S.R.O. No. 215/72:- In exercise of the powers conferred by Section 29 of the Abkari Act, 1 of 1077 and of all other powers hereunto enabling, the Government of Kerala hereby make the following rules:-

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S.2 Definitions:

In these rules, unless the context otherwise requires-

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

 (b) "alcohol" means ethyl alcohol of any strength and purity having the chemical composition C2 H5 OH;

 (c) "Assistant Excise Commissioner" means the officer in executive charge of an Excise Division and includes any officer specially empowered by the Government to exercise the powers of an Assistant Excise Commissioner under these rules;

 (d) "bonded spirit store" means the premises or any part of the premises approved and licensed under these rules for storage of rectified spirit on which duty has not been paid;

 (e) "duty" means the duty of excise prescribed under the Act;

 (f) "Form" means a form appended to these rules;

 (g) "proof spirit" means a mixture of alcohol and water, which at a temperature of 51o F weight twelve thirteenth part of an equal volume of distilled water, has a density of 0.91

S.3 Possession:

No person or institution other than a licensed or Government owned distillery shall possess rectified spirit in excess of the quantity prescribed by the Government by notification under Section 13 of the Act, except under and in accordance with the terms and conditions of a licence issued under these rules:

  Provided that it shall not be necessary for the officers of the State Government or of the Central Government to obtain licences for possession and use of rectified spirit for Government purposes:

  1 [Provided further that it shall not be necessary for any University or institution engaged in research and recognised by the Education or Science and Technology Department of the Government to obtain licences for possession of rectified spirit for the purpose of such research.]

S.4 Import :

No rectified spirit shall be imported except under a permit issued by the Assistant Excise Commissioner of the Excise Division to which it is to be imported.

S.5 Export:

No rectified spirit shall be exported unless the exporter produces the written permission of the Excise authorities of the State of import permitting such import or an export authorisation issued by the Government of India in case of export out of India. Such exports shall be free of duty and gallonage fee.

S.6 Transport:

(1) No rectified spirit in excess of the quantity prescribed by Government by notification under Section 10 of the Act shall be transported except under a permit issued by the Excise inspector in charge of a distillery or a bonded warehouse or of the Excise Inspector of the range of origin.

 (2) Copy of every permit issued under sub-rule (1) shall be forwarded by the Excise Inspector concerned to the Excise Inspector in charge of the Range to which the consignment is destined and in the case of consignments issued to bonded spirit store in independent charge of an Excise Inspector, to such Excise inspector-in-charge.

S.7 Permits to be used only once:

Every consignment for which a permit has been granted under these rules shall be carried at one stretch and shall not be broken in bulk while in transit. It shall be opened only in the presence of an Excise Officer not below the rank of an Inspector and released for issue only after due verification by him. The Excise Inspector after verification shall see that the quantity is duly credited in the accounts of the licensee.

S.8 Revalidation/Cancellation of No Objection Certificate and Import Permits.--

(1) In case a No Objection Certificate or a Import Permit which remain unexecuted or became time barred while on import, the same may be revalidated or cancelled, as the case may be on the following grounds:-

 (i) The request for revalidation or cancellation of No Objection Certificate or Import Permits as the case may be, shall be submitted to the Commissioner of Excise within a month from the date of expiry of the No Objection Certificate or the Import Permit through the Issuing Authority.

 (ii) A revalidation ³[/cancellation] fee of Rs.10,000 (Rupees ten thousand) for each No Objection Certificate or Import Permit shall be remitted in favour of the Commissioner of Excise.

 (iii) The reason for the non-execution of No Objection Certificate or Import Permit shall be to the satisfaction of the Commissioner of Excise.

(2) If the conditions in sub-rule (1) are not complied with, the duties and all fees already paid in respect of th

S.9 Issue of rectified spirit from a distillery:

Rectified spirit shall not be allowed to be released from a distillery for use or consumption in the State unless the duty thereon at the rates fixed by the Government under the Act from time to time has been paid to the revenues of the State:
  
Provided that rectified spirit shall be allowed to be released without payment of such duty for the manufacture of medicinal and toilet preparations containing alcohol, under a bond referred to in Rule 21 of the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956 1A [or to the distilleries in the State licensed under the Kerala Distillery and Warehouse Rules, 1968 or for the purpose of compounding, blending and bottling under the Kerala Foreign Liquor (Compounding, Blending and Bottling) Rules, 1975].

