Section 3 in Distillery, Bottling and Warehouse Rules Made Under Madhya Pradesh Excise Act, 1915
3. [] [Substituted by Notification No. B-1-35-87-CT-V, dated 25-3-1991.]
(1)(a)The person intending to construct and work a distillery shall submit an application to the State Government through Excise Commissioner notifying his scheme in Form D-A.(b)No application mentioned in clause (a) shall be entertained unless a fee of Rs. 5000/- (Rupees five thousand) is paid into Government Treasury and the challan in original in support of payment is produced along with the application.(c)When the Government is satisfied of the proposed scheme of the applicant, it may accord the sanction and communicate it in the form of a "Letter of Intent" in Form D-B. The letter shall be valid for one year from the date of communication, unless especially extended, within which period the holder thereof shall arrange to secure the land, building, plant and machinery and other equipment required for the construction and working of the distillery as notified in the scheme submitted under clause (a).(d)The Letter of Intent communicated under clause (c) shall not confer any right or privilege for grant of a licence and is liable to be revoked and withdraw, at any time, in the public interest, after giving its holder a notice to show cause against such action and after hearing him, if he so desires.(e)No compensation for damage or loss shall be payable, when a letter of intent is revoked or withdraw under clause (d).(2)(a)An application for approval of the plant and map of the building shall be submitted to the Excise Commissioner within three months from the date of the communication of the sanction of the Government referred to in sub-rule (1);(b)Every such application shall be accompanied by-(i)Copy of the letter of intent issued by the Government;(ii)Project report of the proposed distillery with the plan and map of the distillery building;(iii)No objection certificate from the Department of Environment and Pollution Control Board of the Government of Madhya Pradesh;(iv)No objection certificate from the Chief Inspector of Factories under the Factories Act, 1948 (No. 63 of 1948);(v)Any other certificate or authorisation required from Central Government, the local body Town and Country Planning Department and other Departments of the State Government.(3)(a)Where the Excise Commissioner is satisfied that the applicant has fulfilled the conditions specified in sub-rule (2), he may approve the plan and map of the project for the construction and working of the distillery.(b)The applicant shall, within a year from the date of the grant of the permission referred to in clause (a) above, report to the Excise Commissioner, the date on which the construction of the buildings and erection of the plant and machinery of the distillery is completed.(c)In case the applicant fails to construct the buildings and submit his completion report as contemplated in clause (b) above, within a period of one year from the date of the grant of the permission, the letter of intent so granted shall be liable to cancellation without compensation for any damage and loss:Provided that, where the Excise Commissioner is satisfied that there is sufficient cause for the applicant for not constructing and completing the works as per approved plan within the period of one year, he may for reason to be recorded in writing recommend to the Government for the extension of the said period of one year for such further period or periods, not exceeding one year in the aggregate, as he may deem fit.(4)When the Excise Commissioner is satisfied that the construction of the buildings and erection of the plant and machinery is completed in all respect, he may, subject to the prior approval of the State Government, grant a licence for the manufacture of country spirit in Form D-1 for a period of five years on a payment of Licence fee of rupees twenty five thousand, which shall be renewed every year on payment of rupees five thousand in advance subject to the due observance of the provisions of the Act, rules made thereunder and conditions of the licence.(5)No alteration or addition shall be made without the prior permission of the Excise Commissioner, in or to the buildings of the distillery or to the plant, stills or the permanent apparatus, for working therein. But the Deputy Commissioner of Excise of the concerned division may authorise the officer incharge of the distillery to allow minor alterations to be made in or to such buildings, or apparatus subject to the final approval of the Excise Commissioner.(6)[ (a) A licence in Form D-2 for manufacture, Bottling and wholesale supply to country spirit may be granted by the Excise Commissioner to a holder of D-1 licence or a licensed manufacturer of spirit of any other state, after approval of the State Government. It shall commence on such date as may be specified and shall remain in force for such period as the State Government may decide. It shall be for such area or areas as may be specified in the schedule appended with the licence by the Excise Commissioner, from time to time.