EXCISE POLICY FOR THE YEAR 2013-14

1.0 Manner of disposal of PML and IMFL vends.

The retail licenses of PML (L-14A) and IMFL (L-2) vend shall be granted

by inviting applications after giving proper publicity. In case the number of

applications is more than the number of licensing units or a group or zone

of licensing units to be allotted in a given area, then the allotment would

be made through a transparent system of draw of lots in the presence of

applicants and the general public. Observers will also be appointed by the

Department/Government at each venue where the process of allotment

has to be made.

2.0 Licensing Units

The PML and IMFL vends will be disposed off as licensing units. In urban

areas, a licensing unit (L.U.) consists of one L-14A and one L-2 vend. Due

to the difficulties encountered by the urban licensees the configuration of a

licensing unit in rural areas has been redefined. The licensing unit in rural

area may consist either of a single L-14A vend or a L-14A vend and L-2

vend. The licensing units will be formed by the Collector with prior

approval of Excise Commissioner, Punjab. The PML and IMFL vends shall

be disposed off as licensing units.

3.0 Groups

Licensing units may further be disposed of as groups/ zones. The size/

license fee of each kind of group should match with one another so that,

with equal liabilities to discharge, one licensee will not be in a position to

affect the business of other licensees. To remove the clash of interests

between two kinds of groups, the group should be formed by

amalgamating the urban and rural vends.

3.1 For creating level playing field, the existing provision regarding clubbing of

rural vends only upto 7 Kms of the Corporation limit and 5 Kms of other

urban areas has been removed. There are some cases in which a vend in

-1-
 one district/division gives unhealthy competition to a group in the adjoining

district/division. In such cases, clubbing of upto 3 vends of a

District/Division with a group of other district/division shall be allowed. For

the formulation of groups/zones, the Excise Districts of Ludhiana-I,II & III,

Jalandhar-I &II and Amritsar-I & II may be considered as one district

respectively.

3.2 For eliminating unhealthy competition, the rural licensing units or licensing

units of small notified area committee may be attached with appropriate

Municipal Corporation/Committee. Instead of the distance, size of the

group or zone is defined in financial terms as below:-

i All Municipal Geographical Zones

Corporations/ consisting of licensing units
(Corporation area and with a maximum license fee
other rural and NAC limit of Rs.30 crore.
area vends clubbed with
the Corporation)
Ii Other urban areas, Geographical Zones or groups
(Nagar Panchyats and consisting of licensing units
rural and Notified Area with a maximum license fee
Committee vends limit of Rs.20 crore.
clubbed with this area)
Iii Rural areas Group of licensing units with
a maximum license fee limit of
Rs. 7.5 crore.

3.3 The licensing units on above lines shall be formed by the Collectors-cum-

DETCs on the advice of the AETCs and with the approval of the Excise

and Taxation Commissioner, Punjab. The license fee of a group or a zone

will be the sum total of the license fee of the constituent L.U‟s of that

group/ zone.

3.4 The license fee of all the zones/groups in a particular Corporation, other

urban areas & Nagar Panchyats may be kept at the same level as far as

possible. However the ratio proportion of quota of IMFL and PML may

remain same for every liquor vend falling in Zones/groups within the

municipal limits of Corporations/ other urban areas and Nagar Panchyats.

-2-
 The zones may be allotted to the successful applicants on the basis

of draw of lots. This would entail two draws, to be made in public view,

one for selecting successful allottee and the other for the allotment of the

zone to the successful allottee. Once an applicant is declared successful,

a draw for allotting a zone to him would be made simultaneously. The next

draw would take place after the necessary formalities have been

completed by the successful applicant.

4.0 Applications and allotments.

Allotments will be made on applications. The applications will be invited

according to the licensing units/ groups/zones.

4.1 A single person may not be allowed to submit more than 15 applications

per licensing unit/ group/ zone in Corporation areas, i.e. if there are ten

(10) licensing units/ groups/ zones in a Corporation area, the applicant

may not be allowed to file more than 150 applications. However, in other

urban areas and Nagar Panchayats, a person may not be allowed to file

more than 75 applications irrespective of the number of licensing units/

groups/zones in that area. Similarly, in rural areas the limit will be of 50

applications for each licensing unit/ group.

4.2 If it is found that applications have not been received for all the

units/groups/zones in a particular area, the Excise & Taxation

Commissioner may, if satisfied that a part allotment of Units/Groups/

Zones in such area will adversely affect the State revenue or that it may

impinge upon the smooth administration of Excise laws in such area,

cancel the allotment procedure. To facilitate the re-allotment of such

units/groups/zones, the Excise & Taxation Commissioner has been

allowed to invite fresh applications with or without reorganizing the

groups/zones keeping in view the revenue interests of the State. The

groups/ zones at this stage may be enlarged to include all the units in that

location/ area/ M.C./cities.

-3-
 After depositing the allotment fee prescribed in para No.9.0, if any

successful applicant/ allottee fails to deposit the balance amount of

prescribed security and if there is no other person in the waiting list and

the number of successful allottees are less than the number of units/zones

of that particular area, then in that scenario the same procedure as

mentioned above shall be followed.

4.3 If the first or any subsequent allotment procedure is cancelled, then the

application fee paid by the applicant may be refunded to him.

4.4 If any licensing unit/group/zone remains un-allotted, then it may be allotted

to any new applicant during the currency of the year against proportionate

quota of PML/IMFL and on proportionate license fee for the remaining part

of the year, as per Rules.

4.5 The draw of lots will be held in an open & transparent manner in full public

view. The slips shall be picked up by the public, the media personnel and

applicants. The person who draws the slip from the jar will read out the

name of the successful applicant.

5.0 Application Fee

The cost of application form is as under:-

i) A unit or group of units of L/fee Rs.15000/-
upto Rs. 2 cr
ii) A zone/group of units of L/fee Rs.25000/-
upto 4 cr
iii) A zone/group of units of L/fee Rs.35000/-
upto 6 cr
iv) A zone/group of units of L/fee Rs.45000/-
upto 8 cr
v) A zone/group of units of L/fee Rs.55000/-
upto 10 cr
vi) A zone/group of units of L/fee Rs.70000/-
upto 20 cr
vii) A zone/group of units of L/fee Rs.75000/-
above 20 cr

5.1 The application fee will be non-refundable except in cases where;

(i) the first or any subsequent allotment procedure is cancelled by

the department or,

-4-
 (ii) any application form is rejected by the department being invalid
and not put to draw of lots. In this eventuality an amount of
Rs. 2000/- will be deducted as processing fee.
6.0 Value of the licensing unit

The value of one licensing unit in terms of license fee is upto Rs.200.00
Lac.

