iSUPPLEMENT: 2017]

TAXLAW PUBLICATIONS

Supplement 2017Supplement 2017Supplement 2017Supplement 2017Supplement 2017Addenda to Edition 2015

A Chrono-Legal Study Of The

PUNJAB ALLIED TAXATIONAND

EXCISE ACTS

VASHISHT. V. VASHISHT W.C.TAXATION EXPERT TAXATION CONSULTANTB.E.; LL.B.; M.B.A. Formerly, Excise and Taxation Officer

by

Supplement Version: May 08, 2017

ii Punjab Allied Taxation and Excise Acts by Vashisht

ContentsPunjab Entertainments Duty Act, 1955 ................................................. iii

Punjab Entertainments Tax (Cinematograph Shows) Act, 1954 ......... iii

Punjab (Institutions and Other Buildings) Tax Act, 2011 ................... iii

Punjab Tax on Lotteries Act, 2005.......................................................... vi

Punjab Infrastructure (Development and Regulation) Act, 2002 ....... vii

Punjab Excise Act, 1914 ........................................................................... x

Punjab Excise Powers and Appeal Orders, 1956 .................................. xi

Punjab Brewery Rules, 1956 ................................................................... xi

Punjab Distillery Rules, 1932 ................................................................. xii

Punjab Excise Bonded Warehouse Rules, 1957................................. xviii

Punjab Intoxicants License and Sales Orders, 1956 ........................... xix

Punjab Restaurant (Consumption of Liquor) Rules, 1955 ................ xix

Punjab Excise Fiscal Orders, 1932 ........................................................ xx

Punjab Liquor License Rules, 1956...................................................... xxi

Punjab Liquor Permit and Pass Rules, 1932 ...................................... xliv

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PUNJAB ENTERTAINMENTS DUTY ACT, 1955UNDER SECTION 11:(Cross-reference page 81 of this Book)

18.+ Order regarding exemption of “Punjabi Cultural and Musical Shows” frompayment of entertainment duty - Effective from 01.04.2016

GOVERNMENT OF PUNJAB: DEPARTMENT OF EXCISE AND TAXATION

ORDEREndst. No. 7/5/2016-ET-2(9)-6771, dated the 31st March 2016 - In exercise of the

powers conferred by sub-section (3) of section 11 of the Punjab Entertainments Duty Act,1955 (Punjab Act No. 16 of 1955), and all other powers enabling in this behalf, the Governorof Punjab is pleased to exempt, with effect from 1st April, 2016, the Punjabi Cultural andMusical Shows, from the payment of entertainment duty in the State of Punjab.

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PUNJAB ENTERTAINMENTS TAX(CINEMATOGRAPH SHOWS) ACT, 1954

UNDER SECTION 6:(Cross-reference page 156 of this Book)

10. Order regarding exemption of “Punjabi Films” from payment of entertainmenttax - Effective from 01.04.2016

GOVERNMENT OF PUNJAB: DEPARTMENT OF EXCISE AND TAXATION

ORDEREndst. No. 7/5/2016-ET-2(9)-6767, dated the 31st March 2016 - In exercise of the

powers conferred by sub-section (2) of section 6 of the Punjab Entertainment Tax(Cinematograph Shows) Act, 1954 (Punjab Act No. VIII of 1954), and all other powersenabling in this behalf, the Governor of Punjab is pleased to exempt, with effect from 1stApril, 2016, the shows of Punjabi Films from the payment of entertainment tax in the Stateof Punjab.

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PUNJAB (INSTITUTIONS AND OTHER BUILDINGS)TAX ACT, 2011

UNDER COMMENTARY:(Cross-reference pages 421 & 29 of this Book)

3+. Notification regarding levy of tax - FY 2015-2016 onwards:GOVERNMENT OF PUNJAB: DEPARTMENT OF HOUSING AND URBAN DEVLOPMENT

NOTIFICATION1 No. S.O. 7/P.A.9/2011/S.3/2015, dated the 20th February, 2015 -In partial modification of Notification of the Government of Punjab, Department of Housingand Urban Development, issued vide No. S.O. 14/P.A.9/2011/S.3/2013, dated the 28th________________________________________________________________________________________

1. Published in Punjab Govt. Gaz. (Extra.), LS, dated February 24, 2015, pages 15-17.

iv Punjab Allied Taxation and Excise Acts by Vashisht

February, 2013, and in pursuance of the provisions of sub-section (1) of section 3 of thePunjab (Institutions and other Buildings) Tax Act, 2011 (Punjab Act No.9 of 2011) and allother powers enabling him in this behalf, the Governor of Punjab is pleased to levy tax persquare feet per annum on Institutions and Buildings, to be calculated on the basis of multiplefactors given in the below mentioned tables:-A. Location of the Building and its proximity to the nearby urban area(s).

TABLE_______________________________________________________________________Sr. ZONE Rate of TaxNo. Square Feet_______________________________________________________________________1 Outside M.C. Limits of Ludhiana upto 15 Kms Rs. 1.252 Outside M.C. Limits of Jalandhar upto 10 Kms Rs. 1.253 Outside M.C. Limits of Amritsar, Patiala, Khanna, Rajpura, Rs. 1.25

Mandi Gobindgarh, Sirhind and Phagwara upto 7 Kms4 Outside M.C. Limits of Bathinda, Moga, Batala, Pathankot, Rs. 1.00

Barnala, Malerkotla, Morinda, Hoshiarpur upto 5 Kms5 Outside M.C. Limits of Sangrur, Sunam, Nabha, Faridkot, Rs. 1.00

Kotkapura, Ferozepur, Malout, Abohar, Sri Muktsar Sahib,Kapurthala, Saheed Bhagat Singh Nagar, Roopnagar,Tarn Taran, Gurdaspur, Samana, Jagraon, Mansa, Lalru andKurali upto 3 Kms

6 Outside M.C. Limits of NH-1 upto 500 metres on Rs. 1.25both sides, Outside any potential zone all otherNH (except NH-1)/ SH/ Scheduled Roads upto 1 Kmsboth sides of any potential zone.

7 Master Plan area of S.A.S.Nagar, Mullanpur, Zirakpur. Rs. 1.25 (Outside M.C. Limits)

8. Master Plan Area of Kharar, Dera Bassi, Banur. Rs. 1.25(Outside M.C. Limits)

9. Rest of Punjab (Outside M.C. Limits) Rs. 0.75_______________________________________________________________________Note: I. In case an Institution or a building falls in more than one zone (over lapping

zones) in that case, an average of rate of two zones shall be levied.II. In case site falls in two or more zones, then proportionate charges as applicable

in each zone shall be levied.III. In case an institution or a building is constructed during the mid of a financial

year, the tax shall be charged on prorata basis.IV. For the current Financial year (2014-2015), calculation shall be done on prorata

basis.

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Annual Institutional Tax (Rs.) - Covered Area (in sq.ft.) x Rate prescribed in Table number1 x Factors as mentioned below:-

The above charges shall be enhanced/decreased based on following factors:-B Usage Factor:_______________________________________________________________________Sr. Nature of its use MultiplicationNo. factor

1 Commercial 1.252 Institutional including Hotel, Marriage Palaces, Hospitals 1.03 Industrial and other purposes 0.75_______________________________________________________________________

C Land Value Factor:_______________________________________________________________________Sr. Collector rate per acre MultiplicationNo. factor

1 > 1 Crore 1.002 50 Lacs to 1 crore 0.903 < 50 Lacs 0.75_______________________________________________________________________

D Type of building and cost of construction of Building Factor:_______________________________________________________________________Sr. Type of the building MultiplicationNo. factor

1 Building with RCC Roof 1.02 Building with non-RCC Roof 0.75_______________________________________________________________________

E Rental Value Factor:_______________________________________________________________________Sr. Occupation/user of the Building MultiplicationNo. factor

1 Own (Self) 0.752 Rented 1.0_______________________________________________________________________

vi Punjab Allied Taxation and Excise Acts by Vashisht

Illustrative example for clarification purpose: The details of the building having an areaof 1,00,000 sq.ft. is as under:Sr. Criteria Details of building Rate of Tax/No. multiplication factor1 Covered Area 1,00,000 sq.ft.2 Location of the building Location outside Rs. 1.25 per sq.ft.

and its proximity to M.C. Limits of Ludhiananearby urban area upto 15 Km

3 Usage factor Hospital 1.04 Land Value Factor Collector Rate 1.0

Rs. 1.5 crores/acre5 Type of building and Building with RCC roof 1.0

cost of construction6 Rental Value Factor Own (self) 0.75

Annual Tax 100000 x 1.25 x 1.0 x 1.0 x 1.0 x1.0 x 0.75 = Rs.93,750/-

_______________________________________________________________________

PUNJAB TAX ON LOTTERIES ACT, 2005UNDER SCHEDULE:(Cross-reference pages 442 & 31 of this Book)

SCHEDULE[See Sections 3 and 4]

_______________________________________________________________________________________1. Entry at serial No. 1 (serial number corrected by the author, otherwise it reads as ‘3’ in the notification)

substituted w.e.f. 23.12.2015 vide Notification No. S.O.61/S.4/P.A.18/2005 dated 23.12.2015 as published inPunjab Govt. Gazette (Extra.) dated December 23, 2015, page 575. Before substitution, it read as under:

“1. Card Games 80,000”

2. The words "Rs. 62,500" substituted for “Rs. 2,00,000” w.e.f. 19.12.2016 vide Notification No.S.O.87/P.A.18/2005/S.4/2016 dtd 19.12.2016 as published in Pb. Govt. Gaz. (Extra.) dtd 19.12.2016, p. 1017.

Serial No. Type of Lottery Amount of Tax / draw in rupees

1 2 3 1 Card games 62,0001

2 Keno games 50,000

3 Lotto games 2,00,000

4 Monthly Lottery 45,00,000

5 Bumper Lottery 1,10,00,000

6 Four Digit Lottery 62,5002

7 Fortnightly Lottery 15,00,000

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PUNJAB INFRASTRUCTURE (DEVELOPMENT ANDREGULATION) ACT, 2002

SUBSTITUTION OF SECTION 25:(Cross-reference page 470 of this Book)SECTION 251. LEVY OF FEE:

(1) With effect from the date of coming into force of this Act, and subject to theprovisions of this Chapter, every person shall be liable to pay a fee levied under thisAct on the sale or purchase of the goods specified in Schedule III, on the value ofconsumption of electricity being supplied by the Punjab State Power CorporationLimited and purchase of immovable properties, within the State of Punjab at a rate,not exceeding six rupees for every one hundred rupees of the value of goods, electricityconsumed and purchase of immovable property as the State Government may, bynotification, direct.

(2) The fee shall be payable at the stage, mentioned in respect of goods in Schedule-III.

(3) Subject to the provisions of this Act and the rules made thereunder, theauthorities for the time being empowered to assess, reassess, collect and enforce paymentof tax under the Punjab Value Added Tax Act, 2005, shall, on behalf of the PunjabInfrastructure Development Board, assess, reassess, collect and enforce payment offee, including any interest or penalty, payable by a person under this Act, as if such feeor penalty or interest payable by such a person, is a tax or penalty or interest, payableunder the Punjab Value Added Tax Act, 2005, and for this purpose, the aforesaidauthorities may exercise all or any of the powers, exercisable by them under the PunjabValue Added Tax Act, 2005 and the rules framed thereunder and the provisions of thePunjab Value Added Tax Act, 2005 relating to the returns, provisional assessment,assessment, reassessment, rectification, review, advance payment of tax, registrationof transfree of any business, imposition of the tax liability, carrying on the business onthe transfer of successor to such business, transfer of any liability of any firm or HinduUndivided Family to pay tax in the event of dissolution of such firm or partition ofsuch family, recovery of tax from third parties, appeals, reviews, revisions, rectifications,references, refunds, rebates, interest or penalty, charging or payment of interest,compounding of offences and treatment of documents, furnished by a person asconfidential, shall apply accordingly.

(4) (i) Subject to other provisions of this Act and the rules made thereunder, theauthorities for the time being empowered to assess, reassess and collect and enforceelectricity duty under the Punjab Electricity (Duty) Act, 2005 shall on behalf of PunjabInfrastructure Development Board also assess, reassess and collect and enforce paymentof Infrastructure Development fee on the value of consumption of electricity includingany interest or penalty payable by a person under this Act, as if, the fee or penalty orinterest payable by such a person under this Act is a duty or penalty or interest payableby such a person under the Punjab Electricity (Duty) Act, 2005; and________________________________________________________________________________________

1. Section 25 substituted w.e.f. November 27, 2015 by Punjab Act No. 27 of 2015 vide NotificationNo. 32-Leg./2015 dated 27.11.2015 as published in Pb. Govt. Gaz. (Extra.), Part I, of even date, pp. 147-149.

viii Punjab Allied Taxation and Excise Acts by Vashisht

(ii) Subject to other provisions of this Act and the rules made thereunder,such authorities, who are presently engaged in the collection of Stamp Duty, SocialInfrastructure Cess shall also be empowered to assess, reassess and collect and enforceInfrastructure Development fee on purchase of immovable properties.

(5) The fee collected under sub-section (1), shall be deposited by the authorities,specified in sub-section (3) and sub-section (4) in the Development Fund within a periodof one week from the date of its collection.

(6) The person shall deposit the amount of fee due from him either in cash or bycheque in a specified bank account.

EXPLANATION.- (1) For the purposes of this Act, the expressions "sale","purchase" and "person" shall have the same meanings as have been assigned tothem in the Punjab Value Added Tax Act, 2005.

