Assam State Excise List

OFFICE OF THE PRINCIPAL ACCOUNTANT
GENERAL (AUDIT) ASSAM, GUWAHATI
REVENUE AUDIT MANUAL

ON
ASSAM STATE EXCISE
PREFACE TO THE FIRST EDITION

This Manual has been prepared for guidance of the Officers and Staff
auditing State Excise receipts and refunds. In this Manual the relevant provisions of the
law and procedure for assessment and collection of excise duty have been set out. If in the
course of audit reference has to be made to the Act or Rules famed thereunder, such as
reference should be made to the Sections, Rules of the Various Acts and Rules framed
thereunder and not to paragraphs of this Manual.
The material contained in this Manual may require modification in the light
of further experience gained in the course of audit and subsequent orders and instructions
issued by the State Government of Assam.
The Receipt Audit Wing (Assam) will be responsible for keeping the
Manual upto date.
The Manual should be treated as a guide only and the audit checks
indicated should be taken as exhaustive.
Errors or omission in the Manual may be brought to the notice of the
Principal Accountant General (Audit), Assam to whom suggestions of improvement may
also be sent.
Dated: Guwahati
The October1999
Pr. Accountant General (Audit), Assam
PREFACE TO THE SECOND EDITION

The materials contained in the 1 st Edition of this manual compiled in 1999
has been modified on the basis of important/orders/instruction issued by State
Government.
2.
All out efforts have been made to include all the available fresh materials to
make the manual truly useful to all concerned.
3.
The important points to be seen during audit have also been set out in the
manual. These are, however, in the nature of guidelines and do not profess to
be an exhaustive list.
4.
Though the instructions contained in this Manual needful compliance, but these
do not debar audit staff from looking out for any other point of interst during
the course of audit.
5.
Receipt Audit Wing (State) headquarters will be responsible for keeping the
manual up-to-date.
6.
An error/omission noticed in the Manual and suggestion for its improvement

may be brought to the notice of the Pr. Accountant General (Audit) Assam,
Guwahati.
Guwahati
Dated October 2007
Pr. Accountant General (Audit),
Assam
TABLE OF CONTENTS
Chapter
Para No.
I.
Introductory
1.1. 1.2
II.
Organisation and Functions of the Excise Department
2.1 2.3
III.
Distilleries
3.1 3.9
IV.
Breweries
4.1 4.13
V.
Liquors
5.1 5.20
VI.
Bonded Warehouses
6.1 6.17
VII.
Pharmacies
7.1 7.16
VIII.
Miscellaneous Provisions
8.1 8.34
IX.
Scope and extent of Statutory Audit
9.1 9.8
X.
Duties of the Inspection Party
10.1 10.4
XI.
Questionnaires
11.1 11.8
XII.
Audit of Internal Controls
12.1 12.2
CHAPTER I
INTRODUCTORY
1.1
Constitutional Provisions:
The power of the State Government to levy and collect the State Excise
duties is derived from Articles 246 of the Constitution of India and entry 51 of list II state
list of Seventh Schedule thereto. Duties of Excise on alcohol or opium, Indian Hemp and
other narcotic drugs and narcotics in Assam are levied and collected under the authority of
the central and state laws and rules made thereunder.
(a)
Central Law: The Medical and Toilet preparation (Excise duties) Act, 1955
and rules made thereunder providing for the levy and collection of excise duties on
medical and toilet preparations containing alcohol, opium, Indian hemp or other narcotic
drugs or narcotics.
(b)
State Law: The Assam Excise Act, 1910 and rules made thereunder,
namely the Assam Excise Rules, 1945; Assam Bonded Warehouse Rules 1965; The
Assam Distillery Rules (1945), (framed under the Assam Excise Act, 1910); The Assam
Liquor prohibition Act, 1952; The Assam Liquor Prohibition Rules, 1953; The Assam
Opium Smoking Act; 1972; The Assam Opium Amendment (Autonomous Districts) Act,
1954; The Assam Opium (Amendment) Act, 1933; The Assam Opium Prohibition Act,
1947; The Assam Opium Rules (1945); The Assam Dangerous Drugs Rules, 1937; The
Assam Ganja and Bhang Prohibition Act 1958 and The Assam Ganja and Bhang
prohibition Rules 1960.
1.2.
Definitions:- In this Act, unless there is anything repugnant in the subject or
context.
(1)
To bottle means to transfer liquor from a cask or other vessel to a bottle, whether
any process of rectification be employed or not and includes re-bottling.
(2)
collector includes the District Collector and in any provision of this Act includes
also any officer whom the State Government may be notification declare or appoint
to be a collector for the purpose of that provision.
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(3)
District Collector means the chief officer in charge of the revenue administration
of a district.
(4)
(5)
Excisable articles means

(a)
any alcoholic liquor for human consumption or
(b)
any intoxicating drug.
Excise duty and countervailing duty means any such excise duty or countervailing
duty as the case may be as mentioned in entry 51 of list II in the Seventh Schedule to
the constitution.
(6)
Excise Commissioner means the officer appointed by the State Government.
(7)
Excise officer means a collector or any officer or other person appointed or

invested with powers by the State Government.
(8)
Excise revenue means revenue derived or derivable from any duty, fee, tax,
penalty, payment or confiscation imposed or ordered under the provisions of the Act,
or any other law for the time being force to liquor or intoxicating drugs.
(9)
Export means to take out of the territory to which this Act applies, therewise than
across a custom frontier as defined by the Central Government.
(10) Import means to bring into the territories to which this Act applies otherwise than
across a custom frontier as defined by the Central Govt.
(11) Intoxicant means any liquor or intoxicating drugs.
(12) Manufacture includes any process whether natural or artificial by which any
intoxicant is produced or prepared, also redistribution and every process for the
rectification, flavoring, blending or coloring of liquor.
(13) Place includes a house, building, shop, tent, vessel and vehicle.
(14) Expression referring to sale include any transfer otherwise than by way of gift.
(15) Spirit means any liquor containing alcohol, obtained by distillation, whether it is
denatured or not.
(16) Tari means, juice, whether fermented or un-fermented, drawn from any kind of
palm free.
(17) Denaturant means any substance prescribed by rules made in this behalf for
admixture with spirit in order to render the mixture unfit for human consumption,
whether as a beverage or internally as a medicine or in any other way whatsoever.
(18) To denature means to mix spirit with one or more denaturants in such manner as
may be prescribed by rules made in this behalf and denatured spirit means spirit so
mixed.
(19) Transport means to more from one place to another within the territories to which
this Act applies.
1.3 Before taking up the audit, the audit parties are required to be conversant with the
provisions of these laws and rules framed thereunder, so that to objection which is
contrary to any provision of law or rules is incorporated by them in the audit and
inspection notes. This, however would not debar the parties from bringing out any flaw
or defect in any provision of the Act or Rules which ultimately resulted in loss of
revenue to the state exchequer.
CHAPTER II
Organizational Set up and Functions of the Excise Department.
2.1
Organisational Set-up:
The Excise Department is headed by the Commissioner of Excise who is assisted

by an Additional Commissioner, one Joint Commissioner, one Deputy
Commissioner and Chemical Examiner in the headquarter. At the district level and
in the Sub-Divisions, there are Superintendents of Excise who are assisted by
Inspectors of Excise for administration of excise laws under the direct control of
the Deputy Commissioner.
2.2
Delegation of Powers and Duties:

Various Officers of the Department have been delegated the powers as enumerated
in the annexure to this Chapter.
2.3
Internal Audit: The system of internal audit in the department has not been
introduced.
ANNEXURE
(Referred to in Para 2.2)
1.
Establishment and Control.

Appointment of Officers, and the conferment withdrawal and delegation of
powers.
(1)
Within a district the administration of the Excise Department and the collection of
excise revenue shall be under the charge of the District Collector.
(2)
The State Government may, by notification applicable to the whole of the

territories to which this Act applies or to any district or local area comprised
therein
(a)
appoint a officer who shall, subject to the control of the Board have the
control of the administration of the Excise Department and of the collection
of the Excise revenue;
(b)
appoint any person then the District Collector who shall, subject to the
control of the District Collector, excise all or any of the powers and perform
all or any of the duties of a collector under this Act, or any other law for the
time being in force relating to the excise revenue.
(c)
Appoint officers of the Excise Department of such classes and with such
designations, Powers and duties under this Act as the State Government may
think fit;
(d)
Order that all or any of the powers and duties assigned to any officers under
clause (c) of this section shall be exercised and performed by any servant of
the Government or any other person.
(e)
Delegate to the Board all or any of its powers under this Act,
(f)
Withdraw from any officer or person all or any of his powers or duties under
this Act.
(g)
Authorize
(i)
The Board to delegate to the Excise Commissioner and also in such cases and
such matters as the State Government may specify, to Commissioner of a
Division.
(ii)
The Excise Commissioner, and in such cases and such matters as the State
Government may specify a Commissioner of a Division, subject to the
control of the Board to delegate to collectors and
(iii) Collectors subject to the control of the Excise Commissioner and the Board,
to delegate to Subordinate Officers.
2.
Appointments and Powers:
The following Excise Officers are appointed and invested with powers as under:
(I)
The Excise Commissioner:

(a)
The Excise Commissioner to have control of the administration of the Excise

Department subject to the general control of the State Government.
(b)
Power under clause (c of Sub-Section (2) of Section 8 to appoint, promote and

Transfer, to grant leave, suspend, reduce, dismiss or otherwise punish officers
of the Excise Department of and below the rank of Excise Inspectors.
(c)
Power under Section 10 (1) (a) of the Act to give permission for the import of
an intoxicant.
(d)
Power under Section 13 of the Act to prescribe passes for the transport of an
intoxicant in excess of the quantity declared under Section 6 of the Act.
(II)
Deputy Commissioner of Excise:
Subject to
the control of the Excise
Commissioner the Deputy Commissioner of Excise shall exercise the duties conferred and
imposed on Excise Officers under Sub-Section (b) of Section 33, Section 37, Section 38,
Section 39, Section 40, Sub-Section 65, Section 67 and Section 70 of the Assam Excise
Act, 1910 (Assam Act I of 1910) and by the Excise Commissioner
(a)
to any District Collector (1) his power to transfer of Excise Officers of and below
the rank of Inspectors within district, and (2) his power to appoint and grant leave
and to suspend, reduce, remove, dismiss or otherwise punish Excise Jamadars,
Peons and Clerks.
(b)
to the Deputy Commissioner of Excise -
(1)
his power to appoint, transfer and grant leave to Excise Constables of Excise
Intelligence Bureau the Office Staff of the Deputy Commissioner of Excise, Assam
and the transfer of Assistant Inspectors of Excise and Head Excise Constables with
Excise Intelligence Bureau, and
(2)
his power to suspend, remove, dismiss or otherwise punish Excise Constables of

Excise Intelligence Bureau including the Office Staff of the Office of the Deputy
Commissioner of Excise, Assam.
(III)
Superintendent of Excise: There shall ordinarily be a Superintendent of Excise in
each district who, in subordinate to the District Collector and Subject to the general
control of the Excise Commissioner, shall throughout the district exercise all the powers
and perform all the duties conferred on the District Collector, by the portions of the Acts
specified below:
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(a)
Section 14
(group of passes)
(b)
Section 17 (1) (III)
(grant of permit for the possession of intoxicant)
(c)
Section 33 (b)
(power to require licences viz, manufactures and vendors

to measure, weight or test intoxicant)
(d)
Section 37
(inspection of places of manufacture and sale of

intoxicants)
(e)
Section 38
(arrest, seizure and search without warrant)
(f)
Section 39 (a) & (b)
(issue warrants for search and arrest)
(g)
Section 40 (1) & (2)
(arrest or search)
(h)
Section 41
(Search, seizure and arrest upon entry without warrant in

emergent cases)
(i)
Section 42
(power to investigate)
(j)
Section 43
(power to investigating officers)
(k)
Section 44
(production and disposal of persons arrested and articles

seized)
(l)
Section 45 (1)
(police custody of articles seized)
(m)
Section 46
(Reports of arrests, seizures and searches)
(n)
Section 47 (2) & (3)
(procedure in excluding warrants and in making arrests

and searches)
(o)
Section 49
(grant of bail)
(p)
Section 65(1) (a) (b)
(institution of prosecution)
(q)
Section 69
(confiscation and release of articles attached)
(r)
Section 70
(composition of offences and release of properties liable

to confiscation)
Provided that he shall not exercise the power of stopping further proceedings under
section 43 (2) of confiscation and release of articles attached under section 69, and
composition of offenses or releases seized under section to without the previous approved
of the District Collector, but if the cases relates to a Sub-divisional Officer concerned
should be informed of the action taken.
By the District Collector to the Superintendent of Excise
(a)
His power to appoint peons and transfer and grant leave to Excise Jamadars
and peons.
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(b)
His power to suspend, reduce, remove dismiss or otherwise punish Excise

peons.
(IV)
Deputy Superintendent of Excise:

Subject to the general supervision or of the District Collector and the general
control of the Commissioner of Excise, the Deputy Superintendent of Excise shall in

subordination to the Superintendent of Excise of the District of his local jurisdiction
exercise the powers and perform the duties conferred on the Superintendent of Excise
under Order VII as specified below:-
(a)
Section 17 (1) (III)
(grant of permit for the possession of intoxicant)
(b)
Section 33 (b)
(power to require licences viz, manufacturers and

vendors to measure, weight or test intoxicant)
(c)
Section 37
(inspection of places of manufacture and sale of

intoxicants)
(d)
Section 38
(arrest, seizure and search without warrant)
(e)
Section 39 (a) & (b)
(issue warrants for search and arrest)
(f)
Section 40 (1) & (2)
(arrest or search)
(g)
Section 41
(Search, seizure and arrest upon entry without warrant in

emergent cases)
(h)
Section 42
(power to investigate)
(i)
Section 43
(power to investigating officers)
(j)
Section 44
(production and disposal of persons arrested and articles

seized)
(k)
Section 45 (1)
(police custody of articles seized)
(l)
Section 46
(reports of arrests, seizures and searches)
(m)
Section 47 (2) & (3)
(procedure in excluding warrants and in making arrests

and searches)
(n)
Section 49
(grant of bail)
(o)
Section 65 (1) (a) (b)
(institution of prosecution)
Provided that he should not exercise the powers of stopping further proceedings
under section 43 (2) without the previous approved of the District Collector.
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(V)
Sub-Divisional Officers:
Sub-Divisional Officers in Subordination to the District Collector and under the
general control of the Excise Commissioner, shall exercise all the powers and perform all
the duties of a collector under the Act with the exception of such powers and duties as
have been exclusively conferred upon or assigned to the District Collector by the Act or
Rules or orders thereunder.
(VI)
Special Excise inspectors and Sub-Inspectors:

Subject to the general control of the Excise Commissioner and Collector within his
local jurisdiction, the special Excise Inspectors and Sub-Inspectors will be under the direct
control of the Deputy Commissioner of Excise and shall exercise all the powers and
perform all the duties of the Excise Inspectors and Sub-Inspectors.
(Order Nos. 5,6,7,7A, 9 & 10 of Orders under different sections of Excise Act)
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CHAPTER - III
DISTILLERIES:
3.1
The Assam Distillery Rules framed under the Assam Excise Act, 1910 and
come into force with effect from the 1st day of June 1945.
3.2
Definitions:-
(i)
Absolute alcohol is spirit obtained from rectified spirit by removing the water
present as much as possible by treatment with quicklime or potassium carbonate.
Te absolute alcohol of the British Pharmacopoeia should not certain more than one
per cent by weight of water.
(ii)
Blending means the mixture of spirit or wines of different strengths or of

different quantities.
(iii)
Distillation means the process of extracting spirit from anything by evaporation

and condensation.
(iv)
Distillery means a distillery at which a conductor is permitted by the terms of a

license granted to him by the State Government of Assam or of any other state to
manufacturer spirit.
(v)
Distiller means a person who holds a licence to work a distillery.
(vi)
Fermentation is an obscure and seeming spontaneous change or decomposition

which takes place in most vegetable and animal substances when exposed at
ordinary temperature to air and moisture. While the term fermentation when
broadly used cover decay and purification also, it has been used in the manual in
the restricted sense of the process for producing alcohol and alcohol liquors from
saccarifercous washes.
(vii)
Feints means impure spirit produced from the distillation of low wines.
(viii)
Gravity means prefertion which the weight of a liquid bears to that of an equal
bulk of distilled water, the gravity of distilled water at 600 (sixty degrees)
Fahrenheit being taken to be 10000 (one thousand degrees).
(ix)
London proof (LP) or proof means the strength or proof as ascertained by means
of sky hydrometer and denotes that spirit which at the temperature of 610 (sixty one
14
degrees) Fahrenheit weigh exactly 12th /13th parts of an equal measure of distilled
water.
(x)
Low Wines; means impore spirit produced from the distillation of wash.
(xi)
Officer-in-Charge or the Excise Officer means the Excise Superintendent or

inspector of Sub-Inspector in-charge of a distillery.
(xii)
Receiver room means the part of a distillery where the receivers are kept.
(xiii)
Spent less is the reside left after impure spirit has been redistilled.
(xiv)
Spent Wash is the residue left after wash has been exhausted of spirit.
(xv)
Wash means material for distillation which is under or has undergone,

fermentation by natural or artificial means.
3.3
Grant of Licence, Payment of Licence fee and Security Deposit and execution
of bond.
Any person desiring to obtain a licence to establish and work a distillery, in any
place in Assam, shall apply in writing to the Commissioner of Excise under Rule 2 of the
Assam Distillery Rules. Distilleries may be opened for
(a)
Supply of Country spirit,
(b)
Supply of foreign liquor,
(c)
Supply of spirit for the manufacture of Chemicals, medicated articles, etc.