7.0 License fee and other Levies

The license fee is fixed at Rs. 200/- per PL for PML, IMFL and Imported

Foreign Liquor.

7.1 Extra license fee

The system of levying of extra license fee has been changed from slab

system to an ad-valorem basis, as under:-

Category of EDP (Landed cost per Rate of extra license fee

IMFL/IFL case of 9BL in Rs.) (ELF) per case of 9 BLs
A Upto Rs. 1000/- 45% of EDP subject to a
minimum of Rs.340/-
B Exceeding Rs.1000/- Maximum ELF for category
and upto Rs.2000/- „A‟ i.e. Rs.450/- plus 35% of
amount by which EDP
exceeds Rs.1000/-
C Exceeding Rs.2000/- Maximum ELF for category
and upto Rs.10000/- „B‟ i.e. Rs.800/- plus 20% of
amount by which EDP
exceeds Rs.2000/-
D Above Rs.10000/- Maximum ELF for category
„C‟ i.e. Rs.2400/- plus 10%
of amount by which EDP
exceeds Rs.10000/-
The extra license fee on IMFL and Imported Foreign Liquor shall be

charged at L-1/L-1A stage/first stage of import by the licensees.

7.2 Additional license fee

Additional license fee on PML shall be levied @ Rs.25/- per PL. Out of

this, Rs.9/- per PL will be transferred to a dedicated fund for Education,

Rs.7/- per PL will be transferred to dedicated fund of Sports department

for the development of sports and Rs.2/- per PL will be transferred to

Cultural Development Fund, Punjab. This payment shall be made through

-5-
 Demand Draft, Banker‟s cheque, Pay Order or other pre-paid bank

instruments into the account of the Excise & Taxation Commissioner,

Punjab and the receipts on this count shall be transferred by him to

dedicated funds for Education, Sports development and Cultural

development. Balance Rs.7/- per PL will go to the State exchequer.

7.3 Permit fee/Additional Permit Fee

a) At present, the permit fee is levied on IMFL & IFL, Beer and

Denatured Spirit at different rates. This amount is utilized by Excise and

Taxation Technical Service Agency (ETTSA) for computerization of the

Department. The permit fee has been increased as per detail given

below:- Figure in Rs.

Kinds of liquor/spirit 2012-13 2013-14 Difference

IMFL and IFL (per PL) 1.00 2.00 +1.00
Beer (per BL) 1.00 2.00 +1.00
Denatured Spirit (per BL) 1.00 2.00 +1.00
Denatured Spirit when 0.60 1.20 +0.60
imported from other
States/Union Territory (Per
BL)

The additional amount on account of increase in permit fee would

go to Social Security Corpus. The payment of permit fee shall be made

through demand draft, banker‟s cheque, pay order or other pre-paid Bank

instruments into the account of the Excise and Taxation Commissioner,

Punjab and the receipts on this count shall be transferred by him to Social

Security Corpus every month. The remaining amount of permit fee (as

levied during 2012-13) shall continue to be transferred to Excise and

Taxation Technical Service Agency. It shall be collected at the time of

issue of permits.

b) The permit fee of Rs.0.10 per BL being charged on the permits

issued for RS/ENA from D-2 to another D-2 license is abolished.

c) In order to remove discriminatory treatment to the BWH-2

licensee‟s viz-a-viz distilleries, the additional permit fee being levied @

-6-
 Rs.8/- per BL for transfer of RS/ENA from distilleries to bottling plants for

manufacture of IMFL meant for sale in Punjab is abolished. Similarly,

additional permit fee of Rs.1/- per BL on RS/ENA to be used for the

manufacture of IMFL for export out of Punjab being charged from bottling

plants is also abolished.

d) The permit fee on all RS/ENA to be used for the manufacture of

IMFL meant for sale in Punjab is increased from Rs. 1/- to Rs.10/- per BL.

It is clarified that this permit fee will be leviable even on RS/ENA to be

used within D-2 (Distillery) premises for manufacture of IMFL meant for

sale in Punjab. Even within its own premises, the D-2 licensees shall

transfer RS/ENA for manufacture of IMFL meant for sale in Punjab only

against permits/permission given by the Department. The entire permit fee

will go to ETTSA for computerization of the Excise & Taxation

Department. The D-2/BWH-2 licensees will have the option to pay the

permit fee in advance on anticipated monthly use meant for sale of IMFL

in Punjab. The amount of advance permit fee will be reconciled at the end

of every month with the actual RS/ENA used for manufacture of IMFL

meant for sale in Punjab and exported out of Punjab.

7.4 Import Fee

a)The import fee on potable spirit (in bulk) Malt/IMFL/Fruit based has been

reduced from Rs.13/- per BL to Rs.5/- per BL.

b) The Import fee on IMFL and IFL has been increased from Rs.15/- per

PL to Rs.25/- per PL.

7.5 Permit fee on transfer of liquor

The transfer of IMFL and IFL from L-1 of one district to L-1 of another

district will be allowed only with the approval of the Excise and Taxation

Commissioner, Punjab. For this purpose, permit fee of Rs.1/- per PL was

levied on IMFL as well as IFL last year. This fee has been allowed to be

continued.

-7-
7.6 Petrol Ethanol Blending Cess

The oil companies have floated a global tender for the supply of ethanol.

This ethanol shall be blended in petrol by the depots of the oil companies

at Bathinda, Jalandhar, Sangrur and Lalru. A cess @ Rs.2/- per litre on

ethanol to be used by the oil companies in the State of Punjab has been

levied.

