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ANDHRA PRADESH PETROLEUM PRODUCTS LICENSING AND REGULATION OF SUPPLIES ORDER, 1980

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O.1 Short title, extent and commencement

       (i) This order may be called the Andhra Pradesh Petroleum Products (Licensing and Regulation of Supplies) Order, 1980.
       (ii) It extends to the whole of the State of Andhra Pradesh.
       (iii) It shall come into force on 1st November, 1980.
       


O.2 Definitions

       In this order unless the context otherwise requires:-
       (a) Petroleum Products means Kerosene, Motor-Spirit, High Speed Diesel Oil, Light Diesel Oil, Liquefied Petroleum Gas and Bitumen.
       (b) Kerosene , Motor Spirit and Diesel Oil shall have the meanings assigned to them in the first schedule of the Central Excise and Salt Act, 1944 (Act 1 of 1944).
       (c) Liquefied Petroleum Gas means one of the petroleum products used as fuel.
       (d) Government means the Government of Andhra Pradesh.
       (e) Commissioner means the Commissioner of Civil Supplies and includes the Director of Civil Supplies.
       (f) Collector means the District Collector or the Joint Collector of the District a

O.3 Licensing of Dealer

       (1) No person shall carry on the business of the petroleum products except under and in accordance with the terms and conditions of a licence issued in this behalf by the licensing authority. Provided that any person who is doing business as a dealer at the commencement of this Order may obtain the licence before the 1st February, 1981.
       Provided further that the wholesale and its retail licences obtained in respect of kerosene under the A.P. Kerosene (Licensing and Distribution) Order, 1965 shall be valid upto 31st March, 1981 and a fresh licence shall be obtained under this Order before the 31st March, 1981.
       Provided also that no person dealing in Motor Spirit, High Speed Diesel and Light Diesel Oil shall be granted licence to deal in Kerosene.
       (2) A dealer shall be required to have a separa

O.4 Issue of Licence

       (1) Every application for issue or reissue of a licence or renewal thereof shall be made to the licensing authority in Form A .
       (2) Every licence issued, re-issued or renewed under this order shall be in Form B in respect of a wholesale or retail dealer and in Form BB in respect of a hawker.


O.5 Period of Licence and fees chargeable

       (1) Every licence granted under this Order shall be valid for a period ending the 31st December of the year in which it is granted and may be renewed for a period of one year of for a period of three years at a time, if an application for the renewal of a licence for a period of one year or three years, as the case may be, is made before the expiry of the period of its validity. (1.A) The licence may be renewed if the application for renewal is received within one month after the expiry of the period of its validity subject to payment of the fee prescribed therefor.
       (2) The holder of a licence may obtain from the licensing authority a duplicate of the licence issued to him if the original is lost, destroyed or defaced.
       (3) The fees specified below shall be chargeable in respect of each item viz.
      &n

O.6 Deposit of Security

       (1) Every dealer (other than Kerosene dealer) applying for licence shall, before such licence is issued to him, deposit with the licensing authority in cash or in National Savings Certificates, for the due performance of the conditions of the licence issued to him a sum of Rs.500/-.
       (2) Every dealer applying for a Kerosene licence shall, before-such licence is issued to him deposit with the licensing authority in cash or in National Savings Certificates for the due performance of the conditions of the licence issued to him a sum shown below.
        Rs. Ps.
       
       (1) Wholesaler
        250-00
       
       (2) Retailer
   &

O.7 Powers to refuse Licence

       The licensing authority may, after giving the dealer concerned an opportunity to represent his case and for reasons to be recorded in writing, refuse to grant or renew a licence.


O.8 Registration of Carriers of Petroleum Products

       (1) Every owner of the carrier of the petroleum products shall obtain registration certificate in Form F in respect of each vehicle owned by him or intended to be used for the purpose of transporting the petroleum products from the licensing authority.
       Provided that this clause shall not apply in respect of vehicles owned by oil companies and hawkers.
       (2) The owners of all existing carriers of the petroleum products shall obtain a registration certificate within 30 days from the date of issue of this Order.
       (3) All petroleum carrying tanks, lorries are prohibited from carrying edible oils.


O.9 Issue of Registration Certificates for carriers

       Every application for issue or reissue or renewal of a Registration Certificate shall be in Form E .