(2) In respect of levy of Infrastructure Development fee on the value ofconsumption of electricity, the exemptions granted in respect of levy of electricityduty shall mutatis mutandis apply to the levy of Infrastructure Development fee onelectricity consumed

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NOTIFICATIONS:(Cross-reference page 474 of this Book)

Notification regarding levying of fee on “petrol & diesel” under PunjabInfrastructure (Development and Regulation) Act

GOVERNMENT OF PUNJAB: DEPARTMENT OF FINANCE

NOTIFICATION1 No. S.O. 19/P.A.8/2002/S.25/2015, dated the 21st May, 2015.-Inexercise of the powers conferred by sub-section(1) of section 25 of the Punjab Infrastructure(Development and Regulation) Act, 2002 (Punjab Act No.8 of 2002), and all other powersenabling him in this behalf, the Governor of Punjab is pleased to make the followingamendment in the Government of Punjab, Department of Finance, Notification No.7/1/11/2001-5FEIV/6349, dated the 11th July, 2002, namely :-

AMENDMENTIn the said notification, for the words, figures and signs “That every dealer shall be

liable to pay a fee at the rate of rupee one per litre on petrol and”, the words, figures andsigns “That every dealer shall be liable to pay a fee at the rate of rupee two per litre onpetrol, at the rate of rupee one per litre on the sale of diesel and” shall be substituted.

Notification regarding omission of “Basmati” under Punjab Infrastructure(Development and Regulation) Act

GOVERNMENT OF PUNJAB: DEPARTMENT OF FINANCE

NOTIFICATION2 No. S.O.49/P.A.8/2002/S.53/2015, dated the 10th November, 2015.-____________________________________________________________________

1. Published in the Punjab Govt. Gazette (Extra.), LS, dated May 21, 2015, page 135.

2. Published in the Punjab Govt. Gazette (Extra.), Part III, dated 10.11.2015, page 445.Note: In Schedule-III, item (viii) in Serial No. 1, read as under:“(viii)Basmati Paddy purchased at minimum assured price as fixed by the State Government from time to

time or at any other price above the aforesaid assured price.”

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In exercise of the powers conferred by section 53 of the Punjab Infrastructure (Developmentand Regulation) Act, 2002 (Punjab Act No. 8 of 2002), and all other powers enabling him inthis behalf, the Governor of Punjab is pleased to make the following amendment in Schedule-III, appended to the said Act, namely: -

AMENDMENTIn the said Schedule-III, in Serial No. 1, item no. (viii) shall be omitted.

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Notification regarding levying of fee on “petrol & diesel” under PunjabInfrastructure (Development and Regulation) Act

GOVERNMENT OF PUNJAB: DEPARTMENT OF FINANCE

NOTIFICATION1 No. S.O. 95/P.A.8/2002/S.25/2016, dated the 29th December, 2016.-In exercise of the powers conferred by sub-section (1) of section 25 of the PunjabInfrastructure (Development and Regulation) Act, 2002 (Punjab Act No.8 of 2002), and allother powers enabling him in this behalf, the Governor of Punjab is pleased to make thefollowing amendment in the Government of Punjab, Department of Finance, NotificationNo. 7/1/11/2001-5FEIV/6349, dated 11th July, 2002, read with Notification No. S.O. 19/P.A.8/2002/S.25/2015, dated the 21st May, 2015, namely:

AMENDMENTIn the said notification, for the words, figures and signs, "That every dealer shall be

liable to pay a fee at the rate of rupees two per litre on petrol, at the rate of rupee one perlitre on the sale of diesel and", the words, figures and signs "That every dealer shall beliable to pay a fee at the rate of rupees 2.05 per litre on petrol, at the rate of rupee 1.05 perlitre on the sale of diesel and" shall be substituted.

______________

_______________________________________________________________________________________1. Published in the Punjab Govt. Gazette (Extra.), Part III, dated 30.12.2016, page 1061.

x Punjab Allied Taxation and Excise Acts by Vashisht

______________________________________________________________________1. Section 26-A added w.e.f. 01.04.2016 by Punjab Act No. 3 of 2016 vide Notification No. 6-Leg./

2016 dated 28.03.2016 as published in Pb. Govt. Gaz. (Extra.), Part I, of even date, pp. 9-10.

2. The words “or extra license fee and other chargeable levies” added after the word “duty” w.e.f.01.04.2016 by Punjab Act No. 3 of 2016 vide Notification No. 6-Leg./2016 dated 28.03.2016 as published inPb. Govt. Gaz. (Extra.), Part I, of even date, page 10.

PUNJAB EXCISE ACT, 1914ADDITION OF SECTION 26-A:(Cross-reference page 662 of this Book)SECTION 26-A1. LOCATION OF THE LIQUOR VENDS:

(1) The location of the liquor vends shall be regulated by the Government:PROVIDED THAT this section shall be applicable only to liquor vends situated

in areas adjoining the National Highways and State Highways for consumption, offthe premises.

(2) No licence for sale of liquor shall be granted to a liquor vend situated withinthe road reservation of National Highways and State Highways and beyond roadreservation neither the liquor vends nor their entry points shall be visible or directlyaccessible from the National Highways and State Highways.

EXPLANATION.– (i) “Visibility” means existence of any signboard, direction mark,display of stock of liquor, display of rates or any direct/indirect invitation to thecommuter travelling on such Highway; and

(ii) “Directly Accessible” means such liquor vend shall not be directlyapproachable from the National Highway and State Highway.

(3) The restrictions referred to in sub-section (2) shall not apply to the liquorvends situated in the areas adjoining to National Highway and State Highway, passingthrough the limits of Municipal Corporation/Municipal Council/ Municipal Committee/Notified Area Committee/ Nagar Council/Cantonment Board or any other Authorityhaving a population of twenty thousand or more.AMENDMENT OF SECTION 31:(Cross-reference page 668 of this Book)SECTION 31. DUTY ON EXCISABLE ARTICLES:

An excise duty [or extra license fee and other chargeable levies]2, or a countervailingduty [or extra license fee and other chargeable levies]2, as the case may be at such rateor rates as the State Government shall direct, may be imposed, either generally or forany specified local area, on any excisable article -

(a) imported, exported or transported in accordance with the provisions of section16; or

(b) manufactured or cultivated under any license granted under section 20; or(c) manufactured in any distillery established, or any distillery or brewery licensed

under section 21:PROVIDED as follows:-

xiSUPPLEMENT: 2017]

______________________________________________________________________1. The words “or extra license fee and other chargeable levies” added after the word “duty” w.e.f.

01.04.2016 by Punjab Act No. 3 of 2016 vide Notification No. 6-Leg./2016 dated 28.03.2016 as published inPb. Govt. Gaz. (Extra.), Part I, of even date, page 10.

2. Serial no 1 under Schedule in Order 12 substituted w.e.f. 01.04.2016 by Notification No. G.S.R.25/P.A.1/1914/Ss.13 and 58/Amd. (15)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.),LS, March 30, 2016, page 323.

3. The words “seventy five lac rupees” substituted for the words “seventy lac rupees” w.e.f. 01.04.2017by Notification No. G.S.R.09/P.A.1/1914/Ss.21 and 59/Amd. (30)/2016, dated 29.03.2017 as published in thePunjab Govt. Gazette (Extra.), LS, March 30, 2017, page 47. Before this, the words “seventy lac rupees” weresubstituted for the words “sixty lac rupees” w.e.f. 01.04.2016 by Notification No. G.S.R.22/P.A.1/1914/Ss.21and 59/Amd. (29)/2016, dated 30.03.2016 as published in the Pb Govt. Gazette (Extra.), 30.03.2016, page 317.

(i) duty [or extra license fee and other chargeable levies]1 shall not to be so imposedor any article which has been imported into India and was liable on importationto duty under the Indian Tariff Act, 1894, or the Sea Customs Act, 1878;

EXPLANATION. - Duty [or extra license fee and other chargeable levies]1 may beimposed under this section at different rates according to the places to which anyexcisable article is to be removed for consumption, or according to the varying strengthand quality of such article.

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PUNJAB EXCISE POWERS AND APPEAL ORDERS, 1956AMENDMENT OF ORDER 12 - Substitution of serial no. 1 of Schedule:(Cross-reference page 643 of this Book)

SCHEDULENature of powers Authority to whom Remarks

powers may be delegated 1 2 312 (i) Powers to grant permits for Excise Officers incharge of the

import or transport of district and Excise and Taxationforeign liquor; and Officer in the district; and

(ii) Powers to grant permits for Excise and Taxation Officerimport or transport of spirits Incharge of the distilleryused for manufacture and shall inform Assistant Exciseblending of liquor in the and Taxation Commissioner,distillery. incharge of District, in writing

through fax/email within 24hours of the issuance of permit.

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PUNJAB BREWERY RULES, 1956AMENDMENT OF RULE 5 - Clause (a):(Cross-reference page 733 of this Book)

5. No license shall be granted unless and until the applicant therefore has -(a) deposited a sum of [seventy five lac rupees]3 in cash as license fee; and

xii Punjab Allied Taxation and Excise Acts by Vashisht

______________________________________________________________________1. Sub-rule (1) substituted w.e.f. 01.04.2015 by Notification No. G.S.R. 14/P.A.1/1914/Ss.21 and 59/

Amd. (28)/2015, dated 31.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS, March 31, 2015,pages 81-82.

2. The words “fifty five lac rupees” substituted for the words “fifty lac rupees” w.e.f. 01.04.2017 byNotification No. G.S.R.09/P.A.1/1914/Ss.21 and 59/Amd. (30)/2016, dated 29.03.2017 as published in thePunjab Govt. Gazette (Extra.), LS, March 30, 2017, page 47. Before this, the words “fifty lac rupees” weresubstituted for the words “rupees forty five lac” w.e.f. 01.04.2016 by Notification No. G.S.R.22/P.A.1/1914/Ss.21 and 59/Amd. (29)/2016, dated 30.03.2016 as published in the Pb Govt. Gazette, 30.03.2016, page 317.

3. Provisos added in sub-rule (2) w.e.f. 01.04.2015 by Notification No. G.S.R. 14/P.A.1/1914/Ss.21and 59/Amd. (28)/2015, dated 31.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS, March 31,2015, pages 81-82.

4. The words “seventy five lac rupees” substituted for the words “seventy lac rupees” w.e.f. 01.04.2017by Notification No. G.S.R. 07/P.A.1/1914/Ss.21 and 59/Amd. (63)/2017, dated 29.03.2017 as published in thePunjab Govt. Gazette (Extra.), LS, March 30, 2017, page 43. Before this, the words “seventy lac rupees” weresubstituted for the words “sixty lac rupees” w.e.f. 01.04.2016 by Notification No. G.S.R. 20/P.A.1/1914/Ss.21and 59/Amd. (62)/2016, dated 30.03.2016 and published in Pb Govt. Gaz. (Extra.), March 30, 2016, page 311.

AMENDMENT OF RULE 8 - Sub-rule (1):(Cross-reference page 734 of this Book)

8. (1)1 A license granted under these rules, shall be valid for a period not exceedingone year upto 31st day of March of the financial year following the day of grant unless it iscancelled, determined or surrendered earlier. The said license shall be renewable by theFinancial Commissioner on an application made by the licensee after a period of threeyears. Although, the license is renewable after a period of three years, yet a fee of [fifty fivelac rupees]2 shall be deposited by the licensee annually. However, if a license is issued atany time during the financial year, then the licensee shall have to pay full fee for the license.AMENDMENT OF RULE 8 - Addition of provisos in sub-rule (2):(Cross-reference page 735 of this Book)

(2) An application for the renewal of the license shall be made by the licensee to theExcise Commissioner so as to reach him at least 60 days before the expiry of the old license:

PROVIDED THAT if such application is not made within such period, theExcise Commissioner with prior approval of Financial Commissioner may renew the licenseon payment of late fee of rupees two lac fifty thousand.

3[Provided further that if fee for the renewal of the license is not depositedbefore 31st March, the licensee shall pay an interest @ 12 percent per annum on delayedpayment of renewal fee:

Provided further that if the Brewery violates any provision of the Punjab ExciseAct,1914 and rules made thereunder, the Brewery shall be closed immediately for 15 days for firstviolation and for one month for second violation after following due procedure. In case of thirdviolation, the license shall be cancelled after following the required and mandatory procedure.]

PUNJAB DISTILLERY RULES, 1932AMENDMENT OF RULE 4 - Clause (a):(Cross-reference page 746 of this Book)

4. No license shall be granted unless and until the applicant thereof has -(a) deposited a sum of [seventy five lac rupees]4 in cash as license fee;

xiiiSUPPLEMENT: 2017]

______________________________________________________________________1. Rule 5 substituted w.e.f. 01.04.2015 by Notification No. G.S.R. 12/P.A.1/1914/Ss.21 and 59/Amd.

(61)/2015, dated 31.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS, March 31, 2015, page 75.

2. Sub-rule (1), excepting the proviso relating thereto, substituted w.e.f. 01.04.2015 by NotificationNo. G.S.R. 12/P.A.1/1914/Ss.21 and 59/Amd. (61)/2015, dated 31.03.2015 as published in the Punjab Govt.Gazette (Extra.), LS, March 31, 2015, pages 75-76.

3. Provisos added after the existing first proviso w.e.f. 01.04.2015 by Notification No. G.S.R. 12/P.A.1/1914/Ss.21 and 59/Amd. (61)/2015, dated 31.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS,March 31, 2015, page 76.

