excise eauction–process flow -...
TRANSCRIPT
Excise eAuction – Process Flow
Bidder registers at
www.mstcecommerce.co
m/auctionhome/oed/inde
x.jsp
Bidder has to visit MSTC BBSR
office for physical documents
scrutiny with proof of payment of
registration fee
Bidder gets access to the
MSTC e-auction website
MSTC activates bidders after
successful scrutiny of
documents & registration
fee
Bidder gets an email from
MSTC stating the statutory
documents to be submitted
Bidder pays Application fee
and EMD = 3 X reserve price
through RTGS/NEFT using e-
payment
MSTC activates eligible
bidders profile for
participating in E-auction
Live e- Auction takes place as
per schedule indicated in
sale notice
MSTC provides the list of H1
for all shops to EAC
EAC to issue the list of all H1
to the respective Dist.
collectors
Successful H1 bidders to
undergo physical document
verification with Dist.
collectors
Compliant winners of shops
will be awarded the license
for a period of 1 year
MSTC to refund EMD of
unsuccessful bidders in 15
working days from
completion of E-auction
Bidder has to remit Rs.
11,400/- towards registration
fee using e-payment gateway
in MSTC website
GOVERNMENT OF ODISHAEXCISE DEPARTMENT
From
Ex,, dated
Shri S.P.Thakur, IAS,Principa I Secretary to Government.
The Excise Commissioner,Odisha, Cuttack.
New Excise Policy (Excise Duty, Fee Structure and Guidelines) for theyear,2015-16
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I e Lg,Fv AzraA Mry';, r^.,'on\'{'##k#^VV'iMemo No. l-"" /Ex., dated '/"J/19Copy forwarded to the Secretary, Board of Revenue, Odisha, Cuttack/ all
Collectors/ All Deputy Commissioners of Excise/ All Superintendents of Excise for
To
Su b:
Sir,I am directed to invite a reference to Vour letter No. 667 dtd. 03.02.2015
on the subject cited above and to say that Government after careful consideration have
been pleased to approve the New Excise Policy (Excise Duty, Fee Structure and
Guidelines) for settlement of excise shops and establishments for the year 2015-16.
The detailed excise policy (Excise Duty, Fee Structure and Guidelines) for the financial
year 2015-16 is enclosed for necessary action.
You rs faithfu lly,
information and necessarv action.
Memo No.
information and necessa rv action.
Memo No.
Minister, Excise/ O.S.D to Chief Secretary/ P.S. to DC-cum-ACS forHon'ble Chief Minister, Hon'ble Minister, Excise, Chief Secretary and
Memo No. Ex., datedthe Managi
information and necessary action.
| . V) - Q,,lofn,a.nutv ,u*urtrWoftlklnYMemo No. / \ I z_ /Ex,. dated ')'' I ut I lL
C"efi;"rd"d to the Head Stay'e plri{, n centre, Secretariat Building/Prasanta Senapati, DEO, Excise Department for information and necessary actiqn.
r. A ll"r*-*n:1 -Deputy Secreta r{ to Go+frnrtldnt
c"pv ?Ir*"ra"akind information of
Bhuba
1.. INTRODUCTION
Under entry No. 51 of list ll of the Seventh Schedule of the Constitution of India, states are empowered
to levyduties on the following goods manufactured or produced in the states:
1. Alcoholic liquors for human consumption.
2. Opium, Indian hemp and other narcotic drugs and narcotics.
Taxation of alcoholic beverages should be viewed in the context of establishing a balance between
economic, ethical, political and social considerations. Consumption of alcoholic beverages has
considerable adverse effects on health, affecting the long term productivity of the consuming individuals
as well as the society. The Excise duties on intoxicants and narcotics are meant to play a restraining role
on consumption since it is recognized universally as a demerit good. States also find it an attractive
source of revenue as higher tax rates lead to both higher revenues and lower consumption.
Designing a suitable tax structure for this should consider the health costs, both personal and social. Low
tax rales would encourage consumption and lower tax revenues. Excessively high rates would
discourage consumption but may also lead to tax evasion and flight of the tax base to neighboring
states, as well as shift to lower price-lower quality products. Both the consumption reducing effect and
the revenue increasing effect depend on the elasticity of demand and the relevant tax rates. A suitable
Excise policy would need to balance these conflicting objectives.
The Excise policy 2015-2016 seeks to improve upon some of the shortcomings of the earlier policy,
keeping in view the objectives of the pollcy. The key areas, in which the Excise policy 2015-2016 differs
from the 20L4-2Ot5 policy, are as follows:
1. As the Excise policy is revised periodically, the adjustments that are made to specific rates tend
to be ad hoc & it is difficult to maintain intense relativities among different categories. As a
result, the fee structure now has been streamlined & rationalized.
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The Excise duty specific rates which is slab based, is converted into equivalent ad valorem rates,
with an aim to reduce regressive tax structure of lower rates for products with higher prices.
"Specific dutv per LPL/BL + ad valorem" structure for the levy of Excise duty in the state will Bive
automatic buoyancy to the Excise duty revenues and will obviate the need for excessive
classification according to product attributes since price differences automatically reflect
product attributes in most cases. The ad Valorem rate of Excise duty shall be levied upon the
landing cost & the new structure would replace the "Landing Cost slab" structure currently used
to levy Excise Duty. A uniform ad valorem rate component combined temporarily with a specific
component to smoothen the transition process will mitigate the extent of regressivity.
There are three major stakeholders in alcoholic beverages sale namely, Supplier
(Producers/manufacturers/distilleries/bottling unit/breweries), Wholesaler & Retailer (OFF/ON
Shops). The policy rationalizes the returns available to these different participants.
4. MGQ structure for OFF Shops has been rationalized
5. Conversion of BEER Parlour to IMFL ON Restaurants/Hotels
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The Excise policy document has been molded into three parts.
Part A: Lists all the fees (Excise license fee/application fee/registration fee/penalty) covering production,
wholesale and retail trade in alcoholic beverages.
Part B: Lists all the variables dealing with the Excise duties and administered profit margins and prices.
Part C: Lists all the regulatory measures
The Government after extensive study, detailed analysis & careful conslderation has decided to adopt
the below mentioned Excise policy for year 2015-2016.
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2. PARTA
S. No :.1
FEE Tpe (p1-1gfs163616; ,, ,, . . -Application fee for grant of License (Brewery/Winery/Distillery/Bottling Unit)
AnrEgrltFE1,00,000
2 Application fee for Renewal of licence (Brewery/Winery/Distillery/ Bottling Unit) 40,0005 Application fee in respect of licenses for tradinq of molasses 27 ,OOO
4 Application fee in respect of licenses for Units using molasses for purposes otherthan tradinP
14,000
5 Application fee for Label registration (BEER per brand for Civil/Defence) 25,0006 Application Fee for Label registration (tMFL/Wine/FMFL per brand pack size for
Civil/Defence)20,000
7 Application fee in respect of new 'ON' Shops 60,0008 Application fee in respect of renewal of licenses of ,ON' ShoDs 60,0009 Application Fee wrt. New/renewal of Military Canteen Licenses 8,00010 Application fee wrt. New/renewal of qhang, Tari, pochwai shops 7,2001,1 Application Fee for new Out Still shops 35,000T2 Application fee for renewal of Out Still Shop 30,00013 Application Fee for New tMFL Off shop license (participation in E-Auction) 60,0001,4 Application fee for New license of Country Spirit shops (participation in E-Auction) 30,000Lf Application fee for renewal of tMFL OFF shops (Settled through E-Auction) 60,000-to Application fee for rgnewal of Country Spirit shops (Settled through E-Auction) 30,00017 Composite Label registration fee per annum for military canteens {l) 12,00018 User registration fee for military canteens (i) 5,00019 Label Registration Fee of C.S. in class Bottles (t per annum) 20,00020 User charge per shop ( |MFL/CS/OS) ({ per annum) 7,5002t Composite Label Registration fee for retail licensees ({ per shop per annum)
IMFL/BEER15,000
22 Composite Label Registration fee for retail licensees ({ per shop per annum)-Foreign Made Foreign Liquor
7,500
23 Separate Label registration fee for export of tMFL/Beer (per item/brand) 15,00024 Application fee Obtaining NOC/Extension of NOC/permission for establishment of
Brewery/Winery/Distillery/Bottling etc. Units45,000
25 Penalty on a country spirit supplier if it fails to make timely delivery of CS supply 10,00,00026 Penalty with fine for non-supply of cash memo to the consumers on oemand. 15,000
Penalty on Supplier/Reta iler for supplying/selling liquor without affixture EAL 1,00,000
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Fi*r rii ng
tt iloqlr:::l':.. $pil'ii ilt F:'r:ql::lli*lr.;iiiii i$li:tfr*ilit ding &
2.3 $l'ewrr'ies- {,ii't ;i*: !i.:,.: illl" }ic't r. ir!.li;i rr{f illlt
:.4 irtili..i- ! ia;t-t;ri. l.irr:r , i,1*i:rii aiir .! ill,l itri_.+s, Li;irri-rr.;, Silir.it ::ltl lih:i:-rB.l;rr i
;:;itj Ft:,f h-*;,li 5ilr;pt..... :.;;1r".,i,::l.i1r:l- i ir,.tr;ii.ii:-ijti }}lil'tl i"la{i.