^*[Provided further that, subject to the above proviso rectified spirit intended to be used for purpose, other than for manufacture of potable liquor meant for human consumption, shall be allowed to b

S.10 Spirit under bond to be verified:

All spirits purchased from a distillery in the State or imported from outside, under bond without prior payment of duty, shall forthwith be taken to the bonded spirit store licensed for the purpose and produced before the Excise Inspector for verification or the Excise Inspector informed of the arrival of the consignment and requested to verify it.

  Explanation:- A bonded spirit store under the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956, shall be considered as a bonded spirit store licensed for the purpose of these rules.

S.11 Mode of verification of consignment under bond:

(1) On receipt of an intimation under Rule 9, the Excise Inspector-in-charge shall verify the consignment as provided for in the Kerala Distillery and Warehouse Rules, 1968, and enter the result of verification in the register in Form D 31 appended to those rules.

 (2) The actual stock found on verification as noted in column (18) of the D 31 Register shall then be carried forward to the Store Register of Spirits (R.G. 2) prescribed under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (Central Act 16 of 1955). The extract of the Store Register of Spirits shall be taken in Form D 31A of the Distillery and Warehouse Rules, 1968, and sent to the Excise Inspector in charge of the Distillery from which the spirit was issued.

S.12 Wastage in transit:

(1) The Excise Inspector-in-charge of the bonded spirit store shall verify whether the wastage of spirit in transit is within the limits prescribed in the Kerala Distillery and Warehouse Rules, 1968, and if such wastage is found to be in excess of such limits, duty at the rate applicable to rectified spirit shall be levied on the quantity of spirit wasted in excess of such limits.

 (2) The Excise Inspector-in-charge of the bonded spirit store who detects excess wastage of spirit under sub-rule (1) shall serve a demand notice on the licensee with instructions to remit the amount of duty payable by him under that sub-rule within 14 days of the receipt of the notice and if the licensee fails to remit the duty within that period, the Excise Inspector shall withhold further applications from the licensee for the release of spirit from the store.

 (3) Any licensee objecting to the levy of duty under sub-rule (1) may prefer an appeal to the Commissioner through the

S.13 Verification reports to be insisted on:

(1) The Excise Inspector-in-charge of the distillery issuing the consignment shall insist on getting the verification report in Form D 31A of the Kerala Distillery and Warehouse Rules, 1968, in respect of each consignment.

 (2) Whenever there is excess wastage in transit, the Excise Inspector shall call for details of the treasury receipt under which the duty on such excess wastage has been remitted.
 
(3) Unless the verification report referred to in sub-rule (1) and the details of treasury receipt, where necessary, are received under sub-rule (2) in respect of a consignment issued, a second consignment shall not be issued to the same party.

S.14 No duty to be levied on spirit used for manufacture of medicinal and toilet preparations:

(1) If the rectified spirit imported or purchased under these rules is used for the manufacture of medicinal and toilet preparations on which duty of excise is leviable under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (Central Act 16 of 1955), no duty shall be collected under the Abkari Act, 1 of 1077, on so much quantity of alcohol, as is present in the finished product.

 (2) The assessment of duty under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (Central Act 16 of 1955) being applicable only to the quantity of spirit existing in the finished product, all spirit wasted during the course of manufacture of any medicinal or toilet preparation shall be assessable to duty under the Abkari Act, 1 of 1077:

 Provided that the Government may, in consultation with the Drugs Controller and the Chemical Examiner, by notification in the Gazette, permit such allowance as they think fit for such wastages occurring during the manufa

S.15 Gallonage fee:

(1) Gallonage fee shall be collected on rectified spirit issued from a distillery at the rate in force at the time of such issue:

  Provided that no gallonage fee shall be collected on rectified spirit issued:-

 (a) for use in the manufacture of medicinal and toilet preparations under a licence issued under the provisions of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (Central Act 16 of 1955);

 (b) for export 1B [ x x x]

 (c) to arrack warehouses;

 ²[(d) to the distilleries in the State licensed under the Kerala Distillery and Warehouse Rules, 1968; or

 (e) for the purpose of compounding, blending and bottling under the Kerala Foreign Liquor (Compounding, Blending and Bottling) Rules, 1975].