SUBSTITUTION OF RULE 5:(Cross-reference page 747 of this Book)

51. The license shall be in form D-2 and shall not be transferable, except with the priorapproval of the Excise Commissioner. The Excise Commissioner may on the request of thelicensee, allow lease/sub-lease of the licensed premises, if he deems it appropriate, on paymentof a fee equivalent to the fee for grant of new license in Form BWH-2.AMENDMENT OF RULE 7 - Substitution of sub-rule (1):(Cross-reference page 747 of this Book)

7. (1) 2[A license granted under these rules, shall be valid for a period not exceedingone year upto 31st day of March of the financial year following the day of grant unless it iscancelled, determined or surrendered earlier and shall be renewable by the FinancialCommissioner on application made by the licensee after a period of three years. Although,the license is renewable after a period of three years, yet a fee of rupees sixty lac shall bedeposited by the licensee annually. However, if a license is issued any time during thefinancial year then the licensee shall have to pay full fee for the license.]

PROVIDED THAT such a license may be cancelled for breach of terms thereof ormay be determined by the Excise Commissioner with prior approval of the FinancialCommissioner after giving the licensee six months notice.AMENDMENT OF RULE 7 - Additon of provisos in sub-rule (2):(Cross-reference page 748 of this Book)

(2) An application for the renewal of license shall be made by the licensee to theExcise Commissioner so as to reach him at least 90 days before the expiry of the old license.

PROVIDED THAT if such application is not made within such period, theExcise Commissioner with prior approval of the Financial Commissioner may renew thelicense, on payment of late fee of rupees five lac.

3[PROVIDED FURTHER THAT if fee for the renewal of the license is notdeposited before 31st March, the licensee shall pay an interest @ 12 percent per annum ondelayed payment for renewal of fee:

PROVIDED FURTHER THAT if the distillery violates any provision of thePunjab Excise Act,1914 and rules made thereunder, the distillery shall be closed immediatelyfor 15 days for first violation and for one month for second violation after following the dueprocedure. In case of third violation, the license of the distillery shall be cancelled afterfollowing the required and mandatory procedure.]

xiv Punjab Allied Taxation and Excise Acts by Vashisht

______________________________________________________________________1. The words within brackets added w.e.f. 01.04.2015 by Notification No. G.S.R. 12/P.A.1/1914/Ss.21

and 59/Amd. (61)/2015, dated 31.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS, March 31,2015, page 76.

2. Sub-clause (1) substituted w.e.f. 01.04.2016 by Notification No. G.S.R. 20/P.A.1/1914/Ss.21 and59/Amd. (62)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 30, 2016,pages 311-312.

3. The figure “180” substituted for the figure “200” w.e.f. 01.04.2016 by Notification No. G.S.R. 20/P.A.1/1914/Ss.21 and 59/Amd. (62)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.),LS, March 30, 2016, page 312.

AMENDMENT OF RULE 42:(Cross-reference page 754 of this Book)

42. All buildings and plant used directly for the manufacture and storage of wash andspirit must be situated in a distillery enclosure in which no business shall be carried onexcept that of the manufacture, storage and issue of spirit. The enclosure shall be surroundedby a wall [of eight feet height with barbed fencing above the wall,]1 having one openingonly and so built as to prevent communication between the distillery enclosure and outside,except through the opening provided.AMENDMENT OF RULE 93 - Substitution of sub-clause (1) in clause (e):(Cross-reference pages 764-765 of this Book)

(e) (1)2 The Excise Commissioner shall specifically approve the sizes, as arespecified in the Table given below. In case any other size is to be introduced in the market,then the same shall specifically be approved by the Excise Commissioner. The pet bottles,mentioned below in the Table, shall only be of Food-Grade type.

TABLE________________________________________________________Serial No. Type of liquor Quantity Packaging Type_________________________________________________________1. PML 50o 750 ml Glass bottles and Pet bottles of

Rum/Gin 375 ml grammage prescribed by theWhisky 65o 180 ml Government in the Ex-distilleryand 75o issue Price

2. PML 50o 180 ml Pouch3. IMFL 75o 750 ml Glass bottles, Pet bottles.

375 ml180 ml

AMENDMENT OF RULE 93 - Clauses (f) and (ff):(Cross-reference pages 765-766 of this Book)

(f) (1) The bottles and flasks, mentioned in sub-clause (e) and pouchesmentioned in clause (ee) shall be of standard pattern. For the bottling of country spirit theyshall bear the following specifications, moulded or sand-blasted on the glass:

(i) the words “Punjab Excise”,(ii) the figures and words “1803 millilitres”, “375 millilitres” and “750

millilitres”, in the cases of bottles of capacities mentioned at serial

xvSUPPLEMENT: 2017]

______________________________________________________________________1. The figure “180” substituted for the figure “200” w.e.f. 01.04.2016 by Notification No. G.S.R. 20/

P.A.1/1914/Ss.21 and 59/Amd. (62)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.),LS, March 30, 2016, page 312.

2. The words “rupees one lac” substituted for the words “seventy two thousand” w.e.f. 01.04.2016 byNotification No. G.S.R. 20/P.A.1/1914/Ss.21 and 59/Amd. (62)/2016, dated 30.03.2016 as published in thePunjab Govt. Gazette (Extra.), LS, March 30, 2016, page 312.

3. The words “seven thousand rupees” and figures “50000” substituted for the words “six thousandrupees” and figures “36000” in first and second provisos respectively w.e.f. 01.04.2016 by Notification No.G.S.R. 20/P.A.1/1914/Ss.21 and 59/Amd. (62)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette(Extra.), LS, March 30, 2016, page 312.

Nos. (i), (ii) and (iii) of sub-clause (e) respectively.(iii) the name or mark of manufacturer of the bottles, and(iv) a line across the neck upto which the bottles shall be filled, in order

to contain the proper quantity.(2) For the bottling of Indian made foreign spirit they shall either bear the same

specifications moulded on the glass as prescribed for country spirit except the specificationsin sub-clause (iv) of clause (f)(1) above or shall have a monogram moulded or sand blasted onthem of the letters “P.E.” and figures and letters “1801 ml”, “375 ml” and “750 ml”.

PROVIDED THAT the above specifications, except those relating to theindication of the capacity of bottles, shall not apply to bottled Indian made foreign spirit.

(ff) Notwithstanding the provision contained in sub-rule (f) above the ExciseCommissioner may, in case of emergency permit the use of non-standing pattern bottleswithout the name or mark of the manufacturer of the bottles or a line across the neck andalso to sand-blast letters “P.E” instead of the words “Punjab Excise” on bottles of the capacityof 375 millilitres and 1801 milliliters to be used for the bottling of country spirit. Such non-standard bottles shall be of the capacity approved by the Excise Commissioner.AMENDMENT OF RULE 93 - Clause (k):(Cross-reference pages 767-768 of this Book)

(k) Before bringing any label into use the licensee shall deposit [rupees one lac]2

as registration fee for Indian Made Foreign Liquor and Beer per label and shall submitexact copies thereof in quadruplicate, to the Collector, who shall forward them to ExciseCommissioner or any other officer authorized by the Excise Commissioner for his approval.****:-

*******PROVIDED THAT for any subsequent change in the approved label during

the year, [seven thousand rupees]3 shall be deposited as additional fee.PROVIDED FURTHER THAT hotels of 3-star category and above holdings

license in Form L-3, L-4 and L-5 who are importing liquor from abroad directly or throughan agent, the brand registration fee shall be Rs. 2,000 per label, in case label of such brandis not already approved by the Excise Commissioner. This permission will be applicable tothat specific hotel only. On the contrary, if any brand of foreign liquor has already been gotapproved by an importer or his representative on payment of Rs. [50000]3, no separate feeshall be payable by such licensee while importing liquor from abroad.

xvi Punjab Allied Taxation and Excise Acts by Vashisht

______________________________________________________________________1. Proviso added w.e.f. 01.04.2016 by Notification No. G.S.R. 20/P.A.1/1914/Ss.21 and 59/Amd. (62)/

2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 30, 2016, pp. 312-313.

2. Clause (kk) alongwith first proviso substituted w.e.f. 01.04.2016 by Notification No. G.S.R. 20/P.A.1/1914/Ss.21 and 59/Amd. (62)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.),LS, March 30, 2016, pages 313-314.

1[PROVIDED FURTHER THAT applicant or licensee at the time of registrationof brand shall submit application alongwith an undertaking in the format specified by thedepartment, to the collector who shall forward it to Excise Commissioner or any otherofficer authorized by the Excise Commissioner for his approval. Departmental committeeconstituted for this purpose shall put his application and undertaking on the website of thedepartment and on notice board of the office for seeking objections, after giving notice forthree days in respect of existing 'brands in Punjab and variants of existing brands in Punjaband for brands and their variants registered in one or more other States but not registered inPunjab and brands and their variants not registered anywhere in the country and to beregistered in Punjab for the first time, notice of seven days shall be given. If no objection isreceived, the label alongwith EDP submitted by the applicant shall be registered underPunjab Excise Act, 1914 and Rules made there under. If any objection is received, thecommittee shall analyze it and shall send the case to the competent authority with itsrecommendations. If objection is received in respect of cost component of the brands, thecommittee shall not consider it but if it is in respect of any point given in the undertakingthen the departmental committee shall be competent to consider it.

NOTE- If any licensee wants to register the new variant of his already existingbrand then he shall not stop supply of his existing brand from market during the whole yearand ensure the full supply as per demand.

If as per the above procedure any difficulty arises in brand registration andfixation of EDP then the matter shall be re-considered with the approval of the Government.

The licensee shall, if and whenever so directed, forthwith reduce orenhance as the case may be, such price or prices.]AMENDMENT OF RULE 93 - Substitution of clause (kk) and first proviso:(Cross-reference pages 768-769 of this Book)

(kk)2 Brand registration fee shall be as under :(i) Punjab Medium Liquor including Rum/Gin/ Rs. 22,000/-

Whisky of any degree;(ii) Wine and cider; Nil(iii) Indian made Foreign Liquor, Beer and ready Rs. 1,00,000/-

to Drink Beverages;(iv) Imported Foreign Liquor (bottled in origin); Rs. 50,000/-(v) Subsequent change in all the approved label Rs. 7,000/-

during the year; and(vi) Brand Registration fee for hotels of three star and Rs. 2,500/-

above category in respect of liquor importedfrom abroad of which brands are not alreadyapproved by the Excise Commissioner.

xviiSUPPLEMENT: 2017]

______________________________________________________________________1. Clause (q) substituted w.e.f. 01.04.2015 by Notification No. G.S.R. 12/P.A.1/1914/Ss.21 and 59/

Amd. (61)/2015, dated 31.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS, March 31, 2015, page78.

2. The figures “2017-2018” substituted for the figures“2016-2017” w.e.f. 01.04.2017 by NotificationNo. G.S.R. 07/P.A.1/1914/Ss.21 and 59/Amd. (63)/2017, dated 29.03.2017 as published in the Punjab Govt.Gazette (Extra.), LS, March 30, 2017, page 43. Before this, the figures “2016-2017” were substituted for thefigures “2015-2016” w.e.f. 01.04.2016 by Notification No. G.S.R. 20/P.A.1/1914/Ss.21 and 59/Amd. (62)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 30, 2016, page 314.

3. The rule 127 added w.e.f. 01.04.2017 by Notification No. G.S.R. 07/P.A.1/1914/Ss.21 and 59/Amd.(63)/2017, dated 29.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 30, 2017, page 43.

No separate fee for pints and nips shall be charged where fee has been paid forquarts:

PROVIDED THAT a licensee, shall be required to pay full brand registrationfee as specified above, for approval of labels for export of brand in other States in case suchbrand is not approved for sale in the State of Punjab. In case of brand registered for sale inPunjab, the brand registration fee shall be charged extra at the rate of Rs.15,000/- per brandmeant for export for each State on IMFL/Beer/Country Liquor:AMENDMENT OF RULE 93 - Substitution of clause (q):(Cross-reference page 770 of this Book)

(q)1 The labels of PML of the proof strength of 500 and Rum/Gin/Whisky 650 forthe year 2015-16 where there is no major change in pattern, colour and design, shall betreated as approved automatically after the deposit of fees. The Distilleries shall be boundto follow any instructions regarding change in labels issues by The Excise Commissioner,Punjab and accordingly submit new labels before using the same on bottles to the ExciseCommissioner, or any officer authorized by him before 31st March of the year. The Distilleryshall also submit labels for Rum/Gin/Whisky of 750 and for 200 ML bottles of PML forapproval.AMENDMENT OF RULE 93 - Clause (s):(Cross-reference page 770 of this Book)

(s) The distilleries shall print “[2017-18]2” on the labels meant for bottles of PML.ADDITION OF RULE 127 :(Cross-reference page 782 of this Book)

1273. The distillery shall ensure that the standard of Punjab Medium Liquormanufactured by it should be of high quality.

______________

xviii Punjab Allied Taxation and Excise Acts by Vashisht

______________________________________________________________________1. The words “twelve lac” and “twenty lac”substituted for the words “ten lac” and “eighteen lac”

respectively, w.e.f. 01.04.2017 by Notification No. G.S.R. 08/P.A.1/1914/Ss.21 and 59/Amd. (22)/2016, dated29.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 30, 2017, page 45. Before this,thewords “ten lac” and “eighteen lac” were substituted for the words “nine lac” and “fifteen lac” respectively w.e.f.01.04.2016 by Notification No. G.S.R.21/P.A.1/1914/Ss.21 and 59/Amd. (21)/2016, dated 30.03.2016 aspublished in the Punjab Govt. Gazette (Extra.), LS, March 30, 2016, page 315.

2. In the first proviso, the words “Excise duty or extra license fee or other chargeable levies” substitutedfor the words “Excise Duty” w.e.f. 01.04.2016 by Notification No. G.S.R.21/P.A.1/1914/Ss.21 and 59/Amd.(21)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 30, 2016, page 315.

3. Provisos added w.e.f. 01.04.2015 by Notification No. G.S.R. 13/P.A.1/1914/Ss.21 and 59/Amd. (20)/2015, dated 31.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS, March 31, 2015, pp.79-80.

