Section 679(2) in Rules under the United Provinces Excise Act, 1910
(2)[ In the case of issues from a distillery vend fee of Rs. 1.25 (one Rupees Twenty-five Paise) per bulk litre will be payable in advance before the Spirit is issued ;] [Substituted by Notification No. 2254-E-2/X1II-283-8 (T.C.), dated March 9, 1989, published in U.P. Gazette (Extraordinary), Part 4-Kha, dated 9th March, 1989.]Provided that in case of supply under F.L. 39 licences, the vend fee shall be charged at the rate of ten paise per bulk litre. The vend fee will not be charged on denatured spirit in the case of-(a)issues to hospitals, dispensaries, charitable and educational institutions and other State Government Departments :Provided that the denatured spirit so issued is used purely for research work by those departments, up to the quantity allowed to be issued by the Excise Commissioner and the indent is countersigned by the Collector.(b)issues for export out of the State provided the export is made under the authority of a permit granted by a responsible Officer of the importing State by Union Territory.(c)the alcohol-based industrial units holding F.L. 39 licence, which started lifting industrial alcohol for production on or after December 20, 1986 ;Provided that-(I)the amount of exempted vend fee added with the amount of purchase-tax and Sales Tax exempted under other relevant Acts/ Rules shall not exceed the total capital investment of the unit in the original or first phase of the project but not in the second and subsequent phases.(II)the exemption shall be allowed for a maximum period of five, four or three years, respectively for the districts of 'A', 'B' and 'C' categories as given in the Schedule below;(III)the exemption shall cease on the equalisation of the amount of tax and fee exempted with the amount of total capital investment under condition (I) above or on the expiration of the period under condition (II), whichever is earlier.Explanation. - For purposes of this sub-rule-(A)'Unit' means a factory or workshop which has started lifting industrial alcohol for production on or after December 20, 1986 and using totally new plant, machinery, equipments and apparatuses and includes a factory or workshop set up by a F.L. 39 licence already having an industrial unit manufacturing the same goods at any other place in the State or any other goods on or adjacent to, the site of any existing factory or workshop but does not include-(a)any factory or workshop on or adjacent to the site of which any other project has been established by the same licensee for the manufacture of the same goods;(b)any addition to or extension of an existing factory or workshop entitle for vend fee exemption under Rule XVII, sub-rule 2(c) above.;(c)'capital Investment', means investment in land on which the project is established, buildings and totally new plant, machinery, equipments and apparatuses.
