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EXCISE POLICY OF U.T. CHANDIGARH FOR THE YEAR 2020-21

by | Mar 11, 2020 | GST | 0 comments

The Excise Policy 2020-21 (commencing from 01st April, 2020 to 31st March, 2021) has been approved by the Administrator, U.T., Chandigarh. The new Excise Policy for the year 2020-21 aims at balancing the aspirations of the citizens, consumers, manufacturers, wholesalers/ retailers and the Government. Keeping in view drinking, especially excessive, is injurious to health and it is State’s duty to contain and regulate its use by:

  • Rationing its availability,
  • Encouraging transition from high to low alcohol content beverages
  • Setting the minimum price at which it is sold
  • Rationalizing taxation to generate revenues for common good

And within these parameters provide choice of brands and places for drinking to its consumers and a level playing field to those in this business.

About Whole Sale Licenses

 

  1. Ex- distillery price of Country LiquorThe Ex-distillery price of Country Liquor for the year 2020-21 are fixed as under:-
    (Amount in Rs.)

    Type Pet Bottles Glass Bottles
    of
    Quarts Pints Nips Quarts Pints Nips
    Liquor
    (In Case) (In Case) (In Case) (In Case) (In Case) (In Case)
    50o 377 405 463 393 418 484
    60o 429 458 515 439 473 528

    Excise Levies & Taxes will be charged separately. To ensure quality of pet bottles FSSAI standards will be enforced.

