The M.P. Denatured Spirituous Preparation Rules, 1969

Published vide Notification No. 2502-2357-5-SR, dated 20-8-1969

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LEGISLATIVE HISTORY 6

In exercise of the powers conferred by clauses (a), (d), (e), (g) and (h) of sub-Section (2) of Section 62 of the Madhya Pradesh Excise Act, 1915 (II of 1915) and all other powers enabling in that behalf, the State Government here by makes the following rules, the same having previously published as required by sub-Section (3) of the said Section, namely-

Short title.- These rules may be called The Madhya Pradesh Denatured Spirituous Preparation Rules, 1969.
Definitions.- In these rules unless the context otherwise requires -

(a) "Act" means Madhya Pradesh Excise Act, 1915 (II of 1915);

(b) "Denatured spirituous preparation" means any preparation made with denatured spirit and includes lacqures, French Polish, Varnish and Thinner prepared out of such spirituous preparation;

(d) "Licensed premises" means premises in respect of which a licence has been granted under these rules;

(e) "Licensee" means a person who has been granted a licence under these rules;

(f) "Quart bottle" means a bottle having a capacity to contain 495 millilitres or above but not more than 767 millilitres; and

(g) "Permit" means a permit granted under these rules.

Manufacture

Application for licence.- (1) Any person desiring to manufacture any denatured spirituous preparation, or manufacture and sell such preparation shall make an application to the Collector for a licence in this behalf.

(2) The application shall contain the following particulars, namely:

(i) Name and address of the applicant;

(ii) Quantity of denatured spirit to be used per month;

(iii) Name of the denatured spirituous preparation to be manufactured and approximate quantity thereof to be manufactured per month;

(iv) Whether the applicant holds any other licence for the wholesale sale or retail sale of denatured spirit or possession and use of denatured spirit in the manufactured of denatured spirituous preparation;

(v) Whether the place is fire proof and whether it has been approved by the Municipal or other local authorities for the storage of denatured spirit and denatured spirituous preparations;

(vi) Place where the denatured spirituous preparation will be manufactured and stored;

(vii) If the denatured spirituous preparation to be manufactured is for use of any art, industry or profession of the applicant, the name of such art, industry or profession; and

(viii) The formula of the denatured spirituous preparation that is to say the names of the various ingredients in the preparation and percentage of preparation of non-volatile ingredients by weight or volume in the said preparation.

(ix) A declaration in writing as to whether the applicant has been convicted at any time of an offence punishable under any of the provisions of the Act or any law in force on the subject in any part of India and whether any prosecution under the Act or such Law is at present pending against him in any court of Law.

Grant of licence.- (1) On receipt of the application under rule III, the Collector shall make such enquiries as he may deem necessary and if he is satisfied that there is no objection to grant the licence applied for, he shall on payment of the fee grant to the applicant a licence in form D.S.P. I. subject to the condition that except when the denatured spirituous preparation contains not less than 100 grams of soluble ingredients per liter of denatured spirit, the ingredients of the denatured spirituous preparation shall be according to the proportion approved by the Director of Industries, Madhya Pradesh.

(2) The fee for the licence shall be, where the total quantity of denatured spirit allowed to be used per month-

(a) does not exceed 200 litres [Rs. 30]

(b) exceeds 200 litres but does not exceed 2000 litres [Rs. 150]

Provided that where the quantity of denatured spirit to be used in the manufacture of denatured spirituous preparation for the purposes of samples or research does not exceed 5 litres, the fee shall be Rs. 1.

[Provided further that no licence fee shall be charged to Military Installations and units belonging to Indian Armed Forces].