(b)Licence in Form D-2 will be granted by the Excise Commissioner as aforesaid on payment of annual licence fee of Rupees One Lac in advance. The licensee shall be required to deposit an additional amount of Rupees Five Lacs as security in cash or in any other form as may be directed by the Excise Commissioner for the due observance of conditions of licence, provision of the Act and the rules made thereunder and orders issued by the State Government or Excise Commissioner from time to time.](7)No licence be granted unless the applicant-(a)furnishes required security as specified in sub-rule 6 (b) for the fulfilment of all the conditions of licence;(b)has satisfied the Excise Commissioner that the proposed buildings, plant and apparatus to be used in connection with the distillation, storage and issue of spirit are built in accordance with the direction issued by the Excise Commissioner and that due precaution has been taken and adequate arrangement regarding fire fighting apparatus has been made against fire.(8)(a)The licensee shall not hypothecate, sell, mortgage, transfer or sublease this licence in Form D-1 or D-2 or enter into any partnership for the working of the said licence without the previous permission in writing of the Excise Commissioner such permission if granted shall be endorsed on the licence.(b)No agent shall be appointed for the management of the licensee's business under these licences, without Excise Commissioner's previous approval in writing.(9)The licensee shall not acquire or hold any interest in the retail sale of spirit or in the sale of any other intoxicant in any part of the area to which this licence relates or employ any person having any such interest :Provided that nothing herein contained shall apply to the wholesale supply under a licence of foreign liquor or of rectified or Denatured spirit to any person licensed to possess the same.(10)(a)The licence confers the exclusive right to manufacture country spirit in the licensed distillery and to supply in wholesale at the warehouse mentioned in the schedule appended with the licence in Form D-2. The base of country spirit shall be Mahua, Khandsari Molasses or Mill Molasses or any other base approved by Excise Commissioner. The Country spirit made from Mahua shall be not less than 7 ½% of the total production of country spirit in each quarter in the distillery.(b)The licensee shall be bound by the Madhya Pradesh Yield Rules for recovery of Alcohol from Molasses and Mahua as and when they come into force.(11)[ The cost price of country liquor to be paid to the D-2 licensee will be decided through the tender procedure or in any other manner as determined by the State Government. Spiced (Masala) liquor shall be manufactured in the manner provided in the Schedule appended with the licence as approved by the Excise Commissioner from time to time and the licenser shall be paid according to the rate determined by the State Government.] [Substituted by Notification No. B-1-27-92-CT-V, dated 29-1-1993.](12)(a)The country spirit supplied shall be of good quality and of such specification as may be determined by Excise Commissioner and shall be manufactured from Mahua, Khandsari, Molasses, Mills Molasses or any other base approved by Excise Commissioner for the purpose. It shall be subject to chemical analysis is found sub-standard or unfit for human consumption, it will be redistilled or rejected and destroyed as the case may be, under the orders of the Excise Commissioner or an officer authorised by him in this behalf. Officer-in-charge of the distillery and the warehouses may stop, pending the orders of the Excise Commissioner, issue of country spirit which they consider defective and may on every such occassion take samples of such country spirit at the cost of the licensee for sending them for purposes of chemical analysis without delay.(b)The licensee shall have to establish his own laboratory within the distillery premises with full equipment and a qualified chemist and other technical persons, as approved by the Excise Commissioner for the chemical analysis of Molasses and country spirit. He shall have to get the samples of every consignment of Molasses received in the distillery premises and every batch of country spirit manufactured in his distillery analysed in this laboratory before it is issued to warehouses. The samples shall be drawn under the supervision of the Officer in-charge of the distillery. The expenses of the laboratory shall be borne by the licensee.(c)The licensee shall also have to get the samples of Molasses and the country spirit distilled at his distillery or obtained from any other distillery chemically analysed once in a quarter in a Government laboratory or any other laboratory approved by the Excise Commissioner. The sample for analysis shall be drawn by the Officer-in-charge of the distillery. The expenses for the analysis shall be borne by the licensee.