1 AEllslcsL.t up to 10,00,000 22L.2 10,00,001 to 30,00,000 42L.5 30,00,0!1 to 60,00,000 62L.4 50,00,001 to 90,00,000 a21.5 90,00,001 to 120,00,000 92-t.o 120,00,001 and above loo
Bottlins Units (Co
2.L up to 10,00,000 227.2 10,00,001 to 30,00,000 422.3 3O0O001to 60,00,000 622.4 50,00,001 to 90,00,000 a22.5 90,00,001 to 120,00,000 922.6 120,00,001 and above lfi'3 Annual Licence fee for E.N.A. columns 8.54 Annual Licence fee for Wine producing units 2.5
License Fee for gupply and manufacture of C.S. (M/s ACS|) 33
180,00,001 to 300,00,000300,00,001 to 500,00
Annual License Fee for Hotels in six maior cities - Cuttack.Bhubaneshwar, Puri, Sambalpur, Rourkela & Berhampur with Lodging
Uu^K [v1x)
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3 Annual Llcense Fee for other urban areas with lodging 6.04 Annual License fee for Hotels and restaurant without lodging 9.55 "ON" License may be granted to O.T.D.C/|.T.D.C Hotels at half the rates
applicable as above for license fee, based on where the said hotels arelocated. No such concession is allowed for hotels leased to orivateindivid uals
50% of above rates
6 Annual License Fees for "on" clubs
6,1 Annual License Fees for "ON" clubs - Consumption up to 500 LPL permonth
3.5
6.2 Annual License Fees for "ON" clubs - Consumotion from 501 LPL to800LPL per month
4.5
6.3 Annual License Fees for "ON" clubs - Consumption above 801 LPL permonth
5.5
7 License fee for ON Beer Parlour
It has been decided to convert all BEER Parlours to |MFL "ON" Shops (Hotel/Restaurants).
As a result from 1't April 2015 onwards, all Eeer Parlour ON Shops should either convert to lMFl ON
Hotel/Restaurant or close their operation. The District Collector shall send the proposal to theGovernment through the approval of Excise Commissioner for converting Beer Parlours to ON
Hotels/Restaurants, subject to fulfillment of required criteria for the same. By 30th September 2015, theconversion process should be completed.
I Annual License fee for Bonded Warehouse 9.5I In case of distilleries, annual license fees to be paid for storage of spirit
Der annum7.O
10 Annual License fee for Model Wine shoos attached to Start Hotel &Luxury Hotels/Complex permitting sale of wine & Low StrengthLiquor/Beer (5% v/v &Below)
!.2
tt Annual License Fees on Denatured Spirit/Methanol
11.1 Annual License Fee on D.5-1 0.28t!.2 Annual License Fee on D.S - ll o.2211.3 Annual License Fee on D.s-lll (Carpentry) o.t7tt.4 Annual License Fee on D.5-lll (lndustrial use) 0.28t2 Annual License fee for Military Canteen (The Superintendent Excise will
issue the permits only after obtaining the strength of the unit & normsof supply)
o.t2
13 Additional annual Licence fee for export of brands (IMFL/BEER) 1.514 Annual license fee for separate for warehouse made for storing of
export lM FL/BEER brands0.72
15 Monthly License fee for branch Out Still Shop .15I6 Annual License Fee for M&TP Units As decided by central
5
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Licenses of Bhang, Tari & Pochwaishops shall be renewed for 2015-2016 with 12% increase inexisting consideration money with necessary formalitiesLicenses of Out-Still shops operating in 21 districts shall be renewed for 2015-2016 with 12% increasein existing consideration money with necessarv formalitiesLicense fee/Consideration Money for tM FL OFF Shops & Country Spirit Shops is to be determinedthrough e-a uction process
S, No tegqry (non-refu ndable) Category-wise amouhHtl1 IMFL ({ Per LPL)
t.l Bottling Fee - Own Brand 10.01.2 Bottling Fee - Other than own brand 15.01.3 Bottling fee for exports of IMFL 3.01.4 Label resistration Fee on all IMFL brands (lncludins FMFL & Wine) received at wholesale depots
(Januarv to December of preceding Vear) Per Label Per Annum for Civil & Defense
a. Up to 2000 Cases Per annum I 20,000b. From 2001 Cases to 5000 Cases Per annum { 40,000c. From 5001 Cases to 10000 Cases Per annum { 60,000d. From 10001 Cases to 20000 Cases Per annum r 72,000e. From 20001 Cases to 40000 Cases Per annum I 95,000f. From 40001 Cases to 70000 Cases Per annum < 1,44,000g. From 70001 Cases to 100000 Cases Per annum < 1,92,000h. From 100001 Cases & above { 2,64,000
2 Beer ({ Per BL)
2.1 Bottling Fee - Own Brand 9.02.2 Bottling Fee - Other than own brand 10.02.3 Bottling fee for exports of BEER 3.02.4 Label registration Fee on all BEER brands received at wholesale depots(Januarv to December of
precedins vear)Per Label Per Annum for Civil & Defense
a. Up to 2000 Cases Per annur < 20,000b. From 2001 Cases to 5000 Cases Per annum r 40,000c. From 5001 Cases to 10000 Cases Per annum { 60,000d. From 10001 Cases to 20000 Cases Per annum { 72,000e. From 20001 Cases to 40000 Cases Per annum { 95,000f. From 40001 Cases to 70000 Cases Per annum < 1,44,000g. From 70001 Cases to 100000 Cases Per annum { 1,92,000h. From 100001. Cases & above { 2,64,000
3 Bottling fee of C.S. in Glass bottles ({ Per Glass bottle) 0.334 EAL fee for each bottle/pouch of IMFL/ BEER/ CS ({) 0.9
6
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* tmpott lee to be poid on the RS/ENA procured lrom outside the state fot tiquot production, whereos tonsport fee is to be paid only
on RS/ENA ptocured from within the state
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.L lmport Fee on RS/ENA procured from Outside the state (per BL)* 7.02 lmport fee on Ethanol/Power spirit for blending in petrol (per BL) 0.353 Export Fee on Rectified Spirit/ENA (per BL) 4.84 Transport Fee on Rectified Spirit/ENA for preparation of tMFL/CS (per
BL) (Procured from tnside the state)*6.0
J Transport Fee on Rectified Spirit/ENA for purposes other thanpreparation of IMFL,/CS (Per BL)
8,0
6 lmport/Export & Transport PASS Fee on FL, CS &Beer transported 100.0lmport, Export & Transport Fee Denatured Spirit for (per BL) 7.O
8 lmport, Export &Transport Fee for Methanol for industrial use (per BL) 4.89 Export Fee on Beer (Per BL) 3.010 lmport Fee on Beer (Per BL) 15.011 Vend Fee-Wine imported into India from outside the country (per LpL)) 25.0
Vend Fee-Beer imported into lndia from outside the country (per BL) 30.013 Export Fee on IMFL (Per LPL) 3.0t4 lmport Fee on IMFL Per LPL 30_L) Vend Fee on foreign liquor imported into India from outside the
country (not bottled in India) Per LpL250 Per IPL + 40% of
wholesale Landing Cost
For other than distilleries, i.e. industrial uses
Gudakhu and similar small scale
for industrial
, possession and sale by sugar industry
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2 For industrial and other purposes 2U)3 lmport fee (procured from outside the state)+* 100!5
Export fee 68Transport fee (procured from inside the state)** 27
6 Grains of any kind used for production of spirit & Ef,lA 235*'lmpoft fee to be poid on the Molasses
procuredfrcm within the stote
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i i..ii!:-.a! i.iliil_
*lmpoft fee to be poid o, th
from within the stote
.i,l i tr&ir*l*:ili*r i.iitcr:l:.: i,i.i,:
2001 to 5000
Utilization fee per quintal of Mohua Flower
Mohua transportation fee(procured from insideihElilteji
Mohua import fee(procured from outside the statS
Category (non-refundable) Amount (l.Lakhs per annum)Wholesale Depots with |MFL & BEERWholesale Depots with |MFL, BEER & Cou
ur"dil G*)
3. PART B
Excise duties on various products will be as mentioned below for the ye ar 2O!5-2016
S. No Category of BEER Strength Excise Duty = Spscific component*Bl + Ad valorem+LC
Specific component
(r Per BL)
Ad valorem Component
( { as % on Landing Cost )
L Beer Made in hdia Up Io 5To v /v 30 40%Above syov/v 30 4VA
2 Draught Beer Up to 5% v/v 30 40%Above 5% v/v 30 40%
Diet Beer Up to 5% vlv 30 4W5Above SYo v /v 30 40%
4 Canned Beer Up Io 5%vlv 30 40%Above 5% v/v 30 4Oo/5
5 Breezer/Low AlcoholicBeverages
Up to 5% v/v 30 40%Above 5% v/v 30 40%
S. No Category of IMFL Strength Excise Duty=specific Component*LPL + Ad Valorem*LC
Specific component
(< Per LPL)
Ad valorem Component
({ as % on Landing Cost )
r India made Whisky, Gin, Rum,Brandy & Vodka
IJ 250 40o/o
2 Whisky, Gin, Rum, Brandy &Vodka imported in bulk &Bottled in India
70- 80- 250 40%
5 Wine lmported in Bulk &bottled in India
1,2" 36' 150 40%
A India Made Wine 75" & below 50 40%
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5. No Category of IMFL Strength Excise Duly=5p66ific Component*LPL + Ad Valorem*LC
Specific component
(< Per LPL)
Ad valorem Component
( I as % on LandinB Cost )
1 India made Whisky, Gin,Brandy & Vodka
75" 130 40%
2 India made Rum 75' 100 4W53 India Made Wine 75 & below 25 4004
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S. No Category of IMFL Strength Excise Duty=Specifi c Component*IPVBL+Ad Valorem*LC
Specific component
(l Per BL,/LPI)
Ad valorem Component
(t as % on Landing Cost )
1 Country Spirit 10 25%z Bhang 400(Per kg) Nil5 DS Supplied to agencies other
than Government Organizationwithin the state
7 Nil
4 Liquor Cordial imported in bulk& bottled in India
60" 250 Nil
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In order to make MRP convenient for cash transactions at retail shops, it has been decided to make liquor
prices in the state rounded off to next t 5. As a result, Excise Department would charge an additional
rounding-off License fee, only if required, in order to make sure the liquor prices are rounded off to next < 5.