O.10 Period of Registration Certificate and Fees chargeable

       (1) Every Registration Certificate granted under this Order for the carriers shall be valid with effect from the date on which it is issued upto the last day of financial year and may be renewed for a period of one year at a time if an application for the renewal of the certificate is made so as to reach the licensing authority on or before the expiry period of its validy.
       (2) The fee to be charged shall be:
       (i) for issue of Registration Certificate - Rs.5
       (ii) for renewal of Registration Certificate - Rs.2
       (iii) for issue of duplicate Registration Certificate - Rs. 10
       (3) The owner of a carrier may obtain Registration Certificate for a period of 3 years by paying the required fee and renewal fee.

O.11 Security Deposit by Carriers

       Every owner of the carrier before applying for Registration Certificate shall deposit with the Collector a sum of Rs. 1,000/- for each carrier in the shape of cash or National Savings Certificates for the due performance of the conditions of the Certificate:--


O.12 .

       (1) Maintenance of accounts and supplies by Dealers:-
       (i) Every dealer shall take all reasonable steps to ensure that he has adequate stocks of the petroleum products at his business premises at all times, subject to availability of the product.
       (ii) Every dealer shall maintain true and correct accounts of all purchase and sales of the petroleum products.
       (iii) No dealer shall act in any manner prejudicial to the maintenance of supplies of the petroleum products in the State of Andhra Pradesh.
       (iv) Every wholesale dealer in kerosene shall also take all reasonable steps to lift kerosene as allotted by the Collector or the officer authorised by him and keep adequate quantity at his business premises at all time s for release to the dealers and others

O.13 Dealer not to sell petroleum products at Prices Higher than the prices fixed

       No dealer shall sell the petroleum products at a price higher than the prices fixed, from time to time, by the Central Government or by the Government or recommended by the Oil Companies.
       Provided that no charge shall be levied for supply of air and water.


O.14 Power to issue supply cards

       (1) The Government, the Commissioner or the Collector may issue or cause to issue supply cards to any person or class of persons or to the public generally, in form G(A) or G(B) as the case may be:
       Provided that no such supply card for High Speed Diesel Oil/LSD shall be issued to any person unless such person or any adult member of his family files before the Collector or any Officer authorised by Collector in this behalf an application in Form D duly furnishing a declaration as prescribed therein:
       Provided further that where any person obtains supply card as aforesaid by filing false declaration, he shall forfeit the right to receive the supply of petroleum products besides being liable for prosecution.
       (2) The Government or the Collector or any Officer authorised by the Government or by the

O.16 Replacement of defaced, lost or destroyed supply card

       (1) If a supply card is defaced, the Collector or any Officer authorised by the Collector, may after making such enquiry as he may think fit, issue a new supply card in place thereof on payment of a fee of rupees two.
       Provided that no such fee shall be charged for the issue of any duplicate supply card, if the Collector or the authorised officer is satisfied that the original card was defaced, lost or destroyed on account of fire, flood or other natural calamity or is required to be produced in a Court or for purposes of evidence before any person holding an enquiry or is required to be retained for official correspondence or the duplicate supply card is required to be issued on account of some mistake on the part of the issuing office.
       (2) Every person to whom a new supply card has been issued shall, if he subsequently finds the lost s

O.17 Prohibition against transfer of Supply Card

       No person shall transfer to any other person a supply card issued to himself, and no person shall use or dispose of or obtain such card, except under and in accordance with the provisions of this order.


O.18 Return of Supply Card by a person in unauthorised possession thereof

       Where any person is in possession of a supply card and such possession is not authorised by virtue of this Order, he shall forth with deliver the same to the person in respect of whom it is issued or to the Tahsildar or Deputy Tahsildar or Assistant Supply Officer of the area in which he resides.


