authorised by him may permit any licensee, to import foreign liquor imported from outside India, subject to prepayment of the prescribed import fee and bottle fee. An FL 9 or FL 9-A licensee may be permitted by the Excise Commissioner to import foreign liquor manufactured outside India in bulk for the purposes of blending without payment of bottle fee. For this purpose no-objection certificate shall be in Form FL 20.

(d)      The importer shall apply to the Excise Commissioner or Collector or the authorised Excise Officer of the importing district. The relevant details i.e. the name, address of the importer and his agent at the place of export, quantity, description and alcoholic strength of the liquor, the purpose of import, the unit whence it shall be imported, the location of his licensed premises whereto the imported foreign liquor shall be transported, registration No. of the label etc. shall be given in the application.

(e)      The importer shall attach to his application challans indicating that he has prepaid import fee, or bottle fee or both as the case may be at the prescribed rate in the Treasury of his district.

(f)       The Excise Commissioner or Collector or the authorised Excise Officer of the importing district, may, after making necessary enquiries and satisfying himself that there is no objection to the issuance of the certificate, grant and issue no-objection certificate in Form FL 20 or FL 21, as the case may be.

(g)      The no-objection certificate granted under clause (f) shall be in triplicate, Part I shall be retained in the office of issue, Part II shall be mailed to the authority who may authorise the export and Part III shall be handed over to the applicant.

(h)     All importation shall be done on the authority of a valid export-pass granted by the competent authority of the exporting district. All the terms and conditions of such export pass shall be strictly adhered to, by the importer.

(i)       The Excise Commissioner may authorise import of such "special liquors" as ingredient for blending purpose by an FL 9 or FL 9-A licensee as he may deem fit without payment of any duty or import fee.

Explanation. The words "special liquors" shall include "high-bouquet-spirit", cane-juice spirit, sherry, grape spirit, malt-spirit of varying strengths and other specially flavoured spirits for blending purposes.

(2)     Import of foreign liquor on prepayment of duty in Madhya Pradesh may be allowed by the Excise Commissioner as indicated below :

(a)      Import of only such labels shall be permitted that are registered with the Excise Commissioner under Rule 9 provided that import of foreign liquor imported from outside India may be permitted even if its label/labels is/are not registered under Rule 9.

(b)      No-objection certificate for the import of foreign liquor shall be granted to such licensee or individual as directed by the Excise Commissioner on prepayment of duty and other prescribed fees. While applying for no-objection certificate, the importer shall attach to his application a challan indicating that he has prepaid duty, or other prescribed fee or both, as the case may be, in a treasury of his district.

(c)      The no-objection certificate shall be in Form FL 20.

(d)      The authority granting no-objection certificate under this sub-rule shall follow the procedure described in clauses (d), (e), (f) and (g) of sub-rule (1) of this Rule.

Rule - 11. Intimation of arrival of the consignment.

(1)     As soon as the consignment of foreign liquor covered by the no-objection certificate and permit reaches the licensed premises, the consignee shall immediately inform the District Excise Officer in writing.

(2)     On receipt of such intimation, the District Excise Officer shall depute an Excise Officer, not below the rank of sub-Inspector, for verification of the consignment. The Excise Officer, thus deputed, shall carry out the verification, make necessary entries in the permit issued by the exporting State and enter the details of the quantity received in the records and registers maintained by the licensee. He shall prepare and send a verification report to the District Excise Officer who in turn shall mail it to the authority who issued the export permit.

(3)     The verification must be completed within 24 hours of such intimation in writing. Cases of discrepancies should be intimated to the District Excise Officer at once.

(4)     If the consignment is not verified by an Excise Officer within 24 hours of the written intimation, the importer shall open the consignment, verify the quantity and other details and record the particulars in the prescribed registers.

(5)     The consignment shall be brought intact to the licensed premises through the route mentioned in the export permit without unloading the same at any place other than the place of destination.

Rule - 12. Export of foreign liquor.