  2. Distilleries/bottling plants will have to submit their willingness in writing before25th March, 2020 in the office of Excise & Taxation Department, U.T., Chandigarh with regard to above selling price of country liquor 50 degree and 60 degree proof to the retail licensees i.e. L-2/L-14A licensees. After approval by the Excise and Taxation Commissioner-cum-Financial Commissioner the basic quota of country liquor will be distributed equally among all the approved distilleries/ bottling plants and only than the distilleries/ bottling plants will be allowed to sell their products in U.T. Chandigarh.
  3. For immediate supply of popular brands of Indian Made Foreign Liquor and Beer etc. after implementation of Excise Policy for the year 2020-21, the Wholesale Companies will be allowed to supply their brands, which were approved during the last year’s Excise Policy 2019-20, subject to the payment of requisite brand/label registration fee along-with an undertaking in the form of an Affidavit that there is no change in the label of the brand as well as in Ex-Distillery/Brewery/Winery price of that brand and a sample of labels of bottle in question of the respective brand. In case there is any change in the Minimum Retail sale Price of a brand, the Wholesale supplier will affix a sticker of New Minimum retail sale price as prescribed in the Excise Policy, 2020-21 and the earlier given approval will be renewed for the year 2020-21. The prohibition will be that there is no change in the size, color, printing etc. of the labels. The Wholesale suppliers will have to ensure the compliance of statutory guidelines of the FSSAI on the bottles
    Each wholesale licensee will have to pay the label registration fee as per Annexure ‘C’ in respect of each brand he desires to market in UT Chandigarh. The Wholesale licensees will be required to maintain a reasonable price line. Whole-sellers have to submit Ex-Distillery Price (EDP) at the time of submission of labels for approval of brands. The EDP in case of IMFL can be approved upto 2% increase, keeping in view the last year rate of EDP in Chandigarh and neighboring States. However, this increase in EDP will not be applicable in case of IFL.
    In case of any unreasonable difference in EDP rates prevalent in neighboring States, the department shall be at liberty not to register or deregister the brand in Union Territory of Chandigarh.
  4. Minimum Retail sale price will be mandatorily mentioned in legible and complete words on all brands of Beer, IMFL and Country Liquor etc. and no shortcut of any type will be admissible. No Maximum Retail Sale Price is fixed for any kind of liquor brand for the year 2020-21
  5. L-13 licence of whole sale of Country Liquor will be granted only to the approved suppliers of Country Liquor to market their products in Chandigarh.
  6. Licence for whole sale of Indian Made Foreign Liquor (L-1B), Beer (L-1C) and Wine (L-1D) manufactured/ bottled in India will be granted to only those companies having their manufacturing distilleries/ bottling plants, breweries and wineries.
  7. Licence for whole sale of Imported Wine (L-1DF) and Imported Foreign Liquor and Beer (L-1F) will be granted to only those companies/firms/persons who are holding a custom approved Bonded Ware House licence in U.T., Chandigarh.
    The L-1F licensee will be required to submit Authorization letter from the liquor companies i.e. brand owning companies at the time of submission of labels for approval. Further, in case more than five L-1F licensees submit authorization letters from a same brand owning company for the same brand, it will be treated as invalid. Precisely, the brand owning company is authorized to give authorization letters to the L-1F Licensees up to five only.
    Import Permits in form L-32 to L-1DF and L-1F licensees will only be granted for their declared operational Custom Approved Bonded Warehouse licenced premises in U.T., Chandigarh. The L-1DF and L-1F licensee will be required to submit a monthly report showing pass/permit as well as brand-wise detail of receipts and dispatches made from their Custom Approved Bonded Warehouse/s by 7th of every month, failing which, no permit/pass will be issued to the L-1DF and L-1F licensee till the submission of the report.
    Export/Transfer of stock of Liquor/Beer/Wine etc. either within U.T. Chandigarh or to other States from Custom Approved Bonded Warehouse/s existing in U.T. Chandigarh will only be made after obtaining necessary pass from the Concerned Excise Officer of U.T. Chandigarh.
    The licensee will make adequate fire safety arrangements.
  8. All licences, whether for wholesale or for retail sale, shall be granted subject to the provisions of the Punjab Excise Act, 1914 and the Rules/ Regulations/ Instructions/ Policies framed there under from time to time as applicable to U.T., Chandigarh. No whole sale liquor licence shall be granted/ renewed in a residential area.
    In order to promote ‘Swach Bharat Abhiyan’, the retail licensees shall maintain cleanliness and hygiene in and around the shop. Adequate number of dustbins shall be placed inside and outside the vend. Non-compliance of this provision will attract a penalty of Rs. 10,000/- for the first time and subsequent non-compliance, a penalty of Rs. 20,000/- shall be imposed by the Collector. The Retail Sale licensees will make adequate fire safety arrangements.
    In addition, the licensee shall display the sale price of popular brands.
  9. Bonded Warehouses will be required to have separate premises for their L-1B’s and L-13’s. All the wholesale licensees will make adequate fire safety arrangements.
  10. L-10B Licence to Departmental Sores
    Sale of Imported Foreign Liquor, Imported Beer, Imported Wine, Indian Wine, and Ready to Drink Alcoholic Beverages upto 20 degree proof strength (except Indian Made Beer) will be allowed at Departmental Store having license in form L-10B. The L-10B licence may be granted to a Departmental Store having minimum annual turnover of taxable products other than liquor, amounting to Rs 1 Crore in the preceding year. For the grant of new license, it would be necessary for the departmental store to be in existence for the last two years. Tasting Sessions will also be allowed in a Departmental Store, provided that the licensee erects a separate screened enclosure in the store for this purpose. The minimum annual quota of IFL to be lifted by a L-10 B licensee is fixed at 3,000 PL. The licensee has to lift at least 25% of minimum annual quota of IFL by the end of each quarter and in the last quarter by 28.02.2021. Any excess lifting in a quarter can be adjusted in the subsequent quarter. In case of non-lifting of allotted quota on quarterly basis, the licensee shall be required to pay a penalty of Rs. 400/- per Bulk litre before seeking pass/permit for next quarter. No permit/pass will be issued to the concerned L-10B licensee till the payment of penalty on un-lifted quota. Further, the licensee can lift the un-lifted quota in the next quarter and by 10th of March, 2021 in case of 4th quarter. However, the penalty shall be in addition to the assessment fee (in case of IFL) on un-lifted quota. The penalty on un-lifted quota is neither refundable nor adjustable against any Govt. Dues. The L-10B licence will be non-transferable & non-shiftable. Departmental store should be of at least 1000 sq feet attached carpet area having a common entrance and having different segments of minimum of six categories of goods out of the following categories: (i) Grocery items (ii) Frozen foods, (iii) Sugary & Bakery items, (iv) Toiletries, (v) Cosmetics, (vi) House hold goods (vii) Toys, (viii) Sports items, (ix) Electronic appliances, (x) Apparels, (xi) Office-Stationery, (xii) Gift items, (xiii) any other goods. The licensee shall be allowed to store and sell liquor upto 25% of the carpet area of Departmental Store separately earmarked for the liquor. The closing time for L-10B licensees i.e. Departmental Stores will be governed as per the provisions contained in the Punjab Shops and Commercial Establishments Act, 1958 (as applicable in U.T., Chandigarh). Any violation of the terms and conditions of the licence shall lead to cancellation of the licence. All L-10B licensees will make adequate fire safety arrangements.
