Karnataka Excise (General Conditions of Licences)

(cid:315)(cid:175)ೇಷ (cid:170)ಾಜ(cid:205) ಪ(cid:294)(cid:206)(cid:144)ೆ ¨sÁUÀ – 4J 17 2 024 26 1946) . 399 Part – IV A BENGALURU, SATURDAY, 17, AUGUST, 2024(SHRAVANA, 26, SHAKAVARSHA, 1946) No. 399 GOVERNMENT OF KARNATAKA No. FD 9 PES 2022 Karnataka Government Secretariat Vidhana Soudha, Bengaluru, Dated: 16th August 2024 NOTIFICATION- I Whereas the draft of the following rules further to amend the Karnataka Excise (General Conditions of Licences) Rules, 1967, was published as required by sub-section (1) of Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) in Notification-I No: FD 9 PES 2022, dated: 09.01.2023 in Part-IV A of the Karnataka Gazette (Extraordinary) No.09 dated:09.01.2023 inviting objections and suggestions from all persons likely to be affected within thirty days from the date of its publication in the official Gazette. And, whereas the said Gazette was made available to the public on 10th January 2023. And, whereas objections and suggestions received in respect of the said draft by the State Government have been considered. Now, therefore, in exercise of the powers conferred by Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966), the Government of Karnataka hereby makes the following rules, namely:- RULES 1. Title and commencement:- (1) These rules may be called the Karnataka Excise (General Conditions of Licences) (Amendment) Rules, 2024. (2) They shall come into force from the date of their final publication in the official Gazette. 2. Amendment of Rule 3:- In the Karnataka Excise (General Conditions of Licences) Rules, 1967 (hereinafter referred to as the said rules), in rule 3, for sub-rule (2), the following shall be substituted, namely: - (1)2 “(2) “Licensee” means, a person or firm or company or legal heirs to whom a licence is issued”. 3. Amendment of Rule 5:- In rule 5 of the said rules- (1) in sub-rule (1),- (i) for the words “or within a distance of 220 meters from the middle of the State Highways or National Highways”, the words, “or within a distance of 500 meters from the outer edge of the State Highways or National Highways or from a service lane along the State Highways or National Highways”, shall be substituted. (ii) after the proviso, the following provisos shall be inserted, namely:- “Provided further that, in case of areas comprised in local bodies with a population of 20,000 or less, the distance criteria pertaining to State Highways or National Highways shall be 220 meters: Provided also that, the above restrictions pertaining to State Highways or National Highways shall not apply in case of liquor premises situated within City Municipal Corporation, City Municipal Council, Town Municipal Council and Town Panchayat areas: Provided also that, nothing in sub rule (1), regarding State Highways or National Highways shall be applicable to new licences granted in Form CL-6A and Form CL-7 in Grama Panchayat or Local bodies having a population of 3,000 or above as per Census 2011. (iii) explanation (1) and entries relating thereunder shall be omitted. (2) in sub-rule (2), after the third proviso, the following provisos shall be inserted, namely:- “Provided also that, nothing in sub rule (1), regarding distance criteria from any Office of the State Government or Central Government or Local Authorities, shall be applicable to new licences granted in Form CL-4 or Form CL-6A or Form CL-7, within the City Corporation limits: Provided also that, nothing in sub rule (1), regarding distance criteria from any Office of the State Government or Central Government or Local Authorities, shall be3 applicable to existing licences in Form CL-4 or Form CL-6A or Form CL-7, within the City Corporation limits, and such licences shall also be allowed to be renewed. (3) after sub-rule (4), the following proviso shall be inserted, namely:- “Provided that, nothing in sub-rule (4), shall be applicable to a person holding a Microbrewery licence or a licence in Form CL-4 or Form CL-7 or Form CL-6A or Form CL-9”. 4. Amendment of Rule 10-B:- In rule 10-B of the said rules, after the words “State Legislative Assembly”, the words “State Legislative Council”, shall be inserted. 5. Amendment of Rule 11:- In rule 11 of the said rules, for sub-rule (1), the following shall be substituted, namely:- “(1) No gambling or any kind of unlawful act shall be permitted in such premises”. 6. Amendment of Rule 17-A:- After rule 17-A of the said rules, the following provisos shall be inserted, namely:- “Provided that, the legal heir of the deceased licensee or the guardian of the legal heir shall inform the Deputy Commissioner of Excise about the death of the licensee within forty five days from the date of death, failing which, the authority granting the licence shall have discretion to cancel the licence or impose a fine: Provided further that, a licence shall not be cancelled or no such fine shall be levied unless an opportunity of being heard is given to the legal heir of the deceased licensee or the guardian of the legal heir”. 