O.19 Prohibition against applying for Duplicate Supply Card, etc

       No person shall:--
       (a) dishonestly apply for or receive a supply card if he knows or has reason to believe that such supply card has already been issued or his name is already included in any other supply card;
       (b) obtain a supply card by furnishing false information;
       (c) without lawful authority alter or destroy a supply card issued to him;


O.20 Display of working hours, stock and price by dealers

       (1) Every dealer shall display a board at a conspicuous place of his business premises, showing the:--
       (i) registration number,
       (ii) working hours;
       (iii) Weekly holiday;
       (iv) opening balance of the petroleum products on the day;
       (v) the quantity of the petroleum products received during the day with the time of arrival;
       (vi) time when the stock of the petroleum products is exhausted;
       (vii) Price of the petroleum products per litre.
       Explanation:- In regard to check for the actual stock, inspecting officers will be guided by allowances to be made for calculation error and o

O.21 Weekly Holiday of Dealers

       It shall be open to dealer to close his place of business either on Friday or Sunday of his choice in the week, with prior permission of the Collector.


O.22 Restriction on possession of petroleum products by a person other than a Licensee

       Any person other than an oil company or a dealer shall not have in his ownership, possession or control of petroleum products excepts in accordance with permit given to him by the licensing authority or an officer authorised by him in this behalf;
       Provided that this restriction shall not apply to the petroleum in a tank fixed permanently to a Motor Vehicle or in a can as provided in the proviso to clause 23.


O.23 Petroleum Products to be delivered only into a Motor Vehicle or against a supply Card

       (1) It shall not be lawful for any dealer to supply or any person to receive petroleum products except unless the person receiving the petroleum products has a supply card issued by the licensing authority or an officer authorised by him in this behalf.
       Provided that the Government or the Commissioner or the licensing authority may, from time to time, exempt any person or class of persons from the provisions of this clause and in that case, it will be lawful for the dealer to supply the petroleum products to the consumers without supply card as per the instructions of the Government or the Commissioner or the licensing authority;
       Provided that in an emergency to help stranded motor vehicle, a supply not exceeding 5 (five) litres may be made.
       Provided further that to facilitate bona fide agric

O.24 Dealer or trader not to refuse to sell petroleum products

       No dealer or trader shall refuse to sell the petroleum products available in his premises unless such sale is in contravention of this Order or the instructions of the Commissioner or the Collector. In respect of wholesale dealers in kerosene they shall sell kerosene supplied by the Oil Companies as per the allotment made by the Collector or the officer authorised by him or the Commissioner of Civil Supplies or the Officer authorised by him. The retail dealers namely, the nominated retailers, fair price shop dealers and hawkers shall sell kerosene meant for Public Distribution System on Household Supply Cards and others authorised by the Commissioner of Civil Supplies or the Collector or the officer authorised by him at the rates and scales prescribed by the Collector or the officer authorised by him.



Legal Commentary on Section O.24 of the Andhra Pradesh Petroleum Products Licensing and Regulation of Supplies Order, 1980

Introduction

Section O.24 is a critical provision within the Andhra Pradesh Petroleum Products Licensing and Regulation of Supplies Order, 1980, which aims to regulate the sale and supply of petroleum products in the state, ensuring fair trade practices and preventing restrictions on sales by licensees.

What does Section O.24 Say

Section O.24 explicitly prohibits dealers or traders from refusing to sell petroleum products to any person, thereby mandating a duty of sale and prohibiting refusal without lawful justification.

Essential Ingredients

  • The primary obligation imposed is that dealers or traders must not refuse to sell petroleum products.
  • It presumes a duty of sale, ensuring availability and preventing arbitrary refusal.
  • The section applies to licensed dealers and traders engaged in petroleum product supply under the Order.

Scope of Section O.24

  • The section covers all licensed petroleum dealers or traders operating within Andhra Pradesh.
  • It aims to regulate commercial conduct, ensuring that no licensee denies sale unreasonably.
  • The scope extends to all petroleum products covered under the Order, including LPG and other fuels.

Punishment for Violations

  • While the specific penalties are not detailed in the provided sources, violations of such prohibitory provisions typically attract penalties under the Order or applicable laws, including fines or license cancellation.
  • Enforcement mechanisms are implied to ensure compliance with the duty not to refuse sale.