(13)(a)The warehouse building which can accommodate at least one month's requirements of liquor shops attached to each warehouse shall be arranged by the licensee himself under the directions from the Excise Commissioner. If warehouse building is supplied by the State Government the licensee shall be bound to pay necessary rent of the building of buildings brings occupied by him on the appropriate terms and conditions determined by the Public Works Department of the State and shall also, execute a Lease Deed in the form prescribed in Appendix 54 of the Public Works Department Manual, Volume II within a period of one month of intimation of the grant of this licence. It shall be condition of the lease that it shall be terminated on the expiry of the period of his licences. The licensee shall not be entitled to get any rent from the Government for opium and Hemp Drugs stored in any warehouse by the Government. The fitting of articles connected with the supply, storage gauging, handling and issue of country spirit, including vats casks, tanks, pumps, pipes, locks, corks, gauging, rods, measures, vessels, etc., shall be supplied by the licensee and shall be of the patterns and designs approved by the Excise Commissioner.(b)The licensee shall have to pay rent of the warehouse buildings at such rates as may be fixed by the public works department and it shall be recoverable from the cost price bills of liquors payable to the licensee every month.(14)The Excise Commissioner may close may warehouse or require the licensee to open and start any other warehouse or warehouses. The Excise Commissioner may also transfer any warehouse mentioned in the schedule or added thereto hereafter, to the supply area of any other licensee. Similarly, other warehouse in the State may be added in the Schedule and the licensee shall have to supply country spirit to the additional warehouse at the rates mentioned in the Schedule The licensee shall not be entitled to claim any increase in the cost of spirit on account of the above changes, nor shall the licensee be entitled to any relaxation in any of the conditions of any licence granted to him.(15)The licensee shall maintain at the distillery at least the minimum stock of country spirit equivalent to supply of one month in the area of his licence in addition, he shall maintain at each of the warehouses mentioned in the Schedule of thereafter added thereto, a stock of country spirit equivalent to consumption of ten days. In the event of failure to maintain the minimum stock of country spirit the distillery shall be liable to pay a penalty to be imposed by the Excise Commissioner in case of Distillery and Deputy Commissioner of Excise of the Division in case of warehouses not exceeding Rs 5/- per proof litre on the quantity found short of the minimum prescribed stock. This penalty shall be payable by the licensee irrespective of the fact whether any loss has actually been caused to the Government or not :Provided that in the event of the failure of supply of country spirit by the licensee to the retail vendors in accordance with their demands the licensee shall be required to pay such losses and damages to the retail vendors and Government as may be determined by the State Government. The decision of the State Government in the matter shall be final and binding on the licensee.Note. - For the purpose of this condition the quantity of minimum stock to be maintained at all times in warehouses shall be determined by the Deputy Commissioner of Excise of the Division where the warehouse is situated at the beginning of each financial year as per the guidelines laid down by the Excise Commissioner. The quantity of minimum stock to be maintained at the distillery shall be determined by the Excise Commissioner and communicated to the licensee soon after the grant of the licence and it shall be open to the Excise Commissioner to reduce or increase the quantity so fixed.(16)The licensee shall maintain at the distillery a minimum stock of Molasses, Mahua flowers/other approved base equivalent to requirements for two months. In the event of licensee failing to maintain the minimum stock of Molasses, Mahua flowers/other approved base, the Excise Commissioner or any officer authorised by him in that behalf may purchase molasses, mahua flowers/other approved base at the risk of the licensee. The cost of the molasses, mahua flowers/other approved base so purchased including all incidential expenses shall be payable by the licensee. Failure to maintain the minimum stock of molasses, mahua flowers/other approved base shall also entail a penalty at the discretion of the Excise Commissioner not exceeding Rs. 5 per quintal of molasses, mahua flowers/other approved base found short of the minimum stock. This penalty shall be payable by the licensee irrespective of the fact whether any loss has actually been caused to the Government or not.