7. Amendment of Rule 17-B:- In rule 17-B of the said rules;- (1) after sub-rule (1), the following provisos shall be inserted, namely:- “Provided that, in the case of Partnership firm, any change in the constitution of partnership that will result in implied effective change of control and management of the said partnership firm, i.e., if fifty percent or more of its stake in the profit sharing ratio changes hands and existing strength of group of partners loses fifty percent or more of the total stake of cent percent, then such a change in the constitution of partnership firm will attract the payment of transfer fee under Rule 17-B. This proviso is applicable for each change that has taken place in the partnership firm after 22-08-2017: Provided further that, if changes in the partnership firm is below fifty percent, then such cases will not attract the payment of transfer fee under Rule 17-B. If the overall4 changes in the partnership firm after 22-08-2017 remains within fifty percent of its stake in the profit sharing ratio and existing strength of group of partners does not lose fifty percent or more of the total stake of cent percent, then such a change in the constitution of partnership firm shall not attract the payment of transfer fee under rule 17-B. (i) The change of fifty percent or more will be reckoned with reference to the existing Excise licence composition of firm and transferred Excise licence under rule 17-B and at the every stage of fifty percent or more of change of stake by exit and entry of partners in the firm, it shall attract the transfer fees under Rule 17-B. (ii) The said provisos are not applicable to the cases, in which any changes that had occurred in the existing partnership firm, prior to 22-08-2017. In such cases, the licensee is bound to pay the transfer fee irrespective of any change in percentage of stake in the partnership firm or strength of group of partners or otherwise: Provided also that, the transfer fee under Rule 17-B is also applicable in the event of conversion of partnership firm into a proprietary concern or vice-versa, irrespective of fifty percent or more of change in share or in other words effective control of the partnership firm. (2) after sub-rule (2), the following sub-rule shall be inserted, namely:- “(3) Any changes including death of partner or reconstitution of partnership firm shall be brought to the notice of the Deputy Commissioner of Excise within forty five days from the date of the occurrence of death or change or re-constitution of partnership firm or conversion of partnership firm into a proprietary concern or vice-versa, failing which, the authority granting the licence shall have discretion to cancel the licence or impose a fine. Provided that, a licence shall not be cancelled or no such fine shall be levied unless an opportunity of being heard is given to the licensee or the legal heir/heirs of the deceased licensee or the guardian of the legal heir”. 8. Amendment of rule 24 :- In rule 24 of the said rules, after the words, “licence is cancelled” the words “or closed for any reason” shall be inserted. By Order and in the name of the Governor of Karnataka, (Manjula Nataraj) Under Secretary to Government, Finance Department (Excise)5 I I IV – “ – – (i) “6 (ii) A (iii) “ A A “ – – “(1)7 – “ – – “ (i) (ii)8 “9 GOVERNMENT OF KARNATAKA No. FD 9 PES 2022 Karnataka Government Secretariat Vidhana Soudha, Bengaluru, Dated: 16th August 2024. NOTIFICATION- II Whereas the draft of the following rules further to amend the Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968, was published as required by sub-section (1) of Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) in Notification-IV No: FD 9 PES 2022, dated: 09.01.2023 in Part-IV A of the Karnataka Gazette (Extraordinary) No.10 dated: 09.01.2023 inviting objections and suggestions from all persons likely to be affected within thirty days from the date of its publication in the official Gazette. And, whereas the said Gazette was made available to the public on 10th January 2023. And, whereas objections and suggestions received in respect of the said draft by the State Government have been considered. Now, therefore, in exercise of the powers conferred by Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966), the Government of Karnataka hereby makes the following rules, namely:- RULES 1. Title and commencement.- (1) These rules may be called the Karnataka Excise (Sale of Indian and Foreign Liquors) (Amendment) Rules, 2024. (2) They shall come into force from the date of their final publication in the official Gazette. 2. Amendment of Rule 2.- In the Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968 (hereinafter referred to as the said rules), in rule 2, for clause (f), the following shall be substituted, namely: - “(f) “Licensee” means, a person or firm or company or legal heirs to whom a licence is issued”. 3. Amendment of Rule 3.- In rule 3 of the said rules- (i) in sub-rule (4), in the first proviso, in condition No (1), for the words “not less than five years”, the words, “not less than three years, subject to production of audited reports for the preceding three years” shall be substituted. (ii) sub rule (10) shall be omitted. 4. Amendment of rule 4-B.