Uttar Pradesh Licences for
the Possession of Denatured Spirit and Specially Denatured Spirit Rules, 1976
Rule - 1. Short title and commencement.
(i) These rules may
be called the U.P. Licences for the Possession of Denatured Spirit and
Specially Denatured Spirit Rules, 1976.
(ii) They shall come
into force with effect from the date of their publication in the Gazette.
(iii) In these rules,
unless there is anything repugnant to the subject or context, "Specially
denatured spirit" means spirit rendered unfit for human consumption in
such manner as may be prescribed by the Excise Commissioner by notification in
this behalf and does not include ordinary denatured spirit for general use.
Rule - 2.
Licences for the possession of denatured spirit including specially denatured
spirit for industrial purposes shall be of three kinds, viz. :
(i)
Form F.L.
39 for use in industries in which alcohol is destroyed or converted chemically
in the process into other product and the product does not contain alcohol,
such as, Either, Styrene, Butadiene, Acetone, Polythene, etc.
(ii)
Form F.L.
40 for use in industries in which alcohol is used only as a solvent or
processing agent and the product does not contain alcohol, which is generally
recovered for re-use, such as, Cellulose and its derivatives, Pectin, etc.
(iii)
Form F.L.
41 for use in industries in which alcohol used directly or alcohol is used as
solvent for vehicle and appears in the final product to some extent, such as,
Lacquers, Varnishes, Polishes, Adhesives, Anti-freezers and Brake fluid, etc.
Rule - [3.
(a) -The fee for a
licence in Form F.L. 39 shall be at the rate of fifteen paise per litre,
payable on the quantity of specially denatured spirit obtained from any
distillery in Uttar Pradesh. The fee shall be realised by the Excise Inspector
Incharge of distillery from the licensee before making issues of the specially
denatured spirit from the distillery and shall be deposited in the Treasury
under the head-"039-State Excise-E-Commercial and Denatured spirit
medicated wines-B-Licence fees commercial spirits.
(b) The fee for a licence in Forms
F.L. 40 and 41 shall be at the rate of 40 per cent, ad valorem on the
sale made by a distillery/wholesale vendor to F.L. 40 and F.L. 41 licensees,
payable in advance before the issue of licence.]
General
Conditions
Rule - 4.
The following general conditions shall be binding on all persons holding
licences for the possession of denatured spirit for industrial purposes :
(1) The licensee shall be bound to
observe all rules under the U.P. Excise Act, IV of 1910 applicable to his
licence and the general and special conditions of his licence.
(2) The licensee shall, if required
by the Excise Commissioner before granting the licence, or at any time during
the currency of his licence deposit with the Collector in cash or in Government
Promissory Notes or National Savings Certificates, such amount as may be
prescribed by the Excise Commissioner as security for the due observance of the
terms and conditions of the licences, case of non-observance of the terms and
conditions of the licence, the security so deposited may be forfeited to
Government and licence cancelled in addition to other penalties that may be
provided under the law after giving opportunity to the licensee to explain.
(3) The licence shall be deemed to
have been granted or renewed personally to the licensee and it shall not be
transferred or sublet or sold without the previous permission of the Excise
Commissioner.
(4) The licensee shall not change the
premises in which he carries on his business under this licence except with the
previous permission of the Excise Commissioner which fact should be noted on
the licence by the Collector or any officer duly empowered by him and the
Excise Commissioner informed.
(5) If the licensee desires to enter
into partnership in regard to business covered by licence, he shall do so only
after obtaining the previous sanction of the Excise Commissioner and his
licence shall therefore be suitably amended. Where partnership is entered into,
the partner as well as the original holder of the licence shall be bound by the
conditions of that licence.
(6) If any partnership is dissolved,
the factum of dissolution shall be communicated to the Excise Commissioner by
all the partners of the dissolved partnership within three days.
(7) If the licensee becomes incapable
of carrying on the business or dies or becomes solvent or in the case of a
firm, company or other association of persons, it is wound up, the Excise
Commissioner may-
(i) either cancel the licence; or
(ii) continue it in the name of the
legal representatives, if any, of the licensee.
(8) If the licensee goes out of
business he shall dispose of Iris stock of denatured spirit in such a manner as
the Excise Commissioner may direct.
[(9) The licenscee shall not sell
or part with as gift or otherwise any quantity of spirit obtained under the
licence or utilize it for purposes other than stated in the licence; Provided
that holder of F.L.-41 licence issued for petroleum depot for mixing of
denatured power alcohol in the petrol may export denatured power alcohol through
rail wagon to oil depot of their own company situated in other States, under
export rules in accordance with the prescribed terms and conditions.
