Section 3(19) in Distillery, Bottling and Warehouse Rules Made Under Madhya Pradesh Excise Act, 1915
(19)In the event of the licensee's failure to supply the spirit as required under constitution or to maintain the minimum stock of spirit as prescribed under condition 15 or when the stock of spirit at any warehouse in the area falls so low that in the opinion of the District Excise Officer the genuine demand of the retail vendors can not be fully met, the District Excise Officer authorised by the Excise Commissioner may purchase spirit sufficient to meet one month's demand of the area from any other distillery at the risk and cost of the licensee. In addition for every such failure or threat on failure or whenever a situation as envisaged above arises, the Distiller shall also be liable to pay a penalty to be imposed by the Excise Commissioner at a rate not exceeding Rupees 3/- per proof litre on the quantity so brought from any other distillery. The quantity sufficient to meet one month's demand of the area will be calculated on the basis of average monthly consumption of the preceding year. Before imposing such penalty the Excise Commissioner, shall take into consideration the circumstances of the case and also give the licensee a reasonable opportunity to state cause against imposition of penalty.