7.7 License fee, other fees, duties and rate of security for the year 2013-2014

will be levied as under:-

Sr. Name of the item Rate (in Rs.) Security

No. (in Rs.)
1. 2. 3. 4.
1 L-1 2500000 15000
2 L-1A sale upto 50000 cases 1000000 15000
from 50001 to 75000 cases 1500000 15000
from 75001 to 100000 cases 2000000 15000
above 100000 cases 5000000 15000
L-1A dealing exclusively BIO brands
L-1A sale upto 1000 cases 200000 15000
Sale from 1001 to 50000 cases 500000 15000
3 L-1B 400000 5000
4 L-1C 500000 1000
5 L-2A (Urban & Rural) 1000 0
6 L-2B abolished 0
7 L-2C L/Fee equivalent 15 percent
to the one unit of of the
Ldh. Corp. amount of
L/fee
8 L-2D 50000 0
9 L-3, L-4 & L-5
(i)For hotels having 4 or 5 star category 400000 10000
certificate
(ii)For hotels in Municipal Corporations 250000 10000
(iii) For hotels in Municipal Committees 175000 10000
and other areas
10 L-3A, L-4A & L-5A
(i) For towns with population one Lac 110000 0
or more
(ii) For other towns 60000 0
11 L-5B (Pub License)
(a)Independent License 30000 10000
(b) Supplementary License (with L-5, 30000 0
L-5A, L-5C and L-12C).
(c ) For Model Shops No fee
12 L-5C 50000 0
13 L-5D :-
i) Marriage palaces or banquet halls 25000 0
charging upto Rs. 25000/- per
function.
ii) Marriage palaces or banquet halls 50000 0
charging between Rs. 25001/- to
Rs. 50000/- per function.
iii) Marriage palaces or banquet halls 100000 0
charging above Rs. 50001/- per
function.
14 L-5E :-
Corporation cities and areas. 50000 0

-8-
 All types of Municipal Committees and 25000 0
other areas
15 L-10C 250000 0
16 L-12C
Members upto 2000 150000 0
Members above 2000 500000 0
17 L-12E 10000 1000
L-13LLd
18 L-13 25000 1000
19 L-17:-
(i)Denatured Spirit (upto 500 BL) 5000 2000
(ii)Exceeding 500 BL 10.00 Per BL 3000
20 L-50 :-
(i) For One Year 500 0
(ii) For Life Time 5000 0
21 L-50A :-
i) Marriage palaces or banquet halls or 2000 0
any other place charging upto Rs.
25000/- per function.
ii) Marriage palaces or banquet halls or 5000 0
any other place charging between
Rs. 25001/- to Rs. 50000/- per
function
iii) Marriage palaces or banquet halls 10000 0
or any other place charging above
Rs. 50001/- per function.
iv) Function at a place without any 2000 0
charges
22 L-52 (Ihatas) :-
(i) PML
(a) Urban 30000 0
(b) Rural 6000 0
(ii) IMFL
(a) Corporation Area 40000 0
(b) Other Urban Area 25000 0
(c) Rural 8000 0
23 D-2
(a) Grant of License to distillery 4000000 100000
(b) Grant of Supplementary License to 100000 25000
Bonded Warehouse-2: Meant for
re-distillation of spirit.

24 (a) Renewal fee of distillery license 4000000 0

(b) Renewal fee of supplementary 50000 0
License granted to Bonded
Wareouse-2 meant for re-
distillation only by way of
purification of spirit.
25 (a) Brewery: Grant of license(B1) 4000000 50000
(b) Brewery : Renewal Fee (B-1) 3000000 0
(c) Micro Brewery/ Brewery Pub- Grant 250000 0
and renewal of License (B-1M)
26 (a) Bonded Warehouse-2 Grant of
license
i) Capacity upto 135000 PL 600000 25000
ii)Capacity above 135000 PL 1000000 25000
(b) Bonded Warehouse-2 Renewal of
license
i) Capacity upto 135000 PL 600000 25000
ii) Capacity above 135000 PL 1000000 25000
27 Winery License (S-1)
(i) (a) Upto 5000 bottles (650 ML) 5000 0
(b) 5001 to 10000 bottles (650 ML) 10000 0
(c)Above 10000 bottles (650 ML) 20000 0
(ii) Renewal fee
(a) Upto 5000 bottles (650 ML) 5000 0
(b) 5001 to 10000 bottles (650 ML) 10000 0
(c)Above 10000 bottles (650 ML) 20000 0

-9-
 28 Rate of Assessed Fee on L-1, L-1A &
L-1B (Civil) (PER BL)
(i) Assessed fee on Light Beer 50.00 0
(ii) Assessed fee on Strong Beer 50.00 0
(iii) Ready to Drink Beverages 18.00 per BL 0
(iv) Sweets & Wines upto 13.5% v/v 4.00 per BL 0
(vi) Cider 5.00 per bottle 0
29 Assessed fee on beer sold by Micro 35.00 0
Brewery/ Brewery Pub L-10C license
30 ASSESSED FEE
(i) L-3, L-4 and L-5
Indian Made Foreign Liquor 220.00 per PL 0
Wine 12.00 per BL 0
Cider 2.00 per BL 0
Beer Light 18.00 per BL 0
Strong 18.00 per BL
Ready to Drink Beverages. 18.00 per BL 0
Liquor imported from abroad 220.00 per PL 0
31 (i) L-3A, L-4A and L-5A
Beer Light 18.00 per BL 0
Strong 18.00 per BL
Ready to Drink Beverages. 18.00 per BL 0
32 (iii) L-2B abolished
33 (iv) L-5B
Draught Beer (strong & light) 54.00 per BL 0
Draught Beer supplied by Micro 10.00 per BL
Brewery (L-10C)
Ready to Drink Beverages. 18.00 per BL 0
Wine 12.00 per BL 0
34 (v) L-1(CSD)
Rum 64.00 per PL 0
IMFL 220.00 per PL 0
Wine 12.00 per BL 0
Cider 2.00 per BL 0
Beer Light 55.00 per BL 0
Strong 55.00 per BL
Imported Foreign Liquor (other than 220.00 per PL 0
Wine, Cider and Beer)
Ready to Drink Beverages 18.00 per BL 0
35 (vi) L-1CRPF and ITBP
Rum 64.00 per PL 0
IMFL 220.00 per PL 0
Wine 12.00 per BL 0
Cider 2.00 per BL 0
Beer Light 55.00 per BL 0
Strong 55.00 per BL
Imported Foreign Liquor (other than 220.00 per PL 0
Wine, Cider and Beer)
Ready to Drink Beverages 18.00 per BL 0
36 (vi) L-12C
Indian Made Foreign Liquor 220.00 per PL 0
Wine 12.00 per BL 0
Cider 2.00 per BL 0
Beer Light Beer 18.00 per BL 0
Strong Beer 18.00 per BL
Ready to drink beverages 18.00 per BL 0
Liquor Imported from abroad 220.00 per PL 0
37 License fee (per PL)
(i) PML 200.00 0
(ii) IMFL and IFL 200.00 0
Extra license fee of IMFL and IFL (per 0
PL)
Addl. License fee on PML (per PL) 25.00 0