    The Chandigarh Administration reserves the right to refuse to grant the new L-10B licence to a departmental store if the grant of new L-10B licence impacts the regular sale business of a nearby licencing unit.
  11. Fixed Basic Quota
    The total basic quota to be allotted will comprise of 100 Lac Proof Litre of Indian Made Foreign Liquor (IMFL) and 8 Lac Proof Litre of Country Liquor (CL) and 3.30 Lac Proof Litre of Foreign Liquor (Bio Brands i.e. Whisky). The quota of Foreign Liquor (Bio Brands i.e. Whisky) has been fixed in interest of the Government Revenue and to curb the illegal inflow of Bio-Brands into U.T., Chandigarh from the neighboring States.
  12. Retail sale vends shall be allotted in the form of licensing units. Each licensing unit will comprise of Country Liquor and Indian Made Foreign Liquor including Imported Foreign Liquor under one roof.
  13. Mode of Allotment
    The allotment of vends shall be made by inviting e-tenders through Chandigarh Administration e-tender portal i.e. https://etenders.chd.nic.in in a completely secure and transparent manner. The detailed procedure for e-tendering shall be finalized by the Excise & Taxation Commissioner-cum-Financial Commissioner which shall be displayed by uploading the same on the official website of the Department i.e. www.etdut.gov.in/exciseonline. It shall be the responsibility of the vendor to arrange suitable premises to operate the liquor vend. A bidder can apply for any number of licensing units separately. However not more than one bid can be submitted by a company/firm/person for one particular licensing unit. To curb the menace of cartelization and monopolistic practices, a single person/entity will be entitled to allotment upto a maximum of 10 vends only. Further, after first attempt, if deemed fit, the Department may go for any number of rounds of e-tenders for allotment of un-allotted licensing units. Moreover, after the completion of all rounds of tenders, the quota of un-allotted licensing unit/s (if any) will be distributed equitably amongst the allotted licensing units for the year 2020-21.
  14. In case, highest bidder either surrenders or fails to deposit the first installment of licence fee in stipulated period, his/her earnest money will be forfeited and the second highest bidder will be considered as successful bidder for allotment of the licensing unit provided the second bid is at least equal to the Highest bid minus the forfeited earnest money. On the same principle offer will be extendedto 3rd bidder. However, in case third bidder fails or his bid does not fit into above principle again e-tendering will be done. The reserve price for the unsold licensing units will be fixed by committee comprising of Excise and Taxation Commissioner as Chairman, Addl. ETC and AETC as its members. The decision will further be approved by Finance Secretary.
  15. While submitting e-bid, the bidder will be required to submit online documents i.e. Photograph, age proof, residence proof, proof of identity, copy of PAN of self or of all partners, copy of Aadhaar Card of self or of all partners, partnership deed of a partnership firm and eligibility affidavit under order 7 of Punjab Intoxicants Licence and Sales Orders, 1956 (as applicable to U.T. Chandigarh) of self or of all partners.
  16. In case of companies, while submitting the e-bid, the company will be required to submit online documents i.e. Photograph, age proof, residence proof, proof of identity of authorized person & all the Directors, Registration Certificate issued by the Registrar of Companies under the Companies Act, 1956, a copy of PAN Card in the name of company as well as of authorized person and all the Directors, list of Board of Directors, Director Identification Number (DIN), copy of Aadhaar Card of authorized person & all the Directors, a resolution passed by the Board of Directors authorizing any person to apply on behalf of the company and eligibility affidavit under order 7 of Punjab Intoxicants Licence and Sales Orders, 1956 (as applicable to U.T. Chandigarh) of authorized person & all the Directors.
  17. Participation Fee of Rs. 3,50,000/- (non-refundable/non-adjustable) inclusive of GST (if any) and Earnest Money as given in Annexure-A shall be submitted by the tenderer online.
  18. In case of non-submission of e-bid, the participation fee submitted by the bidder will stand forfeited.
  19. The licence will be allotted to the highest eligible tenderer (offering highest bid), quoting bid equal to or above the reserve price for a particular licensing unit. In case, more than one bid quoting the same highest price are received, the successful tenderer/bidder will be determined by a draw of lots amongst the tenderers quoting the same highest amount. In case, there is no bid or no eligible bid equal to or above the reserve price, the bids will be invited again.
  20. Financial Terms
    The successful bidder will be required to deposit a security amount equal to 15% of total bid amount from the date of allotment. The security money equal to 10% of bid money will be payable in the Govt. Treasury or in the form of Demand Draft (adjustable against license fee) within seven days from the date of allotment and rest of the security money equal to 5% of bid money in the form of Bank Guarantee (non-adjustable in the license fee but refundablesubject to clearance of all dues) will be payable by the 7th of April 2020 and in case, the allotment of retail sale licensing unit is done after 31st of March 2020, the security money equal to 10% of bid money along-with 5% of Bid Money in the form of Bank Guarantee will be payable within seven days from the date of allotment. The earnest money paid with the application/tender document will be adjustable in the security money. If the successful bidder fails to comply with the aforesaid condition of payment of security equivalent to 10% of bid money in the prescribed period, the earnest money shall stand forfeited. In such a case, the liability of the highest tenderer will be limited only to the extent of earnest money tendered by him with the tender document but, however, any other allotment in which he is a stake holder shall also be cancelled and the respective deposits made in the form of earnest money or security shall be forfeited and he will not be allowed to participate as a stake holder in any of future allotments during the year 2020-21
  21. Location of Liquor Vends