- In rule 4-B of the said rules, in sub-rule (1), for clause (iv), the following shall be substituted, namely:-10 “(iv) If he is below the age of twenty one years or an undischarged insolvent or is of unsound mind;” 5. Amendment of Forms CL-2, CL-4, CL-5, CL-6, CL-6A, CL-7, CL-7C, CL-8, CL-8A, CL-8B, CL-9, CL-11, CL-11A, CL-11C, CL-12, CL-14, CL-15, CL-16, CL-17 and CL-18:- In Forms CL-2, CL-4, CL-5, CL-6, CL-6A, CL-7, CL-7C, CL-8, CL-8A, CL-8B, CL-9, CL-11, CL- 11A, CL-11C, CL-12, CL-14, CL-15, CL-16, CL-17 and CL-18 of the said rules, for Condition number 1, the following shall be substituted, namely:- “1. The licensee shall be bound by the provisions of the Karnataka Excise Act, 1965, Notifications and any general or special rules prescribed thereunder and the Orders issued by the Excise Commissioner/Deputy Commissioner from time to time”. 6. Amendment of Form CL-10.- Form CL-10 of the said rules shall be omitted. 7. Amendment of Form CL-11C.- In Form CL-11C of the said rules;- (i) after condition number 7, the following condition shall be inserted, namely;- “8. The licensee shall sell or permit to sell Indian Liquor or Foreign Liquor or both at prices not exceeding the Maximum Retail Price (MRP) indicated on the labels of the bottles as declared under Rule 2-AF of the Karnataka Excise (Excise Duties and Fees) Rules, 1968 and issue bills to the customers accordingly”. (ii) the existing condition number 8 shall be renumbered as Condition number 9; and (iii) after condition number 9 as so renumbered, the following condition shall be inserted, namely;- “10. There shall be only one and the same entrance and exit for the shop”. 8. Amendment of Form CL-16.- In Form CL-16 of the said rules, after condition No. 7, the following condition shall be inserted, namely;- “8. The licensed premises may remain open 24 hours”. 9. Amendment of Form CL-17.- In Form CL-17 of the said rules, for condition No. 7, the following shall be substituted, namely;- “7. The licensed premises may remain open 24 hours”. By Order and in the name of the Governor of Karnataka, (Manjula Nataraj) Under Secretary to Government, Finance Department (Excise)11 II II IV –12 – – (i) “ ” “ ” (ii) – iv iv “ ”. (i) “8.13 MRP ”. (ii) (iii) “ ”. “8. ”. “7. ”.14 GOVERNMENT OF KARNATAKA No. FD 9 PES 2022 Karnataka Government Secretariat Vidhana Soudha, Bengaluru, Dated: 16th August 2024 NOTIFICATION- III Whereas the draft of the following rules further to amend the Karnataka Excise (Excise Duties and Fees) Rules, 1968, was published as required by sub-section (1) of Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) in Notification-III No: FD 9 PES 2022, dated:09.01.2023 in Part-IV A of the Karnataka Gazette (Extraordinary) No.11 dated:09.01.2023 inviting objections and suggestions from all persons likely to be affected within thirty days from the date of its publication in the official Gazette. And, whereas the said Gazette was made available to the public on 10th January 2023. And, whereas no objections and suggestions were received in respect of the said draft by the State Government. Now, therefore, in exercise of the powers conferred by Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966), the Government of Karnataka hereby makes the following rules, namely:- RULES 1. Title and commencement.- (1) These rules may be called the Karnataka Excise (Excise Duties and Fees) (Amendment) Rules, 2024. (2) They shall come into force from the date of their final publication in the official Gazette. 2. Amendment of rule 2.- In the Karnataka Excise (Excise Duties and Fees) Rules, 1968, (hereinafter referred to as the said rules), in rule 2, for clause (1-A), the following shall be substituted, namely:- “(1-A). In case of Microbrewery, the Excise Duty applicable for twenty-five percent of the annual installed capacity shall be paid along with the licence fee at the rate specified in Schedule A. The next instalment of Excise Duty applicable for twenty-five percent of the annual installed capacity shall be paid, when the production of draught beer exceeds twenty-five percent of the annual installed capacity or within the end of December month of the Excise year, whichever is earlier. In case the production of draught beer exceeds fifty percent of the annual installed capacity, the licensee shall pay Excise Duty for such quantity of excess production of draught beer at the rate specified in Schedule A.” 3. Amendment of rule 2-AAA.- For rule 2-AAA of the said rules, the following shall be substituted, namely:- “2-AAA. In case of manufacture of draught beer in Microbrewery, in addition to the Excise Duty paid by the licensee under rule 2, an Additional Excise Duty applicable for twenty-five percent of the annual installed capacity shall be paid along with the licence fee at the rate specified in Schedule D1. The next instalment of Additional Excise Duty applicable for twenty-five percent of the annual installed capacity shall be paid, when the production of draught beer exceeds twenty-five percent of the annual installed capacity or within the end of December month of the15 Excise year, whichever is earlier. In case the production of draught beer exceeds fifty percent of the annual installed capacity, the licensee shall pay Additional Excise Duty for the quantity of excess production of draught beer at the rate specified in Schedule D1.” 