PUNJAB EXCISE BONDED WAREHOUSE RULES, 1957AMENDMENT OF RULE 4 - Sub-rules (1) and (3):(Cross-reference page 807 of this Book)

4. (1) A license under these rules may be granted for a period, not exceeding oneyear up to the 31st day of March of the financial year following the day of grant of thelicense on payment of fee, as provided hereinafter,-

(i) Where a Bonded Warehouse has the storage Rupees [twelve lac]1

capacity, not exceeding 1,35,000 proof litre; and(ii) Where a Bonded Warehouse has the storage Rupees [twenty lac]1

capacity, exceeding 1,35,000 proof litre; and(2) ***(3) The license is renewable after a period of three years however a fee as specified

in sub-rule (1), shall be deposited by the licensee annually on the basis of the storage capacity:PROVIDED THAT before the grant or renewal of license, the licensee shall

be required to furnish a security in addition to one mentioned in rule 3 equivalent to 25 percent of the amount or [Excise duty or extra license fee or other chargeable levies]2 on themaximum quantity of foreign liquor allowed to be stored at any one time. This security shallbe furnished in cash, or in the shape of saving certificates or bank guarantee of a scheduledbank or in the shape of saving certificates or bank guarantee or a scheduled bank or behypothecation of assets. The maximum quantity of liquor allowed to be stored by the licenseeshall be fixed by the Financial Commissioner on an application made by the licensee beforethe grant or renewal of the license.

PROVIDED FURTHER THAT the Excise Commissioner may on the requestof the licensee, allow lease of a part of the licensed premises, if he deems it appropriate onpayment of a fee of rupees three lac.

3[PROVIDED FURTHER THAT if fee for the renewal of the license is notdeposited before 31st March, the licensee shall pay an interest @ 12 percent per annum ondelayed payment of renewal fee:

PROVIDED FURTHER THAT if the BWH-2 licensee violates any provisionof the Punjab Excise Act,1914 and rules made thereunder, the Bottling plant-cum-BondedWarehouse shall be closed immediately for the period of 15 days for first violation and forone month for second violation after following due procedure. In case of third violation, thelicense shall be cancelled after following the required and mandatory procedure.]

xixSUPPLEMENT: 2017]

______________________________________________________________________1. The figures “2018-2019” substituted for the figures“2017-2018” w.e.f. 01.04.2017 by Notification

No. G.S.R. 10/P.A.1/1914/Ss. 5 and 24/Amd. (43)/2016, dated 29.03.2017 as published in the Punjab Govt.Gazette (Extra.), LS, March 30, 2017, page 49. Before this, the figures “2017-18” were substituted for thefigures “2016-17” w.e.f. 01.04.2016 by Notification No. G.S.R.23/P.A.1/1914/Ss. 5 and 24/ Amd. (42)/2016,dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 30, 2016, page 319.

2. The word “thirty” substituted for the words “twenty five” w.e.f. 01.04.2016 by Notification No.G.S.R.27/P.A.1/1914/Ss.24 and 58/Amd. (48)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette(Extra.), LS, March 30, 2016, page 329.

PUNJAB INTOXICANTS LICENSE AND SALESORDERS, 1956

AMENDMENT OF ORDER 2 - Clause (h):(Cross-reference page 832 of this Book)

(h) The Government reserves the right to consider the renewal of licenses L-2and/or L-14A for the year [2018-19]1 at the option of the licensee on such terms and conditionsas may be notified by the Government.

______________

PUNJAB RESTAURANT (CONSUMPTION OF LIQUOR)RULES, 1955

AMENDMENT OF RULE 5 - Clause (ii):(Cross-reference page 838 of this Book)

5. Subject to other provisions of these rules and subject to the conditions containedtherein,a license in form L-52 may be granted by the Collector concerned for a period ofone year from 1st April to 31st March on payment of fixed fee of -

(i) ***(ii) forty thousand rupees per annum in the areas falling within the jurisdiction of

Municipal Corporations, [thirty]2 thousand rupees per annum in other areasand eight thousand per annum in rural areas in respect of any premises,specified in the license and are attached to a retail foreign liquor vend:PROVIDED THAT the premises attached to L-2 and L-14A vends, shall paythe fee as prescribed in clause (ii).

______________

xx Punjab Allied Taxation and Excise Acts by Vashisht

PUNJAB EXCISE FISCAL ORDERS, 1932AMENDMENT OF ORDER 1-D - Substitution of serial No. 7:(Cross-reference page 850 of this Book)

1-D. All imports of the following kinds of liquor and spirit shall be subject to the levyof an import fee specified as under:

_______________________________________________________________Sr. Kind of Liquor Rate of fee per ProofNo. Litre/Bulk Litre________________________________________________________________1. Indian Made Foreign Liquor of any degree (Bottled) Rs. 25.00 (Per PL)****71. Beer of all types Rs. 10.00 (Per BL)

(including Canned Beer)82. Ethanol Rs. 2.00 (per litre).________________________________________________________________

______________

______________________________________________________________________1. Serial no. 7 substituted w.e.f. 01.04.2017 by Notification No. G.S.R. 12/P.A.1/1914/Ss 31, 32 and

58/ Amd (182)/2016, dated 29.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 30, 2017,page 53. Before substitution, serial no. 7 was substituted w.e.f. 01.04.2016 by Notification No. G.S.R.24/P.A.1/1914/Ss 31,32 and 58/ Amd (181)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.),LS, March 30, 2016, page 321 and read as under:

“7. Beer of all types Rs. 10.00 (Per BL)”(except Canned Beer)

2. Serial nos. 7 and 8 substituted for the then Serial no. 7 w.e.f. 01.04.2016 by Notification No. G.S.R.24/P.A.1/1914/Ss 31,32 and 58/ Amd (181)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette(Extra.), LS, March 30, 2016, page 321.

xxiSUPPLEMENT: 2017]

______________________________________________________________________1. Forms L-1A (IMFL), L-1A (BIO), L-1A (BEER) and L-1B omitted w.e.f. 01.04.2017 by Notification

No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette(Extra.), LS, March 28, 2017, pp. 23-41. Before this, Form L-1A was substituted w.e.f. 01.04.2016 by NotificationNo. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette(Extra.), LS, March 24, 2016, pp. 281-282. Prior to this, Form L-1A was added by Notification No. GSR.21/PA.I/1914/S.59/Amd. (121)/2011, dated 18.03.2011 as published in the Punjab Govt. Gazette (Extra.), LS,March 18, 2011, page 129-145.

2. Form L-1 (Import) (Supplementary License to L-1) added and Form L-1B omitted w.e.f. 01.04.2017by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the PunjabGovt. Gazette (Extra.), LS, March 28, 2017, pp. 23-41.

Form Nature Mode of grant

Authority empowered to Grant Renew

1 2 3 4 5 I. Foreign Liquor

L-1 *** *** *** *** L-1A1

(IMFL) Wholesale vend of Indian Made Foreign Liquor (except Beer), Wine and Ready to Drink beverages to the L-1 licensee only, authorized to purchase liquor from distilleries, bottling plants and wineries (manufacturing units of IMFL, Wine and RTD) from both, within and outside the State.

Fixed fee Collector with the prior approval of Excise Commissioner

Collector

L-1A1

(BIO) Wholesale vend of Indian Made Foreign Liquor (BIO Brands) to the L-1 licensee and L-1B licensees only authorized to purchase imported foreign liquor (BIO Brand) from custom bond both, within and outside the State.

Fixed fee Collector with the prior approval of Excise Commissioner

Collector

L-1A1

(BEER) Wholesale vend of Beer, to the L-1 licensee only, authorized to purchase Beer from breweries both, within and outside the State.

Fixed fee Collector with the prior approval of Excise Commissioner

Collector

PUNJAB LIQUOR LICENSE RULES, 1956AMENDMENT OF RULE 1 - Omission of Forms L-1A and L-1B :(Cross-reference page 857 of this Book)

1. There shall be the following class of licenses. Their mode of grant and the authoritiesto grant and renew them shall be as noted against each:-

AMENDMENT OF RULE 1 - Addition of Form L-1 (Import) (Supplementary Licenseto L-1) and omission of Form L-1B:

(Cross-reference page 857 of this Book)

L-1 (Import) (Supplementary License to L-12

Whole sale vend of Indian Made Foreign Liquor, Imported Foreign Liquor , Beer, Wine and Ready to Drink beverages to the trade, authorized to purchase liquor from outside State and Custom Bonded Warehouse,

Fixed fee Collector with the prior approval of Excise Commissioner

Collector

xxii Punjab Allied Taxation and Excise Acts by Vashisht

______________________________________________________________________1. Form L-5CC added after form L-5C w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/

S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24,2016, page 282.

2. Form L-12CC added after form L-12C w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24,2016, page 282.

3. Rule 25 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp. 23-41.Before this, rule 25 was substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24, 2016, pp. 283-287.

AMENDMENT OF RULE 1 - Insertion of Form L-5CC after Form L-5C:(Cross-reference page 859 of this Book)

AMENDMENT OF RULE 1 - Insertion of Form L-12CC after Form L-12C:(Cross-reference page 860 of this Book)

SUBSTITUTION OF RULE 25:(Cross-reference page 869 of this Book)

253. (1) The amount of fixed fee and security in respect of different kinds of licenses,granted under these rules, shall be as follows:-

Serial Kind of License Rate of annual Rate of securityNo. license fee (Rs.) (Rs.)____________________________________________________________________

1 L-1 (Grant and Renewal) 50,00,000 15,000

2 L-1 (Import) (Supplementary 15,00,000License to L-1)

3 L-2 At the rate of Rs. 12 per cent of the307/- per Proof Litre amount of licenseon allotted quota of fee.IMFL and at Rs.30/-per bulk litre onquota of Beer.

4 L-2A (Urban & Rural) 1,000 Nil

5 L-2B 11,00,000 Nil

L-5CC1

Additional retail vend of foreign liquor including Beer, Wine and Ready to Drink beverages in a hotel below 3 star category (supplementary in Form L-3, L-4 and L-5) and restaurants (supplementary in Form L-4 and L-5).

Fixed fee and assessed fee

Collector Collector

xxiiiSUPPLEMENT: 2017]

6 L-2C Equivalent to 15 per centone unit of of theMunicipal Corporation, amount ofLudhiana. L./ fee.

7 L-2D 66,000 Nil

8 L-2E (Model Shop) No Fee Nil

9 L-3, L-4 and L-5,-(i) for hotels having 4 or 5 star 6,00,000 10,000

category certificate;

(ii) for hotels in Municipal Corporations 3,00,000 10,000of Ludhiana, Jalandhar, Amritsar,Patiala, Bathinda and Mohali;

(iii) for hotels in Municipal Corporations, 2,00,000 10,000other than those mentioned at (ii)above, in Municipal Committeesand other areas; and

(iv) for additional license for bar 50% in caseof 4 star or 5 starcategory Hotels andone third of annuallicense fee ofother bar licenses.

10 L-3A, L-4A and L-5A,-(i) for towns with population of one 1,50,000 Nil

lac or more; and(ii) for other towns 1,00,000 Nil

11 L-5B (Pub License),-(a) Independent License 30,000 10,000(b) Supplementary License 30,000 Nil

(with L-5, L-5A, L-5C and L-12C)

12 L-5C 55,000 Nil

13 L-5D,-Annual registration fee of Commercial 25,000 Nilplaces viz Marriage palaces, banquethalls, community centre, Dharamshala etc.

14 L-5E,-(i) Corporation cities and areas 50,000 Nil

falling within 5 km of their outerboundaries; and

(ii) All types of Municipal Committees 25,000 Niland other areas

15 L-10C 4,00,000 Nil

16 L-12A(a) Minimum fee; and- 1,000 per license per day.(b) Maximum fee 100,000 per license per day.

xxiv Punjab Allied Taxation and Excise Acts by Vashisht

17 L-12C(i) Members upto 2000 2,75,000 Nil(ii) Members above 2000 8,50,000 Nil

18 L-12CC One third of annual Nillicense fee of the wholelicense and for function10,000 per day

19 L-12E 10,000 1,000

20 L-13 50,000 1,000

21 L-14A At the rate of Rs. 278/- 12 percent ofper PL on allotted the amount ofquota of PML. license fee.

22 L-17(i) Denatured Spirit (upto 500BL); and 5,000 2,000(ii) Exceeding 500 BL 10 per BL 3,000

23 L-52(i) PML

(a) Urban 30,000 Nil(b) Rural 6,000 Nil

(ii) IMFL(a) Corporation Area 40,000 Nil(b) Other Urban Area 30,000 Nil(c) Rural 8,000 Nil

NOTE- License fee at the rate of Rs. 307/- per PL shall be levied on ImportedForeign Liquor.The State Government reserves the right to change nomenclature of variouslevies, levied under the Punjab Excise Act,1914 and relevant rules

(2) In addition to the fixed license fee, as stated in sub-rule (1), the following feesshall also be charged, namely:-

(a) an extra license fee on Indian Made Foreign Liquor and imported foreignliquor including BIO brands as provided under rule 36-A;

(b) (i) Special Development Fee at the rate of forty rupees per proof litre onPunjab Medium Liquor;(ii) Special Development Fee at the rate of ten rupees per proof litre onBeer; and(iii) Special Development Fee at the following rates on IMFL/IFL:-

EDP Range of Rate of Special DevelopmentIMFL/IFL (2016-17) Fee Per PL (2017-18)EDP upto 650 16/-EDP 651-950 20/-EDP 951-1200 24/-EDP 1201-1400 28/-EDP 1401-1500 35/-

xxvSUPPLEMENT: 2017]

______________________________________________________________________1. Rule 31 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/

2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp. 23-41.Before this, rule 31 substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24, 2016, pp. 287-288.

