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State of Uttar Pradesh - Section

Section 9 in U.P. Excise (Settlement of Licenses for Wholesale of Country Liquor)(Eleventh Amendment) Rules, 2019

9. Amendment of Rule 16.

- In the said rules, for existing Rule 16, the following rule shall be substituted, namely -"16. Suspension, Cancellation and Penalties. - (1) Licensing Authority may suspend or cancel the Licence and forfeit the security money -(a)If any bottle or container of country liquor is found in the Licensed premises on which excise duty has not been paid and which does not carry the Security Code duly approved by the Excise Department as a proof of payment of duty;(b)If any other kind of liquor or intoxicating drug for which licence is not granted is found in the Licensed premises;(c)If Licensee charges from retailers of country liquor more than the maximum wholesale price fixed by the Excise Commissioner;(d)If any unauthorized security code making apparatus, spirit, colour, essence etc. is found in the Licensed premises.(e)If Licensee has made incorrect or fraudulent entries in records which resulted in loss of revenue;(f)If it is proved that the wholesale licence has been sublet or transferred;(g)If any liquor or intoxicating drug is found in the possession of the Licensee against the provisions of the Act or Rules;(h)If the assertions made in the affidavit or in the application form submitted by the Licensee at the time of application are found incorrect, false or misleading;(i)If it is found that the licence has been obtained in a fictitious name or the Licensee is holding the licence on behalf of some other person;(j)If Licensee fails to supply country liquor according to demand of strength, volume, brand and packing type within forty-eight hours of the receipt of indent for supply of country liquor along-with price including duty, other taxes and levy deposited under e-payment platform.(k)If licensee violates any of the conditions mentioned in the licence form.(l)If any stock is found without Bar Code/ Q.R. Code in the licenced premise.
(2)In case irregularities mentioned in sub-clause (1) are found the Licencing Authority shall immediately suspend the licence and issue a show cause notice for cancellation of licence and forfeiture of security amount, consider the objection and give personal hearing to the Licensee if desired. Thereafter Licensing Authority shall pass suitable orders as it deems fit.
(3)The licensing authority shall also recover the loss of revenue caused due to incorrect entries or irregularities committed by the Licensee or his salesman from the Licensee after observing procedure of sub-rule (2).
(4)In case of compoundable breaches at wholesale licenses, minimum compounding fee shall be imposed as follows:
SI. No. Type of violation For first time (in Rs) For second time (in Rs) For third time (in Rs)
1 2 3 4 5
1 Providing inducement to retail licensee forincreasing sale. 10000 20000 50000
2 Stock not found according to account. 20000 30000 50000
3 Proper indent register not maintained. 10000 20000 50000
4 Not putting up board out side licensed premise.Necessary information not written on the board. 10000 15000 20000
5 Proper arrangement of CCTV not found or CCTVnot functioning 10000 20000 30000
6 Inability to supply in prescribed time period. 20000 40000 50000
7 Minimum assessed stock not found. 20000 30000 50000
8 Inability to produce licence. 5000 10000 30000
9 Operation of licence by unauthorized salesman. 5000 10000 20000
10 Proper arrangement of cleanliness not found. 5000 10000 15000
11 Premises not found approved. 10000 25000 50000
12 Extension of premises without permission. 10000 20000 30000
13 Not sending retail shop-wise monthly supplyreport in brand-wise, capacity-wise, strength-wise andpackaging-wise. 10000 20000 50000
In case of compoundable irregularities, Officers of the rank of Deputy Excise Commissioner and above shall be entitled to compound the irregularity and accept the compounding fees.".