Provided further that F.L.-41 Licencee shall issue transport pass in Form
P.D.-25 for export through rail wagon for each such consignment, a copy of
which pass shall be submitted in the office of the concern district excise
officer. Prescribed Export pass fee shall be paid in advance for each export.]
(10) No spirit shall be removed from the licensed premises without the
sanction, in writing, of the Excise Commissioner.]
(11) Any attempt on the part of the licensee to render spirit fit for
human consumption shall make him liable to cancellation of his licence in
addition to the penalties that may be imposed under the U.P. Excise Act. If the
spirit is insufficiently denatured, the inspecting officer may seize the spirit
in question.
(12) Every bottle, jar, cask or other receptacle containing spirit
received into and kept for storage in the licensed premises shall have affixed
to it in conspicuous manner a label printed in red and containing skull and
cross bones with a warning in Hindi and English. The design and style of the
label shall be as approved by the Excise Commissioner.
(13) The licensee shall maintain the registers prescribed for the
business carried on by him and on the expiry of his licence shall make them
over to the District Excise Officer of his district under a valid receipt. The
licensee shall submit all described returns punctually and maintain the
accounts of transactions from day to day in ink.
(14) The licensee shall at any time produce for inspection on demand his
licence and accounts by an officer of the Excise Department not below the rank
of an Inspector and shall allow the inspection of his licence, registers,
permits or passes, total stock of spirit and finished products and premises by
the said officer.
(15) The licensee shall maintain an inspection note book with the pages
numbered consecutively and hand it over on demand to an officer of the Excise
Department not below the rank of an Inspector. Any punishment or warning
incurred by the licensee, without forfeiture or cancellation of his licence,
shall be recorded in the book.
Rule - 5. Special conditions.
Licence in Forms F.L. 39, F.L. 40 and F.L. 41 shall be subject to the special
conditions noted below in addition to the conditions aid down in Rule 4, supra
:
(1) Licence in Form F.L. 39 :
(a) The spirit used shall contain
denaturants approved by the State Government and the denaturants shall be in
the proportion as may be prescribed by the State Government.
(b) Quantity of spirit allowed to be
issued in any year shall not exceed ............... litres.
[(c) The spirit shall be obtained from a distillery situated in Uttar
Pradesh provided that Specially Denatured Sprit may be imported from other
State or country.]
(d) The spirit shall be stored in gauged vats or other receptacles
approved by the Excise Commissioner. All such vessels shall bear a distinctive
serial number and their full capacities shall be distinctly and intelligible
marked over them.
(e) The spirit shall be stored in a separate room called spirit store.
The windows of
the spirit store shall be fitted with malleable iron bars not less than two
centimetres in thickness, set not more than 10 centimetres apart and fixed in
the brick work to a depth of at least 5 centimetres at each end. On the inside
of each window there shall be securely fastened to the bars stout wire-netting
the aperture which shall not exceed 2 centimetres in diameter. There shall be
only one entrance to the spirit, and one door to each of its compartments. All
these doors shall be secured with excise ticket lock during the absence of the
Excise Officer-in-charge.
No addition or alterations shall be made in the spirit store premises or in
respect of permanent fixtures therein without the previous orders of the Excise
Commissioner. The spirit store shall be opened and closed only in the presence
of the Excise Officer-in-charge.
Note. - The Excise Commissioner may exempt a licence wholly or partly from the
operations of this rule taking into consideration the requirement of a
particular industry.
[(f) No spirit shall be taken away from the premises by anyone other than
a person duly authorised by the Excise Commissioner.]
(g) An application for every quantity of spirit required to be removed
from the storage tanks must be made in writing to the Excise Officer-in-charge
who shall record the quantity issued day-to-day in a prescribed register.
(h) The licensee shall maintain an up-to-date account of the specially
denatured spirit received from the distillery stored in storage tanks, used in
the manufacture and the balance left in stock at the end of the day in the Form
F.L. 42 and manner prescribed by the Excise Commissioner, Uttar Pradesh.
(i) The licensee shall apply to the Excise Commissioner through the
Collector of the district concerned, for the renewal of the licence at least
one month before the date of expiry of the licence.
[(j) Storage wastage of denatured spirit exceeding 1.5 per cent found on
the last working day of every calendar month after verification of the stock by
the Excise Inspector In-charge shall be an offence under section 64 and
punishable under section 74 of the U.P. Excise Act, 1910.]
