Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996

[As amended by SRO No. 838/2002, 771/2004, 549/2005, 502/2010, 696/2015.] S.R.O. No. 263/96. - In exercise of the powers conferred by sub-section (1) and clause (q) of sub-section (2) of section 29 of the Abkari Act 1 of 1077, and in supersession of the rules published under Notification dated 31st Edavam 1079 ME (13th June, 1904) in the Cochin Gazette dated 26th Mithunam, 1079 ME, the Government of Kerala hereby make the following Rules for the disposal of confiscated articles, namely:-

S.Rule 6 Denatured Spirit.

(1) (a) In the case of denatured spirit, a sample of not less than 500 ml. shall be sent to the Chief/Regional Chemical Examiner to Government of Kerala for analysis to verify whether it confirms to the specification of denatured spirit permitted for sale.

(b) If the analysis shows that the confiscated denatured spirit conforms to such specifications, it shall be sold to the highest bidder, provided he holds a current licence for the wholesale of denatured spirit.

(c) If no adequate bid is received in auction, such spirit shall be transported to the specified Distillery for disposal.

(2) (a) The price of denatured spirit so transferred and the reimbursement towards cost of denaturing shall be fixed by the Commissioner of Excise from time to time.

(b) The loss in storage, processing, evaporation etc., as certified by the Distillery Officer will be treated as wastage for which the Distillery will not be held liable.

(3) (a) If the chemical analysis s

S.Rule 7

³[x x x x]

S.Rule 8 Toddy.

Confiscated toddy whether fermented or not, shall be destroyed.

S.Rule 9 4[Arrack

Confiscated arrack shall be destroyed in such manner as may be decided by the Disposal Committee after taking sufficient samples of the same]

S.Rule 10 Wash and Wort.

Confiscated wash and wort shall be destroyed.

S.Rule 11 Molasses.

(1) (a) Confiscated Molasses, if deemed fit for use, may be sold, to any person holding a licence for the sale or use of the same.

(b) The price of the same shall be fixed by the Commissioner of Excise.

(2) Where molasses cannot be sold, it shall be destroyed.

S.Rule 12 Chloral Hydrate.

Confiscated Chloral Hydrate having the chemical formula C2 H3 O2 C13 shall be destroyed.

S.Rule 13 Medicinal and toilet preparations containing alcohol, perfumed spirits and alcoholic essences.

(1) All confiscated toilet preparations, perfumes and essences containing alcohol other than essences used in the manufacture of potable liquors shall be sold in public auction:

Provided that where such articles are not of the nature, quality and substances which they purport to be, shall be destroyed.

(2) Essences containing alcohol used in the manufacture of potable liquors shall be destroyed.

S.Rule 14 5[All other Confiscated Liquors.

All other Confiscated Liquors shall be destroyed upto 500 litres by the concerned Assistant Excise Commissioner, upto 1000 litres by the concerned Deputy Excise Commissioner and above 1000 litres by the Excise Commissioner after obtaining the approval of the Disposal Committee, in the presence of not less than two respectable witnessess from the locality and after preparation of proper mahasar.]

S.Rule 15

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S.Rule 16 6A[Disposal of carts, vessels and other conveyances

(1) The carts, vessels and other conveyances confiscated under the Act shall be disposed in public auction or e-auction directly or by an agency authorized by the Government, within one month from the date of such orders becoming absolute.

Explanation.- For the purpose of this sub-rule, e-auction means an online real-time disposal technique utilised to select the successful bid, during a scheduled period of time and the automatic evaluation of bids.

(2) The upset price of such carts, vessels and other conveyances shall be the amount fixed by the Mechanical Engineer of the Excise Department or any Mechanical Engineer of and above the rank of an Assistant Executive Engineer of the State Public Works Department.]

S.Rule 17 Other articles.

^6B[(1) All confiscated articles other than those dealt with in the preceding rule and which are deformed and made useless as per sub-rule (2) and (3) hereunder, shall also be disposed of in the manner specified in Rule 16, and if there is no possible bid, they shall be destroyed under the orders of the Commissioner of Excise.]

(2) Stills and all implements and apparatus for the manufacture of liquor or intoxicating drugs shall be broken up or rendered useless before being offered for sale.

(3) Confiscated utensils and such other articles of metal shall, in the presence of Assistant Excise Commissioner, be broken up or rendered useless before they are offered for sale.

S.Rule 18 Disposal to be deferred till time for appeal has expired.