This additional license fee shall be a part of MRP build-up & would be included in wholesale issue plce ar
which lifting from wholesaledepot is made. Wholesaler would periodically transfer this amount to Excise
Deoa rtment.
, *" On"r. ,r,.e of all IMFL (FMFL& Wine included) suppliers should be reduced by 10% of current value.
The offer price after deduction should not be increased for the financial year or next price fixation
Committee meeting.
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The Offer Price of all BEER suppliers should be reduced by zlyo of cunent value. The offer price after
deduction should not be increased for the financialyear or next Price fixation Committee meeting.
MRP fixed for a brand would not change during a financial year.
Wholesaler & Retailer margin would be as follows:
4. PARTC
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The Below mentioned new MGe structure would preside over the current MGe structure. Consideration
money for OFF Shops as mentioned above would be determined through e-auction process.
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'1. !.3 $'i(Q {}f {}N $fl{}}:i, i.;.llii5 .:i ; i:.r : iti,:i
The MGQ of all "ON" shop remains same as fixed in 2014-2015.
lMFt "oFF, Shop
Area Type IEER MGQ- BL per 11000 CM IMFL MGQ - LPL per <1000 CM
URBAN 36 24
RURAL 30 20
CS "OFF" ShOP
Area Type CS MGQ - LPL per { 1000 CM
ANY 60
11W u\"t
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The MGQ for rifting and use of morasses by the distr-Tteries sha, be fixed at the formura at par with rastyear. In case of short rifting, the unit has to pay utilization fee as fixed by the Govt. from time to time.
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The following reguratory items detair the guiderines to be folowed under each reguratory head.
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(a) All the Depots established by the Wholesaler will pay an amount as specified in PART B,per annumtowards annual Depot license fee for storage of IMFL/Beer. The collector of concerned districts willissue depot licenses.
(b) In addition to the above,
towards annual Depot
Wholesalerwill pay separate license
license fee for storage of C.S
fee as specified in PART B, per annum
where Country Spirit is prevailed.
(c) Additionally Wholesaler Should :
1. Add Godown space
2. lmplementComputerization
3. Logistic management through OMEGA_Il
4. Ensure lifting of assortment of brands by retailors
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"lt has been decided to convert all BEER parlours toAs a result from 1't April 2015 onwards, all Beer parlour ON
Restaurant or should close their operation.,,
IMFL "ON" Shops (Hotel/Restaurants).
Shops should either convert to tMFL ON
a,
b) New "ON" License for Star Hotels with or without
and other recognized agenctes may be
and duly financed by banks
mentioned license fee.
Lodging accommodation
allowed with above
The License fee of "ON,, shops may be realized in two equal instalments.
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New licenses to ON Clubs may be granted on fulfillment of the following conditions:
i. The Clubs must be registered club under the Societies Registration Act /any other law for the time
being in force.
ii. The Club must have at least 50 oermanent members.
iii. The Club must be having facility of outdoor games like Tennis and Badminton etc. and at least Indoor
games of two or more.
iv. There must be adeouate facilities for food and drinks.
License fee for Military canteens may be renewed on payment of annual license fee as specified. The
superintendents of Excise will issue the permits only after obtaining the strength of the Unit/Cantonment and
the norms of supply.
The 'ON' shops location violating the policy dated 18.01.14 will be reviewed and submitted before 3Oth June
2015 bv Excise Commissioner.
The existing license fee and policy will continue for 2015-16 by way of renewal of licenses or as may be
decided bV the Central Governmenr.
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In case any existing Bhang, Tari and Pochwai shops remain unsettled, the Collector may take steps for
settlement of the same by way of inviting fresh applications. In case, more than one applicationis received, the
shops will be settled by draw of lottery.
,i;: i ';
In case any existing Country Spirit shop remains unsettled the Collector may take immediate steps for
settlement bv e-Auction.
a)
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@,b) unsettled country spirit shops in the relevant districts may be given to Aska co-operative sugar
Industries Ltd (OS|C), Odisha Tourism Development Corporation (OTDC) and other State Government
Undertakings and Co-operative organization at the reserve price fixed by the Govt., if the same is not
settled by the prescribed process during the year. However they will operate these shops under their
own management. They will not be allowed to sub-lease these shops under any circumstances'
country spirit of 40 Degree uP stren8th of 200 Ml be supplied and sold in glass or pet bottles.
ASCI shall ensure at least 300 Full Truck Load supply (1200 cases) of Country spirit to Wholesale depots
for sale to retailers. Failure to supply the same would attract penalty as specified in PART A.
The pet bottle must be conform to Food Grade Plastic Specified in rule 49 (5) (v) of the prevention of
Food Adulteration Rules, 1.955.
Before supplying the Country Spirit in Glass Bottles, the manufacturer will have to get the labels
registered and the label registration fee as specified above per annum per label will be changed.
g) In each district where Country Sprit is prevalent, a committee for prevention of illicit liquor should be
formed with Collector as Chairman, Superintendent of Police as the Vigilance Officer and the
SuDerintendent of Excise as the Convener- Cum-Secretary. The committee will review from time to time
regarding the functioning of the Country Spirit shops and formulate strategies to prevent illicit
distillation liouor and detect the sources of spurious and non-duty paid liquor.
::.:.:. ''..: ..;:.
a) The license of all existing Out Still Shops operating in 21 districts namely, Sambalpur, Bargarh,
Jharsuguda, Deogarh, Sundergarh, Bolangir, Sonepur, Kalahandi, Nuapada, Boudh, Koraput, Rayagada,
Malkangiri, Nabarangpur, Angul, Keonjahr, Mayurbhanj, Ganjam, Behampur, Gajapati and Dhenkanal
shall be renewed for a period of One Year w.e.f April 2015 to March 2016 with 12% increase over and
above the existing consideration money and while renewing VAT clearance may be called for. For the
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L,
d)
e)
b)
vear 20i:6-20!7 & onwards, all out still shops in the state will be settled through e-auction process' E-
auction for the vea( 20'l-6-20!7 would be conducted in January 2016.
In case of any existing o.s systems remaining unsettled, the collector may take immediate steps to
settlement of the same in prescribed manner.
The Collectors may allow up to (15) fifteen branch shops to be operated by each Exclusive Privilege
License holder with a monthly license fee of 115000 per branch shop.
d) Any shop once settled and starts functioning shall not be shifted ordinarily within a given financial year'
e) In the notice inviting applications for settlement of o.s shops through lottery, the MGQ shall be 1.5 Qtl.
Of Mohua Flower per 1000 rupees of consideration money. Any shortfall in MGQ lifting would attract
penalty in form of complete payment of utilization fee of this shortfall quantity.
Additional guidelines for OS Shop would require them to include :
1.
2.
3.
4.
Name of the shop in the product
Date/Month/Year of manufacturing of liquor
Net content
code number along with ldentification mark ofthe shop approved by the Superintendent of
Excise.
All OS shops must ensure cleanliness and hygiene in their compound.
No oS shop should use Gur in place of Mohua. Use of Gur or any substitute is strictly
prohibited. The EPHS found to be using any substance in place of Mohua for making os shall
be held guilty of violation of legal provisions and shall invite penalty.