(k) The licensee shall pay fee at a rate prescribed by the State
Government, per litre on the issues of the specially denatured spirit obtained
from any distillery in Uttar Pradesh for the manufacture of a commodity.
(l) The fee shall be realised by the Excise Inspector-in-charge of the
distillery before making issues of the specially denatured spirit from the
distillery from the licensee, and shall be deposited in the treasury under the
head "X-State Excise Duties-E Receipt from commercial spirit including
denatured spirit and medicated wines (d) Vend fee for denatured spirit".
(m) The Excise Commissioner shall decide the strength of excise
personnel necessary for the supervision and his decision shall be binding on
the licensee. The licensee shall provide office with office furniture for the
officer-in-charge and suitable quarter to the excise staff to the satisfaction
of the Excise Commissioner in the vicinity of the licensed premises. The
licensee shall be bound to keep in the quarters and their appurtenances in
proper repair and not to interrupt or to annoy any officer residing therein, in
his use or enjoyment thereof. In case any question should arise as to the
sufficiency of the accommodation, the question shall be referred to the Excise
Commissioner whose decision shall be final and binding on the licensee.
(n) The licensee shall furnish to the Excise Officer-in-charge a list
containing the names of the manager and other employees employed by him and of
all other employees whose duties require them to enter the spirit store. He
shall promptly inform the Excise Inspector concerned of any changes which he
may choose to make in the list from time to time.
(o) The licensee shall provide himself with the following registers in
duplicate :
(a) Register of transaction in the
spirit store showing the receipt of expenditure of spirit.
(b) Register of transactions in the
spirit store showing the receipt of expenditure of spirit.
(c) Register of operations in the manufactory
showing the manufacture of each of the commodities, the total quantity of
commodities produced and the spirit content per litre, if any.
(d) All registers and forms which the
Excise Commissioner may prescribe shall be printed and supplied by licensee
free of charge to the concerned Excise Inspector to supervise the operation.
(e) He shall maintain daily accounts
of transaction in the manufactory.
(2) Licence in Form F.L. 40 :
[(a) The spirit used shall contain denaturants approved for the industry
by the State Government. It shall be obtained from a distillery situate in
Uttar Pradesh provided that Specially Denatured Sprit may be imported from
other State or country.]
(b) The total quantity of spirit stored in the licensed premises shall
not exceed at any one time .................... bulk litres.
(c) The quantity allowed to be used in any one year shall not exceed
.................... bulk litres.
(d) The entire produce of one operation for recovery of spirit shall be
collected in the receiver and the whole of the recovered spirit shall be used
in the next succeeding preparation and no attempts shall be made to collect the
recovered spirit in separate portion for fractions.
(e) The spirit vapour pipe from the evaporator shall be securely
attached to the condenser and the recovered spirit shall pass through a close
main pipe soldered or rivetted to the condenser and the cover of the receiver
respectively and extended nearly to the bottom of the receiver.
(f) Any spirit sampling pipe shall not have an orifice exceeding
one-eighth of centimetre in diameter.
(g) The lid and the discharge cock of the receiver shall be secured by
locks, which are to be kept fastened while spirits are running into the vessels
and at all other times when any spirit remains therein.
(h) Officers of the Excise Department not below the rank of an
Inspector shall be allowed to take samples of the spirit and of materials which
contain any spirit.
(i) All specially denatured spirit received shall either be added to
the materials used in the industry in the presence of the manager or other
responsible person authorised by the licensee or be stored in a vat marked
"specially denatured spirit". The lid and the discharge cock of the
vat shall be secured by fastenings and locks and spirit must only be removed
from them under the supervision of the manager on other responsible person so
authorised after it has been entered in the account book.
(j) No spirit shall be taken away from the premises by any person
other than duly authorised officer of the Excise Department.
(k) The keys of all vessels ordered to be locked shall be kept on the
premises incharge of the manager or other responsible person authorised by the
licensee and any such vessel must be immediately unlocked at the requisition of
an officer of the Excise Department not below the rank of an Inspector.
(l) Particulars of the quantity and strength of every consignment of
specially denatured spirit must be entered in a book on the day of receipt. All
transactions shall be correctly entered from day-to-day in the same book and a
correct balance struck after each day's withdrawals from stock. The book shall
be accessible to the Officers of the Excise Department not below the rank of an
Inspector who visits the premises and every pass which accompanied the spirit
received shall be retained and delivered to the Officer who next visits the
premises.
