PUNJAB DISTILLERY RULES, 1932

Pre. Published vide Punjab Notification No. GSR 298/PA-1/14/Sections 21, 59 and 63 dated 27th November 1963

In these rules unless a different intention appears from the subject or context :-

(a) "license" means a license granted for a distillery under Section 21 of the Punjab Excise Act, 1 of 1914.

(b) "Inspector" includes Sub-Inspector.

(d) "Bub" is a composition itself in a state of fermentation prepared for addition to wash to promote fermentation.

(e) "Low Wines" means impure spirits produced from the first distillation of the wash in a potstill.

[(ee) "Economy Brand, Medium Brand, Premium Brand and Deluxe Brand" means the brands as classified as such by the Excise Commissioner from time to time]

(f) "Feints" means that portion of the distillate from the low wines which is considered unfit by reason of its impurities to be collec

R.1 .

The [Financial Commissioner] has full power to grant or refuse applications for licenses with reference to the requirements of the State.

R.2 .

Any person desiring to obtain a license for a distillery under Section 21 of the Punjab Excise Act (1 of 1914), may apply to the[Excise Commissioner].

R.3 .

Every application for a license for a distillery shall be in writing in the Form D and shall be accompanied by -

(a) a correct plan of the premises which the applicant proposes to use for the purposes of his business under his license and of the buildings existing or to be erected thereon, for the said purposes;

(b) a list and plans of all warehouses, store-rooms and other places appertaining thereto, or to be used in connection therewith; and

(c) a certificate from the Civil Surgeon that there is no objection on sanitary grounds to the construction of distilling premises, or to the distillation of spirit on the site and in the building shown in the accompanying plans.

R.4 .

No license shall be granted unless and until the applicant therefor has-

[(a) deposited a sum of [eighty lakh rupees]] in cash as license fee.

[(aa) deposited as security in cash or in National Savings Certificate for the fulfillment of all the conditions of his license a sum of rupees one lakh] [in amount or given a bank guarantee of a Scheduled Bank as security for an amount equivalent to the aforesaid sum for the aforesaid purpose]

(b) satisfied the [Excise Commissioner] that the proposed buildings, plant and apparatus to be used in connection with the business of distillation, storage and issue of spirit are built in accordance with the prescribed regulations and the precaution has been taken against fire; but in respect of the present buildings, plant and apparatus of existing distilleries, which do not conform with the provision of these rules, the Excise Commissioner may, in writing, grant exemp

R.5 .

The license shall be in form D-2 and is not transferable except with the sanction of the Excise Commissioner.

R.6 .

The licensee shall execute a bond in Form D-3 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 payments which may become due to Government. With the sanction of the[Excise Commissioner,] the licensee may, in lieu of executing such a bond deposit Government promissory notes or in National Savings Certificates of such value as the[Excise Commissioner] may direct. A deposit made under this rule shall be separate and distinct from the security deposit required by Rule 4.

R.7 .

(1) A license granted under these rules shall be valid for a period of one year from the date of issue unless it is cancelled determined or surrendered earlier and shall be renewable annually by the [Excise Commissioner with prior approval of the Financial Commissioner] on the application of the licensee on payment of [rupees eighty lakh]]:

Provided that such a license may be cancelled for breach of the terms thereof or may be determined by the [Excise Commissioner with prior approval of the Financial Commissioner] after giving the licensee six months notice.

(2) An application for the renewal of the license shall be made by the licensee to the Excise Commissioner as so to reach him at least 90 days before the expiry of the old license:

Provided that if such application is not made within such period, the [Excise Commissioner with prior approval of the Financial Commissioner] may renew the license, on

R.8 .

If the licensee ceases to work the distillery without giving notice as required in his license, or if he ceases to work the distillery within the period of such notice, the Collector may take possession of the distillery and its plant and work it by himself or by agency of any person authorised by him in that behalf for a period equivalent to the period of notice or unexpired period of notice, as the case may be.

R.9 .

In the case mentioned in the foregoing rule the licensee shall be entitled to receive from Government such reasonable rent for the use of the buildings and plant as shall be determined by the [Excise Commissioner.]

R.10 .

If a license be revoked, cancelled or determined, the licensee shall dispose, under the conditions of his license of his stock of spirit apparatus, storage vessels and other distilling plant in such manner as the[Excise Commissioner] may direct.

R.11 .

The licensee may not hypothecate the whole or any part of the licensed premises without the previous written sanction of the[Excise Commissioner].

R.12 .

The licensee shall at any time permit the[Excise Commissioner] or Collector or any officer authorised by the[Excise Commissioner] or Collector in that behalf, to inspect and examine his licensed distillery, the premises and warehouse connected therewith and the spirit made and stored therein, and shall render to the[Excise Commissioner] or Collector or office (as aforesaid) all proper assistance in making such inspection and examination.

R.13 .

The licensee shall agree to the posting of a Government excise establishment to his distillery for the purpose of ensuring the due observance of these rules and for watch and ward. This establishment shall consist of an[Excise and Taxation Officer and as many Inspectors] and peons as the[Excise Commissioner] shall deem sufficient for the requirements of the distillery. This staff shall be subject to the inspection by [Excise Commissioner] and the Collector and be under the Administrative control of the Collector.

R.14 .

The licensee shall, provide within the distillery enclosure an officer for the said establishment, as well as quarters to be approved by the Excise Commissioner, for the said establishment, which will be required to remain within the distillery enclosure on night duty.]

R.15 .

The licensee shall, if required by the Excise Commissioner, provide residential quarters for the Government excise establishment posted in the Distillery and a small rest house (a complete 2 roomed set) for supervisor officers].

R.16 .

The licensee shall, if required by the[Excise Commissioner,] make into the Government treasury such payment as may be demanded on account of the salaries of the Government excise establishment posted to the distillery, but he shall not make any direct payment of any member of such establishment.