(1)     Export of only those labels of foreign liquor shall be permitted which are registered with the Excise Commissioner under Rule 9.

(2)     Only FL 9 or FL 9-A licensee shall be permitted to export.

(3)     The exporter shall pay the prescribed export-fee in advance in the treasury of his district.

(4)     The exporter shall also deposit the prescribed duty leviable on the full quantity of foreign liquor to be exported, or furnish a bank guarantee for an equal amount from a local branch of a nationalised bank or execute a bond with adequate solvent sureties for the amount in Form FL 23. After the receipt of the verification report in respect of the-despatched consignment from the officer-in-charge of the importing unit, further consignment of foreign liquor involving the same or lesser amount of duty may be exported on the strength of the same cash deposit or bank guarantee or bond.

(5)     Application for the grant of export permit shall be made to the Collector or the authorised Excise Officer of the exporting district or any other officer specially authorised by the Excise Commissioner. The necessary details i.e. the name, address of the exporter and his agent at the place of import, quantity, description and alcoholic strength of the foreign liquor, the purpose of export, the unit whereto it shall be exported, registration No. of label etc. shall be mentioned in the application. The exporter shall also attach to his application, a no-objection certificate or an import pass or permit issued by the authorised Excise authority of the importing district.

(6)     On receipt of an application under sub-rule (5) the Collector or authorised Excise Officer shall make necessary enquiries. If he finds that conditions laid down in sub-rules (3), (4) and (5) have been satisfactorily complied with and is of the opinion that there is no objection to the issuance of the export permit, he shall, issue the permit in Form FL 22.

(7)     The export permit in Form FL 22 shall be in quadruplicate. The first part shall be retained in the office of issue, the second part shall be handed over to the exporter which will cover the consignment in transit, the third and fourth parts shall be mailed under registered post to the officer-in-charge of the importing unit and the officer who has authorised the import, respectively.

Rule - 13. Securing the verification report.

The exporter shall obtain a verification report from the officer-in-charge of the importing unit and furnish it to the authority who issued the export permit within 21 days of the expiry of period of permit. If the exporter fails to do so, the leviable duty on the foreign liquor exported shall be recover from deposits made, bank guarantee furnished or the security bond executed in accordance with sub-rule (4) of Rule 12. This shall be in addition to any other penalty which may be imposed under Rule 19.

In case the foreign liquor is exported to another country, the licensee exporting the liquor shall furnish documentary evidence that the consignment has actually left the country.

Rule - [14. Procedure for the transport of foreign liquor, E.N.A. etc.

(1)     Transport by an F.L. 9, F.L. 9A, F.L. 10A, B-1-A licensee to 'Foreign Liquor Warehouse'.][40]

Only an F.L. 9, F.L. 9A, F.L. 10A or B-1-A licensee shall transport foreign liquor to a 'Foreign Liquor Warehouse' for storage thereat. For this purpose, the licensee shall deposit transport fee in his district and obtain a No Objection Certificate in Form F.L. 12 from the officer in charge 'Foreign Liquor Warehouse'. No Objection Certificate in Form F.L. 12 shall be invariably obtained even if the licensed premises of the licensee transporting foreign liquor and 'Foreign Liquor Warehouse' are located at the same headquarters or in the same city or district. Transport permit in F.L. 14 for the quantity mentioned in the No Objection Certificate in Form 12 shall be issued by the Officer in charge of F.L. 9, F.L. 9A, F.L. 10A or B-1A licence.

(2)     Transport by an F.L. 1A/F.L. 1AAA/F.L. 1D licensee from 'Foreign Liquor Warehouse'.