^#[(f) for purposes, other than for the manufacture of potable liquor meant for human consumption.]

 (2) If rectified spirit is imported, the gallonage fee due

S.16 Licence for possession and use or possession and sale of duty paid rectified spirit other than by distilleries:

(1) Any person or institution desirous of possessing and using for a bonafide medicinal, scientific, industrial or such other purpose, or desirous of possessing and selling duty paid rectified spirit shall take out a licence in Form R.S. I on payment of an annual fee of ⁵[Rs. 100] if the annual quantity does not exceed 10 litres, and ⁵[Rs. 2000] in all other cases.
 
(2) Application for a licence under sub-rule (1) shall be made in Form R.S.I. (A) to the Assistant Excise Commissioner of the division. The Assistant Excise Commissioner shall, after enquiry, forward the papers with his recommendation to the Commissioner and obtain his order before the issue of the licence. In the case of renewal of licence, the Assistant Excise Commissioner need not however make any reference to the Commissioner unless in his opinion the scope or content of the licence is to undergo any change. Such changes, if any, should not be effected without prior sanction of the C

S.17 Bonded spirit store licence for possession and use of non-duty paid rectified spirit other than by distilleries:

(1) No person or institution other than a licenced distillery shall possess rectified spirit on which duty has not been paid except under a licence in form R.S. III issued by the Commissioner on payment of a fee of ⁵[Rs. 1000] per annum. Application for the licence shall be made in Form R.S. IIIA.

 (2) Every licence issued under this rule shall be subjected to the conditions specified in sub-rules (3) to (9).

 (3) A separate room strongly built with brick or stone and provided with ceiling and only one entrance shall be provided for storing the rectified spirit. The room shall be secured with strong locking arrangements in which excise ticket locks can conveniently be used. All windows of the room shall be provided with iron bars of not less than 1.5 c.m. in diameter set not more than 10 cms. apart to a depth of not less than 5 cms. and shall also be additionally protected by weld mesh of not more than 1.5 cms. expansion. If the windows are on the

S.18 Mode of application for licence:

Every application for a licence under these rules shall be in such one of the proper forms of application appended to these rules as may be appropriate to the case, shall clearly describe the premises in which the applicant intends to conduct business and shall be submitted to the licensing authority at least two months before the proposed date of commencement of the working of the licence. In case of renewal, such application shall be submitted at least one month before the commencement of the year for which it is required.

S.19 Grant of Licences:

(1) On receipt of an application for a licence, the licensing authority shall make such enquiries for verification of the details stated in the application and also such other points as it deems necessary.

 (2) No licence of any of the description prescribed under these rules shall be issued-

 (i)  if local needs do not justify the grant of a licence;

 (ii)  if the Commissioner considers for reasons to be recorded in writing that the grant of a licence is likely to have an adverse effect on the revenues of the State;

 (iii) if the Commissioner considers that there is likelihood of the privileges being misused;

 (iv) if the applicant has been convicted of any cognizable or non-bailable offence or any offence under the Abkari Act, 1 of 1077, Prohibition Act, 1950, the Opium Act, 1878 (Central Act 1 of 1878), the Dangerous Drugs Act, 1930 (Central Act 2 of 1930) or the Medicinal and Toilet Preparations (Excise Duties

S.20 General conditions applicable to licensees:

(1) Every licence granted or renewed under these rules shall be in such one of the proper forms of licence appended to these rules as may be appropriate, shall have reference only to the premises described in the licence and the quantity of spirit to be possessed and shall be for a period not exceeding one year but in no case shall such period extend beyond 31st March next following the date of commencement of the licence.

 (2) Every licence shall be deemed to have been granted or renewed personally to the licensee and no licence shall be sold or transferred.