R.17 .

The licensee shall, when required, permit samples of the materials used of spirit prepared in the distillery to be taken for analysis under the order of the Collector or the[Excise Commissioner] or by any officer authorised by them to take samples or the[Excise and Taxation Officer or in his absence the inspector.] Each sample shall be taken in three bottles each of the capacity of 750 milliliters or any other capacity permissible under the rules or (when the materials cannot be placed in bottles) in three parcels, in the presence of the licensee or a responsible representative deputed by him for this purpose; each bottle or parcel shall be immediately and securily sealed in the presence of the Inspector and the licensee or his representative. Both of them shall given a label which shall be affixed to the bottle or parcel shall then be made over to the licensee's representative, the second shall be sent for analysis and the third retained by the Officers concerned pe

R.18 .

The licensee shall afford all reasonable assistance to the[Excise and Taxation Officer or in his absence the Inspector] in carrying out duties.

R.19 .

The licensee, unless he personally acts as manager, shall be bound to appoint a competent manager as his agent, whose appointment shall be subject to approval of the[Excise Commissioner.]

R.20 .

The license shall furnish to the [Excise and Taxation Officer or in his absence the Inspector] a list containing the name of any manager or assistant manager employed by him and of all employees whose duties require them to eater the distillery enclosure.[The Excise and Taxation Officer or in his absence the inspector] shall maintain a list of persons employed in the distillery in Form D-7 and shall forward a copy thereof to the Collector, and the licensee shall not employ on such duties persons to whom the Collector objects.

R.21 .

If the licensee desires to employ any person temporarily on duties requiring him to enter the distillery, e.g., to replace a servant who is absent on leave or for sickness or otherwise or to perform any special duty in the distillery, he shall inform the[Excise and Taxation Officer or in his absence the Inspector] who shall add the name of such person to the list maintained by him in form D-7, and inform the Collector accordingly.

R.23 .

No person shall be allowed to enter the distillery except the licensee, any director of a company owning the distillery, any Government official or police officer whose duties require him to enter the distillery, and person introduced by the licensee or director, the manager and any person whose name has been entered on the list maintained by the Inspector in Form D-7.

R.24 .

Every person entering the distillery shall, on leaving the distillery be liable to be searched under the[Excise and Taxation Officer or in his absence Inspector's] order but the[Excise and Taxation Officer or in his absence Inspector] shall not have any person searched, except upon reasonable grounds for suspicion, and he shall record in his diary the details of every search made.

R.25 .

The licensee shall not close the distillery for more than three days in any month, exclusive of Sundays and holidays, without the previous written permission of the Collector.

R.26 .

If it is intended to close the distillery for a period of 15 days or more, the licensee shall give notice, in writing, to the Collector of his intention not less than 15 days prior to date on which it is intended to close.

R.27 .

Before a distillery commences work or re-commences work after a closure of 15 days or more, the licensee shall give notice, in writing, to the Collector at least 10 days prior to the date fixed for the commencement or re-commencement of work.

R.28 .

The ordinary working hours of a distillery by day shall be from 6.30 a.m. to 6.00 p.m. in each month from April to September inclusive and from 7.00 a.m. to 5.00 p.m. in each other month except that the Collector to meet unforeseen exigencies may permit a distillery to observe different working hours for a specified period.]

R.29 .

During the ordinary working hours, if the distillery is working, the outer door, shall, except as provided in Rule 33 below, be kept continually unlocked.

R.30 .

Upon giving a general notice to the Excise and Taxation Officer or in his absence Inspector or, if night work is only occasional, upon giving notice to the[Excise and Taxation Officer or in his absence Inspector] not less than four hours before the ordinary closing hours of the day after which night working is to be done, the distillery may be worked at hours other than the ordinary working hours.

R.31 .

If stills in any distillery are so worked that there is ordinary no period on an ordinary working day in each week during which the stills are simultaneously silent the lisensee shall at least once a week on any day other than a Sunday or holiday gazetted under the Negotiable Instruments Act and at any time during the ordinary working hours by day after giving to the[Excise and Taxation Officer or in his absence the Inspector] 24 hours' notice of the day and hour fixed by him, work off every still in the distillery and arrange that no distillation shall be in progress for one hour in order that the[Excise and Taxation Officer or in his absence the Inspector] may take an account of the working of the distillery.

R.32 .

A distillery may remain open for work on a public holiday as defined in the Explanation to Section 25 of the Negotiable Instruments 1881 or on any other day being a holiday in Government Officers, provided notice is given to the Excise and Taxation Officer or in his absence of the Excise Inspector of the distillery at least 24 hours before the public holiday or the holiday as the case may be and a fee of [Rs. 100/- per day for [part of a day paid to Government:]

[Provided that all Saturdays in the year shall be treated as working days.]

Explanation. - "Open for work" shall mean any normal operation connected with the distilling and bottling of spirit and includes the fermentation of bub or wash (and issue spirit).

R.33 .

If the distillery works at other than the ordinary hours, by day the Inspector shall remain present within the distillery enclosure, but except in case of emergency, the licensee shall not require him to lock or unlock any receiver, vat or other part of the plant; and he shall lock the outer door of the distillery and shall not allow any person to enter or leave the distillery enclosure, except in accordance with the arrangements to be made with the sanction of the Collector for the convenience of persons who may be permitted to enter or leave the distillery at fixed hours, in connection with the operations being carried on.

R.34 .

(1) The use of naked lights of any description within the distillery is prohibited.

(2) Smoking in any portion of the excise enclosure where spirit is manufactured, stored, bottled or issued, is strictly prohibited.

Prescribed Out turn of Spirit and Stocks of Spirit and Distilling Base

R.35 .