6.
In case the shop remains unsettled, the same would be settled by way of re-e-Auction. Those shops which
remain unsettled may also be allowed to run by other Government agencies and Co-operative organizations
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with the license fee as decided by the Govt. Any shop once settled and starts functioning shall not be shifted
ordinarily within a given financial year.
It will be mandatory for an "oFF" shop to display prominently the following:
1. Rate list
2. Opening /Closing Time
3. Age group which is not allowed to buy
4. Toll free no. of complaint to Excise officials
5. Ask for cash memo
5. No payment above MRP
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Extra Neutral Alcohol (ENA) based cheap liquor will be introduced in the state during the year 2015-16. The
Excise duty fee structure and other guidelines for introduction of ENA based cheap liquor will be prescribed
separately. Excise commissioner should submit a report to Government by June 30tn 2015 on details of the
same.
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Maximum Retail Price (MRP) will be displayed on each bottle of IMFL, Beer and Country Spirit and sold
accordingly. The vendors should issue Cash Memo on demand, to the consumers, failing which the vendors
shall be penalized with fine specified in PART A. All IMFL "oFF" shops are required to display a Rate Card,
which lists MRP fixed for the year 2015-2016.
a) The MRP shall be decided on the principle of landing cost + all taxes /duties/ Other Fees + Wholesale
Margin + Retailer Margin.
b) Any modification request on Offer Priceof the brands will be decided by the Price Fixation Committee.
75
Ho',)tlrd\y
The offer Price/Landing Cost/MRP of Labels once fixed by Price Fixation committee cannot be increased
for the financial vear.
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lmporters or authorized representatives of foreign distilleries/company will register themselves withWholesaler under intimation to Excise Commissioner Odisha.
They will be required to pay necessary registration fees to wholesaler as may be specified.
For sale of foreign made foreign liquor, Wine/Beer made from
the same, on request of authorized representatives/lmporter,
have made necessary registration of such labels.
imported base, Wholesaler will import
for supply to authorized vendors, who
Authorized vendors will lift the material from wholesale Depots. They will maintain a separate accounrof the sale and proceed of these products.
All the IMFL shops having valid ricense and permit may rift the Foreign Made Foreign Liquor, rmportedwine or lmported Beer from wholesale Depots, after paying composite registration charges as specifiedto the concerned district Collector.
All the rules and procedures applicable to IMFL will also be applicable to foreign made foreign liquor.
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It is proposed to allow Model wine shops attached to star Hotel & in Luxury Hotels/shopping Malls&Complexes with License Fee as specified. Shops would be permitted to sell wine and Low Strength liquor/Beerbelow 5% v/v in order to boost up sale of wine and Low strength drinks in the state compared to hard drinks.
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Affixing of polyester/paper based hologram Excise Adhesive Label (EAL) shall be compulsory on IMFL, Beer,
and C.S. pouch/ bottles. Non affixture polyester/paper based hologram Excise Adhesive Label by any Company
will invite penalty as specified in PART A. Any retailer found selling any IMFL, Beer, c.S. without affixture of
polyester/paper based hologram Excise Adhesive Label supplied by the Excise Administration shall invite
penalty as specified. The above fine will be in addition to other legal action as per law.
.i r i i.i ,i,:)i-l:,r:ti- :.;. llili , t:a .:
Concessions granted in tribal areas to brew liquor for personal consumption and not for sale will continue. The
provisions of section 26-4 of the Bihar and Odisha Excise Act 1915 requiring approval of Gram sasan in the
scheduled areas may be strictly followed.
The Collector of the District would continue to exercise the powers to grant license for exclusive privilege for
Out Still Shops as per the dele8ation made vide this Department Notification No.33O8 dated 16.05.2001 where
the consideration money achieved is equalto or more than the reserve price.
The Collector of the Districts will also issue license for Bhang, Tari & Pochwai shops where the consideration
money achieved is equal or more than the reserve orice.
In case of the unsettled IMFL Off, Country Spirit, Out Still, Bhang, Tari &Pochwai shops, the Collectors may
record the reasons for non- settlement of these shops and furnish such proposals to Govt. through the Excise
Commissioner for appropriate orders for settlement of these shops.
a) All liquor brands will be sold in bottles of 1000m1,750m1,375m1,180m1, 90ml and any other suitable size
prevalent in Natio na l/lnte rnatio na I market after label registration of the brand by the Excise
Commissioner, Odisha.
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b)
c)
IMFL having proof strength up to 85 degree may be allowed for import and manufacture. A provision forhigher duty for IMFL up to 85 degree proof strength shall be made and for the purpose additional dutvof 10 % over and above the prescribed Excise duty shall be levied/charged.
Any unit may be allowed to enter tie up arrangement with the manufacturing units in odisha.
d) In addition to glass bottles, introduction of IMFL in PET bottles may be accepted in capacity of 1oooml,,750m1, 375m1,180m1,90m1 subject to confirmation of CFTRI and lsl standards,. Further it shall be storedby wholesaler, up to one year only, beyond which it shall be taken back by the manufacturer/supplier.
The strength of IMFL in PET Bottles shall not be Exieed 42.8% (vlvl. pET bottles must confirm to Food cradePlastic specified in Rule 49 (5) (v) of the prevention of Food Adulterataon Rutes. 1955.
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Each licensee and successful bidder/auction holder of IMFL/cs/o.s shops will pay a non- refundable usercharge as specified per annum per shop. The amount will be remitted to the consolidated fund of the stateand such amount as and when required shall be released on recommendation of the Excise commissioner forinfrastructure and other welfare measures of the Excise administrataon.
rr..7. ; ? i,& Lt{lt ";j titii$-ixA.i,i i}r!
The retail licensees have to register the label of different brands of IMFL/BEER at the distrlct labet. Each retaillicensee will deposit a composite label registration fee as specified (for each shop) per annum with theconcerned Collector.
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Advanced consideration money 4 (four) months for the existing Out-Stil/Tari/Pochwai and Bhang licensees
shall be collected by 31.03.2015 who will apply for renewal of their license. No license shall be issued if the
above is not comoiled with.
In addition to above advanced consideration money, each licensee has to pay interest free security deposit
equivalent to one time of monthly consideration money in case of renewal of their license for the year 2015-
20t6.
provided that one month consideration money should be treated as interest free security deposit instead of
advance consideration monev to be refunded to the licensee if he is default or else his default amount shall be
realized or adjusted the security deposit.
'i.-j. i..r i;!i: :.ii:;i".:i;:r':::iJii :::.-i..:..:' '::.: :I
The exclusive privilege area of all IMFL OFF shops shall be specified location of the shop itself. The location of
IMFL OFF shop can be shifted to another place in the same locality with the prior approval of the Excise
Commissioner, Odisha.
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The export policy of IMFL/BEER may continue for 2015-16 with the same terms and conditions as approved by
the State Govt. with revision from time to time, subject to the following:
a) There shall be separate label registration for export items with the legend "Not for sale in Odisha" the
label registration fee shall be extras specified per item/brand.
b) A separate provision for warehouse to be made for storage of export brands and products on payment
of warehouse charge as specified.
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l-
cl
d)
e)
For export brands the manufacturer will have to pay the additional license fee as specified.
The export fee shall be as specified of Beer and the bottling fee shall be as specified of Beer only.
It has been decided to ensure that Breweries in Odisha should utilize their capacity to the full and the
surplus produce may be allowed to be exported. Accordingly, the Excise Commissioner will be proposing
an export policy.
The export policy for export of surplus beer and IMFL bV the manufacturers in the State would be
approved by Government.
3..-:.2 i i.iI{:1l ti::., i-;i l.li.,i:i:'j: \;!i-:i::,
IMFVFVC.S./O.S shops should be shifted to 50 meter away from the highways. Highways mean National
High Highway and State High way and shall not include the part of the national Highway or State
Highway which passes within the concentrated developed area of the Municipal Corporation,
Municipality or NAC or the Urban Local Bodies. On the outskirts of a city even it falls within the
Municipal limits but it is not concentrated developed area, the 50 meter rule will apply. No such shops
will be allowed on Government land. In future no new shops should be recommended along National
Highway.
whenever a bye pass is constructed, the portion of old National Highway which is replaced by the bye
pass may not be considered as national Highway so far as the excise shops are concerned i.e. it be
treated as a city road.
In order to implement the 50 meter rule for shifting the E.P. Holders may not be allowed 3 months,
time for relocation.
The Excise commissioner to also review the position regarding 'oN' shops and submit a report to
Government.
2.
4.
l.t,s @l^r)
d.
o.
New Distilleries, Breweries, Winery and Bottling units will be encouraged.
Before the grant of renewal of license for Exclusive Privilege, the provisions of section 22 and 26- A ofthe Bihar and Odisha Excise Act, 1915 will be complied with in relation to public notice and approval ofthe Gram Panchayat respectively.
No person shall have a right of renewal of license or exclusive privilege but such renewal shall be subject
to the fulfillment of terms and conditions and the provisions of law to the satisfaction of the competent
authorities under the Act.