Wholesale and Retail Sale

Application for wholesale or Retail licences.- Any person desiring to sell any denatured spirituous preparations by wholesale or by retail sale shall apply to the Collector for a licence in that behalf. The application shall contain the following particulars :

(1) Name and address of the applicant;

(2) Place where the applicant's shop or selling denatured spirituous preparation is situated;

(3) Whether the denatured spirituous preparation was sold in the past at the above place and the period during which it was sold;

(4) Whether the applicant holds any other licence for the wholesale or retail sale of denatured spirit or for the possession and use of denatured spirit in the manufacture of french polish, varnish or any other denatured spirituous preparation (s);

(5) Quantity of denatured spirituous preparation intended to be sold during the period of the licence;

(6) Average yearly sale of the denatured spirituous preparation(s) in the three years immediately before the date of the application;

(7) Quantity of denatured spirituous preparation(s) intended to be stored at the said place;

(8) Whether the place is fire-proof and whether it has been approved by the Municipal or other local authorities for the storage of denatured spirituous preparations;

(9) A declaration in writing as to whether the applicant has been convicted at any time of an offence punishable under any of the provisions of the Act or any law in force on the subject in any part of India and whether any prosecution under the Act or such law is at present pending against him in any court of law.

Grant of wholesale and retail licence.- On receipt of the application under rule V, the Collector shall make such inquiries as he deems necessary and if he is satisfied that there is no objection to grant the licence applied for, he shall grant the applicant a retail licence in Form D.S.P. 3 on payment of a fee of Rs.[20]; and a wholesale licence in Form D.S.P. 2 on payment of a fee according to the following scale, namely :-

(a) Where the total quantity allowed for sale during the year does not exceed 70,000 litres [Rs. 50]'

(b) Where the total quantity allowed for sale during the year exceeds 70,000 litres but does not exceed 1,40,000 litres [Rs. 100]; and

Persons to whom wholesale and retailers may sell.- (1) The licence holding a licence in Form D.S.P. 2 shall not sell denatured spirituous preparation except to another licensee holding licence in the said Form or a licensee holding licence in Form D.S.P. 3.

(2) The licensee holding licence in Form D.S.P. 3 shall not sell denatured spirituous preparations except forbona fide purposes for which the same may be required.

Import

Application for import permit.- Any person desiring to import any denatured spirituous preparation from outside the State shall apply to the Collector for import permit. The application shall contain the following particulars-

(1) Name and address of the applicant;

(2) Form of the licence if any held by the applicant and its number and date;

(3) Kind and quantity of denatured spirituous preparation to be import (hereby specify name, quantity of the denatured spirituous preparation and the proportion of soluble ingredients contained in one litre of denatured spirit);

(4) Purpose for which such denatured spirituous preparation is required;

(5) Place from which the denatured spirituous preparation is to be imported;

(6) Name and address of the person from whom the denatured spirituous preparation will be purchased;

(7) Place at which the denatured spirituous preparation will be kept after its import;

(8) Period for which import permit is required;

(9) Route;

(10) An undertaking in writing to the effect that the applicant will abide by the provisions of the Act and the rules, regulations and orders made there under and the conditions of the permit applied for; and

(11) Whether the said denatured spirituous preparation is available from any dealer or manufacturer in the State of Madhya Pradesh and if so why it is necessary to import it from outside.

Grant of import permit.- On receipt of the application under rule VIII, the Collector shall make such inquries as he deems necessary and if he is satisfied that there is no objection to grant the permit applied for, he or an officer authorised by him, may grant the applicant a permit in Form D.S.P. 4, on payment of permit fee at Rs. 1.10 paise per bulk litre of denatured spirituous preparation intended to be imported. The permit shall be in four parts and shall be dealt with as under :

Part I- shall be kept by the officer granting the permit for his record;

Part II- shall be handed over to the importer for sending it with the consignment and for record thereafter with his accounts;

Part III- shall be forwarded to the Collector or Chief Excise authority of the place of export;

Part IV- shall be forwarded to the Excise Sub-Inspector in charge of a circle to examine the consignment on its arrival.