The licensee shall, if there is a demand upon his distillery for such a quantity, produce during each calendar year at least 90 per cent of the outturn of plain and spiced country spirit which his stills are capable of producing according to the estimate of their charge capacity entered in his licence. The calculation of the outturn shall be based on the assumption that 100 liters of wash whether of gur molasses or mahua, will yield 12 proof litres] of spirit, that each continuous still will work on an average 12 hours a day, and that each pot still will be charged with wash one and a half times a day, and that all stills will work for an average of five days a week throughout the year.

R.35(a) .

The calculation of the outturn of whisky prepared from malt shall be based on the assumption that 19 kilograms of malt will yield 8,200 proof litres of whisky.

R.36 .

Subject to the provisions of the preceding rules, the licensee shall maintain a stock of plain and spiced country spirit, in the bottled form so that such stock shall at the beginning of each month after allowing for compliance with all orders in hand at the time, be equal to[the quantity of stock which may from time to time be determined by the[Excise Commissioner] keeping in view the requirement for ten days of the country liquor licensees in the State.] If, on account of an emergent and unexpected demand during the last days of the preceding month, the stock of the first day of any month is below the quantity required by this rules, the licensee shall in the beginning of the moth, make it good with the least possible delay. In case of serious or continued failure to comply with this condition, the licensee may be required to pay a penalty determined by [the Collector and persistent failure to comply with this condition will entail the cancellation of the licensee'

R.37 .

The licensee shall have always in stock, in gur, molasses or mahua store to be provided by him and approved by the [Excise commissioner], a quantity of gur, molasses or mahua sufficient for the preparation of wash for the full working days in the month from October to March, inclusive and for 7½ full working days in the months from April to September. This stock shall be calculated on the basis that it requires 1.12 quintals of Gur or 1.49 quintals of molasses or mahua to prepare 454.6 litres of wash provided that if the licensee maintain a stock of country spirit over and above the quantity required by Rules 36 above, then the stock of gur, molasses or mahua may be correspondingly reduced. In making this calculation 0.373 quintals of gur, molasses or mahua shall be considered equivalent to 22.733, 153.911 and 13.638 proof litres of country spirit, respectively. The licensee shall, on the 1st and 15th day of each month, report to the inspector the quantity then in st

R.37(A) .

The licensee shall always have in stock a sufficient quantity of empty bottles of such descriptions and capacity, which he is permitted to bottle under these rules so that after complying with all orders in hand, the stock of empty bottles shall be equal to the quantity of stock which may, from time to time, be determined by the[Excise Commissioner] keeping in view the requirements for ten days of the country liquor licensees in the State. The licensee shall on the 1st and 15th day of each month, report to the inspector the quantity of empty bottles in gross numbers then in stock, and shall permit the inspector of verify the said quantity if he desires to do so.

R.38 .

The licensee shall keep up the registers in Forms D-8, D-10 and D-25 and shall submit them for inspection when required.

R.39 .

The licensee is entitled to inspect those registers maintained by the inspector which relate to the operation of distillation and issue and to stock-taking, and notice should be given to him of any corrections made in them.

R.40 .

(1) If the licensee has a laboratory attached to his distillery and requires spirit for use in the laboratory he shall be entitled to remove for the laboratory from the distillery duty free either from the safes of the stills, the spirit receivers, the spirit store or from the maturing warehouse, finished spirit and unfinished spirit to the extent 13.200 litres per month; provided that not more than two bottles each of the capacity of 757 millilitres shall be so removed at any time and the spirit so removed shall not be used in the distillery laboratory otherwise than for experimental work connected with the distillery operations only. The licensee shall keep a regular account of the disposal of such duty-free spirit in a register in form (D-25). This register will be subject to examination by Excise Officers. All spirit which becomes waste in the laboratory and does not by the addition of any chemicals or otherwise become deleterious, shall be returned to the distil

R.40(A) .

The licensee shall also be entitled to remove once a year duty free Indian made foreign liquor and country spirit not exceening 4,500 litres or with the permissions previously obtained of the[Excise Commissioner] in specified quantities in excess of 4,500 litres from the distillery for laboratory examination in a foreign country; provided that he shall keep a regular account of the disposal of such duty free spirit, which will be subject to examination by excise officers. He shall also produce within six months the customs receipt in respect of the duty paid on such consignment on its entry into a foreign country. In default the licensee shall be required to make good the duty which otherwise would have been levied on the quantity of liquor, when it left the distillery. The licensee shall, if required to do so, produce a certificate showing that the liquor in question was duly examined.

R.41 .

The licensee within one week of their being made, but not later, may call in question, by an objection in writing presented to the inspector, any entries in those of the inspectors' registers which are open to his inspection. Any dispute regarding such entries which cannot be settled by discussion between the inspector and the licensee shall be referred to the Collector. If no objection is raised the entries shall be presumed to be correct.

R.42 .

All building and plant used directly for the manufacture and storage of wash and spirit must be situated in a distillery enclosure in which no business shall be carried on except that of the manufacture, storage and issue of spirit. The enclosure shall be surrounded by a wall having one opening only and so built as to prevent communication between the distillery enclosure and outside, except through the opening provided.

R.43 .

The buildings and plant shall be specified in the license and shall be properly maintained to the satisfaction of the Collector. Particular attention shall be given to their cleanliness.

R.44 .

The licensee shall provide for use in measuring spirit in the distillery and at the time of issue such measures, gauging machines weighing machines and other appliances, as[Excise Commissioner] may direct him to provide.

R.45 .

If the buildings and plant (including the measures, etc., referred to in the preceding rule) are not properly maintained and the premises and plant are not kept properly clean, the licensee may be required to stop all work in the distillery within one week after receipt of notice to that effect from the Collector.

R.46 .

If any still, vat, pipe or other part of the plant is at any time found to be defective or leaking, and the[Excise Commissioner] or Collector orders the discontinuance of its use, it shall not be used again till it has been repaired to the [Excise Commissioner's] or Collector's satisfaction.

