GOVERMENT OF THE PUNJAB
EXCISE AND TAXATION DEPARTMENT
THE PUNJAB CHEMICAL WORKS
RULES
[12th January 1933]
NOTIFICATION
NO.
2000-2001-1955-(C)/Ex(P)III. In
exercise of the powers conferred by Section 59 of the Punjab Excise Act. 1914
(1 of 1914), read with Government of the Punjab, Excise and Taxation
Department’s Notification No. 52-75/26-Ex.III, dated January 7, 1975, the
Excise Commissioner, Punjab is pleased to amend the Punjab Chemical Works
Rules, 1933
11.1 The words
“Chemical Works” mean the premises or part of the premises approved and licensed
by the Excise Commissioner for the manufacture of medicinal and other
preparations containing alcohol under bond and for the storage of alcohol and
finished preparations containing alcohol on which duty has yet to be paid. The
instructions for the management of distilleries published in the Punjab
Distillery Rules, contained in Chapter 9 of this volume, shall apply to
Chemical Works in such of their details as are not provided for in the
following rules and to such extent as the Excise Commissioner may from time to
time direct.
11.2 “Spirit
Store” means that part of the Chemical
Works which is set apart for the storage of rectified spirit.
11.3 “Laboratory”
means that part of the Chemical Works in which the actual manufacture of
medicinal and other preparations containing rectified spirit takes place.
11.4 “Warehouse”
means that part of the Chemical Works in which finished preparations containing
rectified spirit, on which duty has not yet been paid, are stored.
11.5 “Rectified spirit” means spirit of the
strength of 43 degrees or more over proof.
11.6 “Officer in
charge” means an officer of the Excise Department deputed to supervise excise
work in the Chemical Works.
11.7 “Approved
Manufacturer” means a person to whom a license has been granted in Form M.C 12
for the manufacture of medicinal and other preparations in bond.
Section B Licenses and Licensed
Premises.
11.8 Any person
desiring to use rectified spirit of Pakistan manufacture for the manufacture of
medicinal and other preparations under bond must apply in writing to the
Collector of the district giving the following particulars:-
(a)
name or names and addresses of the applicant;
(b)
the situation of the Chemical Works;
(c)
the maximum quantity of proof spirit likely to be in
stock at any one time on the licensed premises;
(d)
the amount of security which the applicant is prepared
to furnish as a guarantee for the performance of the conditions under which the
privilege is granted; and
(e)
a correct plan of the buildings to be used. The plan
shall be submitted in duplicate, drawn to scale on tracing cloth, showing the
plan and elevation of the premises and the position of the spirit store,
laboratory and warehouse and the exact position and dimensions of all permanent
vessels for the storage of rectified spirit or medicinal or other preparations
and of all compounding tables, almirahs, safes, sinks and all important details
connected with the Chemical Works or with the vessels in it.
11.9
In case the application is granted no further
alterations will be made in the building or plant without the previous sanction
of the Director, Excise and Taxation.
11.10 The
application shall, be forwarded by the Collector for the consideration of the
Excise Commissioner, who if he accepts the application, will fix the nature and
amount of security which each applicant (subsequently refereed to as the
approved manufacturer) will be required to give for the due execution of these
rules and the payment of all sums chargeable against him. The Excise
Commissioner may at any time require an increase in the security if the amount
originally fixed should prove unsuitable.
11.11 Each
application shall include for the approval of the Divisional Excise and
Taxation Director.
(1) A list of the preparation of which the
manufacture is proposed under the following heads:
(a)
Medicinal preparations,
(b)
Toilet preparations, (c) Non-medicinal essences, (d)
Perfumed spirit.
and if necessary under a further
miscellaneous head. The Divisional Excise and Taxation Director in
consultation, if necessary, with the Medical Officers of Government reserves
the right to exclude any preparation or preparations from the list or to
transfer preparations from one head to another.
(2) Deleted.
11.12 A license
in Form M.C 12 may be granted by the Collector for the period not exceeding one
year and ending on 30th
June. It may be renewed from year to year by the Collector, who may, however,
on sufficient cause shown, refuse to renew it or manufacturer has furnished the
security fixed may at any time determine it. The license shall not be granted
unless the approved manufacturer has furnished the security fixed under rule 10
in cash, or in Government promissory notes or a Banker’s Guarