Only domiciles to be eligible; one shop to one individual
*Step aimed at increasing revenue, check monopolistic practices
Mohinder Verma
JAMMU, Mar 9: In order to generate more revenue for the exchequer and to obviate the possibility of cartelization and monopolistic practices, the Government has proposed to allot retail liquor vends through e-auction to the domiciles of the Union Territory of Jammu and Kashmir only and a draft Excise Policy in this regard has been put in the public domain for inviting suggestions and feedback.
The Excise Policy 2021-22 which will be finalized within next few days is aimed at rationalization of number of taxes/duties and other levies to optimize revenue for the common good, encouraging transition from high to low alcoholic content beverages, bringing about greater social consciousness about the harmful effects of consumption of liquor and alcoholic beverages and to check bootlegging/smuggling of liquor in the UT from neighbouring States/Union Territories.
As per the draft Excise Policy, vends will be allotted for a period of one year as per the provisions of the J&K Excise Act and Rules and the total number of shops to be allotted will be the same as existing at present and there will be no increase in the number of vends to be auctioned. Further, the vends will be allotted in the same areas where the shops are operational presently.
The allotment of vends will be made by e-auction portal in a completely secure and transparent manner and the bidder will have to arrange suitable premises in consonance with the laid down conditions. Moreover, no extension in time, concession in any fee, duty or any other levy by whatever name will be allowed on account of failure of the bidder to arrange the premises for making the license operational from the date of commencement of sale operation.
“An individual can apply for any number of locations but to obviate the possibility of cartelization and monopolistic practices, only one location will be allotted. The timing of bid for vends within Excise Range will be separate and the districts and locations within Excise Range will be put to auction in an alphabetic order”, said the draft Excise Policy.
About eligibility criteria, the draft Excise Policy said: “The bidder should not be below the age of 21 years and be a domicile of UT of J&K. Moreover, the bidder should not have been convicted/charge-sheeted for any offence under the J&K Excise Act or facing a trial in any criminal court for any non-bailable offence or has criminal antecedents”.
The successful bidder will be required to deposit an amount equal to 50% of total bid amount through e-collect portal within two days from the date of finalization of bid for a vend and 100% of bid value within seven days of finalization of bid. In case the successful bidder fails to comply with the condition of payment, the earnest money will stand forfeited.
Moreover, every licensee will have to deposit the Minimum Guaranteed Revenue (MGR) on account of applicable Excise Duty/Fee as shown against each area and the MGR will be divided into 12 equal instalments to be deposited on first of every month compulsorily by the licensee. The MGR deposited at the beginning of month will be adjusted against the actual amount of duties accruing on the stock of liquor lifted by the retailer.
The failure to deposit the first instalment of MGR on due date will automatically lead to cancellation of successful bidder and the Excise Department will distribute the MGR proportionally among other successful vends in the area. Even in case of failure to deposit the subsequent instalments of MGR of the month on due date, the Excise and Taxation Officer will close the vend without any notice under an intimation to the Deputy Excise Commissioner (Executive) and the Excise Commissioner.
“In case the vend is not allowed to operate on account of court orders, objections by local people, public institutions or any other reason beyond the control of the licensee, he shall be allowed to arrange an alternate premises in the same area by the Excise Commissioner within a period of 30 days subject to certain condition that complete duties/fee on account of Minimum Guaranteed Quota are paid for the time granted within three days of such closure”, the draft Excise Policy said, adding “in case he fails to do so, the license will be deemed to be cancelled from the date of closure of business and no compensation, refund or any claim will lie against the Government”.
According to the draft, the Excise Department will facilitate setting up of liquor vends having high revenue potential in tourist locations in the Government owned/maintained tourist facilities at JKTDC/Tourism Department and Tourism Development Authorities wherever possible.
As far as grant of license to manufacturing/bottling plant is concerned, the existing policy for issuance of licenses for distilleries, breweries and bottling plants as laid down vide Government Order No.90-F dated April 7, 2003 read with Government Order No.156-F dated July 22, 2003 will continue. However, a non-refundable fee of Rs one lakh will be charged for processing applications for setting up of distilleries, breweries and bottling plants, which was not applicable earlier.
Moreover, while fixing minimum retail price, the Price Fixation Committee will not consider separate administrative, handling and freight cost. Even formats have been defined for calculation of MRP.
About license fee for Type-A (per annum), the draft Excise Policy said that additional license fee of Rs 12 per case of IMFL/JK Special Whisky/wine and Rs 3 per case in case of beer/RTD/Cider will be charged for sale exceeding 35,000 number of cases.
In order to promote Ease of Doing Business, each licensee will be required to procure and install and make necessary provision for IT and non-IT infrastructure at his licensed premises for successful implementation of online services for registration, permits, payment of taxes and duties and inventory management system for production, import and trade/sale of liquor.
Like in the previous Excise Policy, the Government has also laid emphasis on utilization of sufficient money out of Social Responsibility Corpus Fund for educating masses regarding harmful effects of consumption of liquor.
The Type-A licensee will contribute Rs 1500 per month, Type B Rs 1000, Type C Rs 2500 per month and Type F Rs 3000 per month to the Social Responsibility Corpus Fund.
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