A licensee holding a licence in Form F.L. 1A, F.L. 1AAA or F.L. 1D shall transport foreign liquor from 'Foreign Liquor Warehouse' established at the headquarters of the division within which the licensed premises of the licensee are situated. After depositing duty at the prescribed rate in the district on the full quantity of foreign liquor to be transported the licensee shall obtain a No Objection Certificate in Form F.L. 12A from the Assistant Excise Commissioner/ District Excise Officer of the purchasing district. No Objection Certificate in Form F.L. 12A shall be obtained even if the licensed premises of the licensee and the 'Foreign Liquor Warehouse' are situated at the same headquarters or in the same city or district and only intra-district transport is involved. The licensee shall obtain transport permit in Form F.L. 14A from the Officer in charge 'Foreign Liquor Warehouse' and transport the consigned foreign liquor to his licensed premises.

(3)     Transport by an F.L. 2, F.L. 3, F.L. 4, F.L. 4A, F.L. 5, C.S. 2A, C.S. 2B licensee :

An F.L. 2, F.L. 3, F.L. 4, F.L. 4A, F.L. 5, C.S. 2A, C.S. 2B licensee shall procure foreign liquor from an F.L. 1 A, F.L. 1AAA or F.L. 1D licensee of the same district as may be specified by the Collector in accordance with the general directions of the Excise Commissioner or State Government. N.O.C. is not required in such cases. After depositing transport fee, F.L. 2, F.L. 3, F.L. 4, F.L. 4A, F.L. 5, C.S. 2A, C.S. 2B licensee, shall obtain a transport permit in Form F.L. 15 from the Assistant Excise Commissioner/District Excise Officer of his district and transport foreign liquor to his licensed premises. An F.L. 3 licensee, if permitted to transport foreign liquor from a different district, shall 'follow the procedure given in clause (c) to sub-rule (6) below.

(4)     Transport by an F.L. 9 or F.L. 9A licensee :

An F.L. 9 or F.L. 9A licensee intending to transport spirit/E.N.A. horn a D-1 licensee, shall deposit transport fee is his district and transport spirit/ E.N.A. to his licensed premises from a D-1 licensee after obtaining a transport permit in Form F.L. 16 from the Officer in charge, D-1 licence. No Objection Certificate shall not be required in such cases as all such transports are authorised by the Excise Commissioner under sub-rule (2) of Rule 15.

(5)     Transport by an F.L. 6 licensee :

An F.L. 6 licensee shall purchase foreign liquor from an F.L. 9, F.L. 9A, F.L. 10A or B-1-A licensee. The F.L. 6 licensee, after depositing transport fee in his district, shall obtain No Objection Certificate in Form F.L. 13 from the Assistant Excise Commissioner/District Excise Officer of his district, if foreign liquor is to be transported from a different district. In case of intra-district transport, No Objection Certificate shall not be necessary. Transport permit in Form F.L. 17 shall be issued by the Officer in charge of F.L. 9/F.L. 9A/F.L. 10A/B-1-A licence.

(6)     Transport by F.L. 3, F.L. 7, F.L. 8 licensees :

(a)      An F.L. 7 or F.L. 8 licensee, purchasing foreign liquor from an F.L. 6 licensee, shall first deposit prescribed duty and bottle fee in his district and procure no objection certificate in Form F.L. 13A from the Assistant Excise Commissioner/District Excise Officer of his district in inter-district transport of foreign liquor is involved. N.O.C. shall not be necessary if only intra-district transport is taking place. Transport permit issued by the Assistant Excise Commissioner/ District Excise Officer of the selling district shall be in Form F.L. 18.

(b)      If an F.L. 8 licensee is taking issues from an F.L. 7 licensee, he shall deposit only transport fee and in case foreign liquor is to be transported from a different district, obtain No Objection Certificate in Form F.L. 13-A. When only intra-district transport is to take place, N.O.C. is not required. Transport permit in Form F.L. 18 shall be issued by the Assistant Excise Commissioner/ District Excise Officer of the selling district.

(c)      An F.L. 3 licensee, if specially permitted by the Excise Commissioner to procure his supplies from an F.L. 1A, F.L. 1AAA, F.L. 1D licensee of a different district, shall follow the procedure given in clause (b) above.