    The licences will be granted at the locations notified in the Excise Policy. These licences will be granted in SCO/SCF/Shop/Booth, etc. in sectors, Industrial Areas, NAC, Re-habilitation colonies. The Department will not be responsible for providing space for opening of liquor vends. Further as per guidelines of the Apex Court, the sale of liquor shall be permitted only through licensed liquor vends which shall not be located within motorable or walking distance of 500 meters from the outer range of the National or State Highway or by a service lane along such highway and such liquor vends shall neither be directly visible nor accessible from such National or State Highway {Provided that the above restrictions shall not apply to the licensed liquor vends located within the limits of Municipal areas}.
    In case, a successful bidder fails to arrange suitable/eligible premises within 30 days from the date of allotment, the 15% of bid money paid by him as security will be forfeited and the e-bids will be invited again for the said licence after re-fixing the reserve price for the remainder period of the licence. Liability of a bidder in such case will be limited upto 15% of bid money. Further the liquor vends can be opened by the licensee at the premises/ pucca structure/ shops owned by the Chandigarh Administration in the respective areas as mentioned in the Excise Policy for the year 2020-21, with the approval of the Competent Authority. The rents thereof as decided by the concerned Competent Authority shall be paid by the licensee to the Department.
  22. The Excise and Taxation Commissioner-cum-Financial Commissioner will be the competent authority for approving any additional clause in terms and conditions of e-tender or procedure to be adopted for finalizing the tenders.
  23. The process of allotment shall be conducted by a committee comprising of Collector (Excise), Sub-Divisional Magistrate and Asstt. Excise and Taxation Commissioner. The Chandigarh Administration shall appoint Senior Officer from the Administration, as observer, who will supervise the proceedings.
  24. The whole process of allotment shall be video graphed.
  25. The allotment shall take place at duly publicized venue on the date and time to be fixed by Excise and Taxation Commissioner, U.T. Chandigarh.
  26. Online Acknowledgment Slip generated by the system will be the pass for the entry to the venue of allotment. If any person commits misconduct at the venue, he/she shall be debarred from participating in the proceedings and his/her earnest money will be liable to be forfeited.
  27. Verification of particulars would be made in respect of the successful allottees before the license is actually granted. The verification of documents furnished by the successful allottee shall be made by the Excise Inspector of the respective circle.
  28. The list of successful allottees shall also be displayed at a conspicuous place in the office of the AETC.
  29. The licences shall be granted by the Collector (Excise) after the approval of the Excise and Taxation Commissioner, U.T. Chandigarh.
  30. All licences, whether for wholesale or retail sale, shall be granted subject to the provisions of the Punjab Excise Act, 1914 and the Rules/ Orders/ Regulations/ Instructions/Policies framed thereunder from time to time as applicable to U.T. Chandigarh and all other instructions / orders/ circulars issued by the Excise & Taxation Commissioner-cum-Financial Commissioner, U.T. Chandigarh from time to time.
  31. No interest will be payable on the earnest amount.
  32. In case any situation arises, where re-allotment of a licence is required, the reserve price will be fixed by computing it from the original license fee for the remainder period or the balance license fee as may be decided by the Department. In case no bid is received at this reserve price, the procedure prescribed for un-allotted licenses will be followed for allotment of that license. The re-allotment will be done at the risk and cost of original allottee. In case of any deficiency in the revenue, the balance/deficient amount will be recoverable from the original allottee as arrears of land revenue but in case a higher bid is received, no benefit will be given to the original allottee.
  33. Every successful allottee shall be required to furnish surety bond in Form M-75 with two sureties before the commencement of business.
  34. Solvency Certificate
    In case of Individual/Partnership Firm, the successful bidder has to submit aSolvency Certificate duly attested by “Tehsildar‟ equivalent to the 20% of the amount of bid money within 15 days from the date of allotment.
  35. Payment of Licence Fee in Installments
    After adjusting the amount of security money equal to 10% of bid money deposited in the form of security against license fee, the licensee will be required to pay the remaining license fee in ten equal installments of 9% of the total bid amount. In case of late payment of any installment an interest @1.5% per month to be calculated on daily basis shall be charged. The license shall be deemed to have been suspended and the licensing unit will be closed if theentire license fee of the month is not paid by 15th day of the next month. The licensee shall have to pay the balance installment along with interest to get his license operational. The balance security money equal to 5% of bid money furnished in the form of Bank Guarantee shall be refunded after clearance of all the dues, if any, pending towards the licensee.
  36. i) Distribution of Quota: – Total Basic Quota of Indian Made Foreign Liquor, Foreign Liquor (Bio Brands i.e. Whisky) & Country Liquor of the licensing units mainly will be in proportion to the Reserve Price of the licensing unit. However, keeping in view the less demand of Imported Foreign Liquor in village shops and the Country Liquor in main city Shops, the basic quota of the Foreign Liquor (Bio Brands i.e. Whisky) and Country Liquor of 14 vends are suitably rationalized as per Annexure ‘B’. Further it is hereby clarified that 14 liquor vends which have been identified as City Shops on the basis of sale of IFL(Bio Brands i.e. Whisky) and Country Liquor, where the quota of IFL (Bio Brands i.e. Whisky) & Country Liquor have been rationalized, are vend code nos. 1, 3, 4, 5, 6, 9, 20, 21, 22, 31, 37, 44, 45 & 69. Similarly 14 liquor vends which have been identified as Village Shops on the basis of sale of IFL (Bio Brands i.e. Whisky) & Country Liquor, where the Quota of IFL(Bio Brands i.e. Whisky) & Country Liquor have been rationalized, are vend code nos. 53, 55, 56, 72, 83, 84, 85, 88, 89, 90, 92, 93, 94 & 95.
    ii) Change of quota: – The licensee can convert 10% of his basic quota of Foreign Liquor (Bio Brands i.e. Whisky) into Indian Made Foreign Liquor and can also convert 10% of his basic quota of Country Liquor into Indian Made Foreign Liquor. However, this option of conversion of Country Liquor into IMFL may be exercised only in respect of owned registered brands of IMFL of Local Manufacturing/ Bottling Plants. But there will be no conversion of Indian Made Foreign Liquor which is fixed vend wise. Levies shall be payable as applicable according to the kind of liquor to be lifted.
    iii) Monitoring of Quota: – Each licensing unit licensee shall be required to lift the basic allotted quota of IFL, IMFL and country liquor fixed for his licensing unit, as per the below given schedule:-