Importer to get supply in sealed casks, etc.- The importer shall get his supply of denatured spirituous preparation in sealed casks, drums or other receptacles. Each such cask, drum or receptacle containing denatured spirituous preparation shall be conspicuously labelled or branded with the words indicating the name and address of its manufacturer and the kind and quantity of the denatured spirituous preparation contained therein.
Importer not to interfere with the seals until verification by Officers.- On arrival of the consignment of denatured spirituous preparation at the importers shop or premises, the importer shall inform the local Excise Officer about the arrival and shall not interfere with the seals on the casks, drums or receptacles until that officer has verified the contents with the particulars entered in Part II of the import permit and has drawn a sample therefrom for chemical examination. The importer shall allow the officer to take sample free of cost.
Importer not to sell or use the preparations until verification by Officer.- The importer shall not sell or take out for use any denatured spirituous preparation from the consignment unless such Excise Officer gives him permission to do so after verifying the quality, quantity and strength of the denatured spirituous preparation. No such permission shall be given unless the denatured spirituous preparation is found on examination by the Chemical examiner appointed by the State Government or such other officer as may be appointed by the State Government, to contain (i) not less than 100 grams of soluble ingredients per litre of denatured spirit, or (ii) soluble ingredients and denatured spirit in such proportion as was approved by the Director of Industries, of Madhya Pradesh before the grant of the import permit to the importer and denatured spirit used in the manufacture of denatured spirituous preparation to be of strength not less than 50 O.P. :

Provided that such permission may be granted without such examination if the consignment of the denatured spirituous preparation is covered by a certificate from the Chief Excise authority or other competent authority of the state of export showing:

(i) That the denatured spirituous preparation is the same as it purports to be and contains not less than 100 grams of soluble ingredients per litre of denatured spirit which is of a strength not less than 50 O.P.;

(ii) That the quantity and description of denatured spirituous preparation contained in the consignment exactly correspond with the particulars in the permit;

(iii) That the casks, drums or receptacles containing such denatured spirituous preparations has been securely closed in his presence and sealed with his official seal :

Provided further that notwithstanding the permission so granted a sample shall be taken free of cost from the casks, drums or receptcales and is such denatured spirituous preparations on being analysed and tested by the Chemical examiner or such other officer aforementioned is found to be not properly manufactured or denatured spirit used in the manufacture or denatured spirituous preparation is found to be less than 50 O.P. in strength the importer shall not further sell or use such denatured spirituous preparation. All such cases shall be reported to the Excise Commissioner for orders for further disposal of such denatured spirituous preparation.

Form D.S.P. 1

[See Rule IV (1)]

Licence for the manufacture of denatured spirituous preparations or for the manufacture and sale of such preparations.

Under rule IV of denatured spirituous preparation rules and in consideration of payment of fee of Rs. ....... the receipt of which is hereby acknowledged, licence is hereby granted to ..... authorising him to manufacture denatured spirituous preparation or manufacture and sell them by wholesale and to buy, possession, transport and use denatured spirit for the purposes of such manufacture in the premises situated in street in the town of....... in the district of......... during the year ending the 31st March........ subject to the following conditions-

Conditions

The licensee shall not manufacture under this licence any denatured spirituous preparation(s) except the following licensed preparation(s), namely-

(i)

(ii)

(iii)

Provided that the licensee may with the previous permission of the Collector, manufacture any, one or more additional denatured spirituous preparation by an endorsement on the licence.

The licensee shall not manufacture the licensed preparation in any place other than the licensed premises.
Save where the total quantity of the licensed preparation(s) manufactured in any day does not exceed 900 litres, the licensee shall manufacture the licensed preparation(s) in fixed vats or drums having a capacity of not less than 180 litres of such a smaller capacity as the Collector may permit.
(1) The licensee shall keep the manufacturing vats empty before any manufacturing operation commences.

(2) The licensee shall effectively stir the contents of the vat or drum to ensure that they are effectively mixed and dissolved.

The licensee shall have the vats or drums for the storage of denatured spirit painted white, and those used for the storage of licensed preparations painted red.
(1) The licensee shall keep the licensed preparation(s) in corked bottles or in metal drums securely closed. Any stock in excess of 50 litres shall be kept in the premises sufficiently fire proof and approved by the municipal or other local authorities and which are not used or intended for human occupation.

(2) The licensee shall not enter or allow any person to enter the licensed premises with naked light.