Legal Comments

  • "Prohibition of Refusal" - Section O.24 mandates that dealers cannot refuse to sell petroleum products, reinforcing the principle of free trade within regulated parameters .
  • "Consumer Right" - This section safeguards consumer rights by ensuring access to petroleum products without undue restriction by licensees .
  • "Licensing Obligation" - The obligation applies to licensed entities, emphasizing their role in maintaining supply and fair distribution .
  • "Regulatory Purpose" - The provision aims to prevent monopolistic practices and ensure market fairness in petroleum distribution .
  • "Scope of Application" - The section applies uniformly to all licensees, irrespective of the quantity or type of petroleum products supplied .
  • "Legal Enforcement" - Though penalties are not specified, violations can lead to disciplinary action, including suspension or cancellation of licenses .
  • "Essential Commodities Context" - As petroleum is an essential commodity, the section underscores the state's intent to prevent arbitrary refusals that could affect public interest .
  • "Relation to Other Sections" - Section O.24 complements other provisions like licensing and regulation, forming a comprehensive framework for petroleum supply regulation .
  • "Policy Objective" - The provision aligns with the broader policy of ensuring availability and accessibility of petroleum products to consumers .
  • "Legal Precedent" - The prohibition echoes principles found in other control orders and essential commodities laws, emphasizing fair trade practices .
  • "Potential for Penalties" - Enforcement may involve penalties under the Order or other applicable laws for non-compliance .
  • "Public Interest" - The section prioritizes public interest by ensuring that petroleum products are not withheld arbitrarily, which is vital during shortages or emergencies .
  • "Limitations" - The section does not specify exceptions; however, lawful reasons for refusal (e.g., safety, legal restrictions) are implied .
  • "Legal Certainty" - The clear prohibition provides legal certainty for consumers and licensees, promoting transparency in transactions .
  • "Complementary Regulations" - The section works in tandem with licensing procedures and other regulation orders to maintain a controlled supply chain .
  • "Implication for Licensees" - Licensees must ensure compliance to avoid penalties and maintain good standing under the regulatory framework .

Note: The analysis is based on the available sources, with particular emphasis on the provisions and their implications within the regulatory framework governing petroleum products in Andhra Pradesh.

O.25 Quality of Petroleum Products sold

       The quality of Petroleum Products sold by a dealer shall be as supplied by the oil Companies. Provided that the samples drawn, if any, shall be tested only on the Oil Companies.


O.26 No Transport of Petroleum Products with out Invoice of Companies

       (1) No dealer or carrier of the Petroleum Products shall transport the petroleum products in a tank or lorry or any place in the State or outside the State without an invoice an invoice of sale issued by an oil company showing the depot from which the petroleum product has been issued, the quantity the price charged and the destination.
       Provided that the Divisional Manager of the oil company concerned may direct the supplies from one dealer to another dealer for sufficient reasons. But the same will be informed to the licensing authority immediately.
       Explanation:- This will not apply stock transfers by oil company.
       (2) Subject to proviso to clause 23, no person shall transport the petroleum products in cans or in barrels or in any other container except in accordance with an invoice of sale i

O.27 Power of Government or Commissioner of Civil Supplies or Collector to issue Directions

       (1) In the interest of ensuring fair and equitable distribution of the petroleum products it shall be lawful for the Commissioner or Collector to issue directions to dealers, traders, owners of oil tankers and consumer outlet owners.
       (2) It shall be lawful for the Commissioner or Collector in the interest of ensuring fair and equitable distribution of the petroleum products to issue directions to oil companies in accordance with this Order and the Essential Commodities Act, 1955 and in consonance with the general instructions of the Government of India to the Oil Companies.
       (3) Without affecting the generality of sub-clauses (1) and (2) such directions may provide for:
       (a) ceiling for supply of the petroleum products to different dealers, classes of vehicles and different categories of consum

O.28 Contravention of Conditions of Licence/Registration Certificate/Supply Card/Provisions of this Order

       (1) No holder of licence or registration certificate or supply card issued under this order or his agent or servant or any other person acting on his behalf shall contravene, attempt or abet the contravention of any of the provisions of this Order or any of the conditions of the licence, registration certificate or any directions issued thereunder. If any such holder or his agent or his servant or any person acting on his behalf contravenes any of the said terms or conditions, his licence or registration certificate or supply card may be cancelled or suspended for such period as may be specified by an order in writing by the licensing authority:
       Provided that no order shall be made under this clause unless the licensee or the holder of registration certificate has been given a reasonable opportunity for representing his case in writing and also having heard in person against the p