or for other industrial purposes, and
(d)
For any or all of the above purposes combined.
The Excise Commissioners may sanction under Assam Excise Act, 1910 the
opening of a distillery and inform the applicant and the Collector of the district in which
the distillery is to be opened. He shall also inform the amount of security to be furnished
by him for the due performance of the conditions on which a licence may be granted to
him. Before the licence to work the distillery is granted by the Excise Commissioner, the
distiller shall be required to pay a licence fee to be determined on the merit of such amount
or amount as the provisional Government may direct, as security for the due observance of
the conditions of the licence and shall execute a bond in the prescribed form pledging the
premises, stills, and all apparants and utensils employed in the manufacture of spirit, for
the due discharge of all payments which may become due to the State Government by way
of duty, fees, rents, fines, penalties or otherwise under the provisions of his licence or to
15
which the distiller may be liable by law or rules or under any engagement or bond into
which he may have entered. In lieu of executing such a bond the distiller may deposit such
amount as the State Government may direct.
Fees for a distillery licence of spirit the holder of a licence of distillery shall pay
in advance a licence fee of Rs. 5,00,000.00 per annum. (Rule 4 of Assam Distillery
(Amendment) Rule 2002. (Rules 2, 3 & 4 of the Assam Distillery Rules).
3.4 (a) Period of Licence.
The licence for distillery may be granted for any number of years not exceeding
ten as the State Government may decide in each case. If the work of the licensee is proved
satisfactory, it may be renewed at the discretion of the State Government for a period not
exceeding the same number of years on such terms and conditions as may then be decided
upon.
(Rule 5 of the Assam Distillery Rules)
3.4 (b) Establishment and their cost.
The Commissioner of Excise shall appointment such officer and establishment as

he thinks fit to the charge of a distillery/bottling plan. The distiller shall pay to the
Government at the end of each calender month such establishment charges as may be
determined from time to time by the Excise Commissioner. The cost of establishment shall
include pay as well as leave and pension contribution.
[Rule 6 of Assam Distillery Rules]
3.5
Accounts to be maintained by the distillery.

The distiller shall keep accurate and regular daily accounts showing (1) the
quantity and description of materials used, (2) the quantity of wash and spirit
manufactured, (3) the quantity of wash used, (4) the quantity of spirit passed out and (5)
the quantities of wash and spirit in store. Under the last head the quantity of spirit
remaining in stock in each case, vant or other receptade shall be shown. Such accounts
shall be open at all times to inspection by the Excise officer-in charge or other Excise
Officer authorized by the Collector, and by all Superior Officers of the Excise Department.
16
[Rule 19 of the Assam Distillery Rules]

3.6
Removal of Wash.
(a)
The distiller shall only distil wash which has been prepared within the distillery
and no wash (except spent wash from which all alcohol has been extracted) shall
be on any account removed from or allowed to pass out off distillery, except sealed
samples forwarded by the Officer-in-Charge to the Chemical Examiner or to such
other officer as may be appointed for the purpose of examination under the general
or special orders of the Excise Commissioner.
(b)
No wash or spirits to be brought into distillery,
(c)
Wash to be conveyed directly from wash backs to still and
(d)
Re-distillation except with the written permission of the Excise Commissioner, the
distiller shall not redistill any spirits other than those which remain in the feints or
weak receiver attached to the still and which have not been removed thereform.
3.7
Maintenance of minimum store for distillery.

The Commissioner of Excise may prescribe the minimum stock of spirit to be
maintained in a distillery.
3.8
Periodical Stock taking and Wastage allowance.

The Superintendent of Excise, or in his absence, the Officer-in-Charge of the
distillery will take stock of all spirit in the distillery on the last preceding open day if the
last day be a Sunday or holiday prescribed by the Excise Commissioner, and the distiller
shall pay to the State Government, duty at the rate imposed under section 21 of the Assam
Excise Act, 1910, on spirit manufactured imported, exported or transported, as the case
may be and on all spirit which may not be forthcoming and for which he shall be unable to
account to the satisfaction of the Excise Commissioner in excess of a wastage allowance 1
%.
17
3.9
Licence for manufacture of foreign liquor for sale, compounding and bottling.
Distillers who desire to manufacture foreign liquor for sale must take out separate
vend licences on such terms and conditions as may be take out separate compounding and
bottling licences in accordance with the rules famed therefore, if such operations are
carried out.
[Rule 32,33 & 34 of the Assam Distillery Rules]
18
CHAPTER IV
BREWERIES III
4.1
(a)
Definitions:
Beer means any liquor prepared from malt or grain, with or without the addition
of sugar and hops and includes ale, porter and stout.
(b)
Brewery means a building where beer is manufactured, and includes every place
therein where beer is stored or where it is issued.
(c)
Brewer for Sale means a person who brews beer for the use of any other person,
at any place other than premises of the persons for whose use the beer has been
brewed, and includes any licensed dealer in or retailer of beer, who brew beer.
(d)
Sugar means any saccharine substance, extract or syrup and includes any
materials capable of being used in brewing, except malt or grain of any kind.
4.2
Grants of licence:
The licence shall be granted by the Excise Commissioner on such terms and
conditions as may be imposed, if the description as furnished by the applicant be found

satisfactory and if on the report of the District Collector the applicant is considered a fit
person to receive a licence and on payment of such fee as may be determined in each case
by him the approval of the State Government.
4.3
Period of licence:
The term of the licence will be for one year. The licence for a brewery must be
renewed annually.
[Rule 41 (c) of the Assam Distillery Rules]
4.4
Security Deposit:
Before the licence to work a brewery is granted the brewer may be required to
make a deposit with the collector of the District of such amount as the State Government
may direct as security for the due observance and of the conditions of the licence.
19
4.5
Bewaring Book:
The Excise Officer authorized by the Excise Commissioner shall deliver to every
brewer a book in which the brewer shall enter in the proper column at least twenty-four
hours before beginning to mash any malt, etc. or to dissolve any sugar the day and hour or
brewery with the date of making the entry and at least two hours before the time entered
for mashing or dissolving he shall enter separately the quantity of malt and un-malted
corn, rice, grits, flaked, rice, maize, grits, flaked, maize and other similar preparations and
of sugar to be used and the hour when all the work will be drawn off the grants in the
mash fun.
4.6
Condition for removal of beer:

No worts of beer shall be removed from the brewery until the duty imposed under
Chapter V of the Assam Excise Act, 1910, has been paid or under a bond for payment of
such duty under Section II of the aforesaid Act has been executed for the payment thereof.
Provided that the quantity of worts of beer which may have issued without
prepayment of duty as aforesaid shall not exceed the quantity the duty leviable on which is
covered by the said bond.
And no wort or beer which has not paid the duty as imposed shall be removal from
the brewery and beyond its premises without a pass issued by the collector or by any other
officer empowered in this behalf by the State Government. Provided that if a brewer has
duly executed a bond under Section II of the aforesaid Act, such brewer is authorized to
issue the pass.
[Rule 58 &59 of the Assam Distillery Rules]
4.7
Payment of duty:
The duty on the worts shall become due immediately on being charged. A date in
each month not later than the 10th of the month succeeding that in which the duty was
changed may be fixed by Excise Commissioner for payment of duty.
20
4.8
Remission of duty in case of accidental loss:

Duty may be wholly or partly remitted or repaid in respect if worts of beer on
which duty has been charged, and which may have been destroyed by accidental fire or
other unavoidable cause, while on the licenced premises of a brewer for sale; provided tat
satisfactory evidence of such loss has been produced to the Excise Commissioner.
4.9
Wastage allowance:
An allowance of 10% shall be made from the monthly total of the charges on
account of Wastage.
4.10
(a)
Allowance for sour or spoilt beer:
Written application must be made to the Excise Commissioner for allowance

for sour or spoilt beer;
(b)
There must be satisfactory evidence to enable the Excise Commissioner to

decide whether the beer can be identified with its proper brewing and if he
satisfied on this point, he will sanction the destruction on the beer in presence
of an Excise Officer.
(c)
The Excise Officer must state the means by which he checked the bulk
quantity, and after samples have been taken and sent to such laboratory as the
Excise Commissioner may decide upon, an the must witness the destruction of
the beer and record a note of the fact in the brewing book.
(d)
On receipt of a satisfactory report from the laboratory, the brewer may be

credited with the proper amount of duty.
[Rule 67 to 74 of the Assam Distillery Rules]
4.11
Maintenance of Registers:
The following registers shall be maintained in the brewery.
(a)
A book showing the quantity of beer manufactured and issued, the names and
places to which the beer has been consigned and the balance remaining in store
after each transactions.
21
(b)
A book showing particulars and original gravity of beer which has been
returned unsold to the brewery
4.12
Submission of quarterly account:

On the 7th of the month following the close of each quarter, an account shall be
forwarded by every brewer to the Collector of the district, in which shall be shown the
total quantity of beer issued during the quarter, the amount of duty paid, the quantity of
beer returned, unsold to the brewer and the amount claimed or received as refund of duty.
The Collector shall, after testing to be correctness of the entries, forward a copy to the
Excise Commissioner for record in his office by the end of the month at the latest
succeeding the close of the quarter.
4.13
Quarterly examination of stock:

The accounts of brewery and the stock of beer in hand in it shall be examined by
the Collector or the Superintendent of Excise or by any other Excise Officer authorized in
this behalf by the District Collector once a quarter. If the quantity of beer in stock in the
brewery on such examination trend to exceed the quantity shown in hand in the stock
account the brewer shall be liable to pay duty on such excess at double the rate prescribed
for ordinary issue. If the quantity be found less than that shown in the stock account, the
cause of the deficiency shall be enquired into and the result reported to the Excise
Commissioner who may direct the levy of a fine not exceeding double the amount
represented by the duty on such deficiency; provided that the deficiency not exceeding
10% shall be disregarded an allowance to this extent being made to cover loss in bulk due
to evaporation, leakage and other contingencies within the brewery.
22
CHAPTER V
LIQUOR:
5.1
What is Liquor:
Liquor means intoxicating liquor and including all liquor
consisting of or containing alcohol also tari and Pachwai in any form, and any substance
which the State Government, may by notification, declare to be liquor for the purpose of
this Act.
5.2
Classification of Liquor:
For Excise purpose all liquor is either Country
Liquor or Foreign Liquor. The following table indicates the classification of Liquor in its
various forms:
5.3
Definition of Country Liquor and Foreign Liquor:

The Government of Assam is pleased to declare that the following shall, for the
purpose of the Act, be deemed to be Country Liquor and foreign liquor respectively.
i) Plan spirit which has been made in India from materials recognized in Assam as
bases for country spirit, namely, mahua, rice, millet, gur or molasses.
ii) Fermented Tari and (iii) All fermented liquors made from mahua, rice, millet or
other grain according to native process.
(2)
Foreign Liquors:
i)
any liquor which has been imported into India and was liable, or such
importation, to duty under the India Tariff Act, 1894, or the sea customs, Act
1978.
ii)
Beer which have been brewed in India, or imported into India in a condensed
form and afterwards converted into potable beer,
iii)
Rectified spirit which has been made in India.
iv)
Absolute alcohol made in India
v)
Spirit denatured in India.
23
vi)
Spirit which has been made in India and has been sophisticated or
compounded so as to resemble in colour and flavour of whisky, brandy, jin or
rum.
vii)
Spirit which has been made in India from some special bases (such as malt or
today) not recognized in Assam as bases for country spirit,
viii)
Spirit made in India which has been blended with spirit imported into India,
ix)
Wines and liquors which have been made in India perfumed spirit made in
India and spirit manufactured in India and used in drugs, medicines or
chemicals.
(Order Nos. 1 and 2 under Excise Act 1910).
5.4
Grant of licence:
For compounding, blending, reducing and bottling portable foreign liquor.
(i)
When any wholesale vendor of foreign liquors desire to convey on any of the
aforesaid operations, he will submit an application to the Collector for a licence
under, clause (a) or clause (b) of Rule 53 of the Assam Excise Rules 1945 and shall
furnish the following particulars, namely a) the place at which and the premises in which the operation or operations referred to
in the said rule will be carried on;
b) the nature of the operation to be carried on;
c) the approximate number of days in a week or month for which the operation or
operations will be carried on;
(ii)
the Collector, if he is satisfied on enquiry that the applicant is a fit person to hold
the required licence and the premises in which such person proposes to carry on
the operation or operations are suitable, shall grant a licence to such persons with
the previous sanction of the State Government.
(iii)
The warehouse or godown as well as each of the rooms and compartments therein
shall remain under separate locks and keys of the licence and the Excise Officer-inCharge.
(iv)
The licence shall provide suitable office accommodation with sanitary

arrangements for the Excise Officer-in-Charge within the warehouse or godown
and also supply such furniture and other articles for his use as may be considered
indispensable by the collector.
24
(v)
Smoking and the use of naked lights or fires within the warehouse or godown are
prohibited.
2.
Licences for the retail sale of any intoxicant shall not ordinarily be granted -
a)
to any persons who have been convicted by a Criminal Court of a non-bailable

offence;
b)
to former licensees who are in arrears to Government or whose conduct have been
found to be unsatisfactory or who have been found guilty of any serious
malpractice or breach of conditions of their licenses;
c)
to persons below the age of 18 years;
d)
to person suffering from any infectious or contagious disease.
3.
No licence shall be granted to any person who is interested either directly or

indirectly in the manufacture of sale of any intoxicant in any foreign territory or
Indian State with or bordering Assam.
4.
No licence for retail sale of country spirit shall be granted to any person who has
been granted the exclusive privilege of manufacturing or/and supply country spirit
to retails vendors thereof within a specified area or to any person who has a join
interest either directly or indirectly worth the grantee of an exclusive privilege, as
aforesaid such grants.
5.
No licence for sale of country spirit or hemp drugs shall be issued to females.
6.
No person who held a licence of any country spirit shop for a period of ten
consecutive years be eligible to get settlement of any such or other country spirit
shop.
7.
Without the special sanction of the State Government no licence shall be granted to
the holder of a licence for the retails sale of country spirit manufactured in a
distillery for the retail sale of foreign liquor or out still spirit or fermented Tari in
shop within 20 miles of his distillery shop.
8.
Without the special sanction of the State Government no licence shall be granted to
a out still licence for the retail sale of foreign liquor or country spirit manufactured
in distillery or fermented Tari in shop within 20 miles of his out still.
9.
Without the special sanction of the State Government, no licence shall be granted
to the holder of foreign liquor licence for the retail sale of Country spirit
manufactured in a distillery or out still spirit or fermented Tari in a shop within 20
miles of his foreign liquor shop.
25
10.
Without the special sanction of the State Government, no licence shall be granted
to the holder of fermented Tari licence for the retails sale of Country spirit
manufactured in a distillery or foreign liquor or out still spirits in a shop within 20
miles of his Tari shop.
11.
No licence shall be issued in the name of a Company or firm unless such Company
is registered under the Indian Companies Act, 1913, Co-operative Societies Act,
1912, the societies Registration Act 1960 or otherwise incorporated when a licence
has been granted to an unregistered private company of firm, licence should be
issued in the names of the individuals as representing the corporate body and not
the corporate body itself. No distinction shall be drawn for the legal liabilities
among the individuals as representing the corporate body who will be jointly and
severally responsible.
[Rule 57; 219-227 and 231 of the Assam Excise Rules 1945]
5.5
Duration of licence: Licence for the wholesale or retail vend of intoxicants may
be granted for one year from the 18th April to the 31st March or for any shorter periods
within that year subject to the following provisions: (I) temporary licence may be granted
to provide for the supply of intoxicants temporarily and special occasions e.g. fairs,
regimental camps of exercise, etc. and shall be limited to the period during which such
temporary or special occasions last, and should be granted sparingly;
ii)
season licence for the sale of fermented Tari may be granted for the periods or
periods fixed by the collector;
iii)
wholesale licence for the supply and sale of intoxicants may be granted for any
number of years not exceeding five as the State Government or the Governor of Assam
may decide in each case.
[Rule 178 of the Assam Excise Rules 1945]
5.6
Number of licence: The number of licence which may be granted for any local
area shall be regulated by the needs of the people of that area and no licence for the sale of
any intoxicant in any local area shall be granted unless it is required either to meet and
ascertained demand for such intoxicant by the consuming classes or to contract supply
through illicit sources.
26
5.7
Forms of licence:
Licence for the sale of foreign liquor by wholesale and by
retails sale and licence for compounding, blending and bottling of potable foreign liquor
may be granted in the following forms.
On and off licence for the supply of potable foreign liquor should be kept within
the narrowest possible limits and granted in localities, such as railway and large industrial
centers or towns, where there is a population accustomed to foreign liquor such licence
should ordinarily be granted to vendors of superior class.
Name of Schedule
Assam schedule XXXI
Form No.
(S-I Foreign liquor)