Each bottle containing a licensed preparation shall bear a label indicating the name and address of the manufacturer and the kind of denatured spirituous preparation contained therein.
The licensee shall not sell any licensed preparation(s) in any one transaction in a quantity less than five litres.
No licensed preparation(s) shall be sold or removed from the licensed premises except in sealed bottles or drums or other receptacles securely closed and unless they bear a label indicating the name and address of the manufacturer and the kind and quantity of the denatured spirituous preparation(s) contained therein.
The licensee shall keep all the spirit received by him for the purposes of manufacturing the licensed preparation(s) in a secure place in the licensed premises under lock and key and all issues of spirit from the said premises shall be made in the presence of the licensee or a person duly authorised by him in writing in this behalf. He shall not keep or use spirit at any place other than the licensed premises.
The spirit possessed under the licence shall not be used except for the purpose of.......
The privileges of purchase, possession and transport of spirit shall extend only so far as they are incidental to its use stated in condition 11.
The licensee shall not possess or use spirit of a strength less than 50 O.P.
The licensee shall not obtain spirit except, from a licensed manufacturer of denatured spirit or a licensee for the wholesale vend of Denatured Spirit.
The licensee shall not use spirit exceeding....... bottles/litres in any calendar month.
The licensee who is permitted to use spirit not exceeding two bottles per month, may during the month, buy and possess spirit in quantity permitted for use for six months. The licensee who is permitted to use spirit exceeding two bottles, shall not possess at any time spirit in excess of...... bottles/litres.
The licensee shall not recover spirit used in any process without first obtaining the necessary authority from the Collector to do so.
The licensee shall affix to the front of his licensed premises as sign board bearing his name, the licence No. and the word "Licensed to manufacture and sell denatured spirituous preparations".
The licensee shall keep in his licensed premises an account of the licensed preparation(s) manufactured and sold or used by him in Form D.S.P. 1-A and spirit in Form D.S.P. 1-B. He shall also if he is authorised to sell the licensed preparation(s), maintain a register of sales in Form D.S.P. 1-C. The accounts and the register of sales shall be plainly and correctly written up daily in a bound book paged and stamped with the seal of the District Excise Officer. He shall allot separate pages in the registers of account for each kind of licensed preparation. He shall before the 7th day of every month, furnish to the local Excise Officer monthly returns in Form D.S.P. 1-D, D.S.P. 1-E.
(1) The licensee shall allow any officer not below the rank of Excise sub-inspector to take samples of spirit or any licensed preparation, free of cost, for the purpose of analysis of verification of the soluble contents and spirit contents of the preparation.

(2) If the Director of Industries, Madhya Pradesh of the Chemical Examiner or such other officer as may be appointed by the State Government certifies that the sample of the denatured spirituous preparation(s) sent to him tor analysis or verification of soluble contents is not manufactured in accordance with the conditions of the denatured spirituous preparation(s)in stock with the licensee shall be dealt with according to the orders of the Excise Commissioner.

The licensee is bound by the Denatured Spirit Rules and General Licence Conditions Nos. I, III, VI, VII, XII, XVI, XVIII, XIX, XXI, XXII XXIII and XXV.
On breach of any of the conditions of this licence, or of the provisions of the Madhya Pradesh Excise Act, 1915 (II of 1915) or of the rules made thereunder this licence may be cancelled by the District Excise Officer.
The licence may also be withdraw an without notice, if the Collector is satisfied that the licensee's conduct is not satisfactory for being retained as such or if the shop is required to be closed down during the currency of the licence.

Granted this...........day of.....20....

Collector of....

Schedule

(Showing the Shop Boundaries)

Description of the site of the shop	Boundaries of the shop
Description of the site of the shop	North	East	South	West
(1)	(2)	(3)	(4)	(5)

Forms DSP 1-A to 1-E not reproduced here.

Form D.S.P. 2

[See Rule VI]

Licence for the wholesale of Denatured Spirituous Preparations.

Under rule VI of the Madhya Pradesh Denatured Spirituous Preparations Rules, 1968 and in the consideration of the payment of fee of Rs....... the receipt of which is hereby acknowledged is hereby granted to..... authorising him to buy, possess and sell by wholesale (here specify the denatured spirituous preparation(s) which the licensee is authorised to sell) in the premises situated in....... street...... in the town of in the district of........ during the year ending the 31st March .......... subject to the following conditions-

Conditions

(1) The licensee shall not keep in his licensed premises nor have in his possession more than litres of licensed preparation(s) at any time, unless he is specially authorised by the Collector to do so by an endorsement on his licence.