The sale or other disposal of confiscated articles shall be deferred till the period of limitation for appeal against the order of the Court, Commissioner of Excise, Joint Excise Commissioner, or any other Officer ordering confiscation has expired or if an appeal is made against such order, till that appeal is finally disposed of:

Provided that,

(a) in the case of confiscated animal, the sale shall not be so deferred unless the owner thereof deposits with the Authorised Officer such sum as that Officer deems to be sufficient for the feeding and upkeep of such animal till the end of the period required for preferring an appeal or till the disposal of such appeal, as the case may be;

(b) If the article confiscated is liable to speedy and natural decay or if the disposal thereof would be for the benefit of the owner, it may be sold immediately and if the sale of such thing is not advantageous to the owner, the Authorised Officer may direct it to be destroyed.

S.Rule 19 Procedure to be adopted if order of confiscation is reversed.

(1) If an order of confiscation of any article is reversed on appeal, such articles or the sale proceeds thereof and the balance of the amount if any deposited for feeding, upkeep or safe custody in case of animals, after deduction of the expenditure if any, incurred in its maintenance, shall be returned to the owner thereof, or his duly authorised agent.

(2) If no one is appearing within two months from the date of the order on appeal, to claim such article or the sale proceeds thereof, the same shall vest with the Government free from all encumbrances.

S.Rule 20 Confiscated Articles in cases compounded.

Any property confiscated in a case compounded under section 67 of the Act, shall be disposed of in accordance with these rules.

S.Rule 21 Remittance of sale proceeds.

The sale proceeds of all confiscated articles shall be paid into the nearest Government Treasury on the next working day itself.

S.Rule 22 Destruction of articles to be in the presence of responsible officer.

Whenever any confiscated article has to be destroyed in conformity with these rules, it shall be destroyed in the presence of the officer ordering the confiscation or in the presence of an Excise Officer not below the rank of a Circle Inspector of Excise.

S.Rule 24 Appeal.

An appeal against the orders of an Authorised Officer, made in exercise of the powers conferred by the Act or these rules, shall lie to the Joint Excise Commissioner, provided that the appeal shall be filed within 30 days from the date of communication of such order to the owner of such property.

S.Rule 25 Revision.

(1) The Commissioner of Excise may, before the expiry of thirty days from the date of an order passed under the Act or these rules by the Authorised Officer or the Appellate Authority, suo moto call for and examine the records of that order and may make such inquiry or cause such inquiry to be made and pass such orders as he may deem fit:

Provided that the Commissioner of Excise shall not call for and examine the records of any order passed under these rules by the Authorised Officer if an appeal against such order is pending before the Appellate Authority:

Provided further that no order prejudicial to any person shall be passed under these rules without giving him an opportunity of being heard.

(2) An order of the Commissioner of Excise under sub-rule (1) shall be final.

S.Rule 2 Definitions.

In these rules, unless the context otherwise requires :-

(a) "Act" means the Abkari Act 1 of 1077;

(b) "Ethyl Alcohol" means the liquid having the chemical formula C2H5OH, also known as ethanol;

(c) "Higher alcohol" means all alcohol other than ethyl alcohol;

(d) "Methyl alcohol" means the liquid having the Chemical formula CH3OH. Its other chemical names are methanol, carbinol and methyl hydrate and it includes wood naptha, wood spirit, wood alcohol, pyroxylic spirit and pyroligenous spirit.

(e) "Molasses" means the heavy dark coloured residual syrup drained away in the final stage of manufacture of gur or sugar, containing in solution or suspension sugars which can be fermented;

(f) "Specified distillery" means the public sector distilleries or other distilleries to be specified by Government;

(g) "Wash" means a saccharine solution from which spirit is obtained by distillation. It also includes fresh wash or wort;

(h) "Wort"

S.Rule 3 Property vested in Government how to be disposed of.

When an order for confiscation of any property passed under section 67B or section 67E or section 67F of the Act has become final in respect of the whole or any portion of such property and such property or portion thereof as the case may be, had vested in the Government free from all encumbrances in pursuance of section 67H of the Act, it shall be sold or disposed of or destroyed by the Officer-in-charge of the Excise Division after observing the procedure prescribed in these rules.

S.Rule 4 Carts, vessels or other conveyances.

(1) (a) When an authorised officer adjudging a confiscation of cart, vessel or other conveyance under section 67E or 67F of the Act offers the owner of such property the option of paying in lieu of confiscation, a fine equivalent to the market value of the cart, vessel or other conveyance as fixed by the Mechanical Engineer of the Excise Department or any Mechanical Engineer of and above the rank of an Assistant Executive Engineer of the Public Works Department of the State, and if the owner of such property agrees to accept such option, he shall be required to pay forthwith such sum as may already have been spent towards the safe custody and upkeep of such property, and to deposit such further sum as may appear likely to be required for such purposes until the payment of the fine.

(b) A period of fifteen days shall be allowed for the payment of such fine, if the fine is paid within such period, the property shall at once be released to the owner together with such part of th

S.Rule 4A 1[Constitution of Disposal Committee.