4. Amendment of Schedule-A.– In Schedule-A to the said rules, for Serial No.9 and the entries relating thereto, the following shall be substituted, namely – “9.Beer manufactured in the Rs.10 per bulk litre” Microbrewery 5. Amendment of Schedule-D1.– For Schedule-D1 to the said rules, and entries relating thereunder the following shall be substituted, namely:- “SCHEDULE D1 [See rule 2-AAA] Declared price range per bulk litre of Beer Rate of Additional Excise Duty/ Additional Sl. No. Name of the Article From To Countervailing duty per BL Rs. Ps Rs. Ps 00.00 25.00 Beer manufactured in the 1. Rs.25.00” Microbrewery Above 25.00 By Order and in the name of the Governor of Karnataka, (Manjula Nataraj) Under Secretary to Government, Finance Department (Excise)16 III III IV – “(17 – ”. – “ ” – ”18 GOVERNMENT OF KARNATAKA No. FD 9 PES 2022 Karnataka Government Secretariat Vidhana Soudha, Bengaluru, Dated:16th August 2024. NOTIFICATION- IV Whereas the draft of the following rules further to amend the Karnataka Excise (Brewery) Rules, 1967, was published as required by sub-section (1) of Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) in Notification-IV No: FD 9 PES 2022, dated: 09.01.2023 in Part- IV A of the Karnataka Gazette (Extraordinary) No.12 dated:09.01.2023 inviting objections and suggestions from all persons likely to be affected within thirty days from the date of its publication in the official Gazette. And, whereas the said Gazette was made available to the public on 10th January 2023. And, whereas no objections and suggestions were received in respect of the said draft by the State Government. Now, therefore, in exercise of the powers conferred by Section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966), the Government of Karnataka hereby makes the following rules, namely:- RULES 1. Title and commencement.- (1) These rules may be called the Karnataka Excise (Brewery) (Amendment) Rules, 2024. (2) They shall come into force from the date of their final publication in the official Gazette. 2. Amendment of rule 2.- In the Karnataka Excise (Brewery) Rules, 1967, (hereinafter referred to as the said rules), in rule 2, for clause (o-1), the following shall be substituted, namely:- “(o-1) “Microbrewery” means a small brewery with an installed capacity not exceeding 3,65,000 litres per annum, in a place having not less than 6,500 sq.ft. built-up area with spacious dining hall and parking facility, where Draught Beer is manufactured and the same is served to their customers for consumption within the premises”. 3. Amendment of rule 27-A.- In rule 27-A of the said rules;- (i) for sub-rule (2), the following shall be substituted, namely:- “(2) The fee for grant or renewal of Microbrewery licence shall be rupees two lakhs per year and an additional licence fee equivalent to fifteen percent of the licence fee. In addition to the licence fee and additional licence fee, the Excise Duty and Additional Excise Duty, as prescribed in Rule 2 (1-A) and Rule 2-AAA of the Karnataka Excise (Excise Duties and Fees) Rules, 1968, shall be paid in advance at the time of grant or renewal of licence”.19 (ii) in sub-rule (3), for the word “liquor”, the words “draught beer”, shall be substituted; (iii) in sub-rule (4), for the word “beer”, the words “draught beer”, shall be substituted; and (iv) in sub-rule (5), for the word “beer”, the words “draught beer”, shall be substituted. 4. Insertion of new rules 27-B and 27-C.- After rule 27-A of the said rules, the following new rules shall be inserted, namely:- “27-B. Renewal of Microbrewery licence – The Excise Commissioner on an application made by the licensee accompanied by the licence fee, additional licence fee specified in rule 27-A (2), the Excise Duty and the Additional Excise Duty specified in Rule 2 (1-A) and Rule 2-AAA of the Karnataka Excise (Excise Duties and Fees) Rules, 1968, renew the licence: Provided that every such application shall be made at least one month before the expiry of the licence already granted; Provided further that the Excise Commissioner, may accept and consider any such application made after the aforesaid period of one month, if he is satisfied that the applicant had sufficient cause for not making the application within that period”. “27-C. The Microbrewery licensee- The Microbrewery licensee under these rules may open up to three additional dispensing counters for serving draught beer for the convenience of the consumers”. 5. Amendment of Form 5.- In Form 5 of the said Rules, for the word “beer”, wherever they occur, the words “draught beer” shall be substituted. By Order and in the name of the Governor of Karnataka, (Manjula Nataraj) Under Secretary to Government, Finance Department (Excise)20 IV IV IV – o “(o21 – (i) “2. ”. (ii) (iii) (iv) “ ” “ ” – – AR.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19 Licensed to post without prepayment WPP No. 297 22 ” – ”. – “ ” “ ” 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