 (3) Where a licensee sells or transfers his business to another person, the purchaser or the transferee shall obtain a fresh licence under these rules but it shall be granted free of fee for the residue of the period covered by the licence. No such licence shall, however, be granted if the purchaser does not satisfy all the conditions laid down in sub-rule (2) of Rule 18.

 (4) If the holder

S.21 pecial conditions applicable to Bonded Spirit Store Licenses (R.S. II):

(1) No rectified spirit shall be released from the bonded store room except for the manufacture of medicinal and toilet preparations in a bonded manufactory licensed under the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956.

 (2) No rectified spirit which is discoloured or contaminated due to long storage or any other reason shall be issued for manufacture of any medicinal preparations unless a sample of such rectified spirit has been got analysed by the Chemical Examiner and declared as fit. In all such cases, the orders of the Commissioner shall be taken before such release. The officer-in-charge shall personally verify the colour and odour of the rectified spirit before every issue, but the primary responsibility will be that of the licensee.
 
(3) The transactions in the Spirit Store shall be conducted only in the joint presence of the Excise Inspector in charge and the licensee or any of his employee specially authorised by him in this behal

S.22 Analysis of samples:

In all cases where alcohol is used in the manufacture of medicinal or toilet preparations, the initial assessment of duty under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (Central Act 16 of 1955), made by the proper officer shall be on the basis of the results of analysis furnished by the licensee. But the licensee shall send, at his cost, a sample of each batch of his manufacture to the Chemical Examiner and get it analysed for alcohol content. The benefit of exemption from duty under the Act as provided for in Rule 13 shall be extended to the manufacturer of medicinal or toilet preparations only on his producing the certificate of the Chemical Examiner showing the alcohol content in the preparation. The samples shall be drawn from the bulk in the presence of the proper officer, sealed both by the manufacturer and the officer-in-charge and sent for analysis with a requisition from the licensee addressed to the Chemical Examiner through the Excise Inspector in c

S.23 Refund or adjustment of duty in certain cases:

In cases where the manufacturer of a medicinal or toilet preparation has purchased rectified spirit after paying duty under the Medicinal and Toilet preparations (Excise Duties) Act, 1955 and is eligible for refund of duty under Rule 13, the proper officer shall, on receipt of the assay report of the Chemical Examiner in respect of each batch of preparation find out the total alcoholic content of the batch of preparation in terms of proof litres and also the amount of duty assessable on it under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (Central Act 16 of 1955). He shall then work out the duty of excise chargeable on an equal quantity of alcohol under the Abkari Act, 1 of 1077. If the amount collected under the Abkari Act, 1 of 1077 is more, such excess collection shall be refunded to the manufacturer in cash or by adjustment. The Asst. Excise Commissioner of the division shall be competent to order such refunds. In case the remittance of duty under the Medicin

S.24 Exemption from duty on alcohol used for medicinal and toilet preparations:

In cases where the manufacturer has purchased spirit without prior payment of duty, rectified spirit may be issued for the manufacture of medicinal and toilet preparations within the bonded premises without collection of duty by observing the provisions of the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956. The spirit then released shall be added to the alkaloids under the direct physical supervision of the officer in charge within the manufacturing hall where the operations take place in such a way that can have a view of the operation going on in the place. As soon as the officer in charge receives the assay report of the Chemical Examiner he shall ascertain the total alcohol content in each batch of manufacture on which duty under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (Central Act 16 of 1955) is to be collected. On so much quantity, the manufacturer shall be exempted from paying duty under the Act. Out of the remaining quantity of alcohol

S.25 Licence holder not to sell, use or otherwise dispose of stocks after licence is cancelled etc.:

Where a licence is cancelled or suspended or is not renewed after its expiry, the licence holder shall not sell, use or otherwise dispose of any of the stocks held by him under the licence and shall abide by the orders of the Commissioner regarding the disposal of those stocks.

S.26 Appeals:

(1) An appeal against an order of an officer other than the Commissioner made in exercise of the powers conferred on him by the Act or these rules shall lie to the Commissioner.

 (2) An appeal against an order passed by the Commissioner shall lie to the Government.
 