For the disposal of confiscated spirits/Liquor, the Government shall constitute a committee to be called "the Disposal Committee" with the following members, namely:-

(i)	Excise Commissioner	Chairman
(ii)	Secretary to Government, Taxes Department	Member

S.Rule 5 2[Spirit.

(1) The confiscated spirit, after having certified by the Chief/Regional Chemical Examiner to Government shall be disposed of by the Disposal Committee in the manner as hereinafter specified.

(a) The Committee may sell the confiscated spirit, if any, to the Public Sector Distilleries, or to any other Distilleries, Pharmaceuticals, Compounding and Blending Units in the State at such price as may be fixed by the Government from time to time.

Provided that the cost of transportation of spirit to the distilleries shall be borne by the distilleries themselves.

(b) The Disposal Committee may allot spirit, if any remains, to Government Hospitals, Research Institutions recognised by the Education and Science and Technology Department of State Governments or of Government of India or to reputed autonomous institutions engaged in palliative care, free of cost, on the request from the head of such institutions.

(2) The Chief/Regional Chemical Examiner to Government

S.Rule 1 Short title, extent and commencement.

(1) These rules may be called the Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996.

(2) They shall extend to the whole of the State of Kerala.

(3) They shall come into force at once.

S.Rule 23 Allotment of confiscated vehicles for Government use.

The Commissioner of Excise may, with the previous sanction of the Government, retain or allot confiscated vehicles which are Government free from all encumbrances, for the use of the Excise or other Department and the value thereof, as assessed by the competent authority, shall be credited to the departmental revenue by per contradebit to the expenditure head of account of the other Departments to which the confiscated articles is allotted:

⁷[Provided that if the Government deems it necessary to do so in public interest, it may, by order, allot any confiscated vehicle, free of cost, to a Government Department or an institution functioning under it.]

Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996 – Rule 23: Legal Commentary

Introduction

Rule 23 of the Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, addresses the allotment of confiscated vehicles for Government use [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23].
The Rule operates as a special dispensation mechanism within the broader confiscation framework, allowing the State Government to utilize confiscated conveyances rather than selling or destroying them [Enforcement Activities].
It reflects the public interest doctrine in confiscation law, where seized property may be retained for governmental purposes if it serves a larger public utility [Enforcement Activities].
The Rule is distinct from the general disposal mechanism (auction/e-auction) applicable to carts, vessels, and other conveyances under the amending provisions [Kerala Abkari (Disposal of Confiscated Articles) (Amendment)].
The Rule must be read in conjunction with Section 29(2)(q) of the Kerala Abkari Act, which provides the legislative basis for the Rules governing confiscated articles [Kerala Abkari Act Overview].

What Does Section Says

Rule 23 empowers the Commissioner of Excise to retain or allot confiscated vehicles for Government use, subject to the previous sanction of the Government [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23].
The Rule specifically applies to confiscated vehicles (as distinct from other categories of confiscated articles) [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23].
The Government sanction is a mandatory prerequisite for the exercise of power under this Rule [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23].
The Rule contemplates that the confiscated vehicle should be allotted free of cost to a Government Department if the Government deems it necessary in public interest [Enforcement Activities].
The Rule allows the Excise Commissioner to make the allotment order, but within the thirty-day window from the date of the confiscation order [Enforcement Activities].
The Rule applies only when the confiscated article is a vehicle and not to other categories of seized property [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23].

Essential Ingredients

Confiscated Vehicle: The article confiscated must be a vehicle, vessel, or conveyance as defined under the Act [Kerala Abkari (Disposal of Confiscated Articles) (Amendment)].
Previous Sanction of Government: The Commissioner of Excise cannot allot the vehicle without the prior approval of the Government [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23].
Allotment for Government Use: The purpose of the retention or allotment must be exclusively for Government use by a Department [Enforcement Activities].
Order by Competent Authority: The allotment must be made by an order passed by the Commissioner of Excise (or the Excise Commissioner as the case may be) [Enforcement Activities].
Public Interest: The Government must deem it necessary in public interest to retain or allot the confiscated vehicle [Enforcement Activities].
Communication of Final Order: The final order of confiscation and subsequent allotment must be communicated to the owner of the property by Registered Post [Abdul Nazer vs State Of Kerala].