R.47 .

The licensee shall not after the building or plant specified in his licence without the[Excise Commissioner's] permission provided that any minor and urgent alteration of repair may be made with the consent of the[Excise and Taxation Officer or in his absence the Inspector] who shall forthwith report to the Collector. Any important alteration sanctioned shall be noted on the licence.

R.48 .

All processes for the manufacture and issue of Indian-made foreign spirit, country spirit, rectified spirit, denatured spirit must be conducted within the distillery enclosure.

R.49 .

The distillery and its apparatus shall be so arranged that from the time when the fermented wash is passed into a still to the time when the spirit is issued from the store vats, the distillate shall be contained in closed receptacles and be conveyed to stills, receivers and other receptacles only through closed pipes, preferably by force of gravitation, but when this cannot be arranged by pumping. Water required for the distillery working shall also be conveyed into the receptacles where it is required and waste water shall be carried off only through closed pipes. Wash shall be conveyed from the fermentation was to still and spent wash and spent lees shall be carried off in closed pipes or covered drains.

R.50 .

The ends of still warts and all pipes which carry spirit or serve spirit receptacles shall be firmly fixed into the receptacles they serve.

R.51 .

If a spirit pipe is required to discharge one or other of a series of receptacles, the pipe shall be connected with each of the receptacles, by half union of the same pattern fixed in the receptacles, the other half of the union, common to all, being fixed to the connecting pipe.

R.52 .

All the joints in spirit pipes must either be riveted or be joined with bolts. In the latter case, the flanges bolted together must have in addition to the bolts, at least two rivets made of a composition of lead or tin, and sealed with a revenue seal, or, in the case of certain joints when this is specially permitted by the[Excise Commissioner] the flanges may be pierced by a bolt carrying a revenue lock, inserted through a hole, at one end of the bolt. Alternately the flanges may be drilled with a hole 3.75 millimetres (1/8th of an inch) in diameter through which a wire should be twisted together and sealed with a revenue seal.

R.54 .

Pipes intended for the conveyance of wash and spirit must be so fixed that they can be examined throughout their entire length.

R.55 .

All pipes and covered drains shall be coloured with a colour indicating the purposes for which they are used, as follows:

If intended for the conveyance of wash green; if for the conveyance of spirit, red; if for the conveyance of water or steam, white; if for the conveyance of spent was, yellow; if for the conveyance of gas (or electric wires) used for the purposes of illumination or power, black; if for the conveyance of molasses, blue.

R.56 .

The charging and discharging pipes of pots-stills, all spirit safes and all man doors cocks, or other openings in stills, spirit vats spirit receivers, spirit charges and other receptacles for spirit, and in spirit pipes with branches, the point where each branch joins the pipes and the doors of all buildings and rooms used for the storage of spirit, shall be so fitted as to enable them to be closed with two locks the key of which are not interchangeable, and of which one lock shall be a revenue lock, in charge of the inspector, and the other a distillery lock in charge of the licensee.

R.57 .

(1) Revenue locks supplied by the [Excise Commissioner] will invariably be put on whenever necessary under these rules, but the licensee may dispense with his own locks, except in the case of such as must be affixed to all receptacles or rooms use for the storage of spirit.

(2). The Inspector will be supplied with books or lock tickets in Form D-7 for use with the revenue lock(s). Tickets must be used in the consecutive order of their numbers.

R.57(A) .

Notwithstanding anything contained in Rules 56 and 57, in the case of vats of godowns used exclusively for the storage of rum to be supplied by the licensee against a contract entered into by him with the Defence Authorities the Defence Inspector may put on his own lock, instead of the distillery lock and along with revenue lock on the vats or godowns. He shall then hand over the key to the Manager of the distillery duly sealed in an envelope. The manager of the distillery shall, on demand, hand over this key to the Distillery Inspector, who shall be at liberty to open both the locks as required by him and put on revenue look on it thereafter.

R.58 .

Locks shall be so arranged as to render it impossible to use any pipe or part of a pipe unless the locks are either removed or else closed only with working fastenings, or to extract any of the contents of any building, pipe, receiver or other receptacles concerned, without opening both the locks which control such building, pipe or receptacle.

R.59 .

Locks fastening must be constructed as much as possible in one piece. When hinges on them are necessary the hinges must be formed by welded joints, and not by riveted pins. If a part of any fastening is attached to a door or a receptacle, it must be by rivets and not by screws. The fastening for cocks must be fitted so closely, as not to admit of any cock being partially turned or opened, or the plug or key fitted up or taken out after the fastening is applied. Chain fastening must not be used, except in cases where it would be impracticable to apply any other description of fastening.

R.60 .

When it is necessary for the licensee's operations that cocks upon closed pipes be left open, when the inspector is not present, working fastenings must be provided. Such fastenings must be so constructed that the revenue lock shall not interfere with the free use of the cock and so fitted that no abstraction of spirit is possible.

R.61 .

Except for the bona fide purposes mentioned below the licensee shall not introduce or permit the introduction of bottles or other vessels having a capacity of less than [ 18 litres] each into the distillery enclosure.

Exceptions

(1) Bottles required for bottling country spirit or Indian made foreign spirit under Rule 93.

(ii) Bottles or other vessels, in such number as may be determined by the[Excise Commissioner], containing essences, coloures and the like, needed for the licensee's legitimate operations, but they should be stored in the colouring and compounding materials room referred to in Rule 92.

(iii) Bottles or other vessels intended for use as containers of rectified denatured spirit, to be supplied to Civil Surgeons or to scientific institution approved by the[Excise Commissioner] and bottles approved by bottling of rectified spirit under Rule 93-A of these rules.

R.62 .