38 PERMIT FEE
IMFL and IFL (per PL) 2.00 0

- 10 -
 Beer (per BL) 2.00 0
Denatured Spirit (per BL) 2.00 0
Denatured Spirit for alcohol based 0.50 0
industries (per BL)
Denatured Spirit when imported from 1.20 0
other States/Union Territory (Per BL)
RS/ENA per B.L. transfer from D-2 to 10.00 0
BWH-2 for manufacture of IMFL meant
for sale in Punjab
RS/ENA per B.L. to be used within D-2 10.00
(Distillery) premises for manufacture of
IMFL meant for sale in Punjab
39 Petrol Ethanol Blending Cess 2.00 per litre 0

40 EXPORT FEE
Indian Made Foreign Liquor of any 0.40 Per PL 0
degree
Ready to Drink beverages upto 200 0.10 Per BL 0
proof strength
Rum 750 for troops sold through 0.10 Per BL 0
Canteen Store Department
Country Liquor of any degree 0.40 Per PL 0
Beer 0.10 Per BL 0
Rectified Spirit/ENA 0.05 Per BL 0
Malt Spirit 0.25 Per BL 0
Denatured Spirit 0.25 Per BL 0
Industrial Alcohol 0.25 Per BL 0
Bhang (per 10 Kilograms or less) 50.00 0
Liquor Imported from abroad. 0.25 Per PL 0
41
IMPORT FEE
Indian Made Foreign Liquor of any 25.00 Per PL 0
degree.
Liquor Imported from abroad 25.00 Per PL 0
Ready to Drink beverages upto 200 1.00 Per BL
proof strength.
Potable Spirit (in bulk) Malt/ IMFL/Fruit 5.00 Per BL 0
based.
Potable Rectified Spirit/ Extra Neutral 13.00 Per BL 0
Alcohol (in bulk)
Wine 1.00 Per BL 0
Beer of all types 10.00 Per BL 0
42 (i) Brand Registration fee per Label for 50000 0
IMFL, Beer & RTD
(ii) Brand Registration fee for wine and 0 0
cider
(iii) Brand Registration fee for PML 10000 0
including Rum/Gin/ Whisky of any
degree.
(iv) Brand Registration fee per Label 25000 0
for Imported Foreign Liquor (BIO)
(v) Subsequent change in all the 1000 0
approved label during the year except
wine and cider.
(vi) Brand Registration fee for hotels of 2000 0
3-star and above category in respect of
liquor imported from abroad of which
brands are not already approved by the
Excise Commissioner, Punjab.
43 Excise & Taxation Department 2.00 0
Development Cess on IMFL & Imported
Foreign Liquor (Per PL)
44 Excise & Taxation Department 1.00 0
Development Cess on conversion quota
of PML (Per PL).
45 (a) Grant of L.O.I. 0

- 11 -
 (i) Distillery 200.00 lac 0
(ii) Brewery 200.00 lac 0
(iii) BWH including Bottling Plant 40.00 Lac 0
(iv) Winery including Bottling Plant 10000 0
(i) (b) Renewal of L.O.I.
(i) Distillery 40.00 Lac 0
(ii) Brewery 40.00 Lac 0
(iii) BWH including Bottling Plant 10.00 Lac 0
(iv) Winery including Bottling Plant 10000 0

8.0 Quota

There is marginal increase in quota. The quota of PML has been

increased from 874 Lac PL to 920 lac PL and quota of IMFL has been

increased from 430 lac PL to 440 lac PL. Quota will be supplied to the

licensees at license fee rate of Rs. 200/- per PL for PML, IMFL and

Imported Foreign Liquor.

The Deputy Excise & Taxation Commissioners will further distribute

allocated quota to their respective districts, where the Assistant Excise &

Taxation Commissioners will in turn allocate the quota to the excise

circles. Further, the quota would be distributed among the different units in

the urban and rural areas.

8.1 All the L.U‟s located within one category of urban area shall have to be

allocated the quota for both, PML and IMFL in the same ratio proportion.

The ratio between PML and IMFL will be worked out by the AETCs

keeping in view the demand of the area for a particular type of liquor and

the potential of the location. This ratio proportion shall have to be common

to all L.Us located within the limits of a particular Corporation/other urban

areas and Nagar Panchayats.

8.2 The license fee, quota in proof litres of PML, IMFL & Imported Foreign

Liquor and L.Us/groups/zones will be disclosed and notified to the

intending applicants in advance.

8.3 Ratio of fixed and open quota:- During the year 2013-14, 35% of the

PML quota may be fixed to be lifted from the distilleries allocated to the

districts by the Excise and Taxation Commissioner, Punjab. This 35%

- 12 -
 fixed quota will be fixed equally among all the Distilleries of the State. It is

pertinent to mention here that as per the Sugar Policy already approved

by the Cabinet, one of the distilleries, M/s. Chadha Sugars Pvt. Ltd., Kiri

Afgana, Distt. Gurdaspur is to get 150% of quota. This distillery will get

higher quota vis-à-vis others. So for calculation purposes, this distillery will

be treated as 1.5 unit whereas the other distilleries will be treated as 1

unit.

8.4 Open Quota

In view of the persistent demand of the retail licensees for lifting open

quota from distilleries of their choice, the L-14A licensees have been

allowed to lift 65% of their basic quota from the distillery of their choice

and remaining 35% of the allocated quota would be lifted from the

distilleries allocated to the districts by the Excise & Taxation

Commissioner, Punjab.