    Sr. No. Period Quota to be lifted
    1 upto 30.06.2020
    (Ist Quarter)    		 Min 20% of the total allotted quota of each of IFL, IMFL and country liquor
    2 upto 30.09.2020
    (IInd Quarter)    		 Min 45 % of the total allotted quota of each of IFL, IMFL and country liquor
    3 upto 31.12.2020
    (IIIrd Quarter)    		 Min 75% of the total allotted quota of each of IFL, IMFL and country liquor
    4 upto 28.02.2021 100% of the total allotted quota of each of IFL, IMFL and country liquor

    iv) In case of non-lifting of allotted quota on quarterly basis, the licensee has to pay a penalty of Rs. 60/- per proof litre on country liquor and Rs. 125 per proof litre on IMFL and Rs. 400/- per proof litre on IFL(Bio Brands i.e. Whisky) before seeking pass/permit for next quarter. In case the quota shortfall of a quarter is made up in subsequent next quarter, penalty so recovered shall be adjusted against payable Govt. Dues, but the penalty amount paid for non-lifting of quotain the 4th quarter, will not be adjusted against payable Govt. dues being last quarter of the year. No permit/pass will be issued to the concerned L-2/L-14A licensee till the payment of penalty on un-lifted quota.
    v)     The licensee can lift the un-lifted quota in next quarter and by 10th of March, 2021, in case of 4th quarter after the payment of penalty on un-lifted quota. The penalty shall be in addition to the assessment fee (in case of IMFL) on un-lifted quota and shall neither be refundable.
    vi) Additional Quota: – Each licensing unit licensee will have an option to lift an additional quota, upto maximum of 50% of the basic Quota as given in the Annexure-B on payment of additional amount of license fee, equal to Tendered License Fee divided by Total Basic Quota of IMFL, IFL and Country Liquor allotted for the Policy Year multiplied by Additional Quota demanded. Other levies shall be payable as applicable according to the kind of liquor to be lifted. In this additional quota, he will have the option of lifting of IMFL, IFL or Country liquor irrespective of the kind of liquor of his basic quota.
    vii) Stock Transfer Fee:- An outgoing licensee will be allowed to transfer the left over stock of IMFL, IFL, Beer, Wine, Ready-to-Drink Beverages etc. at the end of the term to an incoming licensee (in accordance with the provisions of Punjab Liquor Licence Rules, 1956 as applicable to UT, Chandigarh) on payment of stock transfer fee @ Rs.5/- per Proof Litre on Country Liquor, Rs. 10/- per proof litre on IMFL/IFL and Rs.5/- per Bulk Litre on Beer, Wine, RTD,Champagne, Cider, etc. However, this quota shall not exceed two month’s basic quota of an incoming licensee of year 2020-21 and this quota will be in addition to the quota fixed for that licensing unit for the period of tender. Further any difference in the rate of extra license fee/excise duty and Assessment fee over the last year’s Extra License Fee and Assessment fee on left over liquor will be recoverable as fee from the incoming licensee. The lifting of Beer by a licensing unit will not be a part of above said quota fixed for the licensing unit. Similarly, wines, champagne, cider, ready to drink beverages, liqueurs, etc. will not be a part of above said quota fixed for the licensing unit.