Vats shall ordinarily be used for the storage of spirit but a limited number of casks or drums may, subject to the provisions of Rule 64 below, be kept in the store room for the storage of special kinds of spirit, such as whisky, and for the use in collecting quantities withdrawn from store vatss in slight excess of requirements and the like and a limited number not exceeding 30, or [casks or drums] filled according to Rule 106 of these rules for issue, may be kept temporarily in the store room for issue to purchasers.

R.63 .

The vessels used as receptacles may be of any materials they shall be of regular shape; large covered shall be fitted with man holes of a size approved by the[Excise Commissioner], and every vessel shall be provided with proper approved arrangements, for gauging with rods and with tables showing the number of litres contained in them when filed to every 254 millimetres (tenth of an inch], by either the wet or the dry method of gauging, according as the[Excise Commissioner] decides to apply one or the other method to such vessel. When the wet method of gauging is applied to any vessel, a permanent dipping rod of a pattern approved by the [Excise Commissioner] shall be fixed in a manner approved by him to that part of the vessel where there is the greater depth of liquid in it.

R.64 .

Each vessel shall have legibly painted on it in English its number, its capacity and the use to which it is applied and its details shall be properly registered by the inspector.

R.65 .

Except with the special sanction of the[Excise Commissioner] in the case of a receptacle, sunk under the ground-level, each vessel shall be fixed so as to permit of examination all round it; it shall slope slightly down to its cock, and its cock shall be so fitted that the vessel can drain entirely through the cock without being moved.

R.66 .

No receptacle of which the contents are estimated by a guage rod, shall be brought originally into use, till it has been guaged and passed by the inspector and table books in Form D-5 and D-6 have been prepared for it, and, if any guaged receptacle is repaired or moved, it may not be brought again into use till it has been reguaged and passed by the inspector are revised table books in Form D-5 and D-6 have been prepared.

R.67 .

Fermentation vats shall be placed in a room or building specially set apart for them alone. The vats meant for fermentation of malt for the preparation of malt whisky shall be placed in a separate room.

R.68 .

The licensee shall provide vats for the fermentation of wash having a capacity sufficient for the continuous working of all the stills in the distillery, up to the maximum of their capacity, as recorded in the license upon the calculation that it required 48 hours to ferment wash.

R.69 .

No wash shall be used, except such as has been prepared within the distillery, nor shall any wash be removed from the distillery :

Provided that if so desired the licensee may be allowed to remove simples of wash from each vat in quantity not exceeding 2,250 litres per vat for use in the distillery laboratory:

Provided further that in the case of the preparation of wash for the manufacture of malt whiskey the said wash may be prepared in the Brewery and then pumped into a distillery for purposes of distillation.

R.70 .

The licensee shall enter in register in Form D-6 the exact quantity of the gur, molasses, mahua or other substance used and shall give the[Excise and Taxation Officer or in his absence Inspector] an opportunity of verying this quantity whenever he may deem it desirable to do so.

R.71 .

(a) If wash is prepared from a malt base, it must be collected in the fermenting vat and be ready for gauging and proving within six hours, after it has begun to run into the vat.

(b) In the case of wash prepared from gur or liquid molasses, the Inspector shall take the readings, as regards quantity and specific gravity as soon as complete solution has been attained. The solution may be effected in the fermentation vat or in a dissolving vat separate from the fermentation vat.

(c) In certain distilleries, gur or molasses wash, prepared in dissolving vat is run into a fermentation vat after the necessary quantity of bub has already been introduced in the fermentation vat. In such cases the specific gravity of the wash in dissolving vat immediately before transference to the fermentation vat, should be treated as the initial specific gravity of the wash. Where the contents of two or more dissolving vats are transferred to the

R.72 .

(i) No substance of any kind shall be added to the wash after it has been gauged and proved except water or chemicals or bub added under the procedure set forth in the next succeeding clause, provided (1) that due notice of such addition is given by the licensee to the Inspector (2) that requisite entries regarding it are made by the licensee in register in Form D-8 and (3) that no addition of any kind is made to wash more than 24 hours after it was first guaged and proved. After the lapse of this period of 24 hours, the wash shall remain undisturbed in the fermentation vat until fermentation is completed and the wash is removed to the still.

(ii) In some distilleries wash is prepared in a dissolving vat or vats separate from the fermentation vat and is (a) gradually added to bub already collected in the fermentation vat or (b) collected simultaneously with bub running into fermentation vat. In the case of such distilleries no substance of any k

R.73 .

The preparation of bub shall be conducted in a special bub vat or vat set apart only for such preparation; and the registration of the materials used and of solution and other connected with it, shall be carried out in the register in Form 10. The bub vats used may be smaller than the ordinary fermenting vats if desired, and there may be connected with it by an auxiliary vessel for dissolving the material used for setting up the bub, but fermentation must not be allowed to produce to close in this vessel. Ordinarily the whole of the bub must be conveyed into the fermentation vat or vats to which it is to be added within 24 hours of first beginning to make, or dissolve or set it up.

(b) With the special permission of the[Excise Commissioner] any licensee, who is able to declare the alcoholic percentage and the original specific gravity of a bub, may keep such bub for more than 24 hours after the time when to making solution or setting up commence

R.74 .

As soon as wash is fully attenuated and ready for distillation, the licensee shall inform the inspector, and the inspector shall again, by guaging add the use of the saccharmeter, ascertain the quantity and specific gravity of the attenuated wash and record these in his register in Form D-11. The licensee shall record the final quantity and specific gravity in the register in Form D-8 prescribed for maintenance by him.

R.75 .

The licensee shall not draw off or use the attenuated wash until it has been gauged and proved by the inspector, and when he does draw it off, the inspector shall enter in the register in Form D-11 particular regarding the quantity drawn off and the still into which it is drawn off.

R.76 .

Stills may be of any form of construction which the licensee may think proper and for which he has a licensee; but the still power of the distillery shall not be increased without the sanction of the Excise Commissioner.