8.5 In order to streamline the lifting of quota by the licensees, minimum

quantities for the lifting of quota quarter wise have been prescribed. They

would lift their quota of IMFL, Imported Foreign Liquor and PML (Fixed &

Open) as under:-

a) upto the end of 1st Quarter - 25% of the total allocated quota
b) upto the end of 2nd Quarter - 45% of the total allocated quota
c) upto the end of 3rd Quarter - 75% of the total allocated quota
d) upto 10.3.2014 - 100% of the total allocated quota

In case the licensees fail to lift their fixed and open quota as

per the schedule prescribed above the defaulting licensee would be

required to pay penalty @ Rs. 5/- per PL on the un-lifted quantities of their

quota of PML and IMFL. This penalty shall be payable by the licensee

before seeking permit for lifting further quota. Only that quota would be

treated as lifted against which excise pass has been issued.

- 13 -
 The licensee shall have the option to inter change 10% of his basic

quota of IMFL to PML and vice-versa at the rates applicable to the kind of

liquor to be lifted.

8.6 Conversion of quota:- The licensees having L-2 vends attached to their

units, have been given the option to convert 10% of the quota of PML into

IMFL, subject to following conditions :-

a) This option will not be available to Licensees who have only L-14A
vend/ vends in their licensing units/groups/zones.

b) This option may be exercised only in respect of own registered

brands of IMFL of the distilleries, subject to the condition that the
EDP of such IMFL brands is not more than Rs.600 per case.

c) The total conversion allowed under this provision for any single
distillery will not be more than 5.00 lac PL.

d) The Extra License Fee on such conversion shall be at half the

normal rate applicable to the brand of liquor to be lifted. However,
other levies shall have to be charged as applicable on IMFL.

e) The conversion from PML to IMFL will be only from the open 65%
quota of PML which may be lifted from any of the D-2 licensee who
are producing their own registered IMFL brands.

8.7 Additional quota:- If the licensee has lifted the entire allotted quota of

PML and IMFL and has paid full license fee for the year, then the licensee

will be allowed to lift additional quota of PML and IMFL against payment of

license fee @ Rs. 200/- per PL and other levies applicable.

8.8 Lifting of quota

During the current year, the licensee is required to pay the license fee @

Rs. 196/- per PL for both PML and IMFL for his entire quota by

31.12.2012. Even if the total quota is not lifted by 20.3.2013, the licensee

is liable to pay all levies by 25.3.2013 on the total quota allocated to him.

The last installment of quota is to be lifted by 20th March. As per this

provision, the licensee is left with little or no time to sell it. It would

therefore be prudent that the licensee is asked to lift his entire balance

quota by 10th March and all the levies in case of un lifted quota be

- 14 -
 deposited by him by 15th March. The 100% lifting of quota by 10th of March

has been made mandatory. In case the licensee fails to lift any part of his

quota he would be required to deposit the license fee and all other levies

under the Excise Act/Rules and Excise Policy by 15.3.2014. In case of

non-lifting of PML/IMFL quota from the L-13/L-1, licensee would be liable

to pay additional license fee/extra license fee and all other levies on the

un-lifted quota at the rate applicable for PML and to the lowest category of

IMFL brands respectively.

8.9 L-13 licenses

Presently, all the distilleries in the State operate their L-13 license in the

districts. The license fee for L-13 is Rs.25,000/-. The retail licensees have

complained that these L-13 licenses indulge in unscrupulous practices and

indulge in retail sales of PML from these outlets. This adversely affects the

retail licensees i.e. L-14A. It has therefore been decided that these L-13

licenses shall be operated by the distilleries themselves. It will be

incumbent on the distilleries to ensure that no retail sales of PML are

allowed from these outlets. The Excise officials shall conduct periodical

inspections to ensure necessary compliance of the conditions of the

license in letter and spirit. Any misuse of the license shall entail severe

action against the distillery as per the Excise Act/Rules. This may also

entail withdrawal of quota allocated to that distillery for that year.

9.0 Security and allotment fee

Presently, allotment fee of Rs.10 lacs, Rs.5.00 lacs and Rs.2.00 lacs is

recovered in Corporation, other Urban Area and Rural areas respectively.

The present allotment fee has been found inadequate as it is not related to

the amount of license fee. Sometimes, the successful allotees after

depositing the allotment fee surrender the license and do not deposit the

security. In order to raise the level of financial involvement and to

eliminate non-serious players at the time of draw of lots, it has been

- 15 -
 decided to fix the allotment fee on the basis of the total license fee of that

licensing unit/group/zone. Allotment fee @ 2% of the license fee from the

Corporation areas and @ 1% of the license fee in other urban and rural

areas shall be recovered immediately after the draw of lots.

This payment may be made by cash or through demand draft,

banker‟s cheque, pay order and other pre paid Bank instruments. The next

draw shall be made only after the first successful applicant has deposited

the amount of allotment fee due from him. Failure to deposit allotment fee

will lead to cancellation of allotment and disqualification for future. The

person shall also be disqualified from any other allotment in the State.

Once the allotment fee has been paid, the person will be deemed to have

entered into a contractual obligation with the Department and would

discharge all the liabilities of this contract including payment of full amount

of license fee determined for that license. This measure will ensure that no

successful allottee is able to wriggle out of his liability.

9.1 The allotment fee charged in the above manner will be adjusted towards

the 15% security which will be recovered in the following manner:-

(i) Five per cent within 48 hours of the draw of lots (The allotment fee
paid shall first be adjusted in this slab.)

(ii) Ten per cent within one week of the draw of lots or by 31st of March
which ever is earlier.

However, the licensee can pay five percent amount of security by

15th of April, with interest of @ 1% per month with prior approval of the

DETC of the Division.

9.2 After deducting the amount of 15% security, the licensee will be required

to pay the remaining license fee in nine equal installments starting from

the month of April, 2013. Each monthly installment may be payable by the

close of last working day of each month. In case of late payment of any

installment, an interest @1.5%, per month, to be calculated on daily basis

will be charged in addition to the amount of penalty. The license may

- 16 -
 deemed to be suspended and the vends(s) closed if the entire license fee

of the month is not paid by 15th day of the next month. The license will be

revoked only after making the payment of the balance of installments,

interest and penalty. At the time of applying for quota of PML or IMFL

excluding Beer, Wine and Ready to Drink Beverages (RTD), a licensee

will be required to pay the license fee installment @ Rs.200/- per proof

litre for both PML and IMFL at the time of issue of permits. This amount

shall be adjusted towards monthly installment of his license fee, till the

deposit of all the nine monthly installments of license fee.