Scope of Section

The Rule applies only to vehicles and does not extend to other confiscated articles like liquor, drugs, or general goods [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23].
The Rule is limited to the aspect mentioned in Sec. 29(2)(q) of the Kerala Abkari Act and does not override other disposal mechanisms [Kerala Abkari Act Overview].
The Rule does not apply to conveyances that are to be disposed of through public auction or e-auction, which is the general rule for carts, vessels, and other conveyances [Kerala Abkari (Disposal of Confiscated Articles) (Amendment)].
The Rule enables the temporary release of the confiscated vehicle to its owner under certain circumstances, as empowered by the authorized officer [K.S.Manoharan vs The State Of Kerala].
The Excise Commissioner has the authority to direct the allotment before the expiry of thirty days from the date of the confiscation order [Enforcement Activities].
The Rule does not create an absolute right in the Government to retain the vehicle; it is subject to the condition of public interest and Government sanction [Enforcement Activities].
The Rule is part of a procedural framework for the disposal of confiscated articles and must be interpreted strictly in accordance with the parent Act [Nikhil T.M. v. Deputy Excise Commissioner].

Punishment for Section

Rule 23 itself does not prescribe any specific punishment or penalty as it is a procedural Rule for the allotment of confiscated vehicles [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23].
Violation of the procedural requirements of Rule 23 (e.g., allotment without Government sanction) may attract disciplinary action against the concerned officer under the administrative laws applicable to civil servants.
Any illegal allotment of confiscated property may render the order liable to be challenged and quashed by the High Court under Article 226 of the Constitution [Nikhil T.M. v. Deputy Excise Commissioner].
The Rule does not create criminal liability; however, unauthorized dealings with confiscated articles may attract punishment under the parent Kerala Abkari Act.
There is no specific monetary penalty prescribed under Rule 23 for non-compliance with its provisions [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23].

Legal Comments

"Rule 23 Allotment of confiscated vehicles for Government use" - The Commissioner of Excise may, with the previous sanction of the Government, retain or allot confiscated vehicles for Government use [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23] - [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23]
"Government sanction prerequisite" - The power to allot confiscated vehicles under Rule 23 is conditional upon the previous sanction of the Government, ensuring executive oversight [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23] - [Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, S. Rule 23]
"Public interest doctrine" - If the Government deems it necessary in public interest, it may by order allot any confiscated vehicle free of cost to a Government Department [Enforcement Activities] - [Enforcement Activities]
"Thirty-day window for allotment" - The Excise Commissioner may before the expiry of thirty days from the date of order passed allot any confiscated vehicle under Rule 23 [Enforcement Activities] - [Enforcement Activities]
"Distinct from auction disposal" - The carts, vessels and other conveyances confiscated under the Act shall be disposed in public auction or e-auction directly or by an agency authorized, which is separate from the Rule 23 mechanism [Kerala Abkari (Disposal of Confiscated Articles) (Amendment)] - [Kerala Abkari (Disposal of Confiscated Articles) (Amendment)]
"Legislative basis in Sec. 29(2)(q)" - The Kerala Abkari Disposal of Confiscated Articles Rules, 1996 is limited to the aspect mentioned in Sec. 29(2)(q), and Rule 23 operates within that statutory framework [Kerala Abkari Act Overview] - [Kerala Abkari Act Overview]
"Temporary release of vehicle" - Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996 empowers the authorised officer temporarily to release the vehicle to its owner under certain circumstances [K.S.Manoharan vs The State Of Kerala] - [K.S.Manoharan vs The State Of Kerala]
"Formulation and notification" - The Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996 were formulated and notified by the State Government, which came into effect from a specified date [Nikhil T.M. v. Deputy Excise Commissioner] - [Nikhil T.M. v. Deputy Excise Commissioner]
"Communication to owner" - Authorized Officer when final order of confiscation is passed by the Competent Authority and communicated to the owner of such property by Registered Post [Abdul Nazer vs State Of Kerala] - [Abdul Nazer vs State Of Kerala]
"Destruction in conformity with rules" - Whenever any confiscated article has to be destroyed in conformity with these rules, it shall be destroyed in the presence of the officer ordering the destruction, though Rule 23 pertains to allotment [the Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996] - [the Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996]
"Inventory preparation by authorized officer" - It is for the authorised officer to consider and include in the inventory the particulars necessary to identify the liquor, ensuring proper documentation before any disposal action [When the inventory is prepared by an officer not authorised] - [When the inventory is prepared by an officer not authorised]
"Violation of procedural rules" - Officer on duty is a violation of rule of Kerala Abkari shops Disposal rules if proper procedures under the 1996 Rules are not followed [Home Page] - [Home Page]
"Conviction under Abkari Act" - The trial court found the Petitioner guilty of the offence punishable under Section 8(1) read with 8(2) of the Abkari Act, illustrating the criminal sanctions available under the parent Act [When the inventory is prepared by an officer not authorised] - [When the inventory is prepared by an officer not authorised]
"High Court jurisdiction" - The Kerala High Court in Nikhil T.M. v. Deputy Excise Commissioner adjudicated matters concerning the Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996 and their implementation [Nikhil T.M. v. Deputy Excise Commissioner] - [Nikhil T.M. v. Deputy Excise Commissioner]