R.77 .

The[Excise Commissioner] may authorise the replacement of any still by another of equivalent distilling capacity, or the use of any still which has been dismentled and thrown out of use without its place being taken by another still.

R.78 .

There shall be no openings into any still; except those in connection with the charging and discharging pipes, pipes for the conveyance of various fluids from one part of the still to another condensors, mandoors and air cocks or valves upon the breast or head. The external orifice of an air valve must be so constructed and covered by a perforated metal plate, as to make it impracticable by means of it either to introduce wash or to abstract spirit or to convey away, spirit vapour for condensation elsewhere.

R.79 .

When wash is being distilled in a pot-still, and in all distillations by a continuous still, the still need not be secured by the inspector with a revenue lock.

R.80 .

When a pot-still is being used for the redistillation of unfinished spirit, the mandoor and the charging and discharging pipes shall be secured by the inspector with closed fastening, and a pot still used for redistillation shall be charged and discharged only after notice has been given to the inspector and under his supervision.

R.80(a) .

The patent still or pot still used for the distillation of spirit from molasses shall not be used for the distillation of whisky from malt and the patent still or pot still used for the distillation of whisky from malt shall not be used for the distillation of spirit from molasses, without the previous written permission of the [Excise Commissioner]. [Similarly patent still or pot still used for the distillation of grain spirit or spirit from any other raw material shall not be used for distillation of spirit from molasses or whisky from malt and vice versa without the previous written permission of the Excise Commissioner.]

R.81 .

A safe furnished with a hydrometer or specific gravity beads, capable of showing the strength of the distillate, shall be provided between every still and its receiver or receivers, or a central safe which controls the warm ends communicating between a number of stills and their receiver.

R.82 .

Two or more receivers may be fitted in the same still in order to enable the distillate to be collected in separate portions, and one receiver may work in connection with more than one still. There should be a separate receiver for feints.

R.83 .

The receiver or receivers attached to each still or set of stills shall be of a capacity enabling them to contain all the distillate which can be produced by the still or set of stills in 36 hours' full working.

R.84 .

The spirit, whether finished produced by any one distillation, shall be run into an empty receiver or receivers, and such spirit shall be gauged and proved by the Inspector, in the presence of the licensee or a responsible representative deputed by him for this purpose, in the receiver or receivers of the stills or set of stills in which it is produced, before it is passed out of such receiver or receivers or mixed with spirit produced by any other distillation.

R.85 .

The admixture of sugar or other foreign substance in the spirit after it has been drawn from the still and before it is tested is prohibited.

R.86 .

The Inspector shall arrange ordinarily to discharge into a still or charger, as desired by the licensee, directly after each distillation, all unfinished spirit run into the receiver or receivers connected with such distillation, and to pass into the store vats each evening all spirit finished during the lay and each morning all spirit finished during the night, and he shall, by the use of the gauge and hydrometer, verify and record in the register in Forms D-9 and D-12 the quantity and strength of all spirit so discharged or passed in.

R.87 .

Store vats shall be kept in a room or building set apart entirely for them and provided with only one door. This room of building will be designated the storeroom.

R.88 .

The licensee shall provide store vats, having an aggregate capacity equal at least to half of the demand of the month in which most spirit is issued during the year. If the existing capacity at any time appears from the average of the issues, recorded during the previous three years, to be materially deficient, the licensee shall, if required by the[Excise Commissioner], make the necessary increase to it.

R.89 .

A store vat or vats may be separately set apart and used for the storage of each of the following kinds of spirit, viz :-

(1) Plan Spirit,

(2) Spiced spirit, including special spiced and mathred spirit,

[(2A) Punjab Medium Liquor],

(3) Indian made foreign spirit,

[(3-A) Indian made whiskey prepared from malt,]

(4) Denatured spirit:

Provided that, excepting denatured spirit, any vessel set apart and used for the storage of any one of the above kinds of spirits shall not be used for the storage of any other kind of spirit unless the vessel is properly cleaned and filled with water for at least 24 hours so that no smell, taste or colour of a previous spirit is imparted to a fresh spirit.

Any vessel or vessels set apart for the storage of denatured spirit shall be in a separate room or building set

R.91 .

Blending or reduction of plain spirit is permitted in the store vats, provided the blending and reduction is done in the presence of the inspector and under his supervision. Any other blending or reduction as is desired may be done at the time of issue in the special issue-room mentioned in Rule 103 below. Water used for reduction must be pure, and the licensee must comply with the directions of the Collector regarding the water supply.

R.92 .

The colouring and/or compounding of spirit with materials not specifically prohibited by the[Excise Commissioner] is permitted -

(a) in store vats ;

(b) in the special issue-room (Rule 103) at the time of issue; and

Provided this is done in the presence of the Inspector and under his supervision.

All colouring and compounding materials brought into the Excise enclosure shall be entered by the Inspector in the register in Form D-16 and be kept thereafter in the colouring and compounding materials room. Their quantity and character shall be subject to the check as occasion may require.

R.96(a) .

Specially denatured spirit of the strength of not less than 60 degrees over proof may be issued to soap manufacturers provided that it is denatured with the following denaturants :-

(a) half per cent caustic soda;

(b) three per cent castor oil soap;

(c) one per cent of the volume of wood naptha or methyl alcohol. The specifications of caustic soda and caster oil soap and alcohol are given as follows:-

Caustic soda to be used should contain at least 90 per cent active Sodium Hydroxide and when dissolved in water should form a clear solution.

Caster oil soap should be made from pure filtered caster oil with a filtered caustic soda lye made from 76 per cent N 2 degree or 98 per cent caustic soda. The soap should not contain more than 28 per cent or less than 25 per cent of water;

5 grams of the soap should be able to dissolve into a clear s

R.97 .

