Section 28 in Rules under the United Provinces Excise Act, 1910
28. The contract supply system.
- The contract supply system has been applied to-(a)the supply of country spirit throughout Uttar Pradesh save for a few inaccessible outlying tracts;(b)the supply of hemp drugs, ganja and bhang, throughout Uttar Pradesh.Under this system the exclusive privilege of supplying spirit or hemp drugs (as the case may be) at fixed rates to a particular tract of the Sate, is granted for a certain period to a contractor.The supply contractor is selected by calling for tenders quoting the rates at which country spirit, hemp drugs (as the case may be) will be supplied at all stated bonded warehouses in the tract specified. Usually the contract is awarded to the contractor or firm tendering at the lowest rates; but full power is reserved to Government to accept or reject any tender without assigning reasons. No payments is required for the exclusive right of supply. The system aims at securing for the retail vendors an adequate supply of intoxicants of good quality at reasonable and constant rates.In each tract Government maintains a certain number of bonded warehouses for the safe custody of country spirit or hemp drugs. Every retail vendor of country spirit or hemp drugs must as a rule, draw his supplies from a bonded warehouse situated in the tract within which his shop lies. The supply contractor is responsible for keeping bonded warehouses in his tract replenished with country spirit or with hemp drugs (as the case may be) of the prescribed description and quality. On the days fixed for issue of supplies to retail vendors from a bonded warehouse the supply contractor must supply the intoxicant or intoxicants which he has stored at the warehouse at the price determined by Government at the issue price of such intoxicants for that tract, to any licensed retail vendor whose shop is situated within that tract.Agreements between Government and supply contractors usually contain stipulations relating to such matters as the quality, safe custody, etc., of the intoxicant supplied to the bonded warehouse, and the opening of wholesale depots where such depots are necessary.Issues by the supply contractor or his agent from the bonded warehouse to retail vendors must invariably be made under the control and supervision of an Excise Inspector. Each bonded warehouse is secured under double locks, one belonging to the Excise Department and the other to the supply contractor.Rules on these and on other points will be found in Chapters VII and XI.
