Karnataka Excise (Excise Duties and Fees) (Third Amendment) Rules, 2024.

(cid:315)(cid:175)ೇಷ (cid:170)ಾಜ(cid:205) ಪ(cid:294)(cid:206)(cid:144)ೆ ¨Ás U À – 4ಎ , 21 , 2024( , 31, , 1946) . 301 Part – IVA BENGALURU, FRIDAY, 21, JUNE, 2024(JYEISHTA, 31, SHAKAVARSHA, 1946) No. 301 GOVERNMENT OF KARNATAKA No. FD 4 PES 2024 Karnataka Government Secretariat Vidhana Soudha, Bengaluru, dated: 21.06.2024.

NOTIFICATION The draft of the following rules further to amend the Karnataka Excise (Excise Duties and Fees) Rules, 1968, which the Government of Karnataka proposes to make in exercise of the powers conferred by Section 71 of the Karnataka Excise Act, 1965, (Karnataka Act 21 of

1966) is hereby published as required by sub-section (1) of the said section for the information of all persons likely to be affected thereby and notice is hereby given that the said draft will be taken up for consideration after seven days from the date of its publication in the official Gazette.

Any objection or suggestion which may be received by the State Government from any person with respect to the said draft before the expiry of the period specified above will be considered by the State Government. The objections or suggestions may be addressed to the Additional Chief Secretary to Government, Finance Department, Vidhana Soudha, Bengaluru - 01.

DRAFT RULES

1. Title and commencement.- (1) These rules may be called the Karnataka Excise (Excise Duties and Fees) (Third Amendment) Rules, 2024.

(2) They shall come into force with effect from the 1st day of July, 2024.

(1)2

2. Amendment of Rule 2-AE.– In the Karnataka Excise (Excise Duties and Fees) Rules, 1968’ (hereinafter referred as the said rules), in rule 2-AE,-

(i) after sub-rule (2), the following sub-rule shall be inserted, namely:- “(2-A) The detailed Cost Sheet relating to each quoted brand of Liquor showing details of items and costs involved in arriving at the Declared Price under this Rule shall be produced duly signed by the Chief Executive or his power of attorney holder of the Distillery / Brewery / Winery / Supplier and authenticated by a Chartered Accountant / Cost Accountant in practice”.

(ii) after sub-rule (3), the following sub-rule shall be inserted, namely:- “(4) The Declared Price for the product declared under this rule should be less than (or) equal to the Lowest Declared Price / Lowest Net Price offered by the Manufacturer / Supplier in other States / Union Territories or to the Canteen Stores Department, whichever is lesser.

(5) The invoice copy of sales made to other States or proof of approval of Declared Price by the Excise Commissioner of the concerned State / Union Territory or the Managing Director of the Government Corporation dealing in Liquor should be furnished for verification of the Lowest Declared Price / Lowest Net Price.

(6) In the event of reduction in the Supply Price / Declared Price in other State or Union Territory, Corporations / Canteen Stores Department, the same benefit should be passed on to Karnataka State also immediately i.e., the Basic Price / Declared Price to Karnataka State should continue to be the lowest.

(7) The supplier should give an undertaking on a stamp paper to the effect that the Declared Price offered to Karnataka State is the lowest in the country including Canteen Stores Department”.

2. Amendment of Rule 2-AF.– In rule 2-AF of the said rules, in sub-rule (1), in the

explanation, after clause (b), the following clause shall be inserted, namely:-3 “(c) Provided further that, after reckoning the Maximum Retail Selling Price, the Additional Rounding-Off Excise Duty (AROED) is charged wherever required at such a rate to ensure that the liquor prices are rounded off to the next Rs.5/-. This AROED shall be part of the MRP build-up just like the Excise Duty and would be included in total Excise Duty payable while issuing permits. It shall be applicable at such a value and in such a manner that after calculation of MRP, the MRP arrived is exactly a multiple of Rs.5/-”.

By Order and in the name of the Governor of Karnataka, (Manjula Nataraj) Under Secretary to Government, Finance Department (Excise).4 –

(i) A

(ii) “(4)R.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19 Licensed to post without prepayment WPP No. 297 5 – “

(AROED)

(AROED)

(MRP) [ ಮುದ(cid:206)ಕರು (cid:178)ಾಗೂ ಪ(cid:206)(cid:144)ಾಶಕರು:- ಸಂಕಲ(cid:163)ಾ(cid:297)(cid:144)ಾ(cid:312)ಗಳ(cid:133), ಕ(cid:163)ಾ(cid:143)ಟಕ (cid:170)ಾಜ(cid:205)ಪತ(cid:206), ಸ(cid:144)ಾ(cid:143)(cid:312) (cid:144)ೇಂದ(cid:206) ಮುದ(cid:206)(cid:158)ಾಲಯ, (cid:166)ೆಂಗಳ(cid:136)ರು