No consignment of denaturing materials intended for use in rendering spirit permanently and effectually unfit for human consumption shall be brought into a distillery otherwise than with the permission of and in the presence of the inspector.

R.98 .

The licensee shall provide a special room for the storage of the denaturing agents and vessels and receptacles used in the process of denaturation, and the process shall be carried out in this room only, and in the presence of inspector. After denaturation is completed, in the denatured spirit shall be immediately issued or stored in the special room, which shall be secured by double locks, the keys of which are not inter-changeable. The key of one lock shall remain with the inspector, and the key of the other lock shall remain with the licensee.

R.99 .

For the purpose of satisfying him self that the denaturing materials stored in any licensed distillery are efficacious for the purpose of rendering spirit effectually and permanently unfit for human consumption, the Collector shall, from time to time, but not less than twice in each year send as sample of every separately stored quantity of such denaturing materials to the Chemical Examiner to Government, Punjab for the purpose of being tested and its quality and efficacy being reported upon.

No spirit stored with a licensed distillery shall be denatured otherwise than with the permission of, and in the presence of the inspector.

R.100 .

No spirit stored with a licensed distillery shall be denatured otherwise than with the permission of, and in the presence of the inspector.

R.101 .

If it is found that the wastage in any distillery is excessive the[Excise Commission] may prescribe a scale of wastage and the licensee shall pay duty as on issue, respect of all losses attributed to wastage, in excess of the scale fixed.

R.102 .

In case extraordinary wastage of spirit occurs in a distillery owing to any cause an enquiry into the circumstances shall be made immediately under the orders of the Collector or[Excise Commissioner], and if it is found that the wastage was due to preventable causes which the licensee should have foreseen or guarded against, and that the spirit was required to demand, made on the distillery the meeting of which was delayed by reason of the loss, the licensee shall if directed to do so by the[Excise Commissioner], pay all or such part, as seems reasonable, of the duty that would have been recovered on the wasted spirit if it had been issued.

R.103 .

A special issue room shall be provided by the licensee near the spirit warehouse for the operations connected with the filling of vessels for issue and their issue from the distillery.

R.104 .

No vessel shall be filled with the spirit for issue, except in the joint presence of the inspector and of a representative of the licensee.

R.105 .

In the process of filling vessels for issue, spirit from different store vats may be blended according to calculation, or water may be added for the purposes of producing spirit of a strength required, but the inspector shall record the actual quantity and strength of the spirit actually drawn from each vat in Form D-16 and Vat ticket in Form D-18.

R.106 .

Spirit may be measured into a vessel for issue by being passed directly from a store vat into the issue vessel through a pipe or armoured house attached to the cock of vat and discharging into a gauging machine placed in the issue room at a convenient level to discharge into vessels placed under it, provided that, when this cannot be arranged, spirit may with the[Excise Commissioner's] sanction be measured into a vessel for issue for by means of litre measures. Spirit may be passed through a filter before it enters the gauging machine. Separate vessels shall be used for measuring portable and unportable spirit.

R.107 .

Before a gauging machine is brought into use, the inspector shall verify its correctness with his standard measures and he shall with these measures re-verify it on the 1st and 15th day of each month.

R.108 .

The licensee is responsible for securing the bungs or other openings of all casks and vessels filled for issue and for preparing them, or if they are backed, preparing their packages, for sealing by the inspector, in such a way that they cannot be opened without damaging the seal.

R.108(a) .

The Inspector shall weigh the empty casks and the casks filled with spirit and record the weight in the register in Form D-22. If the check, by weighment shows an excess or deficiencies of more than 1000 millilitres, in 200 litres the liquor should be remeasured. As issues are made by measurement and not by weight, the result of weight ment should not be accepted as final without remeasurement.

R.109 .

In case the licensee is required to issue spirit of specified strength he shall if the[Excise Commissioner] for each such specified strength, at which spirit is issued by him and shall put the appropriate label on each vessel and package before presentation to the inspector for sealing.

R.110 .

The licensee shall not decline sale or refuse supplies to any licensed vendor, wholesale or retail, who have obtained a permit for the issue of spirit from his distillery and tenders payment for such spirit at the rate then current. If more than one licensed vendor be applying at one time for supplies in case of dispute who shall be supplied first, the licensee shall supply them in the order of the dates of the applications received by the inspector, the decision between applications bearing the same date, being made by the inspector by lot, provided that no more than 2250 litres shall be supplied at one issue to a licensed vendor who desires an issue of bottled spirit or in the case of bulk spirit who desires his issues to be made in casks of capacity of at least 225 litres each supplied by himself or by the distillery on his behalf, and tendered at the time to be filled, and that not more than 225 litres shall be supplied at one time to a licensed vendor tendering

R.110(a) .

When a liquor or any preparation containing alcohol lying with a licensee deteriorates and is found unfit for human consumption or for any other use permitted under these rules, the [Excise Commissioner] may order its destruction. However, where the same is found unsaleable for any reason, the Excise Commissioner may order its reconditioning, redistillation or reprocessing, as the case may be, whereafter, it shall be struck off the stock book. The destruction or all other processes shall take place in the presence of an officer deputed by the Collector or in the presence of the Excise Inspector or Excise and Taxation Inspector posted in the distillery, as directed by the Collector :

Provided that in case of stock, on which duty is to be paid or has been paid, the [Excise Commissioner] may on receipt of a formal claim from the licensee through the Collector, order remission or refund of such duty, as the case may be.

R.111 .

No bulk spirit shall be issued in quantities of less than 18 litres and no bottled spirit shall be issued in quantities of less than 9 litres except when spirit is issued as a sample in accordance with Rule 115(g) below. The removal of any spirit other than bottled spirit shall not be permitted in vessels of less than 18 litres capacity.