  37. It shall be mandatory for all the retail sale licensees to issue invoice for sale at their vends. It will also be mandatory for the retail sale licensees to provide an alternate option of payment to the customer instead of cash payment i.e. POS machines at sale points is being introduced.
  38. Possession Limit: Quantity of purchase and possession of liquor by an individual for Country liquor, IMFL/IFL, Beer and Wine is fixed as under:
    1.Country Liquor: 6 Bottles of 750 ml
    2.IMFL/IFL:-12 Bottles of 750 ml or two bottle of higher measure.Beer:
    3. 12 Bottles of 650 ml.
    4. Wiine: 12 Bottles of 750 ml.
    The fee for the grant of L-50 shall be Rs 1000/- for Excise Policy Year and Rs 5000/- for life time. The private possession limit will be as under :-
    1. IMFL/IFL 36 Quarts of 750 ML.
    2. Beer 72 Bottles of 650 ML
    3.Wine 36 Bottles of 750 ML
  39. Location of Liquor vendsNo liquor vend shall be permitted to be opened near (not less than 50-meters from) main gate of any place of worship and School/ Colleges. The distance shall be measured from the main entrance of the liquor vend. However, this provision will not apply in such cases where a new school/ College or a place of worship comes up within a distance of 50 meters during the currency of the year subsequent to the establishment of vend in the year 2020-21.
    The Administration/Department reserves the right to refuse permission for a particular location for the reasons of public morality, public health and public order.
  40. Dry Days
    The dry days of 15th August and 26th January, to be observed upto 05:00 PM and 2nd October for whole day. The dry-days as notified/ directed by the Election Commission of India / State Election Commission will also be observed as Dry Days. If any breach of dry day is detected, in addition to the penal proceedings, the licensed vend shall be automatically sealed for three days commencing from the next day of the dry day by AETC under intimation to the Excise and Taxation Commissioner and Collector (X). The licensee shall not be entitled to any compensation of any kind or relief in license fee or quota on account of such closure.
  41. Working Hours for liquor vends
    9 AM to 11 PM throughout the year.
  42. About Bar Licences
    Hotels and Restaurants will be allowed to apply the licence in form L-3/L-4/ L-5, L-3A/ L-4A/L-5A, L-10A, L-10AA before the commencement of their operations. However the licence will be granted only after the commencement of the operations of Hotel/Restaurant. The holder of licence in form L-3/L-4/L-5, L3A/4A/5A shall be eligible to apply for the grant of L-10C (Micro-Brewery) licence only after 15 days from the grant of licence in form L-3/L-4/L-5, L-3A/4A/5A. It will be mandatory for the licensees to provide the facility of alcometer to the consumers for voluntary assessment of alcohol level at the Bar Licence premises of the hotels/ restaurants serving alcohol and a signage at the proper place mentioning clearly the permissible limits of consumption of alcohol as per relevant laws and also mentioning thereof ‘Be Safe-Don’t Drink and Drive’.
    Bar Licences to be allowed to have an additional bar in the establishment on payment of 50% of the license fee of the bar and an additional place to serve liquor from the bar on payment of 10% of the license fee of the bar.
    The bar timings for the purpose of sale, service and consumption will be 11:00 M to 01:00 AM (past mid-night) throughout the year, except on dry-days and the last order for liquor will not be booked after midnight i.e. 12 O’clock.Five Star or above category Hotels are allowed to serve liquor round the clock to promote tourism. After allowing this facility, the annual licence fee of these hotels will be of Rs. 15 lacs.Being L-3 Licence holder, the Facility of Mini Bar for the occupants in all the rooms of the 5 Star Hotel & above will also be covered in this licence fee.
    5 star and above category hotels having L-3, L-4 and L-5 licences will be allowed to procure their requirements of Imported liquor (BIO Brands) also from authorized sources outside U.T. Chandigarh on payment of the label registration fee and all the excise levies applicable to L-1F/L-1DF and L-3/L-4/L-5 licensees.
  43. Taverns to continue with a licensing unit at licence fee mentioned in Annexure C in order to prevent rowdy and drunken behavior of the public. No tavern will be allowed to function in an open space without surrounded by 4 walls with concrete roof and strictly as per provisions of the Excise Laws. The Tavern shall be located in separate premises from the vend by metes and bounds. Tavern attached to licensing unit to have eight tables (minimum) with seating capacity of 40 persons, to have temperature control system within the premises, clean and modern toilets and cutlery and crockery of good standard and also to be registered with FSSAI. In order to improve the ambience and functioning of Tavern attached to a licensing unit, there shall be provision of metered electric and water supply and there should be proper system of garbage collection and disposal along-with separate kitchen, tiled flooring in kitchen, seating hall and toilets. All the licensees will make adequate fire safety arrangements.
  44. The Collector may refuse to grant a licence for Tavern in exercise of the powers conferred under section 35 of the Punjab Excise Act, 1914 as applicable to UT, Chandigarh.
  45. Holograms/Intaglio printed security labels with holograms on packings/bottles of country liquor, Indian Made Foreign Liquor and Imported Foreign Liquor (excluding Beer, Wine, Champagne, Liqueurs and RTD etc.) will be mandatorily affixed by licensee at his own expense except on liquor sold at L-9 licensee.
  46. Checking by Health Department
    No officer of Health Department to take action or check the quality of liquor produced and sold in U.T., Chandigarh except along with the Excise Officer not below the rank of Excise Inspector.
  47. Checking of vends by Police Officer
    Gazetted officers of the rank of DSP and above to check the excise vends after taking with him an excise officer not below the rank of Excise Inspector.
  48. Size of Excise Bottles: –
    The size of bottles will be as given below:-