Licence for the whole sale vend of foreign liquor
(other than denatured spirit)

Licence for compounding and blending of
Ditto
17
Licence for bottling of portable foreign liquor
Ditto
18
Licence for the retail vend of foreign liquor
Ditto
Ditto
Ditto
Ditto
Ditto
Ditto
Ditto
15
Ditto
12
Ditto
13
foreign liquor.
consumption off the premises

Licence for the retail vend of foreign liquor
consumption on the premises
Licence for the retails vend of foreign liquor for
consumption on the premise in a Hotel
consumption on the premise in a Restaurant
Bar-Licence tenable by the holder of a Hotel or
Restaurant licence
Late closing licence tenable by the holder of
Hotel or Restaurant licence
Licence for the retails vend of foreign and others
on board steamers and other vessels
Licence for the retails vend of foreign liquor in
Railway Refreshment Room for consumption on
the premises
27
Railway Refreshment Room consumption off

the premises.
Licence for the retails vend of foreign liquor in a
Ditto
14
Ditto
14
Ditto
11
Ditto
Ditto
Ditto
16
Ditto
10
Ditto
19
Ditto
21
Ditto
23
Ditto
25
Licence for the retail vend of denatured spirit
Ditto
24
Licence for the manufactured and storage of
Ditto
22
Dining Car attached to a Railway train.

Licence for the retails vend of foreign liquor
from a kitchen car attached to a Railway train.
Dak-Bunglow
for
consumption
off
the
premises.
consumption both on and off the premises in
a Non-proprietary club.
Licence for the retail vend of foreign liquor in a
proprietary club
Licence for the retail vend of foreign liquor at a
Military canteen established under the Military
canteen Tenant system
Bar-licence for theatres, cinemas, or other place
of public resort and entertainment
Licence for the retail vend of rectified spirit
(including absolute alcohol) by Chemists and
Druggist
Permit for the purchase and use in the
manufacture of drugs, medicines or chemicals, of
rectified spirit by chemicals
Licence for the wholesale vend of denatured
spirit
Licence for the possession or for storage of
denatured spirit
denatured spirit
(Department instruction No. 8)
28
5.8
Limitation of licences:
Licence for the sale of foreign liquor does not cover the sale of country spirit,
terminated Tari or out still spirit, the premises licensed for the sale of foreign liquor must
be separated from those licensed for the sale of country spirit or out still of fermented Tari,
and foreign liquor licenses should not be granted to persons holding licensed for the sale
of country spirit, fermented Tari or out still spirit when any other feasible arrangement can
be made.
(Departmental instruction No. 7)
5.9
Restrictions on employment of person:
(i)
No licence for the sale of country spirit shall employ any woman as sales woman
for sale of such intoxicants.
No person who is licensed to sell foreign liquor shall, without the previous
(ii)
permission of the Excise Commissioner, employ or permit to be employed either

with or without remuneration, any woman to assist him in the conduct of sales.
(iii)
Licensed manufactures or wholesale dealer or any intoxicant shall employ or

permit to be employed on his licensed premises any person who has been
convicted of a non-baliable offence or of an offence under the Excise opium,
opium smoking or Dangerous Drugs Act except with the permission of the
Collector which shall not be granted unless the collector satisfied that the offence
was not such as to indicate any serious defect character.
[Rule 238, 240 of the Assam Excise Rule 1945]
5.10
Restriction of sale to certain persons:

No intoxicant shall be sold by any licensed vendor or by agent or servant of such
vendor to:(i)
any Railway servant at the time on duty;
(ii)
any Excise or Police Officer of any rank being in uniform or duty;
(iii)
any vagrant under Police escort;
(iv)
any insane person;
(v)
any person under 21 (twenty one) years of age;
(vi)
any person known or believed to be drunk or intoxicant;
29
(vii)
any non-commissioned office or soldier of Indian Land Forces, any noncommissioned officer or sailor of the Indian Navy, any non-commissioned
officer or airman of the Indian Air Force, or any member with corresponding
ranks of Forces allied with Indian in uniform.
(viii)
Any driver of automobile.

[Rule 241 of the Assam Excise Rule 1945]
5.11
Realisation of licence fees for country liquors etc:

The fees for licences for the retail vend of out still liquors, country spirit and
fermented Tari shall be paid as follows:Two months fees on the date of auction sale, one months fees on the date on
which the terms of the licence begins, and one months fee on the first day of every
succeeding month, until the total fee due the licence has been realised.
5.12
Foreign Liquor licence Fees:

Licence fees shall be levied for the sale of foreign liquor wholesale and retail
as under:A.
Wholesale licence.
The holder of licence for sale of foreign liquor to the trade shall pay in advance an
amount of Rs. 1,00,000 annual wholesale licence fees and the gallonage fee at the rates
prescribed by the Government, time to time on sale to the public in excess of the limit of
sale by retail. The gallonage fees shall be assessed on the actual sales be of the preceding
month and shall be payable by the 15th of the month of which the sale relate.
B.
Annual fees for foreign liquor retail off and on licence.

A holder of licence mentioned in column one of the following table shall pay in
advance an annual lump fee mentioned in column two thereof.

30
TABLE A
Sl.
no.
(1)
1.
Licence
Rate of annual fee
(2)
(3)
Licence for the retail sale of foreign liquor to (a) Rs. 50,000.00
the public for consumption off the premises.
2.
Licence for sale of foreign liquor in a hotel.
(a) Rs. 30,000.00 (I.M.F.L. including

Beer)
(b) Rs. 30,000.00 (for Beer Bar only).
Rs. 30,000.00
3.
Licence of sale of foreign liquor in restaurant
4.
Bar-licence for the sale of liquor tenable by the Rs. 30,000.00

holder of a hotel or restaurant licence.
5.
Licence for the sale of foreign liquor in a club Rs. 5000.00

including a proprietary club the profits of which
are divisible among the shareholders or
members.
6.
Licence for the retail vend of foreign liquor at a Rs. 1000.00

Military canteen established under the canteen
tenant system.
(i) When the licence is for the supply of liquor
to regiment.
(ii) When the licence is for the supply of liquor Rs. 500.00
to smaller unit.
C.
Additional fees for retail foreign liquor off and on licence.

The holder of the licence for the sale of foreign liquor under items (1) to (6) of
Table above shall pay, in addition to the annual lump fee mentioned opposite to the said
items a fee on the basis of sales of Indian-made liquor during the previous month at the
rates prescribed by the Government from time to time. The holder of a licence for the sale
of Foreign Liquor under items (1) to (6) of Table above under rule 244 shall pay in
additional to the annual lump fee mentioned opposite to the said items, a fee as prescribed
in advance on the basis of the permitted quantity at the time of issue of permit or pass at
the rate of Rs. 6.00 per BL in case of IMFL and Rs. 4.00 per BL in case of Beer shall be
realised as gallonage fee to be realised after sale.
[Rule 245 of the Assam Excise (Amendment) Rules, 2005]
31
D.
Surcharge for retail foreign liquor on licence.

For retail on licence including Hotels, Restaurants, Bars, Railway, Refreshment
Room, Steamers, Dining Cars, Kitchen Cars, Clubs and Dak Bangalows, a surcharge of
75% shall levies over the rates prescribed.
The fee prescribed shall be payable by the 15th of the month following the month
to which the sales relate.
For retail ON licence including Hotels, Refreshment, Bars, Railway Refreshment
Rooms, Steamers, Dining cars, Kitchen cars, clubs and Dak Bungalors, a surcharge of 75
percent shall be realised in advance over the rates prescribed in table.
[Rule 245 (ii) of Assam Excise (Amendment) Rule 1945]
5.13
Security deposit:
(a)
Security deposit for Country spirit and ganja licence.
Provided that in the case of Country liquor shops settled on the vend fee system the
vend fee shall be paid at the time of issue along with duty. Each vender will be required to
deposit at the time of settlement an amount equal to 15 days vend fee on the estimated
consumption of the shop as security.
The security will be liable to be forfeited should the vendors not keep a sufficient
stock of the intoxicant in his shop or infringe any of the Excise rules, or conditions of the
licence in addition to any other penalty prescribed by the rules. It not forfeited it will be
refunded towards the end of the term.
(b)
Security deposit for foreign liquor.

In addition to annual and monthly fees prescribed in table at 5.12.B. above an
advance deposit equivalent to licence fee calculated on the estimated sales of one month
shall be realised from the holder of licence the retail sale of foreign liquor under items
(1) to (6) of the Table as security deposit before the commencement of the licence for the
due observance of the condition and terms of the licence. The amount of security will be
subject to revision on the basis of the actual sale in the first two months, by the District
32
Collector. The security will be liable to be forfeited, for the mismanagement of the shop or
breach of any of the conditions of the licence or infringement of any of the Excise Rules,
in addition to any other penalty prescribed by the rules. If not forfeited, the security
deposit will be refunded towards the end of the year of transferred at his request to any
other licence.
5.14
Fees for a licence to compound, blend, reduce or bottle foreign liquor:
(1)
The fee for a licence holder for compounding and blending of India made foreign
liquor shall be Rs. 1,00,000 per annum as fixed by the Excise Commissioner with
reference to each case, payable in advance.
(2)
The fee for a licence holder for manufacturing of IMFL/bottling for sale shall be
Rs. 1,00,000 per annum payable in advance.
[Rule 252 of Assam Excise (Amendment) Rules 2002]
5.15
Registration of brand name and table:
(1)
Not withstanding anything contained in these rules, no person shall manufacture or

sell or offer for sale any brand of IMFL in bottles unless its brand name and level
are registered with the Excise Commissioner and a certificate of registration has
been granted by him.
(2)
No bottles of IMFL shall be sold or offered for sale unless the bottles is properly
capsuled and capsule bears the name of the distiller, compounder, blender or
brewer of such brand of IMFL.
[Rule 363 of Assam Excise (Amendment) Rules, 1997]
5.16
Validity of certificate of registration:

A certificate of registration granted under sub-rule (2) of rule 363 shall be valid till
st
31 day of March next following and shall be renewed for a period of one year at a time.
[Rule 364 of Assam Excise (Amendment) Rule 1997]
5.17
Duty for Registration:

The duty for registration of a brand name and label of on IMFL shall
33
(a)
in respect of whisky, rum or brandy be rupees twenty thousand and for renewal
there of rupees fifteen thousand annually and
(b)
in respect of wine, vodka, liquor, gin, champagne, vodka, cordials and other
similar potable alcohol preparations and beer the registration be rupees ten
thousand and for renewal thereof rupees ten thousand annually.
5.18
Application for registration:
(1)
Application for registration of a brand name and label referred to sub-rule (1) of
rule 363, shall be made to the Excise Commissioner at least one month before the IMFL is
manufactured and application for renewal of the certificate of registration for any year
shall be made to him before the last day of February of the year preceding.
(2)
An application referred to in sub-rule (1), shall obtain the following particulars

(a)
the brand name and the alcoholic strength of the IMFL and the measure in litre
it is proposed to be sold.
(b)
The country of origin of the liquor.
(c)
The name and address of the distiller, compounder, blender and brewer and in
respect of foreign liquor bottled in India, the name and address of the bottler
and
(d)
The dates of manufacture and expiry in case of canned beer and shall be
accompanied by two copies of label corresponding to the brand and containing
particulars mentioned (a) (b) and (c). The labels shall be authenticated by the
applicant with his dated signature in full.
5.19
Maintenance of records by Commissioner of Excise:

The Excise Commissioner shall maintain an upto date record of all brand names
and label registered under rules with indication as to whether the registration is in respect
of manufacture or sale of the brand manufacture or sale of the IMFL.
34
5.20
Powers of Excise Commissioner to refuse etc. registration:

The Excise Commissioner, if he is satisfied that it is necessary to do so and for
reasons to be recorded in writing may refuse to register or to renew the registration of a

brand name and label and may also likewise and after giving the person concerned
opportunity to show cause at any time, cancel the registration and on such cancellation the
certificate of registration granted shall become invalid.
35
CHAPTER VI
BONDED WARE HOUSE
6.1
In exercise of the power conferred by section 36 of the Assam Excise Act, 1910
(Assam Act 1 of 1910), the Governor of Assam is pleased to make the following rules,
namely:
The Assam Bonded Warehouse Rule 1965
(vide Notification No. EX-102/63/159 dated 31st December 1965)
6.2
Definition: In these rules unless there is anything repugnant in the subject or

context:
(i)
Act means the Assam Excise Act 1910 (Eastern Bengal and Assam Act 1910).
(ii)
Bonded warehouse means the premises or any part of the premises approved and
licensed for deposit or storage of spirit on which duty has not been paid.
(Rule 2 of the ABWH Rule 1965)
6.3
Conditions for grant of licence:
(i)
Any person desiring to obtain a licence to establish and work a bonded warehouse
in any place in Assam shall apply in writing to the Commissioner of Excise under
Rule 3 of the ABWH Rule.
(ii)
On receipt of the application and after such enquiry as he deems necessary, the
Excise Commissioner may forward the application to the Government with his
comments thereon.
(iii)
Bonded warehouse may be opened in case of foreign liquor:(a)
for sale to the retail and wholesale licence holder of liquor;
(b)
for supply of spirits for the manufacture of chemicals, medicated articles, etc.
or for other industrial purpose;
36
(c)
(iv)
for any or all of the above purpose combined.
If the Government approved the opening of a bonded warehouse in any area, the
Excise Commissioner shall issue necessary sanction under section 16 of the Act
and shall inform the applicant the amount of security to be furnished by him for the
due performance of the conditions on which a licence may be granted to him. The
amount of security deposit may be fixed at Rs. 5000.00 (Rupees five thousand), or
more according to the volume of business.
(v)
The applicant shall then be called upon to make necessary arrangement for the
construction of the warehouse at his cost.
(vi)
No addition or alternation to the buildings, vats or other permanent apparatus as

shown in the plans finally submitted by the applicant shall be made without the
previous sanction of the Excise Commissioner.
[Rule 3 and 4 of the ABWH, Rule 1965]
6.4
Licence fee, exemption of bond and Renewal of licence:
Before the licence to work a bonded warehouses is granted by the Excise

Commissioner, the applicant shall be required to pay a licence fee of Rs. 1,00,000.00
(Rupees one lakh) per annum and shall execute a hypothecation deed in the form
prescribed in these rules pledging the warehouse with the stock of foreign liquor, vates all
apparatus and utensils therein for the due discharge of all payments which may become
due to the State Government by way of duty, fees, rent, fines, penalties or otherwise under
the provision of his licence or to which the applicant may be liable law or rules or under
any agreement or bond into which he may have entered.
The licence for a bonded warehouse may be renewed annually at the discretion of
the Government. Such renewal shall be granted by the Excise Commissioner, with the
approval of the Government.
[Rule 5 and 6 of the ABWH Rules, 1965]
6.5
Appointment of Staff and establishment:

The Commissioner of excise Assam shall appoint such Excise Officer and
establishment as he thinks fit to the charge of the Bonded warehouse. The licensee shall
pay to the State Government an Availability fees @ Rs. 7/- per case of 12 bottles of
37
IMFL/Beer/Wine etc. of the size of maximum 750 ml at the end of year calendar month by
Treasury Challan for the services rendered by the Excise Staff posted or attached to the
Bonded warehouse.
Availability fee is defined as a fee payable for the services made available to a
bonder/Bonded warehouse by the officials of Excise Department.
[Rule 7 of Assam Excise (Amendment) Rule, 2005]
6.6
Duties of the office-in-charge on arrival of consignment:

(1)
Immediately on arrival of a consignment at the bonded warehouse the officerin-charge shall open the consignment and enter in the stock register maintain
for the purpose after verifying the same with the passes covering the
consignment. One copy of pass with the entries of receipt shall be immediately
returned to the thereon shall be kept in the warehouse.
(2)
A wastage of allowance not exceeding 0.5 percent shall be made for the actual
loss in transit by leakage or evaporation or breakage of vessels or bottles
containing liquor. The allowance shall be determined by deducting from the
quantity dispatched, the quantity received at the destination both quantities
being started in terns of London proof liters of spirit context or in case of Beer
in bulk liters.
(3)
If the report of the officer-in-charge shows that the wastage exceeds the
prescribed limit, the licence shall be liable to pay duty at the prescribed rate as
it wastage in excess of the prescribed limit had actually been removed from the
warehouse.
Provided that each case of wastage in excess of allowable limit shall be

reported to the Commissioner of Excise, for orders, who may in his discretion,
on good cause being shown, remit the whole or part of the duty leviable on
such wastage. Such duty on deficiency shall be realised by the collector of the
district in which the bonded warehouse is situated.
[Rule 19 of Assam Bonded Warehouse (Amendment) Rules, 1989]
38
6.7
Working hours in warehouse:

A bonded warehouse shall not be opened except during such hours as may be fixed
by the collector with the previous sanction of the Excise Commissioner. The warehouse
shall be closed on Sundays and public holidays as declared by Government from years to
year under section 25 of the negotiable Instrument Act 1881 (XXVI) of 1881); provided
that in case of necessity the Collector, Sub-Divisional Officer or the Superintendent of
Excise may direct that bonded warehouse shall not be closed on any particular day.
[Rule 22 of the ABWH Rule 1969]
6.8
Receipt of spirits in warehouse and procedure thereof:

No spirits shall be received into any warehouse unless accompanied by a pass from
the officer-in-charge of the distillery or bonded warehouse from which they have been
transferred or by a special permit authorizing their receipt into the bonded warehouse, or if
the spirits be imported by a permit from an officer duly authorized to grant permit for the
transport of imported spirits. All spirits received into warehouse shall be gauged and
proved on arrival and the licence shall there upon become responsible under Rule 37 for
the quantity and strength of the same.
6.9
Removal of spirit from warehouse:

Spirit may be removed from bonded warehouse.
(I)
Under bond:
a)
for transport of spirit/IMFL/Beer etc. to another Distillery or Bonded

Warehouses within the State viz, Removal of spirit/IMFL/Beer etc. from one
Bonded warehouse to another Bonded warehouses with the State of Assam
when specially permitted by Commissioner of Excise, Assam subject to
payment of an under bond fee @ Rs. 12.00 per case of IMFL/Beer containing
12 bottles of the maximum size of 750 ml at the time of applying for under
bond permit.
[Rule 25 of Assam Excise (Amendment) Rule, 2005]
39
b)
for export to other State or territory in India when specially permitted by the
Excise Commissioner;
(II)
On payment of duty:
(III)
(a)
for local consumption or use; and
(b)
in case of foreign liquor for export to other states or territory in India.
Without payment of duty and without bond if issued to the public servant
empowered to purchase or remover them on public service.
(V)
Without payment of duty and without bond in respect of rectified spirit and
absolute alcohol.
(a)
If issued to Government hospitals and dispensaries in dents being signed or

countersigned by the Civil Surgeon,
(b)
If issued to private hospitals and dispensaries and other medical institutions or

are conducted on charitable line which are certified on the indent by the Civil
Surgeon or by any other officer empowered in this behalf by the State
Government as being entitled to the supply free of duty.
(c)
If issued to educational institutions, laboratories, firms and the museums

specified by the State Government the indent being signed by the Civil
Surgeon or any other officer specified by the State Government.
(d)
If issued to Veterinary hospitals, the indent being signed or countersigned by

the Superintendent Civil Veterinary Department.
6.10
Persons to whom spirit may be issued:

The spirit may be issued for local consumption or use only.
(1)
In the case of foreign liquor (excluding rectified spirit denatured spirit, and
absolute alcohol) (a)
to licence vendors of foreign liquor, holding a permit from the Collector to

obtain liquor from the warehouse,
(b)
to any person for his own consumption and not for sale and holding a pass from
the Collector to obtain liquor from the warehouse.
40
(2)
In the case of rectified spirit and absolute alcohol -
(i)
to a chemist or druggist requiring such spirit for the manufacture of drugs,

medicine or chemicals and holding a permit from the Collector to obtain such spirit
from the bonded warehouse;
(ii)
to a chemist or druggist licenced to sell such spirit by retail for medicinal,

industrial or Scientific purposes and holding a permit from the Collector, to obtain
such spirit from the bonded warehouse;
(iii)
to a person holding licence for compounding and blending of foreign liquor;
(3)
In case of denatured spirit: To person holding licence for sale of such spirit for
the possession of such spirit for business purpose in excess of the quantity fixed at the
limit of private possession and holding a permit from the Collector to obtain such from the
warehouse.
(4)
In the case of ratified spirit -
(i)
to a chemist or druggist requiring such spirit for the manufacture of drugs,

medicines or chemicals and holding a permit from the Collector to obtain such
spirit from the Warehouse;
(ii)
to a chemist or druggist licence to sell such spirit by retail for medicinal, industrial
or scientific purpose and holding a permit from the collector to obtain such spirit
from the warehouse;
(iii)
to a person holding a licence for compounding and blending foreign liquor and
holding a permit from the Collector to obtain such spirit from the warehouse;
(iv)
to person holding licence for the manufacture of perfumes and toilet preparations
consisting of containing alcohol and holding a permit from the Collector to obtain
such spirit from the warehouse;
(v)
to persons holding permit from the Collector to obtain such spirit from the
warehouse for scientific or industrial purpose;
(vi)
to a homeopathic chemist or practitioner holding special permit to obtain rectified

spirit from the warehouse for manufacture of homeopathic medicines.
41
6.11
Import permits/transport pass of the spirit:
(a)
The licence of the bonded warehouse shall import the spirit under bond on the
import permits issued by the Commissioner of Excise, Assam in his absence the
Joint Commissioner of Excise, Assam. The retail and wholesale licence holders of
foreign liquor shall obtain necessary transport pass from the Collector on payment
of spirits from the bonded warehouse to their respective shop premises. The
transport pass shall be issued in triplicate in miscellaneous Form No. 1 of the
Assam Excise Manual Vol. III. The original copy of the pass shall be retained in
the office of issue; the duplicate copy shall be over to the person to whom the pass
has been granted to accompany the consignment and the triplicate copy to the
office-in-charge of the bonded warehouse.
The duty shall be deposited by the foreign liquor licences into the treasuries by
challans. The challans shall be prepared in quadruplicate. One copy will be kept by the
treasury and the remaining three copies after completion in the treasury will be presented
by the foreign liquor licence or his agent to the officer-in-charge of Excise at the district or
sub-divisional headquarters, his officer will issue the transport pass for the quantity and
endorse on one copy with another copy of the challan to the officer-in-charge of the
bonded warehouse and keep one copy in his office. The officer-in-charge will issue the
spirit and retain in his office the copy of the challan with endorsement and make over the
other copy to the licence of the bonded warehouse or his agent for supply of the foreign
liquor.
(b)
(a) A transport pass fee of Rs. 18.00 per case of Beer containing 12 bottles of 650
ml size or equivalent quantities and Rs. 30.00 per case of IMFL containing 12
bottles of 750 ml size or equivalent quantities payable in advance shall be levied
for issue of transport pass for transport of Beer and IMFL manufactured in Assam.
(c)
An import permit Fee of Rs. 30.00 per case of Beer containing 12 bottles of 650 ml
size or equivalent quantities and Rs. 60.00 per case of IMFL containing 12 bottles
of 750 ml size or equivalent quantities payable in advance shall be charged for
issue of import permit for import of Beer and IMFL into Assam in accordance with
sub-rule (1).
[Rule 30 of Assam Bonded Warehouse (Amendment) Rules, 2003]
42
6.12
Export pass/grant of export pass:
India-made foreign spirit, rectified spirit, denatured spirit and spirituous

preparations manufactured in any distillery or bonded warehouse in Assam may be
exported to any other state of India under cover of export.
In absence of any objection, the office-in-charge of the distillery or bonded
warehouse, shall, after satisfying, himself that the proper duty has been paid, grant an
export pass authorizing export. The export pass shall be in triplicate in Form 1 of the
Miscellaneous series (General). The original copy shall be retained by the Excise Officerin Charge of distillery or bonded warehouse and shall be forwarded through the Collector
of district of export to the Excise Commissioner Assam at the end of each quarter together
with the quarterly statement of exports. The duplicate copy shall be given to the exporter
to accompany the consignment and the triplicate copy shall be sent to the Collector or any
other officer as may be authorized in this behalf of the district or place of import.
[Rule 38 & 40 of the Assam Excise Rule 1945]
6.13
Periodical stocktaking and levy of duty on excess deficiency:

The Superintendent of Excise or in his absence, the officer in charge of the bonded
warehouse shall take stock of all spirits in the warehouse on the last day of March, June,
September and December in each year or on the preceding day, if the last be a Sunday or a
holiday prescribed and licensee shall pay to the State Government duty at the rates
imposed under section 21 of the Act on all spirits which may not be forthcoming and for
which he may be unable to account for the satisfaction of the Excise Commissioner in
excess of an allowance of 1 percent which shall be made to him for wastage.
Provided that if it shall be provided to the satisfaction of the Excise Commissioner
or such officer as he shall appoint that such deficiency in excess of 1 percent has been
caused by accident or other unavoidable cause, the payment of duty at the above rates on
such deficiency may not be required (Amendment).
[Rule 37 of Assam Bonded Warehouse Rule, 1965]
43
6.14
Procedure for export of India made foreign spirit rectified spirits and
denatured spirits:
Any person holding a stock of India-made foreign spirit, India made rectified
spirits and denatured spirits at a distillery or a bonded warehouse in any district in the
State of Assam and desiring to export the same to any other state of India shall present an
application in prescribed form for an export pass to the Excise Officer-in-charge of the
distillery or bonded warehouse together with an import permit authorizing the import
signed by the Collector or any other officer duly authorized in this behalf of the state of
import, specifying the rate of duty chargeable on the India made foreign spirit and rectified
spirit. A treasury receipt showing the payment of duty at the rate in force in the state of
import to the credit of the revenues of that state shall accompany such an application.
(Rule 39 of the Assam Excise Rule 1945)
6.15
Maintenance of account:
The licence shall keep regular account showing the
quantity and strength of spirit received and issue form the remaining in the warehouse.
Such account shall be open at all time to the inspection of the officer-in-charge and of all
superior Excise Officers.
6.16
Manner of payment of duty:
When duty on the spirit is to be paid before
removal from a bonded warehouse, the payment shall be made into the local treasury, or a
treasury approved by the Collector of the district in by which such spirits are to be sold or
consumed by direct payment into treasuries by challans. Advance deposits on account of
duty may also be made with permission of the Collector.
6.17
Maintenance of Register:
List of Warehouse Register:The following registers will be maintained in warehouse under the contract supply
system.
(1)
Pass fro transport of country spirit under bond.
(2)
Khaitan statement of the issues of country spirit to each retail shop.
44
(3)
Register of stores.
(4)
Register showing examination of hydrometers, thermometers and measures.
(5)
Register of spirit received into reduced or blended in and issued from each vat
of store cask.
(6)
Balance account of spirits in hand and summary of transactions (similar form is

to be used as periodical stock taking statement).
(7)
Cask-gauging register.
(8)
Defect register.
(9)
Register of daily issues.
(10)
Register of casks.
(11)
Register of casks received and of spirit issued therefrom.
(12)
Register of persons employed by contractors or distillers.
(13)
Barrel tickets.
(14)
Inspection book.
(15)
Dak book.
(16)
Aqquittance roll.
(17)
Consignment register.
(18)
Ganging and Tabulation Register.

(Departmental instruction No. 63)
45
CHAPTER VII
PHARMACIES
7.1
The levy of duty on medicinal and toilet preparations containing alcohol, opium,
India Hemp or other narcotic drug or narcotics falls within the legislative purview
of the Parliament, vide entry No. 86 of the Union list embodied in the seventh
schedule of the Constitution of India. The Medicinal and Toilet preparation (Excise
Duties) Act 1955 was enacted by the Parliament and Rules thereunder called the
Medicinal and Toilet Preparation Rule 1956 were framed by the General
Government. The State Excise Department however, administers the above Act
and Rule for the purpose of levy and Collection of duties on medicinal and toilet
preparations and retains the proceeds thereof.
7.2
Some of the important features of the Act and rules made thereunder are as
follows:-
(i)
Issue of licence for manufactures: Under section 6 of the Medicinal and Toilet
preparation Act, no dutiable goods can be manufactured without appropriate licence

granted in accordance with the rules framed thereunder, the licence for the manufacture of
dutiable goods once issued on payment of prescribed fee as laid down in the Rule 83 and
96 and on furnishing the necessary security.
(ii) (a) Manufacture in Bond.
Where the medicinal and toilet preparation are manufactured in bond the Excise
duty is leviable in the state in which such goods are released from a bonded warehouse for
home consumption whether such state is state of manufacture or not.
(b)
Manufacture not in bond:
Where the medicinal and Toilet preparation are not
manufactured in bond the duty is leviable in the state in which such goods are
manufactured. (Section 3 of the Medicinal and Toilet Preparations (Excise duties) Act,
1955).
(iii)
The duty leviable on all dutiable goods manufactured in India and used as
medicinal and toilet preparation is given in the Annexure for the purpose of levy of duty,
46
the medicinal preparation have been classified into two board categories viz Restricted
preparation i.e. capable of being consumed as ordinary alcohol bewarages. On restricted
preparation the rate of duty is higher than on unrestricted preparations.
(iv)
Issue of spirit to bonded pharmacies without payment of duty:Bonded Pharmacies obtain rectified spirit without payment of duty from the
distilleries and are required to pay duty on medicinal and toilet preparations containing
alcohol etc., as and when issues of medicines are taken from the manufacture.
7.3
Levy, refunds and Exemption from Duty:

Every person who manufactures any dutiable goods or who stores goods in a
warehouse, shall pay the duty or duties leviable or such goods under the Act at such time
and place and to such person as may be designated in or under the authority of these rules,
whether the payment of such duty or duties is secured by bond or otherwise.
(Rule 6 of the M&T Preparations Rule)
7.4
Import of medicinal or toilet preparations containing India made spirit

prohibited except as provided by rules:
No medicinal of toilet preparations or perfumes containing spirit of India
manufacture shall be imported into Assam except in accordance with the procedure herein
after prescribed.
Provided as follows:
(1)
Medicinal and other preparation containing rectified spirit imported from

overseas countries, are exempt from the provisions of these rules relating to
import, export, transport, possession and sale, provided that the customs duty at
the rate prescribed has been paid.
(2)
Medicinal and other preparations containing rectified spirit manufactured in

India are exempt from the operation of the rules relating to transport possession
and sale of foreign liquor made in India if they have been issued from a bonded
distillery, bonded laboratory or bonded factory in India and the issue have been
made under the authority of a pass granted by the Excise officer-in-charge of
47
such bonded distillery, laboratory or factory under the conditions contained in

the following rules, except that medicinal and quantities not exceeding 16 on at
time for bonafide private consumption of the importer without restriction.
(3)
The following institutions are exempted from the payment of duty for import of
spirit contained in medicinal preparation and from obtaining a pass.
(a)
Charitable hospital and dispensaries maintained by Government or by

local authorities as defined in section 4 (34) of the Assam General
Clauses Act 1915 (11 of 1915), on a requisition countersigned by the
Civil Surgeon of the district.
(b)
All charitable and mission hospitals or dispensaries, unless in any case

the State Government or the Governor of the State as the case may be
shall otherwise declare, on a requisition countersigned by the Civil
Surgeon of the district.
(c)
Veterinary Assistant Surgeon, on a requisition countersigned by the

Superintendent, Civil Veterinary Department.
(d)
The Public Health Department, on a requisition countersigned by the

District Medical Officer of the Health in respect of the departmental
requirements of the district under his charge.
7.5
Import of spirituous medical or toilet preparations on pre-payment of duty in

Assam:
Import may be made on pre-payment in Assam, on special application to the
Excise Commissioner and in accordance with such condition as he may direct.