EDP 1501-2500 38/-EDP 2501-3500 52/-EDP 3501-4500 56/-EDP 4501-7000 60/-EDP above 7000 60/-

Special Development Fee shall be charged from L-14A, L-2, L-3, L-4, L-5, L-3A, L-4A, L-5A, L-12C licensees at the time of issue of permits. The proceeds of SpecialDevelopment Fee shall be utilized by the Government for various social schemes.

(3) The L-2 and L-14A licensee shall lift his entire balance quota by 10th March,2018. In case the licensee fails to lift any part of his quota, he would be required to deposit thelicense fee and all other levies under the Excise Act,1914 or the Rules and Excise Policy by15th March, 2018. In case of non-lifting of PML/IMFL/Beer quota from the L-13/L-1 vend,licensee would be liable to pay Special Development Fee on the un-lifted quota at the rateapplicable for PML, Extra License Fee on rate applicable to the lowest category of IMFLBrands and Special Development Fee , Assessed fee and Special Development fee on Beerrespectively by 15th March.SUBSTITUTION OF RULE 31:(Cross-reference page 874 of this Book)

311. The assessed fee shall be levied on the following rates per bulk litre for Beer, Wineand Ready to drink beverages and per proof litre for Indian Made Foreign Liquor, ImportedForeign Liquor including Bottled In Origin brands and Rum, namely :-

KIND OF LICENSESKind of liquor L-1, L-2B L-2D L-6, L-3, L-3A, L-5B L-1 L-10C L-12C

L-7 L-4, L-4A (Canteen (Microand L-5 and Store Brewery/L-8 and L-5A Depot), Brewery

L-5C L-1 CRPF Pub& L-1 ITBP

Indian Made - - - 6.20 375/- - - 375/- - 425/-Foreign Liquor

Imported Foreign - 425/- - 8.80 425/- - - 375/- - 425/-Liquor (Bottledin origin)

Wine - - 12/- 1.80 20/- - 18/- 16/- - 20/-

Indian Made BeerLight 35/- - - 0.10 42/- 42/- - 72/- - 42/-Strong 42/- - - 0.10 42/- 42/- - 72/- - 42/-Canned light 35/- -Canned strong 42/-

xxvi Punjab Allied Taxation and Excise Acts by Vashisht

______________________________________________________________________1. The words in brackets added w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/

Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp.23-41.

2. Sub-rules (1) and (2) of Rule 35 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March28, 2017, pp. 23-41. Before this, sub-rules (1) and (2) were substituted w.e.f. 01.04.2016 by Notification No.G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.),LS, March 24, 2016, pp. 289-290.

Imported Beer (Bottled in origin)Light 35/- 42/- 18/- 0.35 42/- 42/- - 72/- - 42/-Strong 42/- 42/- 18/- 0.35 42/- 42/- - 72/- - 42/-

Cider 5.50/- - - 0.10 3.00/- - - 2.25/- - 2.50/-per per per perbottle BL BL BL

Rum - - - 0.35 - - - 127/- - -

Draught Beer - - - - - - 75/- - - -(Strong & Light)

Supplied by - - - - - - 16/- - 50/- -Micro Brewery(L-10C)

Ready to drink 20/- - - - 25/- 25/- 22/- 20/- - 25/-beverages

Sweets and wines 4.50/- 20/- 12/- - 20/- - - - - -upto 13.5% v/v_______________________________________________________________________________

AMENDMENT OF PROVISO OF RULE 34:(Cross-reference page 876 of this Book)

34. ****PROVIDED THAT in the case of licenses granted [except licenses L-1 and L-1

(Import)]1, extended .................SUBSTITUTION OF SUB-RULES (1) & (2) OF RULE 35:(Cross-reference page 876 of this Book)

35. (1)2 The following licenses may be granted on fixed fee by inviting applicationsfor a Licensing Unit, namely:-

(i) A license in Form L-2, for the wholesale and retail sale of foreign liquor,for consumption, off the premises and a model liquor shop in each Zone/Group of Municipal Corporation and 'A' class Municipal Committee forselling Indian Made Foreign Liquor/Imported Foreign Liquor/Beer/Readyto Drink Beverages and Wines shall be allowed to the licensee to be openedin the area of his Zone/Group. The licensee would be required to provideneat and clean environment. These shops can also be opened in a wellestablished departmental store or in any show room/ Malls. These shopsshall be in addition to the regular shops in a Group and no additional feeshould be charged from them. The license in Form L-2E shall be grantedto these shops; and

xxviiSUPPLEMENT: 2017]

______________________________________________________________________1. Sub-rules (1) and (2) of Rule 35 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/

1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March28, 2017, pp. 23-41. Before this, sub-rules (1) and (2) were substituted w.e.f. 01.04.2016 by Notification No.G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.),LS, March 24, 2016, pp. 289-290.

(ii) A license in Form L-14A for retail sale of country liquor (also called thePunjab Medium Liquor), for consumption, off the premises.

(2)1 The Punjab Medium Liquor and Indian Made Foreign Liquor vends shall bedisposed off as licensing units. A Licensing Unit in urban areas shall consist of one L-14Avend and one L-2 vend under one roof. In rural areas, a licensing unit may consist either ofa single L-14A vend or a L-14A vend and L-2 vend. The licensing units shall be formed bythe Collector with prior approval of The Excise Commissioner, Punjab. The size of groupor zone in financial terms, shall be as under:-

i All Municipal Corporations (Corporation area Upto Rs.40 crore.and other Municipal Committee Area, NotifiedArea Committee and rural vends clubbed withthe Corporation)

ii Urban areas, (Municipal Committees,Nagar Upto Rs.30 crore.Panchyats and Notified Area Committee or theircombination and rural area vends which havebeen clubbed with this area)

iii Rural areas Upto Rs. 20 crore.The licensing units on above lines shall be formed by the Collectors-cum-

Deputy Excise and Taxation Commissioners on the advice of the Assistant Excise andTaxation Commissioners and with the approval of the Excise and Taxation Commissioner,Punjab.

The license fee of a group or zone shall be the sum total of the license fee,prescribed for each of the units in that group or zone.

If it is found that through draw of lots allotment of group/zone remains pendingon fixed license fee/quota, in that circumstances the re-allotment of such un-alloted group/zone shall be made by inviting fresh applications and if the same remains again pendingthen sealed quotations for these groups may be called by reducing the license fee by 5 % atfixed reserve price after giving three days public notice. If this process does not succeedthen the Government is authorized to run this group/zone at its own or through itsrepresentative. The Excise and Taxation Commissioner shall be authorized to take decisionfor this purpose.

After depositing the fee as specified in sub-rule (6) of rule 36,-(i) if successful applicant or allottee fails to deposit the balance amount of

prescribed security;(ii) if there is no other person in the waiting list; and(iii) the number of successful allottees are less than the number of units or

zones in that particular area, the procedure, as given in the foregoingparagraph, shall be followed:

xxviii Punjab Allied Taxation and Excise Acts by Vashisht

______________________________________________________________________1. Proviso added w.e.f. 30.03.2017 by Notification No. G.S.R.14/P.A.1/1914/S.59/Amd.(134)/2017,

dated 31.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 31, 2017, pages. 57-58.

2. Sub-rule (2) of Rule 36 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp.23-41. Before this, sub-rule (2) was substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24,2016, pp. 290-291.

PROVIDED THAT the Excise and Taxation Commissioner may allowformation of Group/Zones in a particular area (difficult stations) of a sizeexceeding the financial limits prescribed above with prior approval of theFinancial Commissioner (Taxation). Ex- Post facto approval of the Cabinetshall be obtained.1[PROVIDED FURTHER THAT, if applications have not been receivedfor all the units or groups or zones in a particular area or allotment of alicensing unit or group or zone of licensing units in a particular region orarea does not seem to be in the interest of the State revenue, the ExciseCommissioner may cancel the process of allotment of that region or area.To facilitate the re-allotment of such units or groups or zones, theExcise Commissioner in the interest of revenue of the State, with or withoutreorganizing the groups or zones may invite sealed quotations by reducingthe license fee by five percent. The Excise Commissioner may direct anyofficer subordinate to him to invite sealed quotations on his behalf. Thegroups or zones may be enlarged to include all the units in that locationor an area or a municipal committee or a municipal corporation or a cityor a district for disposal as per the aforesaid procedure. Two types ofsealed quotations in respect of allotment of pending vends shall beinvited at a time,-(a) for each single group; and(b) for enlarged group or zone, or groups or zones.If quotations in respect of (a), for all the groups or zones of the districtare received, then, the group shall be allotted individually and thequotations in respect of (b) shall be returned to the applicants withoutopening it. If quotations in respect of (a) are not received for all groupsin the district, then, all those quotations shall be cancelled and quotationsin respect of (b) shall be considered.]

SUBSTITUTION OF SUB-RULE (2) OF RULE 36:(Cross-reference page 878 of this Book)

(2)2 The application form for the grant of liquor vends shall be available in theoffice of the Assistant Excise and Taxation Commissioner (hereinafter referred to as AETC),In-charge of the district. The application Forms can also be downloaded from the website ofthe department (www.pextax.com). In addition, these application forms shall also be availablein various bank branches authorized by the department for receipt of application forms. Theapplicant can submit his application for any Licensing Unit/Group/Zone of any district inany of the bank branches. The cost of application forms shall be as under:-

xxixSUPPLEMENT: 2017]

______________________________________________________________________1. The words in brackets added at the end of sub-rule (4) of Rule 36 w.e.f. 01.04.2017 by Notification

No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette(Extra.), LS, March 28, 2017, pp. 23-41.

2. Sub-rule (6)(a) of Rule 36 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28,2017, pp. 23-41.

(i) A licensing unit or group of units of Rs.50,000/-License fee upto Rs. 10 crore

(ii) A zone/group of units of License fee Rs.75,000/-from Rs. 10 crore to Rs. 30 crore

(iii) A zone/group of units of L/fee above Rs.1,00,000/-Rs. 30 crore

The fee shall not be refundable or adjustable. If the first or any subsequentallotment procedure is cancelled by the department or, any application form is rejected bythe department being invalid and not put to draw of lots, then the amount of application feeshall be refunded to the concerned applicant, after deducting two thousand rupees perapplication as processing fee. Out of the total proceeds from the sale of application forms,fifty percent shall be deposited in the Development Fund constituted under the PunjabDevelopment Fund Act, 2014 (Punjab Act No. 1 of 2015).

The application forms shall be serially numbered at three places, i.e. in theapplication form, in the slip of draw of lots and on the receipt, issued to the applicant.AMENDMENT OF SUB-RULE (4) OF RULE 36:(Cross-reference page 878 of this Book)

(4) Each ......1[A fee of rupees 100/- shall be charged by the Bank for processing the

application.]SUBSTITUTION OF SUB-RULE (6)(A) OF RULE 36:(Cross-reference page 878 of this Book)

(6)(a)2 The grant of licenses L-14A and L-2 shall be made out of those applications,which may be found to be complete in all respects. In case, the number of applications for alicensing unit is more than one, the allotment shall be made by a draw of lots. This wouldentail two draws, one for successful allotte and other for allotment of zone. Once an applicantis declared successful, a draw for allotting a zone to him would be made simultaneously.

A successful applicant shall be required to pay allotment fee immediatelyon the draw of his lot which shall be at the rate of 2% of the license fee in Corporationareas, urban and rural areas. This payment may be made by cash or through demand draft,banker's cheque, pay order or other pre paid Bank instrumentsADDITION OF PROVISO IN SUB-RULE (9) OF RULE 36:(Cross-reference page 879 of this Book)

(9) The grant of licenses L-14A and L-2 shall be made out of those applications,which may be found to be complete in all respects. *****. A representative of the DeputyCommissioner of the revenue district concerned may also be present as Observer at thevenue, fixed for draw of lots:

xxx Punjab Allied Taxation and Excise Acts by Vashisht

______________________________________________________________________1. Proviso added w.e.f. 01.04.2015 by Notification No. G.S.R. 11/P.A.1/1914/S.59/Amd.(126)/2015,

dated 26.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS, March 26, 2015, pages 65-66.

2. Sub-rules (14), (15) and (16) of Rule 36 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS,March 28, 2017, pp. 23-41. Before this, these sub-rules were substituted w.e.f. 01.04.2016 by Notification No.G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.),LS, March 24, 2016, pp. 291-293.

PROVIDED THAT the Excise Commissioner may authorize any other officerof the Excise and Taxation Department to be the Chairman of the Committee for the draw oflots in any district in place of the concerned AETC:

1[PROVIDED FURTHER THAT during the draw of lots if any person is notsatisfied with the draw made by the department, then he can make a written complaint toAssistant Excise and Taxation Commissioner within one hour. The Assistant Excise andTaxation Commissioner keeping all aspects in mind would make a speaking order withinthree hours. If any party is not satisfied with the decision of the Assistant Excise and TaxationCommissioner then he can file an appeal with the Deputy Excise and Taxation Commissionerwithin 24 hours. The party filing an appeal against the order of Assistant Excise and TaxationCommissioner shall submit a written information regarding the same to the Assistant Exciseand Taxation Commissioner. On receiving such information the Assistant Excise and TaxationCommissioner shall keep the proceedings of the allotment pending. Before filling an appealwith the Deputy Excise and Taxation Commissioner every party has to deposit 1 percent ofthe license fee. The Deputy Excise and Taxation Commissioner, after contemplating all theaspects shall issue a speaking order within 24 hours. The decision of the Deputy Excise andTaxation Commissioner shall be final.]SUBSTITUTION OF SUB-RULES (14), (15) & (16) OF RULE 36:(Cross-reference pages 880 & 881 of this Book)

(14)2 A successful applicant shall have to deposit twelve percent of the licensefee fixed for a licensing unit/zone/group as security. The allotment fee charged shall beadjusted towards the twelve percent security, which shall be recovered in the followingmanner:-

(i) (i) Five percent security within 48 hours of the draw of lots (including2% allotment fee).