This restriction does not apply to rectified spirit issued duty-free to hospitals and dispensaries in the Punjab or other States and Part B States, provided that the aggregate quantity issued on any one indent is at least one bulk litre.

R.112 .

No spirit shall be issued till its quantity and strength have been verified by the Inspector, or in, the case of spirit flavoured and coloured to suit a special Indian taste, under the special arrangements made for verification of its strength. All spiced spirit, except aniseed spiced spirit, which turns milky white on dilution, shall be coloured before issue to licensees in Punjab.[Plain Spirit shall also be coloured and essenced before issue to licensees in Punjab].

R.113 .

The licensee shall, if required to do so by the[Excise Commissioner], issued spirit only in specified strength either generally or the particular classes of purchasers.

R.114 .

No spirit shall be issued, except under a distillery pass granted by the inspector in Forms D-20 or D-20-A.

R.114(a) .

The inspector shall issue on the same day spirits intended on indents received by him upto 12 noon. No spirit shall, however, be issued outside the hours prescribed in Rule 28 above. Any indent, which cannot be complied with on the same day, shall be complied on the next working day. Indents received after 12 noon cannot ordinarily be expected to be complied with until the next working day.

R.115 .

(1) A distillery pass for the removal of spirit fit for human consumption may be granted in favour of any of the following persons only, namely :-

(a) a person certified to be holding a licence in the Punjab or Delhi State to sell such spirit by wholesale or retail and when the spirit is to be transported or exported beyond the limits of the district in which the distillery is situated, holding a permit signed by the Collector or other officer authorised in that half of the district of destination ;

(b) an officer of the Supply and Transport Corps or Commanding a regiment of the Indian army holding a permit signed by the Collector of the district of destination, or presenting a requisition countersigned by the Brigade Commander or corresponding superior officer, when it is proposed to export spirit for the use of troops serving outside the territorial limits of India ;

R.115(a) .

When the licensee desires to remove from bond any quantity of fusel oil, a sample shall be forwarded to the Chemical Examiner for analysis ; and if the result of analysis shows the percentage of alcohol to be less than 15 per cent proof spirit, the fusel oil shall be issued under a pass in Form D-20 free of duty.

R.116 .

Subject to the provisions of Rule 110 the licensee may act as an agent in removing spirit for any licensed vendor (including any wholesale agency licensed in the name of a distillery) who, to enable the licensee to obtain a distillery pass, furnished him with a certificate showing that he is a licensed vendor.

R.117 .

Every application for a distillery pass for the removal of spirit shall be made in writing to the inspector, and shall be accompanied by the certificate or permit required under the relevant sub-clause of Rule 115 above, such certificate or permit being either a general one for the purpose of removals to be made from time to time or a special one for the purpose of a single removal.

R.118 .

If the applicant tenders cash in payment of still head duty the inspector shall after ascertaining that the licensee's price has been paid fill up the challan, for presentation with the cash, at the treasury or sub- treasury of the district in which the distillery is situated. The applicant shall present the treasury receipt in token of his having paid the duty and the inspector shall affix it to the counterfoil of form D-20[or D-20-A,]

R.119 .

The applicant for a distillery pass shall be responsible for the correct calculation and full payment of the still head duty due upon the spirit to be removed but if he is in doubt as to the amount of such still head duty, he may, prior to its payment in the treasury, apply to the inspector for a revision of the calculation.

R.120 .

If, in removing spirit from the distillery as an agent for a licensed vendor; the licensee prefers not to pay duty at the time, he may remove the spirit subject to the adjustment of such duty against an advance payment made by him into the Government treasury on account of the duty recoverable on such removals. Such an advance payment shall be not less than Rs. 2,000 and each time an advance is replenished, it must be by a sum that will bring it up to at least Rs. 2,000. The treasury officer will keep the inspector informed of all payments credited to an advance, and the inspector shall maintain a statement in Form D-15 showing such payments and the duty debitable against them. He shall balance this statement on every day on which the distillery is open for the issue of spirit, and on every such day shall inform the licensee of the balance standing to his credit, and he shall permit the removal of spirit of which the duty is debitable against the advance only so long

R.121 .

In addition to the methods described in Rules 118 and 120 above spirit may be removed from a licensed distillery (a) free of duty in bond and (b) on the execution of a bond in Form D-19 for the payment of duty. Removals under (a) require in each case the sanction of the Collector, while payments of duty in arrears under (b) can only be authorised by the[Excise Commissioner.]

R.122 .

If the inspector is satisfied that the applicant is entitled under Rules 115 and 117 above to remove spirit, and that the still-head duty has been paid or accounted for in one of the methods prescribed in Rules 118, 120 and 121, he shall issue the spirit. At the same time he shall make over a pass in the form prescribed (from D-20), sending a duplicate to the inspector of the district of destination.

R.123 .

The licensee shall maintain in the office of the Excise and Taxation Officer in charge of distillery a statement of the price current of Indian made foreign Liquor, Plain, Spices and Special Spiced Country spirit, bulk as well as bottled, rectified spirit and denatured Spirit and shall not alter such price current except after twenty-four hours notice to the Collector. The price current statement and every notice of the alteration of prices shall be conspicuously posted in the general office of the distillery under the Excise Commissioner orders the form prescribed by him.]

R.124 .

The licensee shall duly comply with any directions that may, from time to time, be issued by the[Excise Commissioner] concerning the price or prices to be charged by him[-] and shall, and whenever so directed, forthwith reduce or enhance, as the case may be such price or prices.

R.125 .

No holder of a distillery license shall sell country spirit at prices higher than those fixed by the[Excise Commissioner] from time to time.

Form.9 .

Inspector's Diary

(To be maintained by every Distillery Inspector in strick accordance with rules)

Time of entry

Abstract of Distillery Operations

(To be maintained by every Distillery Inspector)

Form.17 .

Lock Ticket

Ticket