(17)The licensee shall maintain at the distillery the minimum stock of coal or wood fuel or both equivalent to the requirement of two months. In the event of the licensee failing to maintain the minimum stock of coal or wood fuel or both, the Excise Commissioner or any officer authorised by him in that behalf may purchase coal or wood fuel or both to the extent necessary to maintain the minimum stock at the cost and risk of the licensee. The cost of coal or wood fuel so purchased including all incidental expenses shall be payable by the licensee. Failure to maintain the stock of coal or wood fuel or both shall also entail penalty at the discretion of the Excise Commissioner, not exceeding Rs. 10 per metric ton of coal or wood fuel found short of the requisite minimum stock. It will be open to the Excise Commissioner to purchase on behalf of the licensee such quantities of coal or wood or both, as he considers necessary, to ensure the continued supply of spirit at the distillery and the warehouses and to recover the cost and all incidental expenses from the cost price bill of the licensee. This penalty shall be payable by the licensee irrespective of the fact whether any loss has actually been caused to the Government or not.(18)(1) On demand by the licensed vendors and upon proof of payment into treasury of the issue price recoverable for it, the licensee shall with all reasonable expenditure supply to the licensed vendors potable spirit of good quality in such quantity and at such of the prescribed strength as may be required.(2)Any licensed vendor may raise an objection respecting the quality of spirit before taking delivery all such objections shall be submitted to the Deputy Commissioner of Excise whose decision thereon shall be final and binding on the parties.(3)The spirit supplied by the licensee shall be subject to analysis and any officer in charge of the warehouses may if he has reason to believe that the spirit issued is not of good quality, suspend the supply, take samples and if upon analysis the spirit is found to be unfit for human consumption, report the case to the Excise Commissioner through the District Excise Officer the Excise Commissioner may order the spirit order found to be unfit for human consumption to be rejected and destroyed without any compensation being allowed to the licensee therefor. The fee for chemical analysis shall be borne by the licensee.(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.(20)(1) On demand by the Excise Commissioner or any District Excise Officer authorised in that behalf by the Excise Commissioner, the licensee shall forthwith dispatch such quantity of spirit as may be required from the distillery or the warehouses in its supply area to any other warehouses in the State.(2)In the event of a failure to despatch the spirit as required, the licensee shall be liable to such penalty not exceeding Rs. 2 per proof litre on the quantity of spirit demanded as the Excise Commissioner may determine.(3)The licensee shall be entitled to recover from any other licensee to whom any supply is made in pursuance of sub-clause (1) the cost of spirit supplied at the rate specified in the schedule and 10 per cent more, together with transport charges and rent of drums at ordinary prevalent rates and in the event of dispute decision of Excise Commissioner will be final. But the licensee to whom such supply is made shall be paid only the cost price of the spirit at the rate sanctioned in the schedule for him or for the licensee supplying it, whichever is less.(4)In the event of any shortfall in the minimum stock of the licensee as a result of any supply made in pursuance of sub-clause (1) the licensee shall not be liable to any penalty if he satisfies the Excise Commissioner that he had maintained distillation up to the average of daily production during the preceding three months.(21)(1) The issue price to be recovered from the licensed vendors for the spirit supplied to them from any of the warehouses of the licensee shall be such as the State Government may from time to time determine and it shall be lawful for the State Government to alter the rates so determined at any time and from time to time during the currency of this licence.(2)No spirit shall be issued to any licensed vendors from any of the warehouses of the licensee except upon proof of payment into treasury of the issue price recoverable for it.(22)The bottles to be brought in use for supply of country spirit shall be of standard pattern as prescribed below-¾ litre bottle shall have such capacity as to contain 750 millilitres of liquor when filled to a point about 52 m.m. below the bottom of the cork or pilfer proof cap ½ litre bottle shall have such capacity as to contain 500 millilitres of liquor when filled to a point about 43 m.m. below the bottom of the cork. ¼ litre bottles shall have such capacity as lo contain 250 millilitres of liquor when filled to a point about 39 m.m. below the bottom of the cork:Provided that unavoidable verifications occurring in manufacture may be condoned by the Excise Commissioner within the following limits namely-