(m) The licensee shall execute a bond in Form F.L. 40-B for such amount
as may be fixed by the Excise Commissioner for the privilege of storage and use
of specially denatured spirit (and the observance of the conditions of this
licence and the rules contained in the Excise Manual).
(3) A Licence in Form F.L. 41 :
(a) A signboard shall be affixed to
the licensed premises showing the kind of licence and the hours of business
under it.
(b) The licensee shall store all his
stocks of spirit on the aforesaid premises. The quantity of spirit possessed at
any one time and the quantity used in the manufacture in a month or in a year
or during the period the licence is current shall not exceed the
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Kind of spirit
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Quantity that may be possessed at one
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Quantity that may be used for
manufacture of
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In a year
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or period of the currency of the
licence
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(c) The licensee is not allowed to
use spirit in manufacture of French polish unless he adds to it challenge or
resin or both in quantity not less than 25 per cent, or as may be prescribed by
the Excise Commissioner from time to time.
[(d) The licensee shall maintain correct
account of daily receipt and utilisation of the spirit and denatured power
alcohol exported through rail wagon in the form as may be prescribed by the
Excise Commissioner from time to time.]
(e) The licensee shall declare the composition of every manufacturing
item for which alcohol is needed specifically mentioning the percentage of
alcohol in the finished product, before the grant of licence in Form F.L. 41.
If more than two per cent variation is found in the declared content of alcohol
in the sample of finished product, then it shall be treated as a breach of one
of the conditions of the licence.
Rule - 6. Indent for denatured spirit.
Supplies of denatured spirit obtained by the licensee shall be on indents in
Form D-1 appended to these rules. The indent shall be in printed forms bound in
books in triplicate and numbered consecutively. Whenever a licensee indents for
spirit he shall prepare indent in triplicate using carbon paper, send the
original of the indent with fly leaf in Form B.F.L. of the licence concerned to
the distillery or to the wholesale vendor or to retail dealer of denatured
spirit. The duplicate of the indent shall be sent to the Preventive Excise
Inspector of the circle concerned and the triplicate retained by the Indentor for
his life.
On receipt of the indent along with the prescribed fly leaf the
Officer-in-charge of the distillery or the wholesale dealer shall not honour
the indent unless he has made accurate entries in a very legible way, in each
column of the fly leaf and endorse the quantity of denatured spirit supplies on
the indent. If the distillery or the wholesale or retail licensed vendor is not
in a position to meet the requirements of the indent, he shall inform the
indentor accordingly. A copy of the communication shall be sent to the
Preventive Excise Inspector of the circle in which indenting licensee holds
licence.
Excise Commissioner, Uttar Pradesh.
Form F.L.
39
Licence for possession of specially denatured
spirit for use in industries in which alcohol is destroyed or converted
chemically in the process into other product and the product does not contain
alcohol, such as, Either, Styrene, Butadiene, etc.
Licence is hereby granted and issued to (Name and address of the licensee)
(hereinafter referred to as the licensee) at
...................................................................... (enter
details of the premises with boundaries thereof) in the village/town
of...................district............ to possess ............... litres of
specially denatured spirit (hereinafter referred to as spirit) for use in the
preparation or manufacture
of............................................................ during the year
ending, March 31, 19 subject to the provisions of the U.P. Licences for the
Possession of Denatured Spirit and Specially Denatured Spirit Rules, 1975, the
infraction of any of which or a conviction for any offence under the Excise
Opium laws render the licensee liable to cancellation of the licence in
addition to any penalties imposed under the above laws.
Description of the licensed premises ..................
Excise Commissioner, Uttar Pradesh.
Endorsement
of Renewal
This licence is
hereby renewed on the conditions hereinbefore stated for the period stated
below.
Period ...................... to..............................................
Excise Commissioner, Uttar Pradesh
Form F.L.
40
Licence for possession of specially denatured
spirit for use in industries in which alcohol is used only as a solvent or
processing agent and the product does not contain alcohol, which is generally
recovered for re-use, such as, Cellulose, Pectin, etc.
Licence is hereby granted and issued to...............................(Name and
address of the licensee) (hereinafter referred to as the licensee) at
................(enter details of the premises with boundaries thereof) in the
village/town of.................. district .............. to possess bulk
litres of specially denatured spirit (hereinafter referred to as spirit) for
use in the preparation or manufacture of.............................during the
year ending March 31, 19....... subject to the provisions of the U. P. Licences
for the Possession of Denatured Spirit and Specially Denatured Spirit Rules,
1975, the infraction of any of which or a conviction for any offence under the
Excise/ Opium/Dangerous Drugs law render the licensee liable to cancellation of
the licence in addition to any penalties imposed under the above laws :
Description of the licensed premises ........................