With a view to benefitting farmers of the state, the Excise duty on Beer with at least 75% Sorghum
content will be given 25% concession.
At the time of renewal, the Collector will consider and recommend the change of location of shops
where serious objections have been received after due enquiry.
New Excise shops will be opened on the basis of need and to cover vacuum areas as assessed and
recommended by the Collectors
The Excise Commissioner/ all Collectors/ all Excise Deputy Commissioners Should take up regular checks
and raid to detect illicit distillation or manufacturing of spurious liquors and collection of Excise revenue
and action should be taken against the offenders under Excise law.
The Excise Commissioner should explore more innovative proposals during the year to bring in more
revenue.
The Excise Commissioner should submit an Excise Revenue & Performance Report to Excise Secretary at
the end of each Quarter. Grievances & recommendations of all stakeholders related to New Excisepolicy
should be incorporated in the first Excise report, which should be submitted at the end of Julv 2015.
h.
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m.
Each district should submit a monthly Excise Revenue & Performance Report to Excise commissioner at
the end of each month.
The Excise Department should enhance the intelligence system in place, in order to prohibit illicit sale ofliquor & other malpractices.
All vehicles leaving Wholesale depots, should be verified by concerned Excise person on its arrivat at
specified retail shop.
Appropriate budget to be allocated towards critical enforcement related activities.
The Multi Dis' Squads (MDS) have been formed in each district and one MDS specificallv for the
commissionerate (BBsR-crc). Each MDS will submit a detailed report to E.c. odisha by end of every
quarter briefly stating the enforcement work done during the quarter.
The district collector shall submit a report with details on the enforcement activities undertaken by the
squad at the end of each month to the Excise commissioner & the Government. The Excise
commissioner shall take review on the activities of district MDS& shall submit quarterly report to the
Government.
Retailers should ensure availability of all liquor brands in the shop, with stock quantity as per
sales.Taking market demand into consideration, as far as possible, retail shall ensure lifting all brands for
making available wide choice of liquor brands to the consumers.
ldentification and destruction of illicit cannabis cultivation
The State Government through excise/Policy has launched a special drive for last 2 years, The Excise
Department and District Administration will take following steps during the year:
1. ldentify the ICC areas through ORSAC or NCB with satellite imaging
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2. Publicize provision of Sec. 46/47 of NDPS Act 1985.
3. Resolution by Panchayati Raj Institutions against ICC
4. lnformation by Revenue/Forest Departments on ICC within the jurisdiction of DFOS.
Superintendent Excise, Khurda should ensure timely & accurate accounting of Excise Adhesive Labels
(EAL). A monthly report on the same should be sent to Excise Commissione/s office.A quarterly repon
on EAL accounting should be submitted to Excise Secretary by Excisedepartment.
The rule prohibiting enga8ement of women& children to encourage sale of liquor must be followed
strictly. Any EP holder found involved in same shall face punitive action up tocancellation of license.
PROHIBITION:
The Health & FW department and Excise Department will chalk out a programme to highlight evils ofdrinking, tobacco, gutkha, drug etc. and submit a plan by end ofJune 2015 to Govt. lt will funded bv c. s.
R. from Wholesaler.
THANK YOU
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EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 202, CUTTACK, SATURDAY, FEBRUARY 7, 2015/MAGHA 18, 1936
EXCISE DEPARTMENTORDER
The 6th February, 2015
S.R.O. No. 43/2015— In exercise of the powers conferred by sub-section (2) of
Section 29 of the Bihar and Odisha Excise Act, 1915 (Bihar and Odisha Act 2 of 1915) and
in supersession of the Order of the Government of Odisha in Excise Department No. 4528-
Ex., dated the 1st August, 2014 published in the Extra Ordinary issue of Odisha Gazette
No.1271, dated the 11th August, 2014 and except as respect to thing done and action
taken or omitted to be done before such supersession, the State Government do hereby
direct that any sum payable under sub-section (1) of the said section in consideration of
the grant of privilege for retail sale of India Made Foreign Liquor (IMFL) OFF and Country
Spirit (C.S.) within the premises of the vendor shall, unless and otherwise directed by the
State Government in any particular case or cases for any reason, be determined by the
process of auction on a forward basis conducted online (henceforth referred to as
‘e-auction’) in accordance with the following procedure, namely:—
(1) The dates for e-auction shall be fixed and notified by the Excise Commissioner with
the prior approval of the State Government.
(2) The process of settlement shall be conducted by a departmental Excise Auction
Committee (hereinafter referred to as EAC), Chaired by the Excise Commissioner
comprising three to six other members appointed by the Chair from time to time. The EAC
may be guided, from time to time, by a core team as may be engaged by the State
Government, comprising officials such as those from the Excise Department, State
Procurement Cell (SPC), MSTC Limited (company registered under the Companies Act,
1956), National Informatics Centre (NIC), or any other such registered organization. The
EAC may also be assisted throughout the settlement process by Information Technology
(IT) support staff comprising of computer-trained officers as may be provided by the State
Government from time to time. The EAC Members shall have Departmental access to e-
2
auction website (mstcecommerce.com), validated by authorized Digital Signature
Certificates. MSTC Ltd., with the support of EAC and IT staff, shall create auction Ids in e-
auction system for each shop or group of shops sufficiently before issue of Sale Notice in
Form ‘B’ and carry out the scrutiny of required original documents after online registration
of bidders, monitor live progress of e-auction, generate list of provisional highest bidders
post e-auction, and officially forward this report to EAC, who in turn shall forward this to
respective Collector of the District for grant of licences.
(3) On publication of the notification as mentioned in Paragraph (1) along with the list of
shops or group of shops received from EAC, the Collector of the concerned District shall
issue Public Notice in Form ‘A’ inviting objections from the persons residing within the
locality, unless such objection invitation and disposal has been completed by the Collector
for the concerned year. After disposal of the objection petitions, the Collector of the
concerned District shall issue Sale Notice in Form ‘B’ inviting online applications from
bidders for settlement of a shop or a group of shops at least ten days before the
commencement of e-auction and shall give wide publicity to the same in such manner as
he may consider necessary. EAC shall widely publicize the list of shops along with auction
Ids in print and electronic media and shall also communicate the list to the State
Government for prominent display on official website of the Department-
http:/odisha.gov.in/excise/.
(4) The settlement of retail shops of IMFL ‘OFF’ and C.S. shall be done individually and
separately. Shops shall not be ordinarily settled in lots, except with the sanction of the
Excise Commissioner based on recommendations of the respective Collectors and any
surrender or cancellation of licences (of the lot) after settlement shall entail surrender or
cancellation of the whole lot at the discretion of the Competent Authority.
(5) The e-auction shall be conducted individually and separately under one unique e-
auction Id for each shop or group of shops to be processed by the EAC. Bidders shall be
required to obtain Digital Signature Certificates (DSCs) through Certification Agencies
appointed by the office of the Controller of Certification Agencies (CCA) under the
provisions of IT Act, 2000 to participate in e-auction.
(6) To qualify for participation in e-auction, the bidders shall be required to apply online
by submitting the ‘buyer registration’ form and then undergo scrutiny of required original
documents with MSTC Ltd/ EAC on payment of registration fee as specified in the Sale
Notice , before the end date for bidder registration as specified in Sale Notice. These
documents may be as specified in the Sale Notice, as may be determined by the State
3
Government, from time to time, and may, among other things, include the following,
namely:—
(a) Proof of online payment to MSTC Ltd’s E-payment gateway to be made
towards non-refundable application fee for each shop, as specified in the
Sale Notice, as may be determined by the State Government, from time to
time;
(b) Proof of online payment to MSTC Ltd’s E-payment gateway to be made
towards Earnest Money Deposit (E.M.D.) of each shop which shall not be
less than three times the concerned shop’s monthly reserve price or as may
be determined by the State Government from time to time. Such amount of
E.M.D. shall not be accepted in cash or in the form of Cheque or Bank Draft;
The EMD remitted by the successful bidder will be retained for adjustment
towards the advance consideration money payable by the applicant for the
year of grant of license and the EMD remitted by all the other applicants (i.e.