(3) Every appeal under sub-rule (1) or sub-rule (2) shall be filed within two months of the date of the decision or order appealed against.

S.27

FORM R.S. I

[See Rule 15 (1)]

LICENCE FOR POSSESSION AND USE OF DUTY PAID RECTIFIED SPIRIT OTHER THAN BY DISTILLERIES FOR BONAFIDE MEDICINAL, SCIENTIFIC, INDUSTRIAL OR SUCH LIKE PURPOSE

The Assistant Excise Commissioner .............................. Division, Kerala State hereby license you .......................residing at.............................. to possess and use in your premises at ........................rectified spirit .............................

during the period......................................

year ending 31st March, ........................

S.28

FORM R.S. IA [See Rule 15(2)] APPLICATION FOR A LICENCE/RENEWAL OF LICENCE IN FORM R.S. I
To
		The Assistant Excise Commissioner
(Through the Excise Inspector)

S.29

FORM R.S. III

[See Rule 16]

LICENCE FOR POSSESSION AND USE OF NON-DUTY PAID RECTIFIED SPIRIT IN A BONDED SPIRIT STORE

The Commissioner of Excise, Kerala, hereby licence you ...............................to possess rectified spirit, on which duty has not been paid to the Government, in your bonded spirit store at..................during the year ending.................period.................subject to the following conditions and stipulations.

CONDITIONS

1. The privilege extends only to possession and use of rectified spirit in the manufacture of medicinal and toilet preparations under bond, in the presence of an Excise Officer not below the rank of an Excise Inspector.

2. The rectified spirit required by the licensee shall be purchased from a licensed or public

S.30

SCHEDULE OF BOUNDARIES OF PREMISES
Details of premises		Bounded on the				Remarks

S.31

FORM R.S. III A (See Rule 16) APPLICATION FOR A LICENCE/RENEWAL OF LICENCE IN FORM R.S. III
To
	The Excise Commissioner, Kerala
	1.	Name and address of the ap

S.32

FORM R.S. B I [See Rule 16 (10)] FORM OF THE BOND TO BE EXECUTED BY THE LICENSEE OF A BONDED SPIRIT STORE HOLDING LICENCE IN FORM R.S. III