(ii) (ii)Seven percent security by 31st March 2017 , the licensee shall havethe option to deposit the required seven percent security in two parts i.e.five percent security upto 07-04.2017 and remaining two percent securityupto 15.04.2017 with prior approval of Deputy Excise and TaxationCommissioner, Incharge of the Division, for this he shall be liable to payinterest @ 1.5% (to be calculated on daily basis). The amount of 12%security shall be adjusted in the year 2017-18 in last months of January,February and March,2018. A successful applicant shall be required toopen his vend on or before 15th April 2017. In case he fails to do so, theAssistant Excise and Taxation Commissioner of the district concernedmay extend the period up to 30th May,2017 on payment of late fee ofrupees 25000/- in Corporation areas and rupees 10000/- in other areas.This provision shall not be applicable to the opening of model shop.

xxxiSUPPLEMENT: 2017]

(15) 1After deducting the amount of twelve per cent security, the licensee is requiredto pay the remaining license fee, in nine installments i.e. nine per cent each in the month ofApril, May and June, ten per cent each in the month of July, August, September, October andNovember and eleven per cent in the month of December. Each monthly installment is payableby the close of last working day of each month. In case of late payment of any installment aninterest at the rate of one and a half per cent, per month, to be calculated on daily basis, shallbe charged in addition to the amount of penalty. If the entire license fee for the month is notpaid by the fifteenth day of the next month, the license shall be deemed to have been suspendedand vend(s) shall stand closed. The suspension of the license shall be revoked only aftermaking payment of the balance of the installments alongwith interest and penalty. If no paymentis made the suspended license shall be cancelled upto 30th of the month and thereafter re-allotment process shall be started as per law. In case of special circumstances, if concernedDeputy Excise and Taxation Commissioner considers that Government revenue is secured, hemay extend the above validity upto 15 days with penalty and interest instead of closing or re-allotment of vends. At the time of applying for quota of PML,IMFL and Beer excluding, Wineand Ready to Drink Beverages (RTD), a licensee will be required to pay the license feeinstallment for PML, for IMFL and for Beer at the time of issue of permits. This amount shallbe adjusted towards monthly installment of his license fee, as mentioned above.

(16)1 The amount of twelve per cent security shall be adjustable towards the licensefee and thereafter, the rem aining amount of license fee i.e. eighty eight per cent would bedeposited. The permits of PML, IMFL and Beer would be issued after depositing theproportionate license fee to be calculated at a rate Rs.307/- per proof litre for IMFL, Rs.278/- per proof litre for PML and Rs.30/- per bulk litre for Beer. However, this condition shallnot be applicable in case of permits for wine and ready to drink beverages.AMENDMENT OF SUB-RULE (28) OF RULE 36:(Cross-reference page 882 of this Book)

(28)The licensee shall make his own arrangements for opening of the retail outlet,for which the department undertakes no responsibility. The licensee shall be required toopen his vend on or before 15th day of April [2017]2. In case, he fails to do so, the AETC ofthe district concerned may extend the said period upto 30th day of April [2017]2 on paymentof late fee of Rs.25,000/- in respect of the area falling within the jurisdiction of a MunicipalCorporation, and Rs.10,000/- in other areas.AMENDMENT OF SUB-RULE (30) OF RULE 36:(Cross-reference page 883 of this Book)

(30) In case, at the end of the allotment proceedings, any licensing unit remainsunallotted, the names and locations of such licensing units and the corresponding retailoutlets, their annual license fee and annual quota shall be displayed prominently in theoffice of the concerned AETC:______________________________________________________________________

1. Sub-rules (14), (15) and (16) of Rule 36 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS,March 28, 2017, pp. 23-41. Before this, these sub-rules were substituted w.e.f. 01.04.2016 by Notification No.G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.),LS, March 24, 2016, pp. 291-293.

2. The figure “2017” substituted for the figure ‘2016’ w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS,March 28, 2017, pp. 23-41.

xxxii Punjab Allied Taxation and Excise Acts by Vashisht

PROVIDED THAT the licensing unit or a group of licensing units, which mayremain unalloted after first day of April, [2017]1, shall be allotted to the applicants, byproportionating quota of PML/IMFL and the license fee for the remaining part of the yearby seeking fresh applications therefor:

PROVIDED FURTHER THAT the successful allottee or licensee, shall havethe option to get the allotment of complete zone or group or licensing unit as the case maybe, as a whole transferred before or after the grant of license on the following terms andconditions, namely:-

(i) the successful allottee or licensee shall be required to deposit one percent of the license fee of the said licensing unit as transfer fee;

(ii) the successful allottee or licensee should not be a defaulter for causingrevenue loss to the State revenue in any manner at the time of transfer oflicense;

(iii) only one transfer will be allowed during the financial year;(iv) before transfer ofthe license of the said zone or group or licensing unit,

the transferee, shall submit all the documents, prescribed under the ExcisePolicy or the Act or the Rules; and

(v) the request made by the successful allottee or licensee, for the transfer oflicense, shall be subject to the approval by the Collector.

SUBSTITUTION OF SUB-RULE (38) OF RULE 36:(Cross-reference page 884 of this Book)

382. (a) Thirty per cent of the total quota of PML shall be lifted by a L-14A licenseefrom L-13 out let of the distillery and a distillery in pipe line, specified and allocated to himby the Excise Commissioner and the remaining seventy per cent of the said quota, may belifted by him from any distillery of his choice. In case of open quota distillers shall beallowed to fix their price upto 5 % over and above the EDP of the fixed quota. Anymanagement of the distillery that opts for this shall inform the Excise and TaxationCommissioner regarding their increased rates upto 25th of March, 2017. These rates shallremain same throughout the year. The EDP shall not be changed by the distilleries duringthe currency of the financial year. The licensee shall lift his allotted quota of PML, IMFLquarter wise as under:-

(a) Upto the end of 1st Quarter – 20%(b) Upto the end of 2nd Quarter – 40%(c) Upto the end of 3rd Quarter – 75%(d) Upto 10.03.2018 – 100%

______________________________________________________________________1. The figure “2017” substituted for the figure ‘2016’ w.e.f. 01.04.2017 by Notification No. G.S.R.06/

P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS,March 28, 2017, pp. 23-41.

2. Sub-rule (38) of Rule 36 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28,2017, pp. 23-41. Before this, sub-rule (38) was substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS,March 24, 2016, pp. 293-295.

xxxiiiSUPPLEMENT: 2017]

The licensee shall lift his allotted quota of Beer quarter wise as under:-(a) Upto the end of 1st Quarter – 25%(b) Upto the end of 2nd Quarter – 55%(c) Upto the end of 3rd Quarter – 70%(d) Upto 10.03.2018 – 100%Only that quota shall be treated as lifted against which excise pass has been

issued. In case, the licensee fails to lift his fixed quota of PML , IMFL and Beer at the endof any quarter then permits for any type of country liquor, Indian Made Foreign Liquor andBeer for the next quarter shall not be issued to him.

(b) The licensees having L-2 vends attached to their units may begiven the option to convert ten percent of the quota of Punjab Medium Liquor to IndianMade Foreign Liquor subject to the following conditions:

(i) this option may be exercised only in respect of own registered brandsof Indian Made Foreign Liquor of the distilleries, subject to thecondition that the Ex-distillery Price (EDP) of such Indian MadeForeign Liquor is not more than Rs.1200/- per case;

(ii) the total conversion allowed under this provision for any singledistillery shall not be more than 10.00 lac PL;

(iii) the Extra License Fee on such conversion shall be charged at half therate applicable to the brands of IMFL to be lifted. However, otherlevies shall have to be charged as applicable on IMFL;

(iv) this option shall not be available to Licensees who have only L-14Avend/vends in their licensing units; and

(v) the conversion from PML to IMFL shall only be from the open 70%quota of PML, which may be lifted from any of the D-2 licensee whoare producing their own registered IMFL brands:

PROVIDED THAT the quota for a distillery in pipe line shall be applicableonly in those cases where a Letter of Intent has been granted for a distillery and a bottlingplant, and not for a bottling plant alone, and the work on the distillery is completed to theextent of 75 per cent. This facility shall be available up to a maximum period of six monthsor till a proper D-2 License is obtained, whichever is earlier. At the expiry of a period of sixmonths, if a D-2 license is not issued in favour of the distiller, the facility of allocation offixed quota and the open quota, shall be withdrawn without issuing any notice.SUBSTITUTION OF SUB-RULE (39) OF RULE 36:(Cross-reference page 885 of this Book)

391. A licensee shall also be allowed to lift additional quota upto 20% of the basic quotaof Punjab Medium Liquor, Indian Made Foreign Liquor and Beer, if he has lifted the entire allotted______________________________________________________________________

1. Sub-rule (39) of Rule 36 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28,2017, pp. 23-41. Before this, sub-rule (39) was substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS,March 24, 2016, page 295.

xxxiv Punjab Allied Taxation and Excise Acts by Vashisht

quota of PML, IMFL and Beer and has paid full license fee for the year. The additional quota ofPML shall be available on payment of half the rate of the license fee and all other levies.SUBSTITUTION OF SUB-RULE (43) OF RULE 36:(Cross-reference page 885 of this Book)

431. State regulated liquor quota allocated to the retail licensee, which is sold andpurchased amongst themselves as Uchanti sale shall be regularized. The licensee shall beallowed to sell or purchase upto 20 per cent of liquor quota from his allotted quota to L-14Alicensee at any time during the year. He shall have to pay the entire excise levies, which areleviable on selling of this quota. No other additional excise levies shall be paid by L-14Alicensee purchasing this quota. Joint application shall be filed by the selling and purchasingLicensees to the ETO(Excise) of the selling district. On the basis of this application, theAETC/ETO of the selling district shall issue a pass in the name of L-14A licensee of thepurchasing district (pass shall be generated through system). On the basis of such pass,licensee of the purchasing district can lift liquor from L-14 A licensee of the selling district.SUBSTITUTION OF SUB-RULE (44) OF RULE 36:(Cross-reference page 885 of this Book)

442. Regarding carried forward quota/stock- licensee can take carried forward quota/stock in addition to the quota of the next year. In this case he shall be required to pay thedifferential amount between the license fee in the current year and license fee in the previousyear. In case there is any increase in the levies viz Special Development Fee, extra licensefee, permit fee and department development cess on PML,IMFL, then, he shall be requiredto pay that increase also. The licensee shall pay this increase upto 31st May without interestand after that he shall have to pay interest at the rate of 1.5% per month. The labels for thebrand of carry forward quota shall not be required new approval again. In case licensee isunable to get work at his existing place, he shall be allowed to take quota to his new place. In case he does not get work at any place in the State, he shall be allowed to transfer carriedforward quota/stock to the new licensee with the prior permission of the Collector. Thelicensee shall give information of his unsold/carry forward quota to Assistant Excise andTaxation Commissioner of his district upto 31st March.SUBSTITUTION OF RULE 36-A:(Cross-reference page 886 of this Book)

36-A3. Sale price, license fee and quota of P.M.L., I.M.F.L. and Beer:(1) The Punjab Medium Liquor of 50 degree, Rum/Gin/whisky of 65 degree and

75 degree shall be allowed to be sold at PML vends.______________________________________________________________________

1. Sub-rule (43) of Rule 36 substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Pb Govt. Gazette, March 24, 2016, page 296.

2. Sub-rule (44) of Rule 36 substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28,2017, pp. 23-41. Before this, sub-rule (44) was substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS,March 24, 2016, page 296.

3. Rule 36-A substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp. 23-41.Before this, rule 36-A was substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Pb Govt. Gazette, March 24, 2016, pp. 297-301.

xxxvSUPPLEMENT: 2017]

(2) The minimum retail sale price in respect of Punjab Medium Liquor 50 degree,65 degree and 75 degree shall be as under:-

(3) (i) The Indian Made Foreign Liquor/Imported Foreign Liquor, to be sold inthe State of Punjab, shall be classified on the basis of Ex-Distillery Price (EDP) range withextra license fee, specified against each, namely:-

____________________________________________________________Serial EDP range of Rate of extra licenseNo. IMFL/IFL (in Rupees) fee (ELF) in Rs. per PL___________________________________________________________1 EDP upto 650 40/-2 EDP 651 to 950 48/-3 EDP 951-1200 60/-4 EDP 1201-1400 72/-5 EDP 1401-1500 88/-6 EDP 1501-2500 91/-7 EDP 2501-3500 130/-8 EDP 3501-4500 140/-9 EDP 4501-7000 220/-10 EDP above 7000 260/-____________________________________________________________

(ii) The extra license fee on Indian Made Foreign Liquor, Imported ForeignLiquor including Bottled In Origin brands, shall be charged at L-1 stage/first stage of importby the other licensees. Such, levy shall not be charged, if this levy has already been paid inthe State of Punjab.

xxxvi Punjab Allied Taxation and Excise Acts by Vashisht

(iii) Minimum retail sale price band of Indian Made Foreign Liquor/ImportedForeign Liquor for Quart (750ML), Pint (375ML) and Nip (180ML), shall as under, namely:-

The Minimum Retail Sale Rates shall be fixed by the Excise and TaxationCommissioner for each brand at the time of label Approval/Registration.