9.3 A successful applicant shall be required to open his vend on or before 15th

April 2013. In case he fails to do so, the AETC of the district concerned

may extend the period up to 30th April 2013 on payment of late fee of

Rs.25,000/- in Corporation area and Rs.10,000/- in other areas.

10.0 Location of the Unit and opening of vend

Urban area:

In urban areas, where zones are not formed a licensee would be allowed

to open the vends anywhere in the city provided that place does not entail

objections such as proximity to any religious place or any educational

institution or any other such places prohibited under the law (The distance

shall be measured from the main entrance of religious place or any

educational institution). In areas where zones are formed, the vends may

be opened by the licensee within the allotted zone only.

Approval for location of a vend would not be denied in respect of a

location at which a vend is presently functioning. For any new place, the

approval of the department would be required before a licensee is allowed

to operate the vend. L-2 vend would be allowed to operate in the premises

of the L-14A vend only and not under a separate roof (except for Model

Shops).

10.1 Rural area:

- 17 -
 The location of rural vends shall be determined and specified by the

Department. The applications for these vends would therefore be received

for the specific area only. Where there is more than one L.U. in a

particular rural area, the department would first determine the number and

location of the L.U‟s in such a way that they have the same quota and

same license fee. This would provide level playing field for all licensees,

preempting unhealthy competition amongst them. No unauthorized

branches and illegal vends will be allowed to operate in the State. If any

licensee opens an illegal vend, not only will the illegal vend be closed,

simultaneously the regular vend will also be closed. The concerned Excise

Inspector of the excise circle will be personally responsible for enforcing

this provision.

10.2 Ihatas

License in form L-52 will be allowed in the premises adjoining all the

licensing units in urban areas. In case of Ihatas attached to units

consisting of both L-14A vend and L-2 vend, the fee applicable to IMFL

will be charged. The license in form L-52 for Ihatas shall be exempted

from the operation of Order 8 to 14 of Punjab Intoxicant License and Sale

Orders, 1956.

10.3 Model Shops

A model liquor shop in each Zone/ Group of Municipal Corporation and „A‟

class Municipal Committees for selling IMFL/IFL/Beer/RTD and Wines

only shall be allowed to the license of the zone/group. The specifications

for these shops will be laid down by the department. The licensee would

be required to provide neat and clean environment. He may also provide

the facility of good quality eateries to the visitors. A pub bar license shall

also be granted to these model shops without any license fee and they will

also be allowed to sell draught beer in Kegs upto 50 litres capacity

produced by Micro Breweries for consumption on the premises only.

- 18 -
 These shops can also be opened in a well established departmental store

or in any show room/ Malls. These shops would be in addition to the

regular shops in a Group and no additional fee should be charged from

them.

10.4 License for L-2B

L-2B license has been abolished.

11.0 Fixation of MRP of new brands.

Presently, it is a practice of the department to fix minimum retail price of

IMFL for 750 ml, 375 ml and 180 ml. It has been observed that during the

currency of the year, the distilleries/L-1 licensee request for approval of

MRP for different sizes of bottles/container. The department approves the

MRP for 750 ml, 375 ml and 180 ml. In case request comes from a

distillery/L-1 licensee to approve the MRP for a different size of

bottle/container other than mentioned above, it becomes imperative to

approve the rate for such brands and such categories. The Excise &

Taxation Commissioner has been authorized to fix the MRP for these

bottles/containers proportionate to their volumes based on the MRP fixed

for 750 ml, 375 ml and 180 ml.

12.0 Ex-Distillery Issue Price

Ex-Distillery Issue Price for PML of 50 degree and 65 degree has been
fixed exclusive of VAT, other levies and L-13 expenses which is as under:-
(in Rs. Per Case)
EDP FOR THE YEAR 2013-14 of 50 Degree
(100% PET/OLD/NEW GLASS BOTTLES)
Type of Bottles Quart Pint Nip
Pet Bottles 255.76 289.07 342.41
Old Glass Bottles 244.83 276.63 311.45
New Glass Bottles 302.68 353.71 397.56

EDP FOR THE YEAR 2013-14 of 65 Degree (100% PET BOTTLES)

Type of Liquor Quart Pint Nip

Rum 305.82 339.14 392.48
Gin 312.87 346.19 399.53

- 19 -
 Whisky 304.75 338.07 391.41

EDP FOR THE YEAR 2013-14 of 65 Degree (100% OLD GLASS BOTTLES)

Type of Liquor Quart Pint Nip

Rum 294.92 326.40 361.51
Gin 301.97 333.45 368.56
Whisky 293.85 325.33 360.44

EDP FOR THE YEAR 2013-14 of 65 Degree (100% NEW GLASS BOTTLES)

Type of Liquor Quart Pint Nip

Rum 352.76 403.79 447.63
Gin 359.81 410.84 454.67
Whisky 351.69 402.72 446.55

The distilleries have been allowed to fix their open quota price higher by

10% above the EDP for fixed quota as above. The retail licensees will still

have an option to go to any distiller offering a competitive price. The

distillers will be required to announce their EDP of open quota well before

the draw of lots. Once EDP is declared, the distiller shall not be allowed to

change it during the currency of the financial year.