    750 ML All type of liquor except beer
    375 ML All type of liquor except beer
    180 ML All type of liquor except beer
    90 ML All type of liquor except beer
    1000 ML IMFL/IFL
    1.25 L IFL
    2.25 L IFL
    4.5 L IFL
    650 ML Beer
    325/330 ML Beer
    500 ML Beer
    275 ML RTD and Wine
    60 ML IMFL/IFL

    The Excise and Taxation Commissioner may allow any other size in case of imported liquor and reputed/popular IMFL brands.

  49. Strength of liquor to be sold
    Standard strength of IMFL to be sold in U.T. Chandigarh shall be 75 degree. However Excise Commissioner is empowered to allow sale of IMFL/IFL of any strength other than the standard strength to facilitate opening up market to all reputed/popular liquor brands.
  50. Assessment Fee shall be charged at the time of grant of permits, at the rates as prescribed in the Annexure ‘F’.
  51. The various excise levies as mentioned in the Annexure D, E & F, if not mentioned elsewhere in the Excise Policy, shall be charged.
  52. Transfer of allotment
    The successful allottee would have the option to get his/her allotment of licensing unit transferred before or after the grant of license. However, such transfer shall be on the basis of following terms & conditions:-
    i) The successful allottee/ original licensee shall be required to deposit 1% of the license fee of the licensing
    unit  as transfer fee.
    ii) The successful allottee/ original licensee should not be a defaulter of revenue at the time of transfer of license.
    iii) Only one transfer will be allowed during the currency of the year.
    iv) Before transfer of the licence of licensing unit, the prospective licensee shall submit all the required documents
    prescribed under the Excise Policy/Act/ Rules as applicable to U.T, Chandigarh.
    v) The request made by the successful allottee/ original licensee for the transfer of licence shall be subject to
    confirmation/approval by the Collector.
  53. Franchise Fees
    Franchisee Fees of Rs 3/- per PL shall be charged on bottling on franchise basis of brands of IMFL and Beer meant for export as well as for local consumption.
  54. Import Fees
    In order to generate more revenue, the import fees @Rs 22 per PL in case of IMFL/IFL/CL shall be leviable. In order to promote Indian Beer & Wine Industry there is no change in import fee on Indian Beer & Wine and the same shall be leviable @Rs 5/- per BL in case of Beer/RTD/Liqueur & @ Rs. 4 per BL in case of Indian Wine.
  55. Export Fee
    In order to promote exports, the Export Fee has been reduced from Rs. 0.75 per PL to Rs 0.50 per PL and shall be charged on the export of Country Liquor and IMFL
  56. L-10C LICENCE FOR MICROBREWERY PROJECTIn order to shift people from hard liquor to liquor with low alcoholic content, a license in form L-10C may be granted for retail sale of beer to be manufactured by Microbrewery. The licence may also be granted independently on payment of Annual License Fee of Rs. 6 Lac. The Excise Duty shall be charged on the basis of its annual installed capacity of fermenting tanks @ Rs 30/- per BL annually and paid in equal quarterly installments and each installment will bepaid by 15th of the start of the month of the each quarter failing which an interest @ 1.5% will be paid alongwith the duty.The licensee shall arrange to check the quality of raw materials used and the beer produced in the microbrewery by a chemist holding a degree in biochemistry/ specialization in the alcohol technologyThe beer produced in the Microbrewery shall be released for sale only after the said chemist certifies that such beer is fit for human consumption on daily basis
  57. GRANT OF ADDITIONAL GODOWNS
    In case of retail sale vends (L-2/L-14A), an additional godown shall be granted on extra fee of Rs 3.0 Lac per annum within the radius of 250 meters of an existing vend. The Excise & Taxation Commissioner-cum-Financial Commissioner, Chandigarh can relax this condition in exception cases. For Additional Godown, the licensee has to comply with all the regulations and stipulations of opening of the retail outlets with regard to location and other terms & conditions thereof.
  58. Registration of Banquet Halls
    The registration of Banquet Halls/Marriage Palaces/except Chandigarh Municipal Corporation Community Centers, etc. by applying for Licence in Form L-5D for serving of liquor in functions organized in these places will be mandatory. The licence fee of this licence is fixed at Rs 50,000/- per policy year.
  59. Leasing of Whole or a part of B.W.H.-2(bottling plant)
    The Excise Commissioner may on the request of the licensee, allow lease of a whole or a part of the licensed premises of a B.W.H.-2 (bottling plant), if he deems it appropriate, on payment of a fee of Rs 10,00,000/- (Rupees Ten Lacs only).
  60. Shifting of Godown
    The wholesale licensee i.e. L-1B, L-1C,L-1C1, L-1D,L-1DF,L-1F & L-13 will be allowed to change/shift their licensed premises during the policy year on a payment of Rs 50,000/- per license.
  61. Overtime in case of BWH-2 licence
    The BWH-2 licensee will be allowed to continue their bottling operations on any holiday or after 05:00 PM by depositing a fee of Rs 5000/- for one holiday and Rs 1000/- for working after 05:00 PM till 07:00 PM. No Dispatches of liquor will be permissible to the Distilleries/ Bottling Plants after 05:00 pm