(7)     Intra-group transfer of Country/Foreign Liquor :

The licensee of any group of country/foreign liquor shops may transfer stock of country /foreign liquor from any F.L. 1A, F.L. 1AAA, F.L. 1D, C.S. 2A, C.S. 2B shop of his group to a similar shop of the same group. For this purpose, transport permit shall be issued by Assistant District Excise Officer/Sub-Inspector excise of the concerned circle after taking permission of the Assistant Excise Commissioner/District Excise Officer of the district. Transport permit shall be issued without any fee in Form F.L. 19.

(8)     All licensees to obtain transport permit:

Every licensee shall obtain transport permit in the prescribed Form for transporting foreign liquor to his licensed premises. He shall strictly follow all the conditions given in the transport permit. He shall also be bound by Rule (ix) of General Licence Conditions, provisions of the M.P. Excise Act, rules made thereunder and instructions issued in this behalf by the Excise Commissioner.

(9)     Minimum quantity of transport:

(a)      The minimum quantity of foreign liquor that may be transported from a manufacturing unit i.e. F.L. 9, F.L. 9A, B-1-A licensee to a 'Foreign Liquor Warehouse' or issued from a Foreign Liquor Warehouse to an F.L. 1A, F.L. 1AAA or F.L. 1D, licensee at one time may be fixed by the Excise Commissioner and transportation/ issue of foreign liquor in a quantity less than the quantity thus fixed shall not be permissible.

(b)      In cases not covered by clause (a) above, an F.L. 6, F.L. 9, F.L. 9A, F.L. 10A, B-1-A licensee shall not sell foreign liquor in a quantity less than 54 bulk litres in a single transaction.]

Rule - 15. Procurement of spirit/E.N.A. for the manufacture of foreign liquor.

(1)     (a) Import of spirit or ENA for the manufacture of foreign liquor without payment of duty by an FL 9 or FL 9-A licensee may be permitted by the Excise Commissioner.

(b) Every application for the issue of a no-objection certificate for the import of spirit or ENA shall be accompanied by a challan in token of depositing import fee at the prescribed rate in the importing district.

(c) The procedure laid down in clauses (d), (e), (f) and (g) of sub-rule (1) of Rule 10 shall be followed while issuing no-objection certificate.

(d) No-objection certificate for the import of spirit or ENA for this purpose shall be in Form FL 20.

(2)     (a) Transport of spirit or ENA from a D-1 licensee by an FL 9 or FL 9-A licensee for the manufacturer of foreign liquor may be permitted by the Excise Commissioner.

(b) Every such application for the transport of spirit or ENA shall be accompanied by a challan showing that the prescribed transport fee has been deposited in the Treasury by the FL 9 or FL 9-A licensee.

(c) After the receipt of permission from the Excise Commissioner under clause (a) above, the officer-in-charge of the D-1 licence shall issue the transport permit after following the procedure as laid down in sub-rule (4) or (5), as the case may be, of Rule 14, in Form FL 14 or FL 15.

Rule - 16. Permissible limits of losses.

(1)     An allowance shall be made for the actual loss of spirit by leakage, evaporation etc., and of bottled foreign liquor by breakage caused by loading, unloading, handling etc. in transit, at the rate mentioned hereinafter. The total quantity of bottled foreign liquor transported or exported shall be the basis for computation of permissible losses.

(2)     Wastage allowances on the spirit transported to the premises of FL 9 or FL 9-A licensee shall be the same as given in sub-rule (4) of Rule 6 of the Distillery Rules, 1995.

(3)     Maximum wastage allowance for all exports of bottled foreign liquor shall be 0.25% irrespective of distance.

(4)     Maximum wastage allowance for all transports of bottled foreign liquor shall be 0.1% if the selling licensee and the purchasing licensee belong to the same district. It shall be 0.25% if they belong to different districts.

(5)     If wastages/losses during the export or transport of bottled foreign liquor exceed the permissible limit prescribed in sub-rule (3) or (4), the prescribed duty on such excess wastage of bottled foreign liquor shall be recovered from the licensee.

Rule - 17. Storage, racking, reduction losses.