12.1 Minimum Retail Sale Prices of PML

The minimum retail price for PML may be revised as under:-

1 (i) Proposed Minimum Retail

Sale price 2013-14
(a)Punjab Medium Liquor 500
Quart-750ML = Rs.127/-
Pint-375ML = Rs.73/-
Nip-180ML = Rs.46/-
Nano-100ML = Rs.33/-
(b) Rum/Gin/Whisky 650
Quart-750ML = Rs. 151/-
Pint-375ML = Rs.87/-
Nip-180ML = Rs.51/-
Nano-100ML = Rs.33/-

12.2 Minimum retail prices of IMFL/foreign liquor

The minimum retail price of various brands of IMFL and foreign liquor are

fixed as under:-

- 20 -
 (per bottle)
Sr.No. Range of EDP Per Proposed minimum retail
Case sale price
(In Rupees) Quart Pint Nip
1. Upto 100 188 95 48
2. 101-200 200 102 52
3 201-300 212 110 58
4. 301-400 224 116 63
5. 401-500 236 122 67
6. 501-600 248 127 68
7. 601-700 259 132 72
8. 701-800 274 140 74
9. 801-900 291 148 78
10. 901-1000 308 157 82
11. 1001-1100 324 167 86
12. 1101-1200 345 177 88
13. 1201-1300 376 194 102
14. 1301-1400 376 194 102
15. 1401-1500 388 200 106
16. 1501-1600 404 206 107
17. 1601-1700 420 215 112
18. 1701-1800 436 222 114
19. 1801-1900 452 230 118
20. 1901-2000 468 240 123
21. 2001-2100 482 250 126
22. 2101-2200 496 260 132
23. 2201-2300 510 262 134
24 2301-2400 524 265 136
25. 2401-2500 539 275 140
26. 2501-2600 553 277 142
27. 2601-2700 567 285 145
28. 2701-2800 581 293 150
29. 2801-2900 595 300 152
30. 2901-3000 610 310 157
31. 3001-3100 624 316 162
32. 3101-3200 638 323 166
33. 3201-3300 652 330 170
34. 3301-3400 666 340 172
35. 3401-3500 680 345 175
36. 3501-3600 695 350 180
37. 3601-3800 723 370 188
38. 3801-4000 751 385 195
39. 4001-4500 822 420 212
40. 4501-5000 893 455 230
41. 5001-5500 964 490 250
42. 5501-6000 1035 530 270
43. 6001-6500 1100 565 290
44. 6501-7000 1170 595 300
45. 7001-7500 1250 640 325
46. 7501-8000 1320 670 340
47. 8001-8500 1390 705 360
48. 8501-9000 1460 740 380
49. 9001-9500 1530 775 390
50. 9501-10000 1600 815 415
51. 10001-11000 1750 890 450

- 21 -
 52. 11001-12000 1880 960 490
53. 12001-13000 2030 1050 530
54. 13001-14000 2125 1075 540
55. 14001-15000 2260 1150 580
56. 15001-16000 2385 1210 610
57. 16001-17000 2515 1270 640
58. 17001-18000 2645 1340 680
59. 18001-19000 2775 1400 710
60. 19001-20000 2900 1475 745
61. 20001-21000 3035 1535 785
62. 21001-22000 3165 1600 810
63. 22001-23000 3295 1670 840
64. 23001-24000 3425 1750 885
65. 24001-25000 3555 1800 920
66. Exceeding 25000 4000 2100 1100

13.0 Beer

Assessed fee on beer is increased from Rs. 25/- per BL to Rs.50/- per BL

on both light and strong beer. The Minimum Retail Sale Price of beer at

L-14A and L-2 vends will be Rs.65/- per bottle of 650 ML and per Can of

500 ML for both light and strong beer. Minimum retail sale price of Can

beer of other sizes shall be fixed proportionately at the time of registration

of brands by the department. Assessed fee @ Rs.50/- per BL for both light

and strong beer shall be charged at L-1, L-1A, L-1B stage/first stage

import by the licensees. No further assessed fee shall be charged on

which assessed fee has already been paid except in case of L-3, L-4 &

L-5, L-3A, L-4A & L-5A, L-5B and L-12C licenses.

14.0 L-1 License

Every year, application for renewal of L-1 license will be treated as a fresh

case and renewal of L-1 license will not be allowed as a matter of right.

Any L-1 licensee, under any name or style who has ever violated any

excise law or terms and conditions of his license granted by the

department to him shall not be eligible for grant or renewal of L-1 license.

However, the functioning of L-1 licenses needs strict supervision, so that

they are not able to indulge in malpractices in their trade. If any L-1

- 22 -
 licensee is found indulging in any mal-practices, his license would be

suspended/cancelled.

15.0 License L-5D

The fee structure of license L-5D shall be as under:-

i) Marriage palaces or banquet halls Rs.25,000/-

charging upto Rs. 25000/- per function.
ii) Marriage palaces or banquet halls Rs.50,000/-
charging between Rs. 25001/- to
Rs. 50000/- per function.
iii) Marriage palaces or banquet halls Rs.1,00,000/-
charging above Rs. 50001/- per function.
15.1 Permit L-50A

A special permit for purchase, transport and possession of IMFL, imported

foreign liquor and Beer is issued in Form L-50A for specified period not

exceeding 24 hours on a payment of permit fee. The fee structure has

been changed with the following fees:-

i) Marriage palaces or banquet halls or any Rs.2000/-

other place charging upto Rs. 25000/- per
function.
ii) Marriage palaces or banquet halls or any Rs.5000/-
other place charging between Rs. 25001/-
to Rs. 50000/- per function
iii) Marriage palaces or banquet halls or any Rs.10000/-
other place charging above Rs. 50001/-
per function.
iv) Function organized at a place without any Rs.2000/-
charges
L-50A permit holders will be allowed to buy liquor from any Formatted: Font: Not Bold

L-2 vend in the Excise Circle in which the marriage palace is situated.

However, the AETCs incharge of the district will fix the rates of IMFL/IFL Formatted: Font: Not Bold

brands for liquor to be supplied against L-50A permits in various circles.

Excise & Taxation Commissioner, Punjab will have the power to revise the

rates, fixed by any AETC. Any violation of the order passed by the AETC

or the ETC in this regard will attract a penalty of Rs.1.00 lac. In case of

repeated violation, the penalty shall be double the amount imposed during

the previous violation. Formatted: Font: Not Bold, Subscript

16.0 Intaglio labels with Holograms

- 23 -
 In order to curb the menace of smuggling of liquor, the department

introduced security labels w.e.f. 1.4.2011. All liquor bottles of PML and

IMFL to be sold in the State of Punjab during the year 2011-12 and 2012-

13 were affixed with the intaglio printed security labels with holograms at

the cost of the Distilleries/L-1A licensees. The same system of Excise

Adhesive Labels will be continued for the next year also. 3rd party audit of

the holograms shall also be done. The expenditure on this account will be

borne by the distillers.