O.29 Cancellation of licence or Registration Certificate or Supply Card in certain other cases

       (1) Notwithstanding any thing contained in Clause 28 where a licensee or holder of a registration certificate or supply card has been convicted a Court of Law in respect of any of the provisions of the Essential Commodities Act, 1955 (Central Act, 10 of 1955) the licensing authority may by order in writing cancel his licence or certificate or supply card issued under this Order.
       (2) Pending action as in sub-clause (1) above, the licensing authority may, for reasons to be recorded in writing, order an interim suspension of the licence, registration certificate or supply card for the duration of the proceeding in the Court.
       Provided that where such conviction is set aside in appeal or revision, the licensing authority shall, on application by the person whose licence or registration certificate or supply card has been cancelled, re-issue

O.30 Forfeiture of Security Deposit

       (1) Without prejudice to the provisions of Clause 28, if the licensing authority is satisfied that the licensee or the holder of a registration certificate has contravened any of the conditions of the licence or any provisions of this Order and that a forfeiture of the security deposit is called for, it may after giving a reasonable opportunity for representing his case against the forfeiture and also having heard in person, forfeit the whole or any part of the security deposit and communicate a copy of the order to him.
       (2) The Licensee or holder of certificate shall, if the amount of security at any time falls short of the amount specified in Clause 6, forth with deposit further security to make up that amount on being required by the licensing authority to do so.
       (3) Upon due compliance by the licensee with all obligations under the l

O.31 Appeal

       (1) Any person aggrieved by any order to grant, reissue or renew a licence, or certificate or supply card or b any order cancelling or suspending a licence or certificate or forfeiting the security deposited by the licensee or holder of certificate under the provisions of this Order, may prefer an appeal within thirty days from the date of receipt of such order by him.
       (a) to the Commissioner if such order is that of the Chief Rationing Officer, Hyderabad or the Collector;
       (b) to the Chief Rationing Officer, Hyderabad, if such order is that of the Assistant Supply Officer, Hyderabad or Secunderabad;
       (c) to the Collector of the District Concerned, if such order is that of a Revenue Divisional Officer or District Supply Officer and;
       (d) to the Revenu

O.32 Powers of entry, search, seizure etc

       (1) The licensing authority or any other officer of the Revenue or Civil Supplies Departments not below the rank of a Revenue Inspector or an officer of Vigilance cell of Civil Supplies Department not below the rank of a Sub-Inspector in his respective jurisdiction or any other officer duly authorised by the licensing authority, Superintendent of Police of vigilance Cell of Civil Supplies Department or any Gazetted Officer of Vigilance and Enforcement Department in writing may, with such assistance, if any, as he thinks fit:--
       (a) require the owner, occupier or any other person in-charge of any place, premises, vehicle or vessel in which he had reason to believe that any contravention of the provisions of this Order or of the conditions of any licence issued thereunder has been, is being or is about to be committed, to produce any books, accounts or other documents showing transac

O.33 Sanction of Prosecution

       No person shall be prosecuted for contravention, attempt to contravene or abet the contravention of any of the provisions of this order or of the terms and conditions of licence/permit/coupon issued to him or the directions issued by the Government/Commissioner/Licensing Authority except with the previous sanction of the Collector concerned.


O.34 .

The Government may if it considers necessary for avoiding any hardship or for any other just and sufficient reasons, by notification in the Andhra Pradesh Gazette, exempt any person or class of persons or institutions from the operation of provisions of this Order either generally or specifically for specified period, subject to such conditions as may be specified in the notification.


O.35 Repeal and Savings

       (1) The Andhra Pradesh Motor Spirit and High Speed Diesel Oil (Maintenance of Supplies) Order, 1979 and the Andhra Pradesh Kerosene (licensing and Distribution) Order, 1965 are hereby repealed;
       Provided that such recession shall not effect:-
       (a) the previous operation of any of the said Order or any thing duly done or suffered thereunder.
       (b) any right, privilege, obligation or liability acquired, accrued or incurred under any of the said orders.
       (c) any penalty, forfeiture or punishment incurred in respect of any offence committed against any of the said orders; or
       (d) any investigation legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or pun

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