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State of Uttar Pradesh - Section

Section 3 in The U.P. Establishment of Manufactory Rules, 1997

3. Establishment of manufactory.

(1)Any person desiring a licence to establish a manufactory shall submit an application in Form F.L.M.-1 to the Collector of the district in which he wishes to establish the manufactory and the Collector will forward the same for approval of the Excise Commissioner.
(2)The application in Form F.L.M.-1 referred to in sub-rule (1) shall be accompanied by-
(i)a project report of the proposed manufactory along with details regarding the plant and machinery and plans of the building in which he proposes to construct his manufactory. The plan shall be drawn to scale on tracing cloth showing the exact position and dimension of each warehouse, room and vessel to be used and course of all pipelines and bottling plant and machineries;
(ii)any other certificate or authorisation or clearance required from the Central Government or a local body or Town and Country Planning Department or Uttar Pradesh Pollution Control Board or as required under any enactment or rules in force.
(3)[ If after such enquiry as he may deem necessary, the Excise Commissioner is satisfied that licence for the establishment of manufactory should be granted, he shall with previous approval of the State Government and. subject to such conditions as the State Government may deem fit to impose, grant a licence in Form F.L.M.-2 authorising the establishment of manufactory on payment of fee of rupees one lac :Provided that no licence shall be granted to a person who is a retail vendor of liquor.] [Substituted vide Notification No. 6121/P.A./97, dated September 3, 1997, published in U.P. Gazette (Extraordinary), dated 3rd September, 1997.]
(4)[ The Licence granted in sub-rule (3) shall be valid unless specially extended, for a period of one year from the date of issue, within which period the holder thereof shall arrange to secure land, building, plant, machinery and other equipments required for the establishment of the manufactory. The licence granted in sub-rule (3) shall not confer any right of privilege for the grant of the licence for manufacture of Indian Made Foreign Liquor from procured spirit and the said licence may be revoked or withdrawn at any time in public interest, after giving the holder of the said licence a notice to show cause against such action, and after hearing him, if he so desires. No compensation for damage or loss shall be payable when the said licence is revoked or withdrawn.] [Substituted vide Notification No. 6121/P.A./97, dated September 3, 1997, published in U.P. Gazette (Extraordinary), dated 3rd September, 1997.]
(5)The applicant shall report to the Excise Commissioner the date on which the construction of building and erection of plant and machinery are completed.
(6)When the Excise Commissioner is satisfied that the construction of building and erection of plant and machinery are completed in all. respect he may with previous approval of the State Government, grant a licence in Form F.L.M.-3 for the period of one year on payment of licence fee,
(i) in case of a manufactory having bottling capacity less thanfifteen lacs reputed quart bottles per year.   Rupees five lacs per year or part thereof;
(ii) in case of a manufactory having bottling capacity more thanfifteen lacs but less than twenty five lacs reputed quart bottlesper year.   Rupees ten lacs per year or part thereof;
(iii) in case of a manufactory having bottling capacity more thantwenty five lacs but not more than fifty lacs reputed quartbottles per year.   Rupees fifteen lacs per year or part thereof.
(7)Licence in Form F.L.M.-3 may be renewed every year on payment of the licence fee fixed in sub-rule (6) subject to due observance of the provisions of the relevant rules on the subject.
(8)The licensee shall furnish a security of rupees fifty thousand in form of Government Promissory Notes or other Government Securities of equivalent market value for fulfilment of all conditions of licence and for payment of all sums which may become due to Government by way of duty, rent, penalties, fines and taxes under any law or rules having the force of law or under any engagement or bond into which he may have entered. The notes or other securities shall on deposit, be endorsed to Collector of the district by designation. The licensee shall be allowed to draw, as it falls due, the interest accruing on them.
(9)No alteration or addition shall be made, without the prior permission of the Excise Commissioner, in or to the building or the plant and machinery of the manufactory :Provided that the minor addition or alteration may be made by the licensee under intimation to the Excise Commissioner.
(10)The licensee shall not hypothecate or sell, or mortgage or transfer or sub-lease the licence or enter into any partnership for the working of the licence.