7.6
Refund claim within six months:

No refund of duties charges erroneously paid allowable unless a written claim is
preferred within six months from the date of such payment.

7.7
Export:
Medicinal and Toilet preparation may be exported out of India either under bond
i.e. without payment of duty or after the duty having been paid in which case the exporter
is entitled to rebate of duty furnishing proof of export.
48
7.8
Export to be duty free:

Dutiable goods may be exported out of India without payment of duty from
warehouse or bonded manufacture provided that export is made in accordance with the
procedure laid-down vide Rule 97 to 103 of M&TP Rule 1956 and the owner enters into
the bond in Form B-3 with such surety and under such condition as the Excise
Commissioner approve.
7.9
Rebate of duty on goods exported:

The State Government shall subject to such safe guards conditions and limitations,
as are special in Chapter VII of M&T Prep Rules, grant rebate of duty on dutiable goods,
if exported out of India.
Dutiable goods may be exported out of India, without payment of duty, from a
warehouse of bonded manufactory, provided that export is made in accordance with the
procedure set out in relevant provisions of chapter VII M & T Prep Rule and the owner
enters in to a bond in Form B-3 with the surety/sufficient security approved by the Excise
Commissioner in a sum equal at least to twice the duty chargeable on goods.
(Rule 14 & 15 of M&T Prep. Rule)
7.10
Penalty of failure to furnish proof export within the prescribed period:
When any person authorized to export dutiable goods in hand in accordance with
the Chapter VII of M7T Prep Rule fails to furnish proof of such export to the satisfaction
of the Excise Commissioner, he shall upon a written demand being made by the Officerin-charge, pay the duty leviable on such good shall also be liable to penalty which pay
extend to twice the amount of duty subject to maximum of Rs. 2000 and until such duty
and penalty are paid Excise Commissioner may refuse to permit such person to made
further export of such goods.
(Rule 17 of M&T Prep. Rule)
7.11
Loss of rectified spirit in transit:
If, in any particular case it is proved to the satisfaction of the Excise Commissioner
that the loss of rectified spirit in transit is bonafied and not due to negligence or
49
connivance on the part or manufacturer, the duty payable in respect of such loss may be
waived in full or in part according to the merits of the case.
Except, with the prior sanction of the State Government the concession in this rule
shall not be applicable to issues of rectified spirit made to non-bonded manufactures.
Manufacture of medicinal and toilet preparations containing alcohol shall be
permitted in bond without payment of duty as well as outside bond. In the case
manufacture in bind alcohol on which duty has not been paid shall be used under excise
supervision, and in the case of manufacture out side bond, only alcohol on which duty has
already been paid shall be used.
7.12
Claim for rebate within one month:

The procedure for expert of duty paid medicinal and toilet preparation by the
owner of a non-bonded manufactory or by a whole seller is laid in rules 97 to 102 of the

M&T prep. Rules 1956 a claim of rebate of duty would be entertained duty if such claim is
preferred within one month from the date of issue of the certificate of the officer who
examined the goods at the post or the post office of export, or the frontiery as the case may
be.
7.13
Records of bonded pharmacies:

Manufacture of Medicinal and Toilet preparations and records maintained in the
bonded pharmacies.
All spirits received from the distillery under bond for manufacture of medicinal are
entered in B-M1 Register of Receipts of spirit. The spirit received from the distillery is
then taken to store vats and the account there is maintained in BM-2 vat account. The
stock account of spirit is maintained in RG-II Stock Register in which all receipts issues
and closing balance of spirit are shown. The actual physical balance at the close of the
month is also taken to find out the storage wastage.
7.14
Indent for rectified spirit:

Rectified spirit required for manufacturing medicinal and toilet preparation shall be
obtained on an indent in Form I.D.I. tendered the triplicate by the licence of the Bonded
50
manufactory countersigned by the Officer-in-Charge, from any distillery or spirit

warehouse approved by the Excise Commissioner.
7.15
Issues of rectified spirit from the spirit store:

Rectified spirit shall be issued from the spirit store to the laboratory of the
manufactory on a requisition of the licence, which shall be made in RQ I but only in such
quantities are in conformity with the formula of the patent and propriety medicines
displayed as the level of the container in the manner prescribed in the Drug Rules 1945,
for the time being in force for the particular preparation for which the alcohol is required.
Rectified spirit shall not be issued for any purpose other than the manufacture of medicinal
and toilet preparation in the laboratory.
(Rule 29 (1) (4) of M&T Prep. Rule)
7.16
Verification of rectified spirit received:

Consignment of rectified spirit received under bond shall be verified in volumes
and strength and the receipt of such supply shall be entered in register in form RB-2
subject to the provisions of rule 19 of the M&T Prep. Rules duty at the rate levied by the
State Government on alcoholic liquor on all wastage shall be paid by the licences of the
bonded manufactory into a Government treasury, on receipt of a demand from the
officer-in-charge and a copy of the treasury receipt shall be sent to the distillery officer
who shall there upon made the necessary adjustment in his registers.
(Rule 26 & 27of M&T Prep. Rule)
51
CHAPTER VIII
MISCELLANEOUS PROVISIONS
8.1
Import, Export, Transport and possession of intoxicant Import, Export and

Transport of Country spirit.
The import, export and transport of country spirit shall be:-
(A)
Import
(1)
Country spirit may be imported only with the permission of the Excise
Commissioner, Assam and under a bond for the payment of Excise duty in Assam
and by (a)
a person to whom any exclusive privilege for the supply of such spirit has been
granted under Section 19 of the Act, or
(b)
a licensed wholesale dealer in country spirits after he or his agent has
(i)
executed a bond (which may be either a general or as special bond) in favour of

the principal revenue officer of the district or place of export for payment of
the said duty, and
(ii)
obeyed all rules in force in the district or place from which the export was
made.
(2)
Country spirit shall not be imported under a bond as aforesaid unless (a)
The consignment is accompanied by pass granted by the Principal Revenue

officer of the exporting district or place, or by the officer-in-charge of the
distillery, brewery or warehouse from which it was taken, in such form as may
be prescribed for use in the exporting district of place; and
(b)
The Collector of importing district has received a copy of the said pass from
the Chief Revenue Authority of the said pass from the Chief Revenue
Authority of the exporting district or place or from the officer-in charge of the
said distillery, brewery or warehouses.
52
(3) (a) Whenever any country spirit is imported under a bond as aforesaid, it must on
arrival in the territories to which the Assam Excise Act applies be taken direct to
the excess warehouses specified in this behalf in the pass and fixed by the Excise
Commissioner for the storage of such spirit.
(b)
On the arrival at on excise warehouse in the territories to which the aforesaid Act
applies of any such spirit, it shall be tested and measured by the officer-in-Charge
of the warehouse, and shall be taken into store and entered in his accounts.
(c)
As soon as may be after such arrival, the Officer-in-Charge of the warehouse shall
certify on the importer copy of the pass full details regarding the spirit received, in
such form as may be prescribed in the pass or required by the Chief Revenue
Authority of the exporting district or place.
(B)
Export
1. (i)
When any person desired to remove country spirit from any distillery or warehouse
for export to any other province in India under a bond for payment of excise duty, he must
execute a bond, in the form prescribed by the State Government before the Collector of the
district in which the distillery or warehouse is situated.
(ii)
Such bond may be either a general or a special bond.
(iii)
The Collector shall sign the bond on behalf of the Governor, as a party to be
instrument.
(iv)
The Collector shall then intimate the fact of the execution of the bond to the
Officer-in-Charge of the distillery or warehouse, who shall after the particulars
thereof have been entered in register issue the liquor as if duty has been paid.
2.
No liquor shall be so issued unless it has been gauged and proved by the Officerin-Charge of the distillery or warehouse.
3. (i)
A pass in triplicate, shall be prepared by the Officer-in-Charge of distillery or

warehouse when any liquor is issued under clause (4) of Rule 81 of the Assam
Excise Rule 1945.
(ii)
One copy of the pass shall be delivered to the exporter to accompany the
consignment, the second shall be forwarded to the collector of the district to which
the liquor is to be taken and the third shall be retained for record.
53
4.
Account of all exports shall be kept in the form prescribed by the State
Government of the Governor as the case be, by the officer-in-Charge of the
distillery or warehouse.
(C)
Transport
1.
A pass in triplicate shall be prepared by the Officer-in-Charge of the distillery or
warehouse when any spirit is issued for transport to another distillery or warehouse. One
copy of the pass shall be forwarded to the officer-in-Charge of the distillery or warehouse
to which the spirit is to be transported, the second copy shall accompany the consignment
and the third copy shall be retained for record.
2.
Country spirit in transit between distilleries or warehouse and licensed retail shops
will be recovered by the endorsement in the duplicate copy of the licence or in the case of
canteen or lessee-manager shops by the duplicate copy of the pass prescribed in Rule 89 of
the Assam Excise Rules 1945.
[Rule 77,78,81,85,86 & 88 of the Assam Excise Rules 1945]
8.2
Restriction on import, export and transport of intoxicant:
(a)
Import
(1)
No intoxicant shall be imported unless (a)
the State Government has given permission either general or special for its
import,
(b)
such conditions if any as the State Government may impose have been satisfied
and
(c)
the duty of any payable under this rule has been paid or a bond has been
executed for the payment thereof.
(d)
Sub-section (i) shall not apply to any article which has been imported into India
and as liable on such importation to duty under the Indian Tariff Act 1894 (Act
VIII of 1894) or the sea customs Act, 1878 (Act VIII of 1878).
(e)
Clauses (a) and (b) of sub-section (1) shall not apply to liquor manufactured in
India declared under Section 4 to be foreign liquors.
54
2 (b)
Export and Transport.

No intoxicant shall be exported or transported unless
The duty if any payable under this Act has been paid or a bond has been executed
for the payment thereof.

Provided that the Board may, subject to such conditions, if any as it thinks fit to
impose exempt any intoxicant from the provisions of this Section.
[Section 10 & 11 o the Assam Excise Act 1910]
8.3
Prohibition of import, export or transport of intoxicant:
(i)
The State Government may by notification (a) prohibit the import or export of any
intoxicant into or from the territories to which this Act applies or any part thereof
or (b) prohibit the transport of any intoxicant.
(ii)
The State Government may by notification -
(1)
Prohibit into the areas to which this Act applies the publication or display of
advertisements of liquor or intoxicating preparations in the News papers,
periodicals, Journals, Hoardings, Banners etc. printed and published in and from
the area.
(2)
Prohibit into the areas to which this Act applies the entry of Newspapers, Journals,
Periodicals etc., if they contain advertisement of liquor or intoxicating
preparations.
[Section 12 & 12A, of the Assam Excise Act, 1910]
8.4
Passes for import, export or transport of intoxicant:
No intoxicant exceeding such quantity as the State Government may prescribe by

notification either generally for the whole of the territories to which this Act applies or for
imported or for imported, exported or transported except under a pass issued under the
provisions of this Acts.
(Section 13 of the Assam Excise Act, 1910)
55
8.5
Grant of passes of intoxicant:

Passes for the import, export or transport of intoxicants may be granted by the
collector or by an officer specially authorized by the Excise Commissioner in that behalf.

Such passes may be either general for definite periods and specified kinds of
intoxicants or special for specified occasions and particular consignments only.
8.6
Prohibition of sale without license and the exceptions to such prohibition of

intoxicant:
1.
No intoxicant shall be sold except under the authority and in accordance with the
terms and condition of a license granted by the Authority prescribed in the rules framed
under this Act in that behalf.
Provided as follows:(1)
on such conditioned as may be determined by the Board, license for sale granted
under the Excise law in force in another state may be deemed to be a license
granted under this Act;
(2)
a person licensed to cultivate or collect plant from which an intoxicating drug is

produced, may sell without a license those portions of the plan from which the
intoxicating drug is manufactured or produced to any person licensed under this
Act to deal in the same or to any officer whom the Excise Commissioner may
prescribed;
(3)
Nothing in this section applies to:(a)
The sale of any foreign liquor lawfully produced by any person for his private
use and sold by him or on his behalf or on behalf of his representative in
interest upon quitting station or after his decease.
(b)
The sale of tari lawfully possessed by a person in possession of the tree from
which it was drawn to a person licensed under this Act to manufacture or sell
tari;
(c)
The sale of tari lawfully possessed and intended to be used solely for the
manufacture of gur or molasses;
56
(d)
The sale of tari lawfully possessed and intended to be used solely for the
preparation of food for domestic consumption and not as an intoxicant or for
the preparation of any intoxicating article or of any article for sale; use
(e)
The sale of tari lawfully possessed and bread to a person holding a permit to
use tari for the purpose of making bread.
2.
Any club which has transactions with its members in respect of foreign liquors,
shall be deemed to be conducting retail sales and shall be required to take out a license
under this Act on payment of such fees and subject to such restrictions and on such
conditions as the State Government may prescribe.
[Section 18 of Assam Excise Act, 1910]
8.7
Departmental management and resale of intoxicant:

If any person to whom an exclusive privilege has been granted under section 19 or
any holder of a license grated under this Act makes default in payment of any sum payable
in respect of such privilege or license or in complying with any other condition therefore,
the collector may take such privilege or the grant expressed in such license under
management or may re-sell such privilege or grant at the risk and loss of the defaulter.
8.8
Import, Export, Transport and Storage of foreign liquor:
(a)
Import
Import of India made foreign liquor, other than rectified spirit, denature spirit and
absolute alcohol manufactured in India.
1.
Import of India-made foreign liquor forbidden without pass: Import of India-made

foreign liquor in any quantity whatever except as provided under order XXVI are
forbidden except under cover of pass and unless the conditions of the following
rules are satisfied.
[Rule 2 of Assam Excise Rule 1945]
57
2.
Persons eligible to import India-made foreign liquor:
(1)
Passes for the import of India-made foreign liquor shall be issued by the Collector
of the importing district only (a) licensed vendors, (b) clubs, (c) persons in charge
of regimental or Assam Rifles Canteens and (d) person approved by the Collector
of the importing district.
(2)
India-made foreign liquor may be imported by a person holding a license for the
vendors of foreign liquors, and pirate individuals in Assam or in the State of export
for credit by book transfer to the Government of Assam at the rates leviable in
Assam and in the case of private individuals also a pass fee at the rates specified
into the treasury of the district into which it is desired to import liquor.
[Rule 3 of Assam Excise Rule, 1945]
3.
Application for import of India-made foreign liquor:

Any licensed vendors of foreign liquors wishing to import India-made foreign
liquor into Assam must either personally or through his agent first submit an application in
Form 26 of foreign liquor series to the Collector of the district of import for an import pass
in Form 27 of foreign liquor series stating clearly
(i)
the name of the distillery or brewery or bonded warehouse or of the firm or

licensed premises from which the import is to be made.
(ii)
the name, complete description and quantity of each kind of liquor which is to be
imported and whether the import is to be made in bulk or in bottle;
(iii)
the route by which it is proposed to import the liquor; and
(iv)
the amount of duty leviable on total quantity of liquor to be imported.