The minimum retail sale price of those categories, which have not beencovered in above table shall be fixed on the basis of the above formula. It shall be mandatoryfor the licensee to display the rates of the brands on a board on his vend. The ExciseCommissioner, Punjab may issue instructions from time to time for any other brands to bedisplayed as per requirement. If at any stage EDP of any brand changes its minimum retailsale price, shall also be changed as per the formula. Minimum retail sale price for a differentsize of bottle/container, other than those mentioned above, shall be fixed proportionate totheir volumes based on the minimum and maximum retail sale price fixed for 750 ml, 375ml and 180 ml by the Excise Commissioner, Punjab.

(4) The minimum retail sale price of Beer per bottle of 650 ML at L-14A and L-2 vends shall be as under:-

Sr. Ex Brewery Price Minimum RetailNo. Range per case Sale Rates of bottle (rupees)1 Brands having EBP of less 100

than Rs. 300 per case (Light Beer)

xxxviiSUPPLEMENT: 2017]

2 Brands having EBP of less 120than Rs. 300 per case (Strong Beer)

NOTE:The retail sale price of other segments shall be fixed by the Excise andTaxation Commissioner at the time of Label registration.Minimum retail sale price of Can beer, shall be fixed at the time ofregistration of brands by the Excise Commissioner, Punjab:PROVIDED THAT in case a licensee is found guilty of selling the liquorin contravention of the prices fixed as mentioned in sub-rules (2),(3),(4),he shall be liable for the following action, namely:-

For 1st offence Penalty of Rs. Three lac;For 2nd offence Penalty of Rs. Ten lac; andFor 3rd or subsequent Suspension of the license of licensingoffences unit or group or zone for one week.

(5) Maximum retail sale price of IMFL to be supplied at marriage palaces shall befixed by the Excise Commissioner, Punjab. It shall be mandatory for the licensee not to sellliquor to be served in marriage palaces on the rates more than those fixed by the ExciseCommissioner:

PROVIDED THAT in case a licensee is found guilty of selling the liquor incontravention of the price fixed then, a penalty of Rupees One Lac shall be imposed upon him.In case of repeated violation, the penalty shall be double the amount imposed during theprevious violation and on violation for the third time, his vend shall be closed for one month.

(6) If any change in price of liquor takes place during the year, due toimplementation of Goods and Service Tax (GST) system, then, the minimum retail saleprice of liquor may be changed accordingly.

(7) The value of one licensing unit in terms of license fee shall be upto four hundredLac rupees. The fee of more than one group/zones in Corporation and other urban area orNagar Panchayat shall be kept the same, as far as possible, with a variation of ten percent. Thequota of PML shall be 870 lacs proof litre and that of IMFL shall be 380 lacs proof litre andthat of Beer shall be 330 lacs bulk litre. Canned Beer shall be included in the quota of Beer.

(8) A successful allotee shall get the vend premises approved before actuallyoperating the vend. Approval shall be accorded automatically in respect of the vend wherea vend is functioning during the year 2016-17. For any other place the approval of thedepartment shall be required before a licensee is to operate the vend. L-2 vends shall beallowed to be operated in the premises of the L-14A vend only and not under a separate roof(except for Model Shops). In urban areas, where there are no zones, licensee shall be allowedto open vend at any place. Where there are zones, the number of vends shall be fixed andlicensee can open vend in the area of his allotted zone only. In Rural area, the vends shall beallowed to open on the basis of revenue limit of the village. The site of liquor vends whichare covered by the orders passed by courts shall not be approved on the basis of the aboveprovision. The licensee shall be bound to obey the orders passed by the Hon'ble High Court/Supreme Court.

xxxviii Punjab Allied Taxation and Excise Acts by Vashisht

No illegal/unauthorized branch or vend shall be allowed to be opened anywherein the State. If licensee opens illegal/unauthorized branch or vend, strict action shall betaken by the Department by way of immediately closing his illegal/unauthorized vend andalso his approved vend for a period of atleast one month.OMISSION OF RULE 36-B:(Cross-reference page 888 of this Book)

36-B. [***]1

AMENDMENT OF RULE 37 - Conditions (9-B) and (9-C) :(Cross-reference page 890 of this Book)

(9-B)2 The minimum distance of the vends from educational institutions or religiousshrines shall be 50 meters in urban areas and 100 meters in rural areas. This distance shall bemaintained/ measured from the main gate of the educational institution or religious shrine:

[PROVIDED THAT the educational institution should be recognized and thereligious place should either be registered or recognized. If any new recognized educationalor registered/recognized religious place opens during the year, then, this condition, in respectto such institution/place, shall be considered in the next financial year.]3

(9-C)4 The licensee shall be bound to comply with the judgment dated 15.12.2016passed by the Hon'ble Supreme Court of India in Civil Appeal No 12164-12166 of 2016(Arising out of SLP 14911-14913 of 2013), wherein following directions were issued:-

(i) All states and union territories shall forthwith cease and desist from grantinglicenses for the sale of liquor along national and state highways;

(ii) The prohibition contained in (i) above shall extend to and include stretches ofsuch highways which fall within the limits of a municipal corporation, city,town or local authority;

(iii) The existing licenses which have already been renewed prior to the date ofthis order shall continue until the term of the license expires but no later than1 April 2017;

(iv) All signages and advertisements of the availability of liquor shall be prohibitedand existing ones removed forthwith both on national and state highways;

(v) No shop for the sale of liquor shall be (i) visible from a national or statehighway; (ii) directly accessible from a national or state highway and (iii)situated within a distance of 500 metres of the outer edge of the national orstate highway or of a service lane along the highway.______________________________________________________________________

1. Rule 36-B omitted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016,dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24, 2016, page 301.

2. Condition (9-B) substituted w.e.f. 01.04.2016 by Notification No. G.S.R.39/P.A.1/1914/S.59/Amd.(128)/2016, dated 19.05.2016 as published in the Punjab Govt. Gazette (Extra.), LS, May 20, 2016, page494.

3. Proviso substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017,dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp. 23-41.

4. Condition (9-C) added w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp. 23-41.Earlier Condition (9-C) was omitted w.e.f. 01.04.2016 by Notification No. G.S.R.39/P.A.1/1914/S.59/ Amd.(128)/2016, dated 19.05.2016 as published in the Punjab Govt. Gazette (Extra.), LS, May 20, 2016, page 494.

xxxixSUPPLEMENT: 2017]

(vi) All States and Union territories are mandated to strictly enforce the abovedirections. The Chief Secretaries and Directors General of Police shall withinone month chalk out a plan for enforcement in consultation with the staterevenue and home departments. Responsibility shall be assigned inter aliato District Collectors and Superintendents of Police and other competentauthorities. Compliance shall be strictly monitored by calling for fortnightlyreports on action taken.

AMENDMENT OF RULE 37 - Addition of a proviso in Condition (27):(Cross-reference page 892 of this Book)

(27)Subject to the provisions of these rules, every licensee, shall in respect of anyarticles which he is licensed to sell, meet the demand of every customer entitled to beserved, who tenders payment for what is required by him and the licensee shall maintain asufficient stock of all articles in which he is licensed to deal, to meet the probable demand.This rule does not compel a licensee to meet the demand of a customer even if accompaniedby a tender of payment if the customers own payment for article previously sold under thelicense on credit in a case where a sale on credit is permissible.

1[PROVIDED THAT the licensee shall keep all the popular brands at theirvends. In case they fail to do so then a penalty of Rs. 1 Lac shall be imposed for the firstviolation, a penalty of Rs. 2 Lacs shall be imposed for the second violation and for everysubsequent violation an incremental penalty of Rs.1 lac shall be added at each subsequentviolation.]AMENDMENT OF RULE 37 - Substitution of Condition (28-A):(Cross-reference page 894 of this Book)

(28-A)2 All types of PML 50 degree , 65 degree and 75 degree with a capacity of750 ML, 375 ML and 180 ML are allowed in glass bottles and pet bottles with the grammageas prescribed by the Government in the Ex-distillery Issue Price. IMFL of 75 degree with acapacity of 750 ML, 375 ML and 180 ML is allowed in glass bottles and pet bottles. The petbottles of only food grade shall be allowed to be used.AMENDMENT OF RULE 37 - Addition of Condition (38):(Cross-reference page 897 of this Book)

(38)3 If any person or licensee imports liquor into the State of Punjab after gettingit released from the Custom Bonded Warehouse, he shall first bring it at L-1 A after obtainingpermit from the Assistant Excise and Taxation Commissioner concerned. His consignmentshall not be de-bonded by the Custom Department in the absence of the permit issued fromthe Excise and Taxation Department, Punjab. Any person or licensee imports Beer or winefrom outside the State, he shall first bring it at L-1A vend.

______________________________________________________________________1. Proviso added w.e.f. 01.04.2015 by Notification No. G.S.R. 11/P.A.1/1914/S.59/Amd.(126)/2015,

dated 26.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS, March 26, 2015, page 73.

2. Condition (28-A) substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24, 2016,page 301.

3. Condition (38) added w.e.f. 01.04.2015 by Notification No. G.S.R. 11/P.A.1/1914/S.59/Amd.(126)/2015, dated 26.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS, March 26, 2015, page 73.

xl Punjab Allied Taxation and Excise Acts by Vashisht

AMENDMENT OF RULE 38 - Substitution of clause (a) in special condition (1):(Cross-reference page 897 of this Book)

(a)1 The license shall be granted only to the person/firm/company havingretail trade (L-2 License) of alteast one group/zone in concernedrevenue district. This license shall be granted in the same name andstyle of the trade as of the L-2 license.The licensee shall sell foreign liquor, wholesale or retail, bottled orotherwise, only to a person holding license in form L-1,L-2( of thesame revenue district), L-2A (Beer only), L-3A, L-4, L-4A, L-5, L-5A, L-6, L-7, L-8, L-9,L-10, L-13A,(if so authorized by the Collectorfor the purchase of Indian Made Foreign Liquor of the strength of 40degrees under proof) L-10B, L-12, L-12A, L-12B or L-12C or to alicensee in any State, and he shall not sell un-bottled liquor to anyretail vendor, who is not licensed to sell for consumption on hispremises, and he shall sell bottled liquor only in sealed and capsuledbottles. However, if L-2 licensee does not get liquor of any particularbrand in his district or the required quantity of that brand is notavailable in his district then he can obtain permits for purchase ofliquor from any L-1 licensee in the State with prior approval of theconcerned Deputy Excise and Taxation Commissioner.

AMENDMENT OF RULE 38 - Substitution of clause (e) in special condition (1):(Cross-reference page 898 of this Book)

(e)2 TThe licensee shall purchase Indian Made Foreign Liquor, Imported ForeignLiquor, Beer, Wine and Ready to Drink Beverages (Indian and Imported)directly from manufacturing units of the State (Distillery, Brewery or BottlingPlant licensees of the State). Licensee can transfer liquor from one L-1 toanother L-1 on payment of prescribed permit fee.

AMENDMENT OF RULE 38 - Addition of Special Condition (1-1):(Cross-reference page 898 of this Book)

(1-1)3 A supplementary license in Form L-1 (Import) for the additional Whole saleor retail vend of Indian Made Foreign Liquor, Imported Foreign Liquor, Beer, Wine andReady to Drink Beverages to the trade.

(a) This license shall be in addition to L-1 license. This license shall begranted only to L-1 Licensee.

______________________________________________________________________1. Clause (a) substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/

2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp. 23-41.

2. Clause (e) substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp. 23-41.Before this, clause (e) was substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24, 2016,page 302.

3. Special condition (1-1) added w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp.23-41.

xliSUPPLEMENT: 2017]

(b) The annual license fee for this license shall be 15 lac rupees. Ifthis license is granted during the year in any month, the licensee shallpay license fee of Rs. 15 lacs for the same.

(c) The licensee shall be authorized to purchase liquor from outside Stateand Custom Bonded Warehouse.

AMENDMENT OF RULE 38 - Special Condition (1-A):(Cross-reference page 898 of this Book)

(1-A)1 A license in Form L-1A (IMFL), L-1A (BIO), L-1A (BEER), shall be omitted.However, the licensees L-1A (IMFL), L-1A (BIO), L-1A (BEER) shall return back thestock for the year 2016-17, to the respective manufacturing companies.AMENDMENT OF RULE 38 - Omission of Special Condition (1-B):(Cross-reference page 898 of this Book)

(1-B) [***]2

AMENDMENT OF RULE 38 - Substitution of special condition (2-E):(Cross-reference page 901 of this Book)

(2-E)3 (Model Shop) - A license in Form L-2E for the whole sale and retail vend ofIndian Made Foreign Liquor/Imported Foreign Liquor/Beer/Ready to Drink Beverages/Wines for consumption off the premises;

(a) The license shall not be renewable;(b) The licensee shall sell Indian Made Foreign Liquor/Imported Foreign

Liquor/Beer/Ready to Drink Beverages/Wines for consumption off thepremises; and

(c) The licensee shall be required to provide neat and clean environment.AMENDMENT OF RULE 38 - Addition of special condition (5-CC):(Cross-reference page 904 of this Book)

(5-CC)4 An additional license in Form L-5CC for the additional retail vend offoreign liquor including Beer, Wine and Ready to Drink Beverages in a hotel below 3 starcategory (supplementary in Form L-3, L-4 and L-5) and restaurants (supplementary in FormL-4 and L-5) for consumption on the premises;

(a) The licensee shall sell foreign liquor including Beer, Wine and Ready toDrink Beverages in retail for consumption on his licensed premises;______________________________________________________________________

1. Special condition (1-A) substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp.23-41.

2. Special condition (1-B) omitted w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp.23-41.

3. Special condition (2-E) substituted w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24, 2016,page 303.

4. Special condition (5-CC) added w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24, 2016,pages 303-304.

xlii Punjab Allied Taxation and Excise Acts by Vashisht

(b) The licensee shall not set up or maintain on his licensed premises anyadditional Bar, without obtaining a separate license;

(c) The licensee shall maintain account of receipts and sales in form L-23and shall at the end of each month prepare and submit to the ExciseInspector a monthly abstract of receipts and sales in form M-66; and

(d) His annual turnover should be Rupees 30 lacs or above.AMENDMENT OF RULE 38 - Substitution of clause (c) of special condition (10-C):(Cross-reference page 906 of this Book)

(10-C) ******(c)1 The licensee shall sell Beer manufactured in his micro brewery or brewery

pub for consumption in lounges on the premises. He shall not be allowed to sell Beer off thepremises.