(2) The licensee shall keep the denatured spirituous preparation(s) in corked bottle or in metal drums or other receptcales securely closed. Any stock in excess of 50 litres shall be kept in the premises sufficiently fireproof and approved by the municipal or other local authorities and which are not used or intended for human occupation.

Each bottle containing denatured spirituous preparation shall bear a label indicating the name and address of its manufacture and the kind and quantity of licensed preparation contained therein.
The licence shall be hung up in a conspicuous place in the licence premises to the front of which shall be fixed a sign board bearing the following inscription in legible character in English and Hindi "Name of the licensee...... licensed to sell denatured spirituous preparations by wholesale.
The licensee shall not obtain his supply of licensed preparation(s) from any place except from-

(a) licensed manufacturer of such licensed preparation(s) or any other wholesale licensee; or

(b) a place outside the State of Madhya Pradesh under an import permit.

The licensee shall not sell licensed preparation(s) in any one transaction in quantity less than five litres.
The licensee shall not sell licensed preparation(s) except in sealed bottles or drums or other receptcales.
No licensed preparation(s) shall be removed from the licensed premises except in sealed bottles or in drums or other receptcales and unless they bear a label indicating the name and address of the manufacturer and the kind and quantity of the licensed preparation(s) contained therein.
The licensee shall keep in his licensed premises accounts of licensed preparation(s) purchased and sold by him in Form D.S.P. 2-A. He shall also maintain a register of sale in Form D.S.P. 2- B. The accounts and register of sale shall be plainly and correctly written daily in a bound book paged and stamped with the seal of the District Excise Officer. He shall allot separate Pages in the register of accounts tor each kind of denatured spirituous preparations. He shall by the 7th day of every month furnish to the local Excise Sub-Inspector a monthly return in Form D.S.P. 2-C in respect of the quantities of denatured spirituous preparations purchased and sold by him during the previous months.
The licensee shall allow any officer not below the rank of Sub-Inspector to take samples of the licensed preparation(s) free of cost for the purpose of the analysis or verification of the soluble contents and spirit contents of the preparation.
The privilege of purchase of licensed preparation(s) granted under the licence of the licensee shall extend only so far as it is incidental to its sale at the licensed premises.
The licensee is bound by the Denatured Spirit Rules and the General Licence Conditions Nos. I, III, VI, VII, XII, XVI, XVIII, XIX, XXI, XXII XXIII and XXV.
On breach of any of the conditions of this licence, or the provisions of the Madhya Pradesh Excise Act, 1915 (II of 1915) or the rules made thereunder this licence may be cancelled by the District Excise Officer.
The licence may be withdrawn without notice if the Collector is satisfied that the licensee's conduct is not satisfactory for being retained as such or it the shop is required to be closed down during the currency of the licence.

Granted this......... day of............ 20.......

Collector

Schedule

(Showing the Shop Boundaries)

Description of the site of the shop	Boundaries of the shop
Description of the site of the shop	North	East	South	West
(1)	(2)	(3)	(4)	(5)

Forms DSP 1-A to 1-E not reproduced here.

Form D.S.P. 3

[See Rule VI]

Licence for the retail sale of denatured spirituous preparations

Under rule VI of the Denatured Spirituous Preparations Rules and in consideration of payment of fees of Rs........ the receipt of which is hereby acknowledged licence is hereby granted to......... authorising him to buy, possess and sell by Retail denatured spirituous preparations in the premises situated in street...... in the town of...... in the district of....... during the year ending 31st March...... subject to the following conditions-

Conditions

Except with the previous permission of the Collector in writing the licensee shall not keep in the licensed premises more than 200 litres of licensed preparation(s) at any time. Any stock in excess of 50 litres shall be stored in premises which are sufficiently fireproof and approved by the municipal or other local authorities and which are not used or intended for human occupation.
The licensee shall not obtain his supply of licensed preparations) from any place except from a licensed manufacturer or a wholesale licensee.
The licensee shall not sell licensed preparation(s) except in sealed bottles.
Except with the special permission in writing of the Collector, the licensee shall not sell to any person more than six quarter bottles of the licensed preparation(s) at a time.
The licensee shall not sell, or offer or expose for sale the licensed preparation(s) except in bottles nor shall he sell such preparation to a person who is a minor.
(1) No licensed preparation(s) shall be sold or exposed for sale by the licensee except in scaled quart bottles or drums or other receptcales, duly labelled in the manner provided in this condition.