4.
Duty on excess transit wastage:
The importers shall be liable to pay duty on excess wastage, if any, to the State of
export if a claim is made therefore. In that case he will be allowed to set off against that
claimed amount of duty prepaid by him on the quantity representing the excess loss in
transit.
58
5.
Refund of duty or Pass fee if import is not effected:

If the person does not import the liquor for which he has deposited either the duty
or the pass fee or both he will be entitled to a refund of the full amount deposited by him
after the facts have been verified by the exporting provices.
6.
Examination of consignment of India-made foreign liquor on arrival:

On a receipt of a consignment, the importer whether he be a licensed vendor or a
private individual, shall at once notifying its arrival to the collector of the place of import
and shall not open the consignment unit it has not been examined by an officer of the
Excise Department or unless the collector has intimated that it will not be examined.
[Rule 15 of Assam Excise Rules, 1945]
(b)
Export
Export of India-made foreign spirits rectified spirit, denatured spirit and spirituous
preparations manufactured in or imported to the State of Assam.
1.
Procedure for export of India-made foreign spirits rectified spirits and

denatured spirits:
Any person holding stock of India-made foreign spirits, India-made rectified spirits
and denatured spirits at a distillery or a bonded warehouse in any district in the State of
Assam and desiring to export the same to any other State of India shall present an
application in prescribed for an export pass to the Excise Officer-in-Charge of the
distillery or bonded warehouse together with an import permit authorizing the import
signed by the Collector or any other officer duly authorized in this behalf of the State of
import, specifying the rate of duty chargeable on the India-made foreign spirit and
rectified spirit. A treasury receipt showing the payment of duty at the rate in force in the
State of import to the credit of the revenue of that State shall accompany such an
application.
59
2.
Export Pass: India-made foreign spirit, rectified spirit, denatured spirit and
spirituous preparations manufactured in any distillery or bonded warehouse in Assam may

be exported to any other State of India under cover of an export pass.
India-made foreign spirits may be exported from the canteen stores Department at
Narangi and Silchar to any other States of India under cover of an export pass.
[Rule 38, 38 (A) of Assam Excise Rule, 1945]
3.
Grant of export pass:
In the absence of any objection, the Officer-in-
Charge of the distillery or bonded warehouse, shall after satisfying himself that the proper
duty has been paid grant an export pass authorizing export. The export pass shall be in
triplicate in Form 1 of the Miscellaneous Series (General).
[Rule 40 of Assam Excise Rule 1945]
(c)
Transport
(i)
The transport, within the State of spirituous medicinal, toilet or other preparations
from one place to another except from a distillery or a bonded warehouse, may be
made without any restriction.
(ii)
The transport of India-made foreign spirit, rectified spirits, denatured spirits and
spirituous preparations manufactured at a distillery or bonded warehouse in Assam
from a distillery or bonded warehouse shall be governed by rules relating to issues
from distillery and bonded warehouse.
[Rules 49 of Assam Excise Rules 1945]
8.9
Import, export and transport of rectified and denatured spirit and absolute
alcohol to be covered by a pass.
The import, export and transport respectively of rectified and denatured spirit and
absolute alcohol shall be covered by a pass whatever the quantity except that denatured
spirit upto 2 liters be imported for use other than for sale.
Exemption
(a)
All charitable hospitals and dispensaries maintained by Government or local

authorities as may be defined by Government on a requisition countersigned by
the Civil Surgeon of district.
60
(b)
All charitable and Mission hospitals or dispensaries, unless in any case the
Government shall other-wise declare on requisitions countersigned by the Civil
Surgeon of the district.
(c)
Veterinary Assistant surgeons and veterinary Investigating officer or

requisitions countersigned by the Director, Veterinary Department.
(d)
Educations Institutions, Laboratories, Firms and Museums specified by the

Government in this behalf on a requisition signed by the head of the Institution,
Laboratory, Firm or Museum and Countersigned by the Civil Surgeon of the
district or by any other officer specified by the Government.
(e)
Civil Surgeon and Medical Officer-in-Charge of Government Institutions may

import and store such spirit or absolute alcohol required for the purpose of the
institutions under their charge on permits issued by Superintendent of Excise.
Note: The case failing under items (a), (b), (c), (d) and (e) above are exempted from the
payment of duty for the import of rectified spirit and absolute alcohol and form the
payment of pass fee for import of denatured spirit.
8.10
Pass for import of denatured spirit to be issued only to licence holder:

Passes for the import of denatured spirit shall be issued only to persons holding
licences:-
(a)
for wholesale or retail sale of denatured spirit,
(b)
to possess denatured spirit in excess of the quantity fixed as the limit of retail
sale.
(Rule 28 of the Assam Excise Rules 1945)
8.11
Exemption from the payment of duty on export India-made foreign liquor:

No excise duty shall, however be payable on rectified spirit supplied from bond to
Government local bond and municipal hospitals and dispensaries, educational institutions
and such private medical institutions as are conducted on charitable lines in other
provinces which are certified on the indent by the Civil Surgeon of the district of import or
any other officer empowered in this behalf by the Government of the State concerned as
61
being entitled to the supply free of duty. The indent or requisition duly signed or
countersigned by such officer shall be deemed to be an import permit and no separate
import permit shall be necessary.
8.12
Export of India-made foreign liquor etc. to Indian State or foreign territory in

India:
(1)
No India-made foreign spirit, India-made rectified spirit, denatured spirit and

spirituous preparations manufactured in any distillery or bonded warehouse in
Assam shall be exported to any State or foreign territory in India, unless the duty if
any payable under Chapter V of the Assam Excise Act 1910 has been paid.
(2)
An export pass at the following rates shall be levied on all India-made foreign
liquor, India made Beer manufacturing in the State of Assam as under.
(a)
Rs. 30.00 per case of 12 bottles of IMFL of 750 size or of equivalent quantity
and
(b)
Rs. 18.00 per case of 12 bottles of Beer of 650 ml size. The export pass fee is
payable in advances for issue of passes for export outside the State with rule
(2) by the manufacturer.
[Rule 51 (1) & (2) of Assam Excise (Amendment) Rule, 2002]
8.13
Account of all liquors and colouring and flavouring to be kept. Correct account of
all liquor and colouring substance in the warehouse or godown shall be maintained
by the licensee in such forms as may be prescribed by the Excise Commissioner.
The accounts shall remain in the custody of the Excise Officer-in-Charge who shall
check them at the end of each days work.
8.14
Ganja, Bhang or Sidhi and Charas-Import, Export, Transport and storage:

The import, export, transport and storage respectively of Ganja, Bhang or Sidhi
and Charas shall be subject to the Rules 151 to 177 of the Assam Excise Rule
1945, in additions to the restrictions imposed by section 10,11 and 13 and
prohibitions made under Section 12 of the Assam Excise Act 1910.
62
8.15
Disposal of unsuitable spirit in distillery or warehouse.

If spirit manufactured in a distillery or stored in a warehouse is found to be of
inferior quality or otherwise unsuitable for the purpose for which it was made or stored, it
may be rejected and destroyed or otherwise dealt with under the orders of the Excise
Commissioner.
If the Officer-in-Charge of distillery or warehouse considers that the spirit to be
issued is bad and unsuitable he should at once report the matter to the Superintendent of
Excise who may, pending order of the Excise Commissioner, stop its issue and ask the
officer to sent samples of such spirit for analysis without delay.
8.16
Out still liquor system:

The holder of licence under the still system pays to Government a certain sum per
mensem for working between sunrise and sunset a single still only, and for the sale of his
spirit under conditions laid sown in the licence. No still-head duty is levied. No define area
to be supplied by any shop is fixed, but practically it is regulated by the situation of other
shops similarly licenced and of shops drawing their supplies from a distillery established
under the order of State Government. The general rule is that no two outstill should be
within five miles of one another or so near shop other as to affect injuriously one anthers
sale of liquor and no new shop should be opened within such distance from an already
existing one as to draw away any of its custom, special care being taken in regulating the
distance, so that the cheaper liquor of an outstill may not find it way to a distillery shop.
(Instruction No. 77 Instruction relating to liquor)
8.17
Remission of excise revenue:

The Commissioner of Excise is authorized to sanction the remission of
irrecoverable excise revenue. Application for such remission shall be submitted to him
through the district officer.
Provided that without the sanction of the State Government no remission of fees
shall be granted on account of excessive or reckless of speculates bidding at auctions.
63
8.18
Refunds:
The Commissioner of Excise is authorized to sanction refund of Excise and opium
revenue. All refunds should be noted against the original payment in the remarks column
of the register in which the payment was noted. An order of refund will remain in force for
a period of six months and if the refund be not made within this period fresh sanction must
be obtained.
8.19
Offence and Penalties:
(a)
Offences:
The following will constitute an offence under section 53 of the Assam Excise Act
1910:(1)
To import, export, transport, manufacture possess or sell any intoxicant other

then Tari and Pachwai.
(2)
To cultivate, collect or sell the hemp plant (Cannabis sativa).
(3)
To construct or work brewey.
(4)
To use or keep or has in possession materials including utensil, implement or

apparatus for manufacturing intoxicant other than Tari and Pachwai.
(5)
(b)
To bottle any liquor other than Tari and pachwai for sale.
Penalties:
Shall be punished with imprisonment which may extend to two years and with fine
and the connecting Magistrate shall direct the offender to be imprisoned in default of
payment of fine for a term which may be extended to one year and such imprisonment
shall be in addition to any other imprisonment to which he may have been sentenced.
(Section 53 of the Assam Excise Act 1910)
8.20
Unlawful possession in certain cases:

Whoever without lawful authority has in his possession any quantity of any
intoxicant knowing the same to have been unlawfully imported, transported or

manufactured or knowing that the prescribed duty has not been paid thereon shall be
64
punished with imprisonment for a term which may extend to two years or with a fine or
with both and where a fine is imposed the convicting Magistrate shall direct the offender
to be imprisoned in default of payment of fine for a term which may extend to one year
and such imprisonment shall be in addition to any other imprisonment to which he may
have been sentenced.
8.21
Penalty for altering or attempting to alter any denatured spirit:

If any person alters or attempts to alter any denatured spirit, whether manufactured
in India or not with the intention that such spirit may be used for human consumption
whether as a beverage or internally as a medicine or in any other way what so ever, by any
method what so ever, or has in his possession any spirit in respect of which he knows or
has reason to believe that any such alternation or attempt has been made he shall be liable
to imprisonment for a term which may extend three months or to time which may extend
to one thousand rupees or with both.
8.22
Adulteration, etc.:
Whoever, being the holder of a license, permit or pass granted under this Act or
being in the employ of such holders willfully contrivances any rule made under Sections
36 (2) (1), (i), (ii) and (iii) shall be punished with imprisonment which may extend to two
years or with fine or with both and where a fine is imposed the convincing Magistrate
shall direct the offender to be imprisoned in default of payment of fine for a term which
may extend to one and such imprisonment shall be in addition to any other imprisonment
to which he may have been sentenced.
8.23
Fraud by licensee or his servant:

Whoever, being the holder of a license, permit or pass granted under this Act or
being in the employ of such holder:(a)
Keeps or exposes for sale, as foreign liquor which he knows or has reason to
believe to be country liquor or
65
(b)
Marks or otherwise deals with any bottle, case package on other receptacle
containing country liquors or marks the cork of any such bottle, case, package
or other receptacle contains foreign liquor, shall be punished with
imprisonment for a term which may extend to five hundred rupees or with
both.
8.24
Breach or rule or condition of licence:

Whoever being the holder of licence, permit or pass granted under this Act or
being in the employ of such holder and acting on his behalf:-
(a)
fails to produce such license, permit of pass on the demand of ay Excise

Officer or of any other officer duly empowered to make such demand or,
(b)
in any case not otherwise provided for in this Act willfully contrivances any
rule made under Section 36 or willfully does or omits to do anything in breach
of any of the condition of such license permit or pass shall be punished in case
(a) with fine which may extend to fifty rupees and in case (b) with fine which
may extend to five hundred rupees.
8.25
Liability of licensee for offence committed by his agent:
The holder of license, permit or pass granted under this Act shall be punishable as
well as the actual offender for any offence punishable under section 53,54,55,56,57 and 58
committed by any person in his employ and acting on his behalf, as if he had himself
committed such offence, unless he establishes that all due and reasonable precautions were
exercised by him to prevent the commission of such offence;
Provided that no person other than the actual offender shall be punished with
imprisonment except in default of payment of fine.
66
8.26
Offences not specifically provided for:

Whoever in any case not other wise provided for under this Act, willfully
contrivances any of the provisions of this Act or any rules notifications or order made or
issued thereunder shall be punished with fine which may extend to two hundred rupees.
8.27
Power to compound offences:
When any licence, permit or pass is liable to be cancelled or suspended or when

any person is reasonably suspected of having committed an offence under this Act, the
Excise Commissioner or a collector instead of enforcing such cancellation or suspension
or instituting a prosecution in respect of such offence, may accept from the holder of such
licence, permit or pass or from such person a sum of money not exceeding five hundred
rupees and thereupon such holder or person if in custody, shall be discharged, and no
further proceedings in respect of such liability or offence shall be taken against him.
And if in any such case any property has been seized as liable to confiscation under
this Act, the Excise Commissioner or the collector may release the same receiving
payment of the value thereof as estimated by him or of such smaller sum as he may think
fit.
8.28
Searches, Seizures and confiscations:
In any Public place any Excise or Police Officer may:Seize, detain and carry away any excisable or other article which he has reason to
believe to be liable to confiscation under this Act, or any other law for the fine being in
force relating to the excise revenue and detain and search any person upon whom and any
vessel, raft, vehicle, animal, package, receptacle or covering in or upon which he may
have reasonable cause to suspect any such article.
(Section 38 (4) (6) 7 & (8) of the Assam Excise Act 1910)
67
8.29
Search, Seizure and arrest following upon entry without warrant in emergent
cases:
Any Excise or Police Officer, not below the rank as the State Government may by
notification prescribe having reason to believe and having recorded the grounds of his
belief that an offence under Section 53,54,55,56,57 or 60 has been is being or is likely to
be committed in any place and that a search warrant cannot be obtained without
affording the offender an opportunity of escaping or of concealing evidence of he offence,
may at any time by day or night:(a)
enter into and search such place;
(b)
seize and carry away anything found therein which he has reason to believe to
be liable to confiscation under this Act.
(c)
Detain and search and if he think proper arrest any person found in such a place
whom he has reason to believe to have committed any such offence as
aforesaid.
8.30
Custody of articles seized:
(1)
All officer-in-charge of police stations shall take charge of and keep in safe
custody, pending the order of a collector or other officer empowered under section
42 to investigate the case all articles seized under this Act which may be delivered
to them and shall allow any Excise Officer who may accompany such articles to
the Police Station or may be deputed for the purpose by an official superior to affix
his seal to such articles and to take samples of and from them.
(2)
All samples so taken shall also be sealed with the seal of the Officer-in-Charge of
the Police Station.
8.31
Report of arrests, seizures and searches:

When any Excise officer below the rank of Collector or the Officer-in-Charge of
police Station makes or receives information of any arrest seizure or search under this Act,
he shall, within twenty four hours thereafter make a full report of all the particulars of the
arrest, seizure or search or of the information received to the Collector and to the other
68
officer, if any empowered under Section 42 Sub-Section (2) within the local limits of
whose jurisdiction the arrest seizure or search was made.
8.32
Confiscation:
Whenever an offence punishable under this Act has been committed, the following
things shall be liable to confiscation, namely:-
(a)
The intoxicant hemp plant (cannabis sativa) still, utensil, implement, apparatus
or materials in respect of or by means of which such has been omitted;
(b)
Any intoxicant lawfully imposed, transported, manufactured had in possession

or sold along with any intoxicant liable to confiscation as aforesaid.
(c)
The receptacle, package and covering, in which any thing liable to confiscation
under clause (a) or clause (b) is found and the other contents, if any of such
receptacles and packages; and
(d)
The animals carts, vessels, rafts or other conveyances used in carrying anything
referred to in the foregoing clause;
Provided that when it is proved that the receptacles or other articles specified in
clause (c) and (d) are not the property of the offender the said article shall not be liable to
confiscation if the owner thereof establishes that he has no reason to believe that such
offence was being or was likely to be committed.
Registers, Returns and Reports
8.33
Maintenance of Registers in different offices of Excise Department:
(a)
Sadar Excise Officer: The following registers should be maintained in the Excise
Officer:
(1)
Bid Book
(2)
Comparative Consumprion of Opium
(3)
Register of Chalans
(4)
Registers of Convicts
69
(5)
Register of Cases
(6)
Register of comparative statement of country spirit issued from Excise

warehouse to each retail shop (in contact supply area)
(7)
Register of certificates for the issue of country spirit
(8)
Register of conviction for drunkenness.
(9)
Register of misconduct of vendors.
(10)
Register of distress warrants.
(11)
Register of security deposits of vendors
(12)
Defaulters lists
(13)
Register of Ganja and Sidhi warehouse
(14)
Register of licenses
(15)
Register of comparative issue of Ganja
(16)
Register of daily quantity of opium passed out
(17)
Register of stock account of opium
(18)
Register of Receipts and issue of uniforms
(19)
Register of individual clothing account
(20)
Register of imports of Ganja/Sidhi into warehouse
(21)
Stock account of Ganja/Sidhi goals.
(b)
Sub-divisional Excise Officer:
he following register should be maintained in
the Sub-Divisional Excise Officer:
(1)
Comparative statement of issue of country spirit to each retail shop
(2)
Defaulters lists
(3)
Monthly return of Ganja
(4)
Stock account of Ganja Goals
(5)
Register of cases
(6)
Register of convicts
(7)
Register of certificates for the issue of country spirits
(8)
Register of convictions for drunkenness
(9)
Register of security deposits of vendors
(10)
Register of daily quantity of opium passed out
(11)
Register of distress warrants
(12)
Register of misconduct of vendors
70
(13)
Register of Ganja warehouse
(14)
Register of Comparative issues of Ganja
(15)
Register of import of Ganja
(16)
Register of stock account of opium
(17)
Register of licenses
(Instruction nos. 255 and 256 Instruction relating to liquor)
71
8.34
Submission of Returns and Reports to competent authority/authorities of the Excise Department