unsuccessful bidders) shall be returned or released within fifteen working
days after completion of e-auction;
(c) Original up-to-date Solvency Certificate in respect of immovable property
situated inside the State of Odisha, the amount of which shall not be less
than six times of the reserve price (s) of the shop or shops the bidder intends
to bid for; No bidding shall be allowed to any person who is having a doubtful
solvency. Besides, no license shall be granted to a person having doubtful
solvency. This shall be scrutinized by MSTC Ltd. under supervision of EAC
during pre-bid qualification scrutiny as well as by the Collector of the district
at the District Level at the time of physical verification of the Original
Documents;
(d) An affidavit in Form ‘C’ duly executed before an Executive Magistrate
affirming that the bidder has not been convicted in any criminal case nor is
involved in any excise case nor being tried in any Court of competent
jurisdiction, along with other details as contained in Form ‘C’. This shall be
scrutinized by MSTC Ltd/ EAC during pre-bid qualification scrutiny as well as
by the Collector of the district at the District Level at the time of physical
verification of the Original Documents. Any person who has been facing a
trial in any Criminal Court under the Act, or who has been charged of a
non-bailable offence under the provisions of the Indian Penal Code, 1860 or
4
has criminal antecedents shall not be allowed to bid nor any license shall
be granted to such person;
(e) Original VAT registration certificate or acknowledgement of VAT registration
application (only for new applicants with no existing VAT registration);
(f) Original Income Tax Return for the year preceding the publication of Sale
Notice;
(g) Up-to-date original Excise no-dues certificate (in case of existing liquor shop
licensees) from the concerned authority;
(h) Original PAN Card;
(i) Bona fide letter from banker of bidder as per Form ‘D’; and
(j) Two recent colour passport-size photos of bidder
(7) The registered bidder shall also be required to sign the ‘Terms and Conditions’
Online through his registered, DSC-validated profile, acknowledging the following terms
and conditions of e-auction, namely:—
(a) Bidder or his associate is familiar with and understands the e-auction
process on website and has the technical knowledge and human resources
to participate in e-auction process;
(b) Bidder must have access to hardware and internet connectivity for
participating in e-auction process;
(c) Bidder shall honour each bid digitally signed and submitted by the bidder in
e-auction;
(d) The onus of online application and submission of genuine, stipulated
documents during registration with MSTC Ltd. shall lie on the bidder;
(e) In case of any grievances arising in course of the e-auction process, the
Bidder shall abide by the decision of the Excise Commissioner.
(8) Each bidder shall submit single online application. Thereafter, MSTC Ltd. shall
collect non-refundable one-time MSTC registration fee for each bidder as specified in
Form ‘B’ Sale Notice and then scrutinize the original documents as per Para. (6)
mentioned above. The Login ID and password of those who qualify shall then be
activated in the system by MSTC Ltd. with online approval of EAC. Thereafter, the
e-payment gateway can be accessed by bidders for online remittance of non-refundable
application fee for each shop and EMD per shop. The activated bidders will be able to
participate in bidding only after online remittance of non-refundable application fee per
shop and EMD per shop before the end date stipulated in Sale Notice. MSTC Ltd. will
5
communicate to the disqualified bidders through email giving reason(s) of
disqualification, at the end of pre-qualification process.
(9) The qualified Bidders may log on to e-auction website using registered DSCs before
start time of e-auction of the shops, as specified in the Sale Notice and as per ‘terms and
conditions’ signed Online by the Bidders.
(10) The e-auction process shall be governed by the ‘e-auction principles’ as
determined by the State Government in Excise Department, from time to time, and which
shall be published in Sale Notice and shall be made available on e-auction website and
also departmental website. The ‘e-auction principles’ may, among other details, envisage
the following, namely:—
(a) After logging in and before bidding in live e-auction, the qualified Bidders
shall be required to digitally sign the ‘terms and conditions’, without which the
bidder shall not be allowed to participate in e-auction;
(b) The e-auction end time and start time for each shop or shops with auto-time
extensions shall be displayed Online with details of each such shop or
shops;
(c) The e-auction shall be Online, incremental or forward auction, with bids
submitted in terms of monthly consideration money and above the fixed
reserve price of each shop;
(d) The highest bid for a particular shop or shops shall be displayed in real-time
to all Bidders;
(e) System-generated masking of identity of each Bidder of all shops shall be in
effect, with each Bidder being able to see his own bid, and the real-time
highest bid amount for the concerned shop;
(f) The minimum and maximum permissible increments per bid shall be
determined by the EAC and shall be in effect during live e-auction;
(g) No reduction in bid shall be permitted once it has been signed and submitted
by a bidder using his DSC and accepted by the system. New bids that are
same as current highest bid shall not be allowed in order to prevent tie of
bids;
(h) The bid amount of provisional highest bidder of a particular shop or shops
shall be displayed to all the bidders after end of e-auction slot for that
particular shop or shops subject to validation by EAC; and
(i) In case of district-wide or area-wide communication network failure due to
natural calamities etc., the e-auction for such shops with auctions Ids
6
affected during such network failure may be conducted afresh at a later
date by the EAC.
(11) If no bid is received in e-auction for any shop or group of shops, the Excise
Commissioner may notify another date for settlement of shops through e-auction or may
allow these shops to be run by State Government agencies or Co-operative
organizations with the licence fee as decided by the State Government.
(12) After successful completion of e-auction for all shops, the list of shop-wise
provisional highest Bidders with their respective H1 bid amounts for all such shops shall
be submitted officially by MSTC Ltd. to EAC for approval. Upon approval, the list of
approved provisional highest bids shall be intimated to respective District Collectors by
EAC. Simultaneously, the H1 provisional status shall be intimated to respective bidders
over e-mail by MSTC Ltd..
(13) Verification of Original documents, including online remittance towards non-
refundable application fee of each shop and EMD payment towards each shop, shall be
made in respect of the provisional highest Bidders for each shop as recommended by
EAC before the license is actually granted by the Collector. Such verification shall be
done by the Superintendent of Excise assisted by at least one Deputy Superintendent of
Excise or Inspector, wherever such posts are available as nominated by the Collector
before the licence is actually granted by the Collector. For the purpose of this verification,
all provisional highest Bidders for the shop or shops shall be required to submit the
documents in original as mentioned in Paragraph (6) to respective Collector before the
end date specified in the Sale Notice.
(14) Failure to furnish the documents referred to in Paragraph (13) before the stipulated
deadline or furnishing false documents shall be sufficient ground for cancellation of the
status of the provisional highest Bidder and the Bidder is liable for criminal proceedings
under relevant provisions of the Indian Penal Code, 1860 for furnishing false documents.
Settlement of licence shall be done at the highest evaluated responsive bid for the
concerned shop, as validated by the concerned Collector and EAC. The unsettled shop,
if any, shall be settled afresh through e-auction or be allowed to be run by State
Government agencies and Co-operative Organizations with the licence fee as decided by
the State Government. If the provisional highest Bidder does not respond for physical
verification at Collector level within the stipulated period or defaults on propriety of
documents submitted during physical scrutiny, the EMD tendered by the bidder shall
stand forfeited and the bidder shall be debarred from participating in future auctions with
approval of EAC.
7
(15) Post physical scrutiny of the original documents, upon realization of advance
consideration money and security deposit as may be determined by the Government,
from time to time, the highest evaluated responsive Bidder shall be confirmed with the
settlement of the shop. The deposited EMD shall be adjusted during the last quarter of
financial year. He shall then put his signature in the Register of Settlement and Register
of Undertaking to lift the monthly minimum guaranteed quantity as may be determined by
the State Government from time to time and shall be then granted licence by the
Collector. The shop shall be established on an unobjectionable site and non-Govt. land
as directed by Govt. from time to time. Before establishment of shop on such site, the
licensee shall furnish the original document to prove that he is the owner of such site or
has taken on rent the site, to the respective Collector for approval.
(16) The licensee shall open the shop after issuance of licence in the stipulated locality
from start of currency of licence.
(17) The privilege once granted shall be valid for a period of one financial year and
unless and otherwise directed by the State Government, may continue for a maximum
period of three financial years including the year of grant, subject to annual renewal of
the licence for the second and third financial year succeeding the year of e-auction on the
terms and conditions to be prescribed by the State Government from financial year to
financial year. In the event of any exigencies, if a shop is settled in the middle of the
financial year through e-auction, the privilege may continue for remaining period of the
original three financial year’s validity, subject to annual renewal as per the terms and
conditions.
(18) The left over stock of the outgoing licensee shall be transferred by the Collector of
the concerned District to the succeeding licensee, who may take it towards his MGQ on
payment of invoice price (cost price and excise duty) to the outgoing licensee so that the
succeeding licensee would be in a position to lift the stock as per MGQ for the licence
period provided that the left over stock of IMFL or Beer should have the period of validity
of its use.
(19) The State Government reserves the right to refuse grant of privilege without
assigning any reason therefor and settle the privilege before expiry of three financial
years in the manner as may be decided by the State Government from time to time.
(20) In case of expiry of validity period or failure in renewal or suspension or cancellation
or surrender of licence, the shop shall be settled through e-auction or be allowed to be
run by the State Government agencies and Co-operative Organizations with the licence
fee as decided by the Government. In case of failure in renewal or suspension or
8
cancellation of licence, such licensees shall be debarred from participating in future
auctions with approval of EAC.
(21) If any of the requirements as mentioned under the order is found to be factually
incorrect at any point of time the bid of the said person or license, as the case may be, is
likely to be rejected or cancelled by the Competent Authorities without payment of any
damage/ compensation whatsoever.
(22) The decision of the Excise Commissioner on any grievance arising in course of the
e-auction process in the State shall be final.
This order shall come into force with effect from the date on which it is published in
the official Gazette.