AMENDMENT OF RULE 38 - Addition of special condition (14-A):(Cross-reference page 909 of this Book)

(14-A)2 L12-CC- An additional license for the retail vend of foreign liquor includingBeer, Wine and Ready to Drink beverages at a club or in the lawns attached to that club.

(a) The license fee for this license shall be one third of the fee for the fulllicense;

(b) The licensee shall be authorized to sell foreign liquor at the club for itsmembers, their guests and persons participating in the program/functionwith a fee of Rs.10,000 per day; and

(c) The licensee shall not sell liquor to the students of all ages and other personsbelow twenty five years of age even if they are members of the club.

(14-AA)2 A licensee in form L-12D for manufacture possession of sacramentalwine for use on special occasion:

(a) The licensee is authorized to manufacture sacramental wine for use onspecial occasions connected with Catholic Worship for the sacrifice ofthe Mass. He shall not have in his possession, for use on such an occasion,more then 9.22 litres of sacramental wine.

(b) Such sacramental wine shall be prepared from pure, dried grapes by aprocess of fermentation only. No alcohol or any other ingredient shall beadded in its preparation, nor shall the process of distillation be allowed inthe manufacture thereof.

(c) Sacramental wine prepared under the license shall be used on the specialoccasion connected with Catholic Worship for the Sacrifice of the Mass.

______________________________________________________________________1. Clause (c) of special condition (10-C) substituted w.e.f. 01.04.2017 by Notification No. G.S.R.06/

P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS,March 28, 2017, pp. 23-41.

2. Existing special conditon re-numbered as (14-AA) and new special condition (14-A) added w.e.f.01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as published inthe Punjab Govt. Gazette (Extra.), LS, March 24, 2016, page 304.

xliiiSUPPLEMENT: 2017]

AMENDMENT OF RULE 38 - Relating clauses of special condition (15):(Cross-reference pages 910-911 of this Book)

(15) ***(e) The annual license fee for the wholesale vends of PML (L-13) shall be

[rupees fifty thousand]1 per district. For this purpose the revenue districtshall be treated as an unit comprising of one or more Excise districts.

***(o)2 The L-13 licensee shall not violate the conditions of the license. For any

violation of Excise Laws or Rules, the L-13 vend shall immediately be closed,for one month on the first offence or Rs 5.00 Lac as penalty or both and forthree months on the second offence or Rs 10.00 Lac as penalty or both. Onthe third offence the license L-13 shall be cancelled and in extreme conditions,the Competent Authority may revoke this license by giving reasons to berecorded in writing on deposit of penalty of atleast Rs. 25 Lac.

(p)3 Licensee shall install CCTV Camera on the premises. The expenditure onthis account shall be borne by the licensee.

ADDITION OF RULES 39 & 40 :(Cross-reference page 915 of this Book)

394. The Department of Excise and Taxation shall make all out efforts to implement theprovisions of these rules. However, in public and administrative interest and to serve thefinancial interest of the State, in case certain amendments are required to be made in theserules, the same shall be made with the prior approval of the Chief Minister, Punjab. All suchcases where financial implications are involved, amendments in these rules shall be made inconsultation with Department of Finance.

405. Notwithstanding anything contained in these rules, all L-1 licensees shall be allowedto procure liquor (IMFL, Beer, Wine and RTD, etc.) directly from manufacturing units andimported foreign liquor (Bottled in Origin) brands directly from custom bonded warehouses,as an ad-interim measure, till the final implementation of corrective measures, as directedby the Hon’ble Punjab and Haryana High Court vide its order dated 09.06.2016 passed inCWP No. 5593 of 2016 titled as Amarjit Singh Sidhu Vs. State of Punjab and others. Forthe said procurements, L-1 licensees shall be liable to pay extra license fee, assessed fee,______________________________________________________________________

1. The words “rupees fifty thousand” substituted for the words “rupees twenty seven thousand and fivehundred” w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017, dated 28.03.2017as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp. 23-41. Before this, the words“rupees twenty seven thousand and five hundred” were substituted for the words “rupees twenty five thousand”w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016, dated 23.03.2016 as publishedin the Punjab Govt. Gazette (Extra.), LS, March 24, 2016, page 304.

2. Clause (o) added w.e.f. 01.04.2016 by Notification No. G.S.R.19/P.A.1/1914/S.59/Amd.(127)/2016,dated 23.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 24, 2016, page 304.

3. Clause (p) added w.e.f. 01.04.2017 by Notification No. G.S.R.06/P.A.1/1914/S.59/Amd.(133)/2017,dated 28.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 28, 2017, pp. 23-41.

4. Rule 39 added w.e.f. 07.10.2016 by Notification No. G.S.R.67/P.A.1/1914/S.59/Amd.(129)/2016,dated 06.10.2016 as published in the Punjab Govt. Gazette (Extra.), LS, October 07, 2016, page 841.

5. Rule 40 added w.e.f. 12.10.2016 by Notification No. G.S.R.68/P.A.1/1914/S.59/Amd.(130)/2016,dated 12.10.2016 as published in the Punjab Govt. Gazette (Extra.), LS, October 12, 2016, page 843.

xliv Punjab Allied Taxation and Excise Acts by Vashisht

permit fee and all other Government taxes/duties/fees/cess/levies etc. as otherwise applicableat the L-1A stage as per Excise Policy 2016-17.

______________

PUNJAB LIQUOR PERMIT AND PASS RULES, 1932AMENDMENT OF RULE 2-C - Substitution of clause (b) :(Cross-reference page 925 of this Book)

2-C. *******(a) ****(b)1 Consignment of such preparations shall be issued under an export-in-bond

authority in Form 13 mutatis mutandis granted by the Collector of the district in which thepremises of the approved manufacturer are situated. This bond shall be annual for a value tobe determined by the Collector of the district. The Excise and Taxation Officer, Incharge ofthe distillery shall maintain a record and deduct each transaction from the total bond value.On execution of this bond value/quantity, the distillery shall furnish a fresh bond at adetermined value fixed by the Collector:

PROVIDED THAT no such authority ****AMENDMENT OF RULE 22 - Substitution of clause (g) :(Cross-reference page 933 of this Book)

22. ****(g)2 A permit fee shall be leviable at the rate of Rs.2/- per proof litre on Indian

Made Foreign Liquor and Imported Foreign Liquor, Rs.2/- per bulk litre each on Beer,denatured spirit and one rupee and twenty paisa per bulk litre on denatured spirit whenimported from other States/ Union Territories. It shall be leviable at the rate of Rs.10/- perbulk litre on rectified spirit or extra neutral alcohol transferred from D-2 to D-2 and BWH-2 licensees to be used for the manufacture of Indian Made Foreign Liquor meant for sale inPunjab for brands having EDP from Rs.650/- to Rs.1500/- and at the rate of Rs.20/- onbrands having EDP above Rs.1500/-. In case of brands having EDP below Rs.650/- percase, it shall be leviable at the rate of Rs.2/- per bulk litre. Permit fee shall be recoveredfrom L-1, L-1A, L-1B, D-2, BWH-2 licensees, as the case may be. The D-2 licensee shalltransfer rectified spirit or extra neutral alcohol for manufacture of Indian Made Foreign Liquormeant for sale in the State of Punjab only against permit or permission given by the departmenteven within its own premises. Permit fee shall be applicable to this transfer. Permit fee shall berecovered at the time of issuance of permits. The D-2/BWH-2 licensees shall have the optionto pay the permit fee in advance on anticipated monthly use meant for sale of Indian MadeForeign Liquor in the State of Punjab. The amount of advance permit fee shall be reconciledat the end of every month with the actual RS/ ENA used for manufacture of IMFL meant forsale in the State of Punjab and exported out of the State of Punjab:______________________________________________________________________

1. Clause (b) excepting the proviso, substituted w.e.f. 01.04.2015 by Notification No. G.S.R. 17/P.A.1/1914/Ss. 34 and 59/Amd.(28)/2015, dated 31.03.2015 as published in the Punjab Govt. Gazette (Extra.), LS,March 31, 2015, page 87.

2. Clause (g) substituted w.e.f. 01.04.2016 by Notification No. G.S.R.26/P.A.1/1914/Ss. 34 and 59/Amd.(29)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 30, 2016,pages 325-326.

xlvSUPPLEMENT: 2017]

PROVIDED THAT the transfer of Indian Made Foreign Liquor, ImportedForeign Liquor and Beer from L-1 of one district to L-1 of another districtshall be allowed only with the approval of the Deputy Excise and TaxationCommissioner, Incharge of the Division with the consent of Deputy Exciseand Taxation Commissioner, Incharge of the Division receiving the transfer.Permit fee on IMFL per P.L. and on Beer per B.L. at the rate of two rupeesshall be charged on said L-1 to L-1 transfer:PROVIDED FURTHER THAT the payment of permit fee shall be deposited inthe Government Treasury. Out of the receipts on this count, one rupee per prooflitre on Indian Made Foreign Liquor and Imported Foreign Liquor, one rupee perbulk litre each on Beer, denatured spirit and sixty paisa per bulk litre on denaturedspirit when imported from other States/ Union Territories shall be transferred toSocial Security Corpus every month. The remaining amount of permit fee shall betransferred to the Excise and Taxation Technical Service Agency.

AMENDMENT OF RULE 22-A :(Cross-reference page 934 of this Book)

22-A. (1) Permit in Form L-50 for possession upto 24 Quarts of IMFL of 750 millilitresincluding brandy and imported liquor (i.e. upto 18 litres in any size), 48 bottles of beer of650 millilitres (i.e. up to 31.2 litres in any size) and 24 bottles of wine of 750 millilitres (i.e.upto 18 litres in any size) will be issued on permit fee of Rs. [2000]1 for one year by theAssistant Excise and Taxation Commissioner incharge of the district and permit for lifetime will be granted on payment of lumpsum permit fee of Rs. [10,000]1 with the approvalof the Collector. for consumption by the permit holder himself or for his guests of annualand lifetime license in Form L-50, two passport size photographs of the applicant would berequired to be submitted alongwith the application. One photograph shall be pasted on thepermit and the other shall be retained in the office of the Assistant Excise and TaxationCommissioner, incharge of the district for record. In case of holders of L-50 for lifetime ason 31st March, 2004, the enhancement of possession limit shall be allowed after the paymentof the differential amount between Rs. [10,000]1 and the amount already paid before thegrant of the previous permit in Form L-50 for lifetime.

****SUBSTITUTION OF RULE 22-B :(Cross-reference page 935 of this Book)

22-B2. A permit in Form L-50A for purchase, transport and possession of Indian MadeForeign Liquor, Imported Foreign Liquor and Beer of any quantity may be issued to personfor a specified period not exceeding twenty-four hours, for the celebration of a specialoccasion in a marriage palace or a banquet hall or at a temporary enclosure at a public______________________________________________________________________

1. For the figures “500 and 5000” the figures “2000 and 10,000” substituted respectively w.e.f.01.04.2015 by Notification No. G.S.R. 17/P.A.1/1914/Ss. 34 and 59/Amd.(28)/2015, dated 31.03.2015 aspublished in the Punjab Govt. Gazette (Extra.), LS, March 31, 2015, page 89.

2. Rule 22-B substituted w.e.f. 01.04.2017 by Notification No. G.S.R.11/P.A.1/1914/Ss.34 and 59/Amd.(30)/2016, dated 29.03.2017 as published in the Punjab Govt. Gazette (Extra.), LS, March 30, 2017, pp.51-52. Before this, rule 22-B was substituted w.e.f. 01.04.2016 by Notification No. G.S.R.26/P.A.1/1914/Ss. 34and 59/Amd.(29)/2016, dated 30.03.2016 as published in the Punjab Govt. Gazette (Extra.), LS, March 30,2016, pages 326-327.

xlvi Punjab Allied Taxation and Excise Acts by Vashisht

place, on the payment as mentioned below:-Serial No. Category License fee(i) Serving liquor in Commercial Places viz. Marriage Rs. 5000 per day

palaces, banquet halls or community centre, Dharamshala per functionetc. registered with the Excise and Taxation department.

(ii) Serving liquor in Commercial Places registered with Rs. 10000 per day the Excise and Taxation department (not more than 5 per functionlicenses shall be issued in one month)

(iii) Serving liquor in a function at a private place Rs.2,000 per dayPROVIDED THAT L-50A permit holder shall be allowed to purchase liquor and

beer from any L-2 vend within the Excise District or concerned Corporation Area only formarriage function. For function other than marriage, L-50A permit holder shall purchaseliquor and Beer from any L-2 vend in the Excise Circle in which the venue of the functionis situated. However, if a person violates any condition of L-50A permit, action under Section61 of the Punjab Excise Act shall be taken. The retail licensee shall not charge more pricesof various brands of liquor to be sold against L-50A permit than the rates fixed by theExcise Commissioner. In case of violation, penalty of Rs. 1 lac shall be imposed on theretail licensee. In case of second violation, the penalty shall be double the amount imposedduring the previous violation. In case of third violation, his vend shall be closed for a periodof one month. Licensee shall display the retail sale prices of various brands to be soldagainst the permit L-50A, as approved by the Excise Commissioner on a board at his vend.L-50A permits for marriages shall also be granted through Sewa Kendras.

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