The following important returns and reports are prescribed and are to be submitted.
Sl.
No.
(1)
1
Name of Reports & Returns

(2)
Diaries of the Supdt. of Excise
Whether monthly,
quarterly, annual
or occasional
(3)
Monthly
From whom due

(4)
Deputy
Commissioner
-do-
Monthly issue of opium
Monthly
Return showing the opium smuggling

cases
Return showing the issue of Country
spirit and Ganja
Return showing the position of foreign
liquor in the Assam Distillery
Monthly
-do-
Monthly
-do-
Statement showing the issue of foreign

liquors
Return of stoke taking of country spirit in
Excise warehouse
Quarterly statement showing the import
of India made foreign liquor from other
provinces together with export passes
Return of Excise Charges
Yearly return of import, export and
consumption of Ganja and Sidhi
Annual Excise return
Excise administration report
Return showing issue cancellation etc., of
opium passed.
Monthly
4
5
6
7
8
9
10
11
12
13
Monthly
Quarterly
Quarterly
When due to Excise

Commissioner
When due to Government

or any other Officer
(5)
-
(6)
-
By the 7th of
following month
-do-do-
the To Govt. by 15th of each

month
Important cases to be
reported to Government
To Govt. by 15 th of the
following month
-
Distiller
through
-doDeputy
Commissioner
Deputy
-doCommissioner
-doJanuary, April, July &
October
-do7th of the second month
1 following the quarter
To Govt. by 15 th of the
following month
To Govt. 15 th January, April,
July & October
Annual
Annual
-do-do-
15th April
-do-
Annual
Annual
Annual
-do-do-do-
30th April
1 st June
15th April
To Government 1st August

To Govt. 1 st February each
year in May
72
(1)
14
15
16
17
(2)
List of vendors published departmentally
Report relating to the traffic opium and
other dangerous drugs
Stole of confiscated cocaine
Inspection reports (Sadar & Subdivisional
Excise
officer,
Excise
Warehouse, distilleries & Ganja Goals).
(3)
Annual
Annual
Annual
Annual
(4)
(5)
-doJanuary
Commissioner 15th April
Deputy
Excise
Deputy Commissioner
1 st May
Within 12 days if the date of
inspection
(Based on instruction No. 260 of the Instructions relating to liquors).
73
(6)
st
1 June each year
To Govt. 1st June
-
CHAPTER IX
SCOPE AND EXTENT OF STATUTORY AUDIT
(a)
Scope of Audit:
9.1
The function of audit is to see that duty payable on excisable articles under the
provisions of various Acts, Rules and Notifications and the vend fees have been correctly
assessed collected and brought to account, that a proper account of confiscated articles and
disposal is kept and that penalties and fine have been levied wherever required under the
Act and Rules thereunder. Thus audit will involve:(a)
Examination of the system of auction and other procedures for allotment of retail
vends and fulfillment of conditions attached to the licenses.
(b)
Checking of rates of excise duties/levies.
(c)
Seeing whether a continuous record of permits and passes issued is maintained.
(d)
Scrutiny of records maintained in the distilleries, breweries and bonded

warehouses.
(e)
Reconciliation of collections and deposits with the figures appearing in the

Treasury Accounts.
(f)
Review of demand, collection and balance registers to see that demands are raised
promptly, collected in time no arrears are allowed to accumulate and that there is
adequacy of procedure to recover excise revenue.
(g)
Scrutiny of figures of Sales with reference to departmental records in cases where

licence fees are assessed with reference to spirits issued.
(h)
In case of refunds of excise and revenue checking whether the refund is admissible
and is covered by sanction.
(i)
Scrutiny of all register maintained and to see that all departmental instructions
issued for there maintenance are followed.
9.2
The following areas need special attention:

Transit and Storage Losses
Under the Rule in cases where in losses exceed the permissible percentage, the
licences/permit holder have to pay full duty at the rate specified in the rules on the losses
in excess of the prescribed percentages.
74
Audit check
9.3
Excise Commissioners office

All supply contract and auction cases should be examined.
9.4
District Officer/Sub-Division Office
(a)
Register of licences granted on fixed and assessed fee:-
It shall be seen that:(1)
The licences have been granted by the competent authority after observing the
prescribed procedure.
(2)
All the licences granted on fixed or assessed fee are noted in the Register
giving full particular under proper attestation.
(3)
The fees are realised on due dates and in the case last payments the penal
action is taken against the defaulters.
(4)
Realizations are traceable in the daily collection register/treasury records.
(5)
It should be seen that while reviewing the licences on assessed fee the
provisions contained in the rules are observed and the fees are recovered within
the prescribed, dates.
(6)
Register of licences granted on fees determined by auction.
It shall be seen that:-
(1)
All the vends required to be auctioned have been put to auction.
(2)
In case where highest bid was not acceptable whether the reasons thereof have
been recorded by the presiding officer.
(3)
All the licences granted by auction have been noted in the register under proper
attestation giving full particulars.
(4)
The security deposits was paid by the licensee within the prescribed due date.
(5)
The installment of licence fee gave been paid by the due dates. In case of
default whether penal action was taken and the interest due on the last deposit
recovered.
(6)
The entries for the payment of licence fee are traceable in the daily collection
register and in the treasury records.
75
(7)
In case of re-auction of vends whether the deficiency has been recovered from
the original licensee along with the expenses for as resale.
(c)
Register of permit granted for the transport from distillery to within the state and
import denatured spirit.
It should be seen that -
(1)
All the permit in respect of spirit are noted in the register.
(2)
Permit fee has been correctly calculated and paid into the treasury.
(3)
The credits are traceable in the daily collection register.
(4)
Entries in the register should be compared with the statement received from
distillery of other state to ensure tat there is no unauthorized issue.
(d)
Register of liquor imported/transported into district.
It should be seen that -
(1)
All the permits issued for country spirit have been noted in the register against
the licensee concerned.
(2)
The authorized annual quota of the country liquor fixed for each vend out to
auction is noted at the top of the page allotted to a particular licensee.
(3)
Progressive total of the quantity authorized to be issued is worked out every

time a new entry is made in the register.
9.5
Distillery:
In the audit of a distillery it should be seen that:-
(1)
The applicant desiring to obtain a licence has deposited the prescribed security/fee.
(2)
The licensee has exempted a bond pledging the premises, stock of spirit, stills all
apparatus and utensils employed in the manufacture and storage of spirit for the
due discharge of all payment which may become due to Government.
(3)
The licensee has not closed the distillery for more than three days in any month
exclusive of Sunday and holidays without the previous written consent of the
collector.
(4)
The Register should be seen determine showing whether the licensee has
maintained a stock of plain and special country spirit in bottled form and that such
76
stock at the beginning of each month is equal to half of the average issues during
that month in the three preceding years. Failing to comply with this condition shall
tantamount to levy of penalty which the licensee is required to pay.
(5)
No wash has been used except such as has been prepared within the distillery nor
any wash has been removed from the distillery except 2,250 litres of vat for use in
laboratories.
(6)
The wastage in the distillery is not more than the scale prescribed by the Excise
Commissioner. In the case of excessive wastage duty has been recovered on the
excessive wastage.
(7)
The wastage has been correctly calculated for each month and the charge on
account of duty has been made at the end of each financial year.
(8)
The duty on excess wastage of plain country spirit above the strength of 430 over
proof has been charged at the rate prescribed for plain country spirit and not at the
rate prescribed for rectified spirit.
(9)
The extraordinary wastage of spirit due to preventable causes which could be

foreseen or guarded against by the licensee and that the spirit was required to meet
a demand on the distillery the meeting of which was delayed by reasons of this
loss, the licensee has been made responsible for paying all or such part of the duty
that would have been recovered of the wasted spirit.
(10)
No spirit has been issued if its quantity and strength have been verified by the
Inspector.
(11)
The daily collection register showing the amount deposited by the licensed vendors
has been maintained, the entries in the register have been reconciled with the
treasury monthly and a certificate to this effect has been obtained from the treasury
officer.
9.6
Brewery:
In the audit of brewery it should be seen that:(1)
The licensee of the brewery has deposited the prescribed security in addition
has executed a bond pledging the premises, stock of beer etc. for the due
discharge of all payments which might become due to Government.
(2)
The licensee has deposited the prescribed license fee.
(3)
The Inspector in charge has maintained a general register in respect of samples

issued free of duty for chemical analysis.
77
(4)
The inspector has also maintained a register showing issues of beer made to
other states.
(5)
The duty of beer at the prescribed rate has been charged on the total quantity
actually brewed as entered in the brewing book by the licensee. The amount of
duty to be realised on collection of daily brews has been maintained by the
Inspector in the register.
(6)
In the case of recovery of duty at the end of each quarter the sanction of the
Excise Commissioner has been obtained and that the licensee has executed a
bond.
(7)
While assessing duty on beer manufactured in any quarter, beer issued in bond
during the quarter has been deducted from the total quantity brewed and
wastage allowance at the prescribed percentage has been calculated on the
balance thus arrived at.
9.7
Bonded warehouse:
It would be seen in audit that:(1)
The licensee of the bonded warehouse has deposited the prescribed security
and licensee fee before the grant of licence.
(2)
The licence has been renewed on the payment of renewal fee.
(3)
No liquor has been received in the bonded warehouse without a pass from the
officer-in-charge of the distillery or bonded warehouse from which it has been
imported or transported.
(4)
The wastage allowance not exceeding the prescribed percentage has been
allowed for the actual loss in transit by leakage or breakage of vessels or
bottles containing liquor. If the wastage exceeds the prescribed limit, the duty
on the excessive wastage has been recovered.
(5)
In case of loss of liquor as a result of fire, accident, theft or any other cause is
due to the negligence of the licence the duty has been recovered on such loss.
(6)
An account of all receipt into an issue of liquor from the warehouse has been
maintained in register and that all issues have been made only on application
bearing necessary court fee stamp.
(7)
The liquor has been removed under bond or on payment of duty within the
state or outside the state.
78
(8)
No liquor has been removed from the warehouse until duty has been paid into
Treasury and it has been checked and proved by the officer in charge and a
transport or export pass as the case may be has been granted.
(9)
The liquor has been imported/transported under bond which has been
discharged after check of the liquor by the officer-in-charge.
(10)
The liquor has been removed after adjustment of the duty against advance
payment made into the Treasury. Its account ahs been maintained in register
and that advance has never been less than Rs. 2,000.
(11)
The Officer-in-charge has made the stock taking of liquor both bottled and bulk
on the last working day of each month and also stock taking has been checked
by the Excise Officer of the district concerned.
(12)
No liquor has been issued except under a pass, granted by the Officer-incharge, wineries etc.
9.8
Pharmacy:
In the audit pharmacy it may be seen that
(1)
Every person who manufactures any dutiable or who stores such goods in bond
has paid the duty or duties leviable on such goods under the Act.
(2)
The payment of such duty or duties is secured by bond or otherwise.
(3)
No dutiable goods have been removed from any place where they are
manufactured or any premises apartment thereto, whether for consumption,
export or manufacture of any other commodity in or outside such place until
the excise duty has been paid.
(4)
The duty has been levied at the correct rate prevailing at the time of issues.
(5)
Rectified spirit received under bond has been in quantity and in strength and its
receipt entered in register.
(6)
Rectified spirit has been obtained on proper indent duly countersigned by the
Officer-in-charge.
(7)
Rectified spirit has not been issued for the purpose other then for the
manufacture of medicinal and toilet preparations.
(8)
Where there is wastage of spirit during the manufacture of medicinal and toilet
preparations in excess of the prescribed scale, the duty has been recovered on
the excessive wastage.
79
(9)
The licence has been granted or renewed on payment of prescribed fee.
(10)
Before granting licence the prescribed security has been deposited by the
licensee.
(b)
Extent of Audit.
(A)
Audit of Excise Commissioners Officer:

All supply contracts and auction cases should be examined 100% (cent percent).
(B)
District Excise Officer:

(Including circles/Sub-Division/Blocks/Ranges etc.)
(i)
Challans for payment of duty 8 1/3% of the challans i.e., 1 month account may be
checked by the Sr. Auditor/Auditor and 50% of challans checked shall be reviewed
by the Assistant Audit Officer.
Inspecting officer may conduct a general review.
(ii)
Auction of shops of foreign liquor, country liquor etc.
(a)
Foreign liquor shops:

Cases relating to foreign liquor shops may be seen by the Inspecting Officer
personally if the amount of licence fee exceeds Rs. 30,000 or such other limit the Pr.
Accountant General may fix later on the basis of result of the previous audits with the
approval of the Comptroller and Auditor general of India. The rest should be seen by the
Assistant Audit Officer/Section officer and reviewed by the Inspecting Officer.
(b)
Country liquor shops:

All cases where licence fees exceeds Rs. 1,00,000 of such other limit, the Pr.
Accountant General (Audit) may fix with the approval of the Comptroller and Auditor
General of India may be examined by the Inspecting officer personally. As regards other
cases 10% cases where licence fee ranged between 30,000 and 1,00,000 may be seen by
the Assistant Audit Officer/Section Officer and review by the Inspecting officer and 5% of
the rest of the cases may be seen by the Sr. Auditor/Auditor and generally reviewed by the
Assistant Audit Officer/Section Officer.
80
(ii)
Licence on fixed rates permits and passes:

10% of the cases may be seen by the Sr. Auditor/Auditor and generally reviewed
by the Assistant Audit Officer/Section officer and Inspecting Officer.

(iv)
Miscellaneous receipts (Fines, confiscation etc.):

The amount of revenue involved in each cases may not be much 5% of the cases
may be seen by the Sr. Auditor/Auditor and generally reviewed by the Assistant Audit
Officer/Section officer and Inspecting Officer.
(v)
Refunds and remissions of revenue:

(a)
Cases of refunds and remission of revenue exceeds Rs. 1000 of such other limits,
Pr. Accountant General (Audit) may prescribed with the approved of the
Comptroller and Auditor General of India 100% of all cases are to be examined
by the Assistant Audit Officer/Section Officer and reviewed by the Inspecting
Officer.
(b)
Cases of refunds and remissions of revenue of Rs. 1000 and less 10% of cases to
be seen by the Sr. Auditor/Auditor and reviewed by the Assistant Audit
Officer/Section Officer.
(M)
Check of Register:
The Register required to be maintained under the rules and order of the State
Government should be examined generally by the Sr. Auditor/Auditor to verify whether

they are being maintained properly. A small percentage of entries in the Registers (Say
5%) may be test checked to verify their correctness. A general review of the work done by
the Sr. Auditor/Auditor may be conducted by the Assistant Audit Officer/Section Officer
and Inspecting Officer.
(vii)
Payment to Distillers for issue from warehouse to Retailers:

5% of the entries may be checked (regarding quantity and rate) in detail by the Sr.
Auditor/Auditor and generally reviewed by the Assistant Audit Officer/Section Officer

and I.O.
81
(C)
Audit of Warehouses:
(i)
Check of challans for duty and licence 8 1/3 of the challan i.e., 1 months account
may be checked. The work of Sr. Auditor/Auditor should be reviewed to the extent of 50%
by the Assistant Audit Officer/Section officer, Inspecting Officer may conduct a general
reviews.
(ii)
Check of Register:
All the Register maintained in the warehouse in regard to the receipt of
consignment, bottling, storage etc. should be generally examined to see that these are
maintained property. A small percentage (say 5%) of entries should also be test checked
to verify their accuracy.
(D)
Audit of Distilleries:
The terms and conditions of licence granted should be seen generally to find out
whether they were adhered to by conductor. Register should generally be seen to see that
the production of liquor is in reasonable proportion to the material used as laid down in the
departmental manual. One month account may be checked to see this. Issues from
Distilleries to Warehouse of for export shall be test checked for one month with
acknowledgement and duty paid for such issues.
(E)
Audit of Pharmacies:
General scrutiny of the Registers maintained to see that manufacture of materials is
in reasonable proportion to the materials consumed as laid down in departmental manuals

and that the registers are complete. One months account may be checked to verify this.
Issues from Pharmacies for one months may be checked with the duty paid for such
issues.
82
CHAPTER X
DUTIES OF THE INSPECTION PARTY
10.1
Allocation of Audit Work among members of State Excise Audit Parties:
(I)
Sr. Audit Officer/Audit Officer
(1)
Review of items marked with asterisk and discussion of outstanding Local

Audit Report paras.
(2)
Review of challans audited by Assistant Audit Officer/Section Officer.
(3)
Review of auction files (with a view to taking objections and increasing

percentage of review. If need be for generation of audit report materials).
(4)
Audit of Licences for foreign liquor shops involving revenue Rs. 1,00,000
more per year, country liquor licences for Rs. 1 lakh or more per year and
Ganja and drug licence for Rs. 50,000 or more per year. Review of 10 percent
of licences for foreign liquor and country liquor which are audited by Assistant
Audit Officer/Section officer.
(5)
Review of 20 percent of refunds and remission case audited by Assistant Audit

Officer/Section Officer, with a view to taking audit objections.
(6)
Files on auction cases, supply contracts and inter-state movements, in

Commissions Officer.
(7)
Audit of warehouse records, in distilleries and pharmacies (Subject to allotment

of suitable work by Sr. audit Officer/Audit Officer to Assistant Audit
Officer/Auditor).
(II)
Assistant Audit Officer/Section Officer

(1)
Check of 20 percent of challans for payment of duty audited by Auditor with a

view to taking audit objections.
(2)
Audit of auction files.
(3)
Audit of all licences issued for foreign liquor shops not audited by Audit
officer.
83
(4)
Audit of all licence for country liquor shops involving revenue of Rs. 30,000 or
more and upto Rs. 1 lakh and Ganja/drugs licence between Rs. 30.00 and
Group Officers orders may be taken before quantum of audit is allowed to be
reduced to 10% of country liquor licence i.e. provided adequate material for
audit report is getting generated). Review of 10% of licences below Rs. 30,000
for country liquor and Ganja/drug audited by Auditor.
(5)
Review of 20% of other licences, permits and passes and miscellaneous

receipts audited by Auditor.
(6)
All cases of refunds and remission of revenue in excess of Rs. 1000 and 10%
of other cases, selected at random.
(7)
(III)
Other important register and connected files.