(2) Each bottle, drum or other receptcales containing licensed preparation(s) shall be conspicuously labelled or branded with the words indicating the name and address of its manufacturer and the kind and quantity of the licensed preparation contained therein.

The licensee shall keep in his licensed premises accounts of licensed preparation(s) purchased and sold by him in Form D.S.P. 3-A. He shall also maintain a register of sale in Form D.S.P. 3-B. The accounts and register of sale shall be plainly and correctly written daily in a bound book paged and stamped with the seal of the District Excise Officer. He shall allot separate pages in the register of account for each kind of denatured spirituous preparations. He shall by the 7th day of every month furnish to the local Excise Sub-Inspector a monthly return in Form D.S.P. 3-C, in respect of quantities of licensed preparation purchased and sold by him during the previous month.
The licensee shall allow any Excise Officer not below the rank of Excise Sub-Inspector to take samples of the licensed preparations free of cost for the purpose of analysis or verification of the soluble contents and spirit contents of the preparation.
The privilege of purchase of licensed preparations granted under the licence to the licensee shall extend only so far as it is incidental to its sale at the licensed premises.
The licence shall be hung up in a conspicuous place in the licensed premises to the front of which shall be affixed a sign board bearing the following inscription in legiable character in English and in Hindi-

"Name of the licensee.......... Licensed to sell by retail denatured spirituous preparation.

The licensee is bound by the Denatured Spirit Rules and the General Licence Conditions Nos. I, III, VI, VII, XII, XVI, XVIII, XIX, XXI, XXII XXIII, and XXV.
On breach of any of the conditions of this licence or the provisions of the Madhya Pradesh Excise Act 1915 (11 of 1915) or of the rules made thereunder this licence may be cancelled by the District Excise Officer.
The licence may also be withdrawn without notice, if the collector is satisfied that the licensee's conduct is not satisfactory for being retained as such or if the shop is required to be closed down during the currency of the licence.

Granted this........... day of........ 20......

Collector of....

Schedule

(Showing the Shop Boundaries)

Description of the site of the shop	Boundaries of the shop
Description of the site of the shop	North	East	South	West
(1)	(2)	(3)	(4)	(5)

Forms DSP 1-A to 1-E not reproduced here.

Form D.S.P. 4

[See Rule IX]

Import permit for denatured spirituous preparations

Part I

For record in the office of the officer granting the permit.

No...........

Date.........20.....

Shri/Sarvashri........... of........... holding D.S.P. Licence (if any) No....... of......... is/are hereby granted a permit under and subject to the provisions of the Madhya Pradesh Excise Act, 1915 (II of 1915) and the rules, regulations and orders made thereunder authorising him/them to import litres/bottles of the following denatured spirituous preparations, namely-

from...... of..... to......... his/their/shop/premises situated at....... via ........(route), subject to the following conditions, namely -

The permit shall remain in force upto...........
The quantity of denatured spirituous preparation shall be imported in one consignment only and its bulk shall not be broken in transit.

Collector of....

Form D.S.P. 4

[See Rule IX]

Import pass for denatured spirituous preparations

In Triplicate-

Part II - For record in the office of the officer granting the permit.

Part III - To be forwarded to the collector or Chief Excise Authority of the place of expert.

Part IV - To be sent to the District Excise Officer for being forwarded to the Excise S.I. to examine the consignment of arrival.

No...........

Date.........20.....

Shri/Sarvashri............ of........... holding D.S.P. Licence (if any) No........... of.......... is/are hereby granted a pass under and subject to the provisions of the Madhya Pradesh Excise Act, 1915 (II of 1915) and the rules, regulations and orders made thereunder authorising him/them to import........ litres/bottles of the following denatured spirituous preparation, namely-

from........... of.............. to........... his/their shop/premises situated at...... via ........(route), subject to the following conditions, namely-

The permit shall remain in force upto.............
The quantity of denatured spirituous preparation shall be imported in one consignment only and its bulk shall not be broken in transit.

Collector of....