(1)     Maximum permissible limit of losses of spirit due to racking, storage, evaporation, reduction, blending etc., for FL 9 or FL 9-A licensee shall be the same as given in sub-rule (2) of Rule 6 of the Distillery Rules, 1995.

(2)     No wastage allowance on storage of bottled foreign liquor stocked with [41][FL 6 [42][x x x] or FL 10-A] licensee is permitted. If during verification any deficiency is discovered, duty and bottle fee at the prescribed rate on the quantity found deficit shall be recoverable from the licensee in addition to any other penalty which may be imposed under Rule 19.

Rule - 18. Miscellaneous.

(1)     Transit of foreign liquor through Madhya Pradesh shall be subject to such conditions and restrictions as may be notified by the Excise Commissioner and such conditions and restrictions shall be binding on all such transit movements.

(2)     (a) Bottle fee per quart bottle both for the spirit and the malt liquor shall be payable at the rate fixed by the State Government from time to time. Different scales of bottle fee may be prescribed for different kinds or varieties of foreign liquor including that imported from outside the country.

(b) The rate of bottle fee per magnum bottle shall be one and a half time the rate per quart bottle, the rate per pint bottle shall be half of the rate per quart bottle, and the rate per nip bottle shall be one fourth of the rate per quart bottle.

Explanation. A bottle of the capacity of less than 191 millilitres but not less than 142 millilitres shall be classed as a nip bottle; a bottle of the capacity of less than 383 millilitres but not less than 246 millilitres shall be a pint bottle; a bottle of the capacity of less than 767 millilitres but not less than 495 millilitres shall be classed as a quart bottle, and a bottle of the capacity of not less than 767 millilitres but not more than 1000 millilitres shall be classed as a magnum bottle.

(3)     No duty, tax, fee or levy shall be payable on foreign liquor exported to any other country.

(4)     All export, import and transport of foreign liquor shall be at the cost and risk of the licensee. No duty import-fee, export-fee, transport-fee or bottle-fee shall be refundable on ground of any loss caused to the licensee.

(5)     The exporter or transporter shall strictly follow the itinerary specified in the export or transport permit which will invariably accompany the consignment. The consignment shall be taken intact directly to the destination within the validity period of the permit and under no circumstances it shall be broken, unloaded or disposed of during transit.

(6)     After the expiry or cancellation of the licence in Form FL 6, FL 9, FL 9-A[43][[44][x x x] or FL 10-A] or FL 11 the licensee shall place the entire stock of spirit or bottled foreign liquor or both as the case may be, under the control of the 3[Asstt. Excise Commissioner/District Excise Officer]. The former licensee may be permitted to dispose of such balances within 30 days of such expiry or cancellation, to any other licensee to whom it can be sold. If he is unable to dispose of such balances in the aforesaid manner and within the prescribed time period, the Excise Commissioner may ask any other licensee of the State who is permitted under the rules to purchase such balance, to buy all or part of such balance at a rate fixed by him or give any other directions about their disposal, including their destruction. Foreign liquor left under similar circumstances with FL 1, [45][FL 1-A, [46][x x x] FL 1-AAA], FL 2, FL 3, FL 4, FL 5, FL 7 or FL 8 licensee shall be disposed of in accordance with the procedure laid down in General Licence Condition No. XXV.

(7)     The licensee shall be bound by the orders issued by the Excise Commissioner from time to time.

(8)     Every licensee under these rules shall keep his stock of foreign liquor on the premises specified in his licence only.

(9)     FL 1, [47][FL 1-A, [48][x x x]] FL 1-C, FL 2, FL 3, FL 4, FL 5, FL 7 and FL 8 licensees shall be liable to pay the difference of bottle fee on the balance of stocks of foreign liquor in the event of enhancement of the scale of bottle-fee during the currency or on the expiry of the licence, but no refunds shall be permissible to them on such stocks if the scale of bottle-fee is reduced.