Sr. Auditor/Auditor
(1)
Auditor of challans for payment of duty.
(2)
Audit of all licences for country liquor shops and Ganja/drug licences
involving revenue of less than Rs. 30,000 (order of Group officer may be taken
before the audit is reduced to 5% of such licences i.e. provided flow of
materials for Audit report is satisfactory).
(3)
25% of other categories of licences permits and passes relating to revenue/duty

fees and miscellaneous receipts (10% selected by reframe to value and 15%
selected at random).
(4)
Other registers and connected files including those relating to payment made to
distilleries from recovery made on ex-bond clearances (other than those
checked by Assistant Audit Officer/Section Officer).
(Authority: Headquarters Circular No. 6 of 1984 No. 252-REC.A-IV/3 (1)-84/Gr-I

dated 28/02/1984)
10.2
Composition of Inspection Parties:

A Local Audit Party assigned to audit the accounts of an office under the different
Acts and rules applicable to that office shall consist of two trained Assistant Audit
Officer/Section Officer and one Sr. Auditor/Auditor. The percentage of supervision shall
be mentioned in Para 10.3 periodicity duration of audit and standard rate of work below:-
84
10.3
Sl.
No.
i
Periodicity, Duration of Audit and Standard Rate of Work:

Name of Unit
Periodicity
Excise Commissioner Office
Annual
Duration of audit
(Party days)
6
ii
District Excise Offices
-do-
iii
Distilleries
-do-
iv
Bonded warehouses
-do-
Pharmacies
Biennial
Gazetted Supervision:
50% but for the audit of the office of Excise Commissioner 100%.
10.4
Procedure for conducting of Local Inspection:

An audit party visiting an office shall in the first instance called for auditable
documents from the Head of the office and thereafter assign it among the Assistant Audit
Officer/Section Officers and Sr. Auditor. Important cases among with relevant records
should be scrutinized by the Assistant Audit officer/Section Officers should also be
reviewed by the Sr. Audit Officer/Audit Officer. The Sr. Auditor/Auditor attached to the
party should be assigned duties of less important of miscellaneous nature but the duties
include verification of payments made into the treasury and payments drawn from it. The
list of payments made into Treasury as supplied by the Treasury Office should also be
thoroughly scrutinized so that cases of misappropriation/embezzlement or similar
malpractices if any one detected forth with. If during the course of audit and irregularity
reflecting on the working of the office or effecting the revenues of the Government comes
to the notice of the party, a means stating the facts along with the records (KD) on which
such facts are based should be issued to the Head of the Office requesting him to solicit his
comments. On receipt of his reply, the case should be discussed with him, if necessary
before in corporation of comments on the case in the Audit Note/Inspection Report.
85
CHAPTER XI
QUESTIONNAIRE: STATE EXCISE DUTIES
This questionnaire covers some for the important points to be looked into during
local audit and may not be taken as exhaustive. The relevant entailments and rules
governing the receipts and notification and such other directions issued by the
Government and component authorities should invariable be gone through before taking
up the audit.
11.1 (a)
(a)
Country Liquor:
Whether all the country liquor vends as approved by the Government have
been put to auction?
(b)
Whether the scrutiny has been recovered by the prescribed date?
(c)
Whether the auction money has been properly entered in the Register in
respect of all the country liquor vends auctioned?
(d)
Whether the installments of licence fee (auction money) have been correctly
recovered within the prescribed due date?
(e)
Whether the remittance of installments as noted in the Register are supported

by the original Treasury challans?
(f)
Whether the penal interest has been correctly worked out and recovered in
respect of late deposit of monthly installment(s)?
(g)
Whether the balance due if any, from each licence at the end of the contract
period has been worked out correctly and suitable action taken to recover the
same as arrears of Land Revenue?
(h)
Whether in the case of a resale of country liquor vend the dues from the
original purchase and the resale purchased are correctly worked out?
(i)
Whether the less in resale along with expenses of resale has been recovered
from the original purchaser? If not whether action under the Land Revenue
Act has been taken?
86
(j)
Whether the last installment was adjusted against 100% scrutiny only after
the adjustment of outstanding fee or penalty due from him in respect of his
licence?
(k)
If the scrutiny deposit has to be forfeited to government due to violation of

the terms and conditions of the licence or any other reason, whether the
requisite action has been taken.
Indian made foreign liquor
(a)
Whether the details of licences and scrutiny for foreign liquor shop are
noted in the Register?
(b)
Whether the licences are renewed every year? If so whether the fixed
fee/assessed fee etc. has been correctly recovered in time?
(c)
In the case of default has any penal action been taken?
Distilleries
(a)
Whether all the conditions prescribed under the Excise Act and Rules made
thereunder have been satisfied before a licence is granted for a distillery?
(b)
Whether the licence granted is renewed in time on payment of the prescribed

fee?
(c)
Whether the licence has executed a bond pledging the premises, stock of
spirit, stills, all apparatus and utencils employed in the manufacture and
storage of spirit for the due discharge of all payments which may be become
due to Government?
(d)
Whether the Register for noting the dimensions and capacity of wash backs,
receivers, spirits, vats are maintained?
(e)
Whether the dip tables for receiver vats etc. are approved by the competent
authority and can be accepted as correct?
(f)
Whether the quantity and initial gratuity of the wash as declared by the
distiller are correct as per entries in the Register?
11.2
Register of wash repaired and spirit obtained:

(a)
Whether the whole quantity of wash prepared was sent for distillation?
(b)
Whether the bulk litre of spirit has correctly been arrived at?
87
(c)
Whether the strength of the spirit noted in the Register is correct?
(d)
Whether the minimum yield based on the fall in gravity of was obtained?
(e)
Whether the whole quantity of spirit obtained in the receiver is passed into
the warehouse?
(f)
While conducting the monthly stock taking whether the storage wastage has
been limited to the prescribed percentage?
(g)
If the wastage in excess of prescribed percentage has been noticed whether

duty has been realised thereon at the close of the year?
(h)
Whether vat to its transfer has been excluded for limiting the storage
wastage?
(i)
Has any wastage been allowed during re-distillation of spirit in addition to

prescribed wastage in the spirit store room?
11.3
Issue of spirit from Vats:
(a)
In respect of transfer to other vats, whether the whole quantity has reached
the other vats?
(b)
In respect, of transfer for blending and reducing whether the whole quantity
has been accounted for the Register of blending and reducing operations?
(c)
In respect of issue of spirit duty free to Government institutions whether the

provisions of the rules have been observed?
(d)
Whether the rectified spirits are issued in account with provisions of the
rules?
11.4
(a)
Register of bottling operations:
Whether the whole of quantity of spirit has been bottled after allowing the
prescribed quantity for wastage in bottling?
(b)
Whether the bottling wastage exceeded the prescribed limit and if so, duty on
excess wastages has been levied at the tariff rate?
11.5
(a)
Accounts of bottled spirit:

Whether proper accounts showing the receipts, issues and balances of bottled
spirit are maintained?
88
(b)
Whether there is wastage in excess of prescribed percentage in bottling storage

and if so, whether excess duty has been charged on the excess wastage?
(c)
In case if issue of foreign liquor for consumption within the state whether the
duty has been correctly realised and whether the rate of duty levied on each
kind of liquor is correct?
(d)
If the issues spirits are against advance payment whether the adjustments are
made correctly?
(e)
Whether the distiller has maintained proper accounts of raw materials used for
the manufacture of spirits?
(f)
Whether the distiller has maintained proper accounts of raw material used for
the manufacture of spirits?
(g)
Whether the prescribed export fee has been charged on the export of rectified
spirit, country spirit, IMFL to other Union Territories or States?
(h)
Whether the licence is current and whether the licensee ahs furnished security?
(i)
Whether the whole quantity has been taken to stock after physical verification
of the consignment?
(j)
Whether the import permit and the export permit are available in respect of
each consignment received in the warehouse?
(k)
Whether the whole quantity as shown in the export permit has been received?
(l)
Whether the verification reports are available for audit?
(m)
Whether the wastage in transit and store have excluded the allowable limit and
it exceeded whether the duty has been realised on excess wastage?
(n)
Whether the quantity of liquor stored in the warehouse at any time has
exceeded the maximum quantity allowed to be stored?
(o)
Whether the issues and balances of foreign liquor from the warehouse have
correctly been noted in the Register?
(p)
If wastage in stores has been noted in the Register whether the circumstances
under which the wastage occurred were brought to the notice of the Excise
authority before remission of duty, if any, was granted?
(q)
Whether quantity released as per each bond has correctly been shown as issue
in the warehouse Register?
(r)
Whether liquor was allowed to be removed from the warehouse without

collecting duty prior to the release?
89
(s)
Whether rate of duty for each kind of liquor i.e. spirits, wines and beer is
correctly applied.
11.6
Breweries:
(a)
Whether the whole quantity of beer has been assessed to duty?
(b)
Whether amount of duty demanded is correct?
(c)
Whether the duty demanded from the Brewer is paid within the prescribed
period?
(d)
Whether an amount of duty to be realised on collection of daily brews has been

maintained by the Inspector in the Register?
(e)
Whether the wastage allowance has been calculated on the quantity of beer left
after deducting the quantity of beer issued in the bond?
(f)
Whether licence has been granted after charging the prescribed fee?
(g)
Whether the licensee has executed a bond pledging premises stock of beer etc.?
11.7
(a)
Pharmaceutical Laboratories:
Whether the whole quantity of rectified spirit as shown in the permit issued by
the distillery has been received and accounted for after verification?
(b)
Whether the deficiency in excess of limit prescribed for wastage in transit has
been noticed at the time of verification and if so, whether duty on such excess
wastage has been collected?
(c)
Whether the verification reports have been sent to the distillery officer in time?
(d)
If excess wastage have been noticed in the spirits store during stock taking
whether duty has been realised on such excess wastage?
(e)
During the process of manufacture of medicinal preparations whether excess

wastage of alcohol was noticed and if so, whether the duty thereon has been
realised?
(f)
Whether a proper account is maintained for noting the receipts, issues ad

balance of medicinal preparation?
(g)
Whether chemical examiner certificate declaring the spirit strength has been
received before the removal of medical preparations from the finished product
store?
90
(h)
Whether duty has correctly been levied taking into account of the strength of
the medicinal preparations before the same are realised from finished product
store?
(i)
Whether the licencee has executed bonds before removing the medicinal
preparation under bond?
(j)
Whether the treasury challan receipts in support of payment of duty are

available?
11.8
(a)
Refunds:
Where the refund of excise duty etc. has been allowed? Whether it was allowed
in accordance with the provisions of the Rules?
(b)
Whether the refund allowed by the competent authority?
(c)
Whether the note refund was kept against the original entry of the receipts of
the amount?
91
CHAPTER XII
Audit of internal controls
12.1
Audit will see that the internal/procedures adequately secure correct and regular
accounting of demands, collection and refunds, that no amounts due to Government

remain outstanding in its book without sufficient reason and that the claim are pursued
with due allegiance and are not abandoned or reduced except with adequate justification
and with proper authority.
12.2
The most important function of Audit and the area of audit concern in relation to
levy and refunds is to satisfy itself, by such test checks as it may consider necessary, that
the internal procedure adequately provide for and actually ensure.
(i)
the collection and utilisation of date necessary for the computation of the demand
or refund under law.
(ii)
that the computation and realization of various fees, rents, royalty etc. are in
accordance with the applicable laws.
(iii) the correct accounting and allocation of collections and their credit to the
Consolidated Fund.
(iv) That the relevant and requisite records are being maintained properly.
(v)
That adequate control and monitoring mechanisms have been devised to prevent
loss or leakage of revenue.
(vi) That there has not been any loss or leakage of revenue on account of lacunae or
loopholes in the rules framed for the purpose or on account of avoidable delay in
the issue of the necessary notifications and orders.
(vii) That the machinery for detection of cases of evasion is adequate.
(viii) That double refund, fraudulent or forged refund orders or other losses of revenue
through fraud, default or errors are promptly brought to light and investigated.
(ix) The cases pending in courts of law or before appellate authorities have been
pursued adequately and appeals, wherever justified or considered necessary, have
been filed within the period of limitation; and
(x)
That the estimates of revenue have been realized at the end of the financial year.
[Authority Chapter 3 of C & AG (M.S.O.) Audit 2002]
92
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OFFICE OF THE PRINCIPAL ACCOUNTANT

GENERAL (AUDIT) ASSAM, GUWAHATI

REVENUE AUDIT MANUAL

PREFACE TO THE FIRST EDITION

Pr. Accountant General (Audit), Assam

PREFACE TO THE SECOND EDITION

An error/omission noticed in the Manual and suggestion for its improvement

Organisation and Functions of the Excise Department

Scope and extent of Statutory Audit

Duties of the Inspection Party

Audit of Internal Controls

Definitions:- In this Act, unless there is anything repugnant in the subject or

Excisable articles means

any alcoholic liquor for human consumption or

any intoxicating drug.

Excise Commissioner means the officer appointed by the State Government.

Excise officer means a collector or any officer or other person appointed or

The Excise Department is headed by the Commissioner of Excise who is assisted

Delegation of Powers and Duties:

Establishment and Control.

The State Government may, by notification applicable to the whole of the

Appointments and Powers:

The Excise Commissioner:

The Excise Commissioner to have control of the administration of the Excise

Power under clause (c of Sub-Section (2) of Section 8 to appoint, promote and

Deputy Commissioner of Excise:

the control of the Excise

to the Deputy Commissioner of Excise -

his power to suspend, remove, dismiss or otherwise punish Excise Constables of

Superintendent of Excise: There shall ordinarily be a Superintendent of Excise in

Section 17 (1) (III)

(grant of permit for the possession of intoxicant)

(power to require licences viz, manufactures and vendors

(inspection of places of manufacture and sale of

(arrest, seizure and search without warrant)

Section 39 (a) & (b)

(issue warrants for search and arrest)

Section 40 (1) & (2)

(Search, seizure and arrest upon entry without warrant in

(power to investigating officers)

(production and disposal of persons arrested and articles

(police custody of articles seized)

(Reports of arrests, seizures and searches)

Section 47 (2) & (3)

(procedure in excluding warrants and in making arrests

Section 65(1) (a) (b)

(confiscation and release of articles attached)

(composition of offences and release of properties liable

His power to suspend, reduce, remove dismiss or otherwise punish Excise

Deputy Superintendent of Excise:

control of the Commissioner of Excise, the Deputy Superintendent of Excise shall in

Section 17 (1) (III)

(grant of permit for the possession of intoxicant)

(power to require licences viz, manufacturers and

(inspection of places of manufacture and sale of

(arrest, seizure and search without warrant)

Section 39 (a) & (b)

(issue warrants for search and arrest)