Excise Commissioner, Uttar Pradesh
Endorsement
for Renewal
This licence is
hereby renewed on the conditions hereinbefore stated for the period stated
below :
Period .................... to .............................................
Excise Commissioner, Uttar Pradesh
Form F.L.
41
Licence for possession of denatured sprit including
specially denatured spirit for use in industries in which alcohol is used as
solvent or vehicle directly and appears to some extent in the final product,
such as, lacquers, varnishes, etc.
Licence is hereby granted and issued to (name and address of the licensee) to
possess.................bulk litre of denatured spirit including specially
denatured spirit (hereinafter referred to as spirit) in the manufacture of
varnish and paints .................district............. during the period
from April 1. 19........ to March 31, 19......... subject to the provisions of
the U. P. Licence for the Possession of Denatured Spirit and Specially
Denatured Spirit for Industrial Purposes Rules, 1975 in fraction of any of
which or a conviction for any offence under the Excise/Opium/Dangerous Drugs
laws render the licensee liable to cancellation of the licence in addition to
any penalties imposed under the above laws.
Description of the licensed premises .................
Excise Commissioner, Uttar Pradesh.
Endorsement
of Renewal
This licence is
hereby renewed on the conditions hereinbefore stated for the period stated
below :
Period ................................. to ..........
Excise Commissioner, Uttar Pradesh
Form F.L.
40-B
Bond for the storage and use of specially denatured
sprit in the manu-facture of under F.L 4C licence.
Know all men by these presents that
we.......................of.................are held and firmly bound jointly
and severally up to the Governors of Uttar Pradesh (hereinafter called the
Governor) which expression (includes his successors-in-office or assigns) in
the sum of Rs................. (Rs.................) to be paid to the Governor
(for which expression includes his successor-in-office or assigns) in the sum
of Rs.................... (Rs.....................) to be paid to the Governor
for which payment well and truly to be made we bind ourselves, our heirs,
executors, administrators and representatives jointly and severally two or more
of us bind ourselves, our heirs, executors, administrators and representatives
jointly and each of us bind himself, his heirs, executors, administrators and
representatives severally firmly by the presents.
Dated this .................... day of............................ 19....
Whereas the above bounded...............(hereinafter called the manufacturers)
have been permitted as from the date of execution of this bond to store and use
at...................in the district of............... for the purpose of
making ................ an excisable article, namely, spirit of a strength not
less than sixty-six degrees over London Proof to which ................... per
cent of ........ has been previously added (which mixture is hereinafter called
the spirit upon and subject to the following conditions :
(1) The total quantity of spirit
stored on the premises of the manufacturers at the place aforesaid shall not
exceed at any one time ............ bulk litres.
(2) The quantity of the spirit used
in any one year by the manufacturers shall not exceed .....................
bulk litres .............
(3) The spirit shall be used solely
for the manufacture of................... (and shall not be sold in any
quantity whatsoever).
(4) None of the spirit shall be
removed from the premises of the manufacturers without the sanction of the
Collector.
(5) The manufacturers shall comply
with the direction of the Collector as to the manner in which the spirit shall
be stored and if necessary recovered by distillation.
(6) No attempt shall be made to
purify the spirit.
(7) Duly authorised Excise Officer
shall be allowed to enter and inspect the manufacturer's premises.
(8) The manufacturers will perform
and observe all the conditions specified in licence no.................. dated
granted to them for the purposes aforesaid and shall forfeit such licence on
the breach of conditions therein or hereinbefore contained.
(9) The conditions in the said
licence and the conditions hereinbefore contained shall be binding on the heirs
and legal representatives of each and all of the manufacturers as long as the
said licence is not revoked.
Now the
conditions of this bond or obligation is such that if the manufacturers shall
perform, observe and fulfil and the conditions hereinbefore contained then the
above-written bond or obligation shall be void, but otherwise it shall remain
in full force and effect.
In witness of our acceptance of the obligation contained in the above written
bond and of our acceptance of the conditions hereinbefore mentioned we the
manufacturers have hereunto set out hands this day
of.......................19....
Signed sealed and delivered.
Dated the ...... 19
Witnesses :
1.
2.
Form F.L.
42
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Receipts
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Date
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Spirit opening balance
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From where received
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Permit No. and date
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Quantity
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2
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3
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4
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5
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Total of columns 2 plus columns 5
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Quantity taken or issued for use
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Closing balance of spirit
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Remarks
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6
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7
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8
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9
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