(10)   The Excise Commissioner may for sufficient reasons to be recorded in writing restrict the import or transport of foreign liquor by holders of foreign liquor licences, in respect of whom no quota has been fixed under the conditions of their licences.

(11)   A bonafide traveller entering Madhya Pradesh may import without any restriction, for his private consumption, foreign liquor not exceeding two quart bottles.

(12)   The maximum quantity of foreign liquor that can be possessed by an [49][FL 4 or FL 4-A] licensee at any point of time shall be fixed by the licensing authority and the quantity thus fixed shall be in quart bottles and shall be entered in the licence.

(13)   Bottling fee, bottle-fee, import-fee, export-fee, transport-fee and duty payable under these rules shall be such as prescribed by the State Government by issuing notifications from time to time.

(14)   Duty, import-fee, bottling-fee, export-fee, may be levied on the basis of ex-distillery selling price declared by the manufacturer to the Excise Commissioner or Collector from time to time.

(15)   Duty, bottle-fee, transport-fee, import-fee, export-fee, shall be deposited in the district in which the licensed premises of the licensee, transporting, importing or exporting foreign liquor is situated.

(16)   It shall be lawful for the licensing authority to impose such reasonable additional conditions on any licensee as he deems proper, to ensure compliance of the provisions of the Act, rules or conditions of the licence.

(17)   [50][The State Government shall have the power to cancel the licence granted by any licensing authority in violation of any provision of these rules or the Act or any general guidelines or directions issued by the State Government for grant of such licence. In case a licence is cancelled by the State Government under this sub-rule, the proportionate licence fee, in respect of such licence for the remaining period for which the licence would have been in force, shall be refundable to the person concerned.]

(18)   [51][If holder of a licence granted by any licensing authority under these rules, is convicted of an offence under the Act or for breach of the rules or conditions of the licence, and the Licensing Authority on the proposal of the [52][Asstt. Excise Commissioner/District Excise Officer] or any officer authorised by him in this behalf, does not act to suspend or cancel the licence under the provisions of Section 31 of the Act, the State Government or an officer authorised by it in this behalf after hearing the licensee may suspend or cancel the licence.]

(19)   [53][Omitted]

Rule - 19. Penalties.

(1)     Without prejudice to the provisions of the Act, or condition No. 4 of licence in Form FL 1, condition No. 7 of licence in Form FL 2, condition No. 4 of licence in Form FL 3, the Excise Commissioner or the Collector may impose a penalty not exceeding Rs. 50,000 for contravention of any of these rules or the provisions of the Act or any other rules made under the Act or the order issued by the Excise Commissioner.

(2)     On all deficiencies in excess of the limits allowed under sub-rule (2) of Rule 16 and sub-rule (1) of Rule 17, the FL 9 or FL 9-A licensee shall be liable to pay penalty at a rate not exceeding Rs. 25 per proof litre in case of spirit and Rs. 65 in case of foreign liquor excluding beer as may be imposed by the Excise Commissioner or any officer authorised by him :

Provided that if it be proved to the satisfaction of the Excise Commissioner or the authorised officer that such excess deficiency or loss was due to some unavoidable cause, he may waive the penalty impossible under this sub-rule.

(3)     The Excise Commissioner or the Collector may suspend or cancel the licence under Section 31 of the Act upon a contravention of any of these rules or provisions of the Act, or any other rules made under the Act, or the orders issued by the Excise Commissioner.

Rule - 20. Taking security from-FL 2 and FL 3 licences.

Every FL 2 and FL 3 licensee shall furnish cash security or bank guarantee for an amount fixed by the State Government or the Excise Commissioner for due compliance of licence conditions. In case any penalty is imposed on a licensee owing to infraction of any licence condition, the penalty thus imposed shall be paid by him forthwith and in case of default the amount of penalty shall be recovered from the cash security or the bank guarantee as aforesaid. In such an eventuality, the bank guarantee or the cash security shall be indemnified to that extent by the licensee within 7 days.

Rule - 21. Repeals.

All rules corresponding to these rules in force immediately before the commencement of these rules 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.