[No. 533/Ex.]
By Order of the Governor
S. P. THAKUR
Principal Secretary to Government
9
District Excise Office...........................
Form ‘A’
PUBLIC NOTICE
Whereas, the State Government intend to grant Exclusive Privilege
of...................................................................(Name of the intoxicant) by way of e-auction
at.................................................(Name of the locality) within the local area mentioned below
against each for the period of the grant............................(i.e. from............................to
.......................), objections, if any, by any person residing within the said local area, are invited by
........................(date). The objections, if any, shall be addressed to the undersigned and shall
reach him on or before the aforesaid date. Any objection received after the said date will not be
taken into consideration.
Collector..................................................
(District)
List of the shop/
shops
Kind of exclusive
privilege
Locality at which the
privilege is to be
granted
Local area where the
privilege is to be
exercised
(1) (2) (3) (4)
10
District Excise Office...........................Form ‘B’
SALE NOTICENOTICE INVITING ONLINE APPLICATIONS FOR SETTLEMENT OF IMFL ‘OFF’ AND C. S.SHOPS THROUGH E-AUCTION FOR THE YEAR........................................................................
1. The consideration money for exercising the privilege for retail sale of India Made Foreign
Liquor [IMFL ‘OFF’ and Country Spirit (C. S.) in the State of Odisha for
.............................District] shall be determined through “auction on a forward basis conducted
Online”, (hereinafter referred to as ‘e-auction) in accordance with the order issued under sub-
section (2) of Section 29 of the Bihar and Odisha Excise Act, 1915 (hereinafter called as Act)
as for the time being in force and applicable as per Annexure–’I’.
2. The privilege to be so granted shall confer the right to open a shop in the locality named in the
list. The complete list of the localities where the shops are sought to be opened with their
monthly reserve price is annexed herewith in Annexure– ‘I’.
3. The privilege, without prejudice to any of the provisions of the Act and the Rules made
thereunder, shall be subject to the following conditions:—
(i) The consideration money shall be payable in the manner specified in the Odisha Excise
(Exclusive Privilege) Foreign Liquor Rules, 1989 and Odisha Excise Exclusive Privilege
Rules, 1970.
(ii) The currency of the licence shall commence on the date of grant of licence for shops
settled in the financial year from the date the licensee shall open the shop for retail sale
of IMFL / C. S. or for a period as extended by the Government from time to time. Failure
to open the shop as stipulated herein shall entail cancellation of licence and recovery of
any loss caused to Government, except in case of delay in granting the licence or
wherein any shop is closed under section 26 of the Act.
(iii) No compensation shall be paid to the holder of a privilege for retail sale of IMFL/ C.S.
for closure of the shop on 2nd day of October every year on account of Gandhi Jayanti
and also for closure during General Election/ By-Election to Parliament (Lok Sabha) /
State Assembly as per direction of the Election Commission of India and in conformity
with the direction of the State Election Commission during the Election to Gram
Panchayat/ Panchayat Samiti/ Zilla Parishad and Urban Local Bodies and for such
other days as the concerned Collector may decide.
(iv) The holder of a licence shall not be entitled to any compensation or to the refund of any
consideration money paid or deposited in respect thereof, in the event of his/ her
licence being cancelled or suspended before the expiration of its term under the
provisions of Section 42 of the said Act.
11
(v) Once a shop starts operating in its sanctioned locality, it shall not be ordinarily
shifted. However, shifting of a shop to any un-objectionable site within the same
sanctioned locality or other than the sanctioned locality for any special reasons shall be
subject to the approval of the Excise Commissioner.
(vi) The holder of the licence shall abide by the provisions of the Act and the Rules and
Orders made thereunder.
(vii) The State Government will not be responsible for providing the place for location of
shops. It will be the responsibility of the privilege holder to arrange suitable place and
carry-on the privilege granted to the privilege holder only in the locality to which the
shop is sanctioned. The place so arranged shall be free from objection from the public
and shall not be on Government land as specified by the Govt. from time to time.
(viii) The privilege once granted shall be valid for a period of one year, and unless and
otherwise directed by the State Government, it may continue for a maximum period of
three years including the year of grant. If a shop is settled in the middle of the financial
year through e-auction, the privilege may continue for the remaining period of the
original year and subject to maximum period of three years including the year of grant,
unless and otherwise directed by the Government. Wilful failure to renew the licence for
a shop or group of shops in terms and conditions generally prescribed for all shall lead
to the privilege holder or his family members or his associates being disallowed under
rule 102- A of Board’s Excise Rules, 1965 from taking part in subsequent settlement
process of the shop or any other shops till completion of five years including the year of
grant or as may be determined by the Government from time to time. At the end of the
license’s original three year’s validity or on suspension or surrender of licence, the
privilege shall be settled through e-auction or otherwise as directed by the State
Government.
(ix) The State Government reserves the right to refuse grant of privilege without assigning
any reason thereof and settle the privilege before expiry of three years in the manner as
may be decided by the State Government from time to time.
(x) No bidding shall be allowed to any person who is having a doubtful solvency. Besides
no license shall be granted to a person having doubtful solvency. This shall be
scrutinized by MSTC Ltd. under supervision of EAC during pre-bid qualification scrutiny
as well as by the Collector of the district at the District Level at the time of physical
verification of the original documents. Any person who has been facing a trial in any
Criminal Court under the Act or who has been charged of a non-bailable offence under
the provisions of the Indian Penal Code, 1860 or has criminal antecedents shall not be
allowed to bid nor any licence shall be granted to such person. The applicant shall file
an affidavit duly executed before an Executive Magistrate affirming that the bidder has
not been convicted in any criminal case nor is involved in any excise case nor being
12
tried in any Court of competent jurisdiction. This shall be scrutinized by MSTC
Ltd. under supervision of EAC during pre-bid qualification scrutiny as well as by the
Collector of the district at the District Level at the time of physical verification of the
original documents.
4. The e-auction shall be held subject to the following conditions:—
(i) The e-auction shall be conducted individually and separately under one unique e-
auction Id for each shop/ group of shops as notified in Sale Notice in Annexure–’I’. A
bidder can apply for one or more shops/ groups of shops of any district and of the State.
Bidders shall be required to obtain Digital Signature Certificates (DSCs) through
Certification agencies appointed by the office of the Controller of Certification Agencies
(CCA) under the provisions of IT Act, 2000, to participate in e-auction.
(ii) To qualify for participation in e-auction, the bidders shall be required to apply online by
submitting the ‘buyer registration’ form and then undergo scrutiny of required original
documents with MSTC Ltd/ EAC on payment of registration fee as specified in Sale
Notice before the end date of bidder registration as notified in Sale Notice in
Annexure –‘I’.
(a) Proof of online payment to MSTC Ltd’s E-payment gateway to be made towards
non-refundable application fee for each shop as notified in Sale Notice
(Annexure– ‘I’).
(b) Proof of online payment to MSTC Ltd’s e-payment gateway to be made towards
Earnest Money Deposit (EMD) of each shop for the amount notified in Sale
Notice Annexure–‘I’. No cheque/ Bank Draft/ cash payment shall be accepted as
EMD.
(c) Up-to-date Solvency Certificate in respect of immovable property situated in the
State of Odisha obtained from Revenue Authority of the State, not less than six
times of the monthly reserve price of shop or shops as notified in Sale Notice
(Annexure–‘I’) for which the bidder intends to bid.
(d) VAT registration Certificate or acknowledgement of VAT registration application
(only for new applicants with no existing VAT registration).
(e) Original Income Tax Return for the year preceding the publication of Sale
Notice.
(f) Up-to-date original Excise No dues Certificate (in case of existing liquor shop
licensee) from the concerned authority.
(g) An affidavit in original as in Form ‘C’ as prescribed from time to time duly shown
and executed before an Executive Magistrate/ Notary.
(h) PAN Card.
(i) Bona fide letter from banker of bidder as per Form ‘D’.
(j) Two recent colour passport-size photos of bidder.
13
(iii) The registered bidder shall also be required to sign the ‘Terms and Conditions’
form Online through his registered, DSC validated profile, acknowledging the following
terms and conditions of e-auction :—
(a) Bidder or his associate is familiar with and understands the e-auction process on
Website and has the technical and/ or human resources to participate in e-
auction process;
(b) Bidder must have access to hardware and internet connectivity for participating
in e-Auction process;
(c) Bidder shall honour each bid digitally signed and submitted by the bidder in e-
auction;
(d) The onus of online application and submission of genuine stipulated documents
during registration with MSTC Ltd. shall lie on the bidder;
(e) In case of any grievances arising in course of the e-auction process, the bidder
shall abide by the decisions of the Excise Commissioner.