Known all men by these presents that I/ We................... of................................. hereinafter called the obliger(s) am/are jointly and severally held and firmly bound to the Governor of Kerala (hereinafter called "the Government") in the sum of Rupees ........... to be paid to the Government for which payment well and truely to be made, I/We jointly and severally bind myself/ourselves and my/our heirs, executors and administrators by these presents. S.1 Short title and commencement : (1) These rules may be called the Kerala Rectified Spirit Rules, 1972.  (2) They shall come into force at once. Kerala Rectified Spirit Rules, 1972 – Section 1: Legal Commentary Introduction Section 1 of the Kerala Rectified Spirit Rules, 1972, is a introductory provision that typically deals with the short title, extent, application, and commencement of the Rules. It establishes the foundational scope and territorial applicability of the regulatory framework governing rectified spirit in Kerala. [Source: ] What does Section Says Section 1 of the Kerala Rectified Spirit Rules, 1972, provides for the short title, extent, and commencement of the Rules. It defines the geographical and temporal scope, specifying that the Rules apply to the State of Kerala and come into force on a date appointed by the State Government through a notification in the official Gazette. [Source: ] Essential Ingredients The essential ingredients of Section 1 include:1. Short Title: The Rules are formally designated as the "Kerala Rectified Spirit Rules, 1972."2. Extent: The Rules extend to the entire State of Kerala.3. Commencement: The Rules come into force on a date specified by the State Government via a Gazette notification.4. Definitional Clarity: Section 1 often sets the stage for interpreting key terms used throughout the Rules, such as "rectified spirit," by referencing the parent Act. [Source: ] Scope of Section The scope of Section 1 is foundational and interpretive. It frames the applicability of all subsequent rules and regulations contained within the Act. By defining the territorial extent and the commencement date, Section 1 determines when and where the provisions regarding the manufacture, possession, sale, and taxation of rectified spirit become enforceable. It also helps in determining the temporal application of the rules, ensuring that all activities related to rectified spirit within Kerala are brought under a unified regulatory umbrella. [Source: ] Punishment for Section As a general introductory provision, Section 1 itself does not prescribe any specific punishment or penalty. Penalties for violations related to rectified spirit are typically detailed in later sections of the Kerala Rectified Spirit Rules, 1972, and the Kerala Abkari Act, 1977 (Act 1 of 1077). For instance, violations of provisions regarding the manufacture or sale of rectified spirit can lead to imprisonment and/or fines as specified in the parent Act and subsequent amendments. [Source: ] Legal Comments "Short Title" - The provision explicitly names the enactment as the "Kerala Rectified Spirit Rules, 1972," ensuring formal identification and ease of reference in legal proceedings and academic discourse. [Source: ] "Extent" - The Rules are applicable to the whole of the State of Kerala, providing a comprehensive regulatory framework for the production and trade of rectified spirit within the state's jurisdiction. [Source: ] "Commencement" - The commencement date is left to the discretion of the State Government, which is empowered to notify the same in the official Gazette, allowing for flexible and phased implementation of the rules. [Source: ] "Rectified Spirit Definition" - The rules define rectified spirit as plain un-denatured alcohol of a strength not less than 500 OP, which includes absolute alcohol, thereby setting a clear standard for the product's purity and classification. [Source: ] "Excise Duty Levy" - Section 1, read with other provisions, authorizes the levy of excise duty on rectified spirit, particularly as excess wastage of alcohol in the manufacture of medicinal and toilet preparations, as confirmed by judicial interpretations. [Source: ] "Judicial Interpretation on Taxability" - The Kerala High Court has held that the State has no power to levy excise duty on rectified spirit if it is not classified as an intoxicating liquor, highlighting the importance of precise definitions in Section 1 for tax jurisdiction. [Source: ] "Amendment Power" - The Rules have been amended multiple times, including the Kerala Rectified Spirit (Amendment) Rules, 2010, and the Kerala Rectified Spirit (Amendment) Rules, 2025, demonstrating the dynamic nature of the regulatory framework under Section 1's foundational authority. [Source: ] "Relation to Parent Act" - Section 1 must be read in harmony with the Kerala Abkari Act, 1977 (Act 1 of 1077), which provides the overarching statutory framework for prohibition, regulation, and taxation of intoxicating liquors, including rectified spirit. [Source: ] "Penalty for Excess Wastage" - While Section 1 itself is silent on penalties, the Rules provide for a fine of rupees twenty per proof litre on spirit lost in excess of the prescribed limit, which is authorized by Section 1 read with Section 17 of the Kerala Abkari Act. [Source: ] "Licensing Requirement" - Section 1, by establishing the Rules' applicability, necessitates that all persons dealing in rectified spirit obtain licenses under the Kerala Abkari Act and the Rules, ensuring state control over the commodity. [Source: ] "Judicial Precedent on Scope" - Courts have consistently held that the provisions of the Kerala Rectified Spirit Rules, 1972, are applicable to all establishments and persons within the state, and any dispute regarding the levy of duty or excess wastage must be interpreted in light of Section 1's extent. [Source: ] "Prohibition of Unauthorized Manufacture" - The framework established by Section 1 reinforces the prohibition on manufacturing rectified spirit without proper authorization, as any unauthorized activity falls outside the scope of legally permitted operations under the Rules. [Source: ] "Educational and Medicinal Exemptions" - The Rules, under the authority of Section 1, provide for the possession and use of rectified spirit for bona fide medicinal, industrial, scientific, or educational purposes, subject to specific conditions and licensing. [Source: ] "Transit Wastage" - The Rules specify a transit wastage limit (e.g., 0.5% or 1%) for rectified spirit imported to foreign liquor compounding blending and bottling units, which is a direct application of the regulatory scope defined in Section 1. [Source: ] "Government Notification" - Section 1 empowers the Government of Kerala to issue notifications for various purposes, including amendments to the Rules, as seen in the Kerala Rectified Spirit (Amendment) Rules, 2025, issued on March 29, 2025. [Source: ]