17.0 L-10C Micro Brewery/Brewery Pub.

Micro Brewery has been allowed to sell beer brewed by them in Kegs upto

the capacity of 50 litres against excise permits at Pub Bar Licenses in form

L-5B, Model Shops L-2 and L12C, L-3, L-4, L-5 and L-3A, L-4A and L-5A

having supplementary license in form L-5B for consumption on the

premises. The assessed fee on draught beer manufactured by the Micro

Breweries increased from Rs.25/- per BL to Rs.35/- per BL. This will be in

addition to the assessed fee to be paid at the time of obtaining permits by

supplementary L-5B holders.

18.0 Renewal of licenses

Presently, all licenses viz L-3, L-4 & L-5, L-3A, L-4A & L-5A, L-4 & L-5,

L-4A & L-5A, L-5B, and L-12C licenses are submitted by the licensees

within the prescribed time annually for their renewal. Renewal fee is also

deposited like wise. A lot of time is taken in the renewal of these licenses.

Now, the renewal fee of these licenses would be taken on annual basis

but approval for the renewal of license by the Collector may be granted

after every three years.

19.0 CCTV CAMERAS

CCTV Cameras were installed at all the distilleries to monitor the

movement of PML. The installation of these cameras helped the

department in monitoring the movement of liquor from the distilleries in an

- 24 -
 effective manner. The department therefore, proposes to continue with the

practice of CCTV Cameras at distilleries for the next year. The 3rd party

audit of the CCTV footage shall also be done. The expenditure on this

account will be borne by the distillers.

20.0 License fee of other licenses other than L-2 and L-14A

License fee for distilleries/breweries, Bonded Ware House-2 and L-1 are

as under:-

Present for 2013-14

Distillery (grant & renewal) 20.00 lac 40.00 lac

Brewery (grant) 20.00 lac 40.00 lac
(renewal) 15.00 lac 30.00 lac
BWH-2 (grant & renewal)
Capacity upto 135000 PL 3.00 lac 6.00 lac
Capacity above 135000 PL 5.00 lac 10.00 lac
L-1 15.00 lac 25.00 lac

Fee for grant of LOI

Distillery and Brewery Rs.100.00 lac Rs.200.00 lac

BWH including Bottling Plant Rs.20.00 lac Rs.40.00 lacs
Winery including Bottling Plan Rs.5,000/- Rs.10,000/-

Fee for renewal of LOI

Distillery and Brewery Rs.20.00 lacs Rs.40 lacs

BWH including Bottling Plant Rs.5.00 lacs Rs.10 lacs
Winery including Bottling Plant Rs.5,000/- Rs.10,000/-

21.0 Working time of bottling plant and distillery.

The working time of Bottling Plant-cum-Bonded Warehouse shall be

9:00AM - 6:00 PM from Monday to Saturday. On Sunday/gazeted holidays

the time shall be 9:00AM - 5:00PM.

Time of receipt of indent against permit has been changed

from 12:00 PM to 2:00 PM .

Similarly, working time in distillery shall be as under:-

In Summer :6.30AM - 6.00PM to 8.30AM-8.00PM

(April to Sept.)
In Winter :7.00AM - 5.00PM to 9.00AM-7.00PM
(Oct. to March)
21.1 Tie-ups for bottling of liquor

The distilleries have been allowed to have tie-ups for bottling of liquor.

- 25 -
22.0 Sign Board
Rule 37(8) of Punjab Liquor License Rules, 1956 envisages that the

licensee shall maintain on the main outer door of the licensed premises a

sign board of the size of not more than 4‟x2‟ exhibiting, in conspicuous

painted letters.

(a) His name, class of license held by his in Hindi and Gurmukhi for
country liquor license and in Hindi, Gurmukhi and English for foreign
liquor license and
(b) The words “use of alcohol” is injurious to health in Hindi, Gurmukhi,
English and Urdu.
The sign board prescribed under this rule is very small and

most of the licensees have opened modern show room type liquor shops.

These shops are located in developed modern posh commercial areas.

The licensees have demanded that the size of the sign board may suitably

be modified to give a decent look.

The other show rooms adjoining the liquor shops display decorative

lights. The rules prohibit the display of decorative lights at the liquor

shops. It is felt that a proper lighting at liquor shop is required for vigilance

and supervision of unruly elements hanging around the liquor shop. The

Excise & Taxation Commissioner has been authorized to stipulate the

conditions for suitable facade and proper lighting at the liquor

vends/shops.

23.0 Amendment in Section 61 of Punjab Excise Act.

The Cabinet has approved amendment in section 61 of the Punjab Excise

Act, 1914. The provisions of the Punjab Excise Act shall be amended to

make them more effective for dealing with cases of smuggling of liquor.

The Cabinet has also approved amendment in the other related Sections

enabling the department to confiscate conveyance used in smuggling of

liquor.

- 26 -
24.0 Renewal of L.U’s for the year 2014-15

It is proposed that the Govt. may at their discretion consider the renewal of

L-2/ L-14A licenses to the same licensees in the year 2014-15 on the

terms and conditions to be notified.

25.0 Bhang

The license for wholesale vend of bhang at Hoshiarpur for the year 2013-

14 shall be granted by inviting applications on the annual license fee of

Rs.3.10 Lac. In case more than one application is received for a particular

vend, the system of allotment by draw of lots shall be followed.

26.0 On the pattern of introduction of single window service in various

departments of the Punjab Government, no official of any kind can check

the quality of liquor that is produced or sold in the state, except along with

the concerned Excise Officer of the area.

27.0 Only a Police officer not below the rank of D.S.P. shall be authorized to

check excise vends. He should not book petty offences of technical

nature. Whenever, a Police Officer is to check a liquor vend/ distillery etc.

he should be accompanied by an excise officer not below the rank of an

Excise Inspector of the concerned area liquor vend/distilleries etc.

28.0 To give shape to this policy the procedure as laid down under Rule 36 of

Punjab Liquor License Rules 1956 shall be followed.

(Anurag Verma)
Excise & Taxation Commissioner, Punjab,

- 27 -