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State of Andhra Pradesh - Section

Section 5 in Andhra Pradesh Distillery (Manufacture of Indian made Foreign Liquor other than Beer and Wine) Rules, 2006

5.

(1)No licence for manufactory shall be granted unless the same is notified and sanctioned under sub-rules (1) and (2) of Rule 4 of these rules.
(2)Procedure for obtaining sanction of the Government:
(a)on the notification issued by the Government under Rule 4(1) and (2), any person intending to construct and work such a manufactory or expand the production capacity of the existing manufactory, may apply in Form-DM(1) along with his scheme to the Government through the Commissioner.
(b)
(i)No application mentioned in Clause (a) above shall be entertained unless a non-refundable and non-adjustable fee as specified below is paid into Government treasury and the challan in original in support of payment is produced along with the application.
Annual Production capacity of the proposedmanufactory Non-refundable and non-adjustable Fee
Up to 50 lakhs Proof Liters.Above 50 lakhs Proof Litres and up to 100 lakh Proof Litres.Above 100 lakh Proof Litres. Rs. 7 crores.Rs. 10 croresRs. 12 crores
(ii)A special fee as specified below shall also be paid into Government treasury and the challan in original in support of payment is produced along with the the application.
Annual productioncapacity of the proposed manufactory Special fee
Up to 50 lakhs Proof Litres.Above 50 lakhs Proof Litres and up to 100 lakh Proof Litres.Above 100lakh Proof Litres. Rs. 3 crores.Rs. 5 crores.Rs. 6 crores
(iii)The special fee remitted under clause (ii) above shall be adjusted towards future licence fee or Excise Duty or both on commencement of production.
(c)When the Government are satisfied of the proposed scheme, they may accord the sanction and communicate it in the form of Letter of Intent in Form-DM(S). This Letter of Intent shall be valid for a period of two years from the date of issue.
(d)It shall be lawful for the Government to accept or reject without assigning any reason any application made for grant of Letter of Intent in pursuance of the notification under Rule 4(1) and (2) of these rules.
(e)The holder of the Letter of Intent shall obtain a licence in Form DM-2(M) or DM-2(G) or DM-2 within six months from the date of issue of Letter of Intent.
(f)If the holder of the Letter of Intent fails to obtain a licence within a period of six months from the date of issue of Letter of Intent, he ceases to have any right on the Letter of Intent.
(g)If the holder of the Letter of Intent and Licence fails to commence production within two years from the date of issue of Letter of Intent, he forfeits his right over Letter of Intent and on the licence.
(h)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 or withdrawn by the Government at any time without giving any notice to the holder if the Government so desires.
(i)No compensation for damage or loss shall be payable when a Letter of Intent is rejected under clause (d) or revoked or withdrawn under Clause (h).