  62. In order to generate more revenue and to stop the illegal sale and service of liquor as well as to facilitate the prospective bar license applicants & general public, the license in form L-12AA will continue in current year Excise Policy 2020-21.A Licence in Form L-12AA (TEMPORARY LICENSE FOR RETAIL VEND OF FOREIGN LIQUOR, BEER & WINE AT A HOTEL/RESTAURANT) may be granted by the Collector (Excise) to the prospective bar licensee after duly examining the merits of the case & on payment of Rs.15,000/- per day. The L-12AA licence will be granted maximum for 10 days in a month and only till the regular bar licence is granted.
  63. Penalty for non maintenance of Minimum Rates:-
    In case of non maintaining the Minimum Retailsale Price by the retailsale(L-2/L-14A) licences, the following amount of penalty may be imposed by thecompetent authority on the retailsale (L-2/L-14A) licensee: –
    1st Time: –     Rs 1 lacs
    2nd Time: –     Rs. 2 lacs
    Thereafter, if any violation w.r.t. non-maintenance of Minimum Retailsale Price is detected, the retailsale (L-2/L-14) license of that licensing unit will automatically be suspended on detection of breach for the day of detection and two days following it. The vend shall be sealed by the Assistant Excise & Taxation Commissioner for this period with prior intimation to the Excise & Taxation Commissioner and Collector (Excise). The seal of vend shall be in addition to any other penal proceedings under the Law that may be initiated.
  64. In the Excise Policy Year 2020-21, a licence in Form L-2D (Retail vend of Imported Wine, Indian Wine & Imported Beer for consumption off the premises) will continue with addition of RTD. The Collector (Excise) may grant the L-2D licence on payment of licence fee of Rs. 2 lac for a policy year, to the following:-
    1. Shop/establishment registered under the “Goods and Service Tax Act, 2017”/ “Punjab VAT Act, 2005” and “The PunjabShops and Commercial Establishments Act, 1958” in U.T. Chandigarh in an approved commercial market, Petrol Pumps or shop or in a mallhaving minimum covered area of 300 sq. ft.
    2. Commercial establishments running with the following business and having minimum turnover of Rs. 50 lacs (Under the Goods & Service Tax Act, 2017 or under the Punjab VAT Act, 2005 (as applicable to U.T. Chandigarh) during the year 2019-20: –
    001. Establishments for the retail sale of petrol and petroleum products used for transport.
    002. Establishments for the retail sale of confectionery/Bakery items.
    003. Departmental Stores.
  65. Compensation
    No compensation of any kind or relief in license fee on account of natural calamity such as fire, floods, drought, earthquake etc. or on account of riots or as a result of preventive closure ordered by the Chandigarh Administration or as a result of any remission by a court order beyond the specific relief given, shall be admissible to the licensee. The closure of any liquor vend in any area on account of any reason, whatsoever, shall not entitle the licensee to claim any rebate/reduction/refund of licence fee.
  66. Ban on Advertisements
    The licensee can at no time advertise the sale of liquor by announcing it on loudspeakers or by any other means. All signages and advertisements of the availability of liquor shall be prohibited
  67. Installation of CCTV Cameras in the Bottling Plants
    In order to monitor the bottling operations and dispatches of liquor, an integrated CCTV mechanism should be installed in the bottling plants and the expenditure for this will be borne by the licensees.
  68. Cow Cess
    Chandigarh Administration has notified vide notification bearing no. 6/1/1137-FII(9)-2020/1808 dated 30th January, 2020 the levy of Cow Cess to be applicable from 01st April, 2020. This cess will be levied @ Rs. 5 per bottle of 750 ml of Country Liquor, Rs. 5 per bottle of 650ml of Beer and Rs. 10 per bottle of 750 ml of whisky and will be deposited by the wholesale licensees in the dedicated bank account of Municipal Corporation.
  69. Digital India Program
    To promote Digital India Program the arrangement of online deposit of excise revenue has been started and the payment of all the amounts relating to the excise revenue will be made through electronic payment platform like Debit Cards, Credit Cards, RTGS, NEFT and other such mediums apart from the cash payments.
  70. Ease of Doing Business
    The Excise & Taxation Department in order to promote ease of doing business will provide the facility of online issuance of permit/ passes local as well as for import so that there is minimum physical interface and subsequently grant of all licences and approval of labels will also be made online.
  71. At present total 12 B.W.H.-2 (Bottling Plants) licences have been granted by the Department, which is high in number as compared to the neighboring States. Therefore, no new BWH-2 (Bottling plant licence) will be granted during the Policy Year 2020-21.
  72. Power to remove Difficulties:-
    If any difficulty arises in giving effect to the provisions of the Excise Policy, the Excise & Taxation Department with the approval of the Administrator, U.T., Chandigarh may, by order, make such provisions, including any adaptation or modification of any provision of this policy, as appear to the Excise & Taxation Department to be necessary or expedient for the purpose of removing such difficulty.

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