(iv) Each bidder shall submit single online application. Thereafter, MSTC Ltd. shall collect
non-refundable one-time MSTC registration fee for each bidder as specified in Form ‘B’
Sale Notice and then scrutinize the original documents as per Para: 4 (ii) mentioned
above. The Login ID and password of those who qualify shall then be activated in the
system by MSTC Ltd. with online approval of EAC. Thereafter, the e-payment gateway
can be accessed by bidders for online remittance of non-refundable application fee for
each shop and EMD per shop. The activated bidders will be able to participate in
bidding only after online remittance of non-refundable application fee for each shop and
EMD per shop before the end date stipulated in the Sale Notice. MSTC Ltd. will
communicate to the disqualified bidders through e-mail giving reason(s) of
disqualification, during pre-qualification process.
(v) Qualified bidders may log on to e-auction Website using registered DSC’s before start
time of e-auction of the shops, as notified in the Sale Notice and as per terms and
conditions form signed Online by the bidders.
(vi) The e-auction process shall be governed by the e-auction principles specified below, as
determined by the Government in Excise Department from time to time and which shall
be made available on e-auction Website and also Departmental Website, namely:
(a) After logging in and before bidding in live e-auction, the qualified bidders shall
be required to digitally sign the ‘terms & conditions’ Form Online, without which
the bidder shall not be allowed to participate in e-auction.
(b) E-auction start time and end time for each shop or shops with auto-time
extensions, if any, shall be displayed online with details of each shop or shops.
14
(c) The e-auction shall be Online, incremental/ forward auction, with bids
submitted in terms of monthly consideration money and above the fixed reserve
price of each shop/ group of shops.
(d) Highest bid for a particular shop or shops shall be displayed in real time to all
bidders.
(e) System-generated masking of identity of each bidder of all shops shall be in
effect, with each bidder being able to see only his own bid, and the real time
highest bid amounts for the concerned shop/ shops.
(f) The minimum and/ or maximum permissible increments per bid shall be
displayed in online details of each shop or shops.
(g) No reduction in bid shall be permitted once it has been digitally signed and
submitted by a bidder using his DSC and accepted by the system. Also, the
system shall disallow new bids that are same as the current highest bid, thereby
preventing tie of bids.
(h) The highest bid amount of a particular shop shall be displayed to all the bidders
after end of e-auction for all the shops/ auction Ids subject to validation by EAC.
(i) In case of district-wide or area-wide communication network failure due to
natural calamities etc., the e-auction for such shops affected during that network
failure may be settled afresh at a later date by the EAC.
(vii) If no bid is received in e-auction for any shop/ group of shops, the Excise Commissioner
may notify another date for settlement of shops through e-auction or otherwise as
directed by the State Government from time to time.
(viii) After successful completion of e-auction for all shops, the list of shop-wise provisional
highest bidders with their respective H1 bid amount for all shops shall be submitted
officially by MSTC Ltd. to EAC for approval. Upon approval, the list of approved
provisional highest bids shall be intimated to respective District Collectors by EAC.
(ix) Verification of original documents, including online remittance towards non-refundable
application fee of each shop and EMD payment towards each shop, shall be made in
respect of the provisional highest bidders for each shop, as recommended by EAC
before the license is actually granted by the Collector. Such verification shall be done
by the Superintendent of Excise assisted by at least one Deputy Superintendent of
Excise or Inspector wherever such posts are available, as nominated by the Collector
before the license is actually granted by the Collector. For the purpose of original
verification, all provisional highest bidders for respective shop/ shops shall be required
to submit the following to respective District Collectors on the date (s) of physical
verification:—
(a) Original documents as well as self-attested copies of documents under sub-
paragraphs A, B, C, D, E, F, G, H, I and J of Paragraph 4 (ii).
15
Failure to furnish the documents referred to at Paragraph 4 (ii) before
the stipulated deadline or furnishing false documents shall be sufficient ground
for cancellation of the status of the provisional highest Bidder and the Bidder is
liable for criminal proceedings under relevant provisions of the Indian Penal
Code, 1860 for furnishing false documents. If the provisional highest Bidder
does not respond for physical verification at Collector level within stipulated time
period or defaults on propriety of documents submitted during physical scrutiny,
the EMD tendered by the bidder shall stand forfeited and the bidder shall be
debarred from participating in future auctions with approval of EAC.
(b) After physical scrutiny of original documents, upon realization of advance
consideration money and security deposit, the highest evaluated responsive
bidder shall be confirmed with the settlement of the shop. The deposited EMD
shall be adjusted during the last quarter of financial year. He shall then put his
signature in the Register of settlement and Register of Undertaking to lift the
monthly Minimum Guaranteed Quantity (MGQ) of the shop as may be
determined by the Government and shall be granted license by the Collector.
The shop shall be established on an unobjectionable site and non-Govt. land as
directed by Govt. from time to time. Before establishment of shop on such site,
the licensee shall furnish the original document to prove that he is the owner of
such site or has taken on rent the site, to the respective Collector for approval.
In case of EMD of other unsuccessful bidders, the same will be returned/
released within fifteen working days after completion of e-auction. For the
subsequent year (s), after physical scrutiny of original documents, and upon
realization of advance consideration money, as may be determined by the
Government from time to time, the license will be renewed if the licensee fulfils
all terms and conditions under provisions of law.
(c) If the final e-auction winner declines or refuses or wilfully omits to take licence
on some plea or other or fails to open shop on grant of license, the EMD amount
remitted by the winner, advance consideration money and security deposit shall
be forfeited to State Government and he shall be further liable for any loss that
may accrue to Government on account of delay in settlement of the shop or
group of shops. Further, he or his family member or his associates shall not be
permitted to take part in settlement of that shop/ group of shops or any shop for
five years including the year of his default as per rule 102-A of Board’s Excise
Rules, 1965.
District CollectorPlace :
Date :
16
District Excise Office........................... Annexure–’I’
Important Dates & Data for e-auction(1) e-auction Website : www.mstcecommerce.com
(2) Verification of pre-qualification documents :
a) Start date ................................ time ...............................
b) End date ................................. time ...............................
(3) E-Auction date and time:
a) As indicated in table below
(4) Date of publishing provisional list of highest bidders :—………………………….
(5) Physical scrutiny of original documents of provisional highest bidders
at District Collector Level
a) Start date ................................ time ...............................
b) End date ................................. time ...............................
(6) Non-refundable application fee (for each shop) to be remitted online through MSTC’s
e-payment gateway: ……………………………………...
(7) Non-refundable one-time registration fee per bidder in favour of MSTC Ltd.:
……………………………………...
Sl.
No.
Shop
type
(IMFL
‘OFF’/
C.S.)
Shop
location
Urban/ Rural Monthly
Reserve
Price
Monthly MGQ
based on MRP*
e- auction time duration
(excluding time extensions)
Remarks
LPL
(IMFL/
C.S.)
BL
(Beer)
Start
date
Start
time
End
date
End
time
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
NB: * MGQ calculated as per prevalent Annual Excise Policy
17
District Excise Office...........................Form ‘C’Affidavit
I, ............................................................. S/o ............................................................... age...................... occupation........................................ Resident ................................................... of................................................................................ (village/ name of the street in case of town)................................................................................................. (Tahasil) District ...........................do hereby solemnly affirm and state as follows:A. I have submitted application in my name with PAN number .....................................with the following solvency details:—
Sl.No.
Details of Solvency certificate submitted Remarks
Solvency certificateNo. & Date
Issuing Authority Solvency amount oneach certificate
(1) (2) (3) (4) (5)
B. I hereby declare that —(1) I am solvent to the extent of Rs......................................(2) I have neither been convicted in any criminal case nor facing trial in any Criminal Court. I have
no criminal antecedents and I am not involved in any excise case under the Act.(3) I am not a defaulter under rule 45 of the Odisha Excise Rules, 1965 and that I am also not
defaulter under rule 102–A of the Board’s Excise Rules, 1965.(4) No Government dues are outstanding against me.(5) This affidavit is required to be produced before the Excise Authority in connection with e-
auction for grant of exclusive privilege.(6) The Excise No Dues Certificate required to be submitted along with the application is
applicable/ not applicable to me.(7) I have never been declared as defaulter under the aforesaid Act/ Rules. I am also not in
arrears of Government Revenue for any period.(8) I shall be liable for penal action besides cancellation of licence granted to me, if any, in case
any of the facts sworn in here are found to be false.(9) The facts stated above are true to the best of my knowledge and belief.
DEPONENT
Solemnly affirmed this .............................................................................day of .................20..................... the contents of this affidavit having been read over audibly and explained to thedeponent who having understood the same put his signature/ thumb impression in my presence at...................... time on ....................(date).
Executive Magistrate/ Notary
18
Form ‘D’
BANK AUTHORIZATION LETTER
To whom so ever it may concern
THIS IS TO CERTIFY THAT M/s._____________________________________ HAVING
A/C NO.______________________IN OUR BANK AND THE AUTHORIZED PERSON
SIGNATURE IS ATTESTED BELOW:
SPECIMEN SIGNATURE:
1.
2.
3.
BRANCH MANAGER SIGN, SEAL AND ADDRESS
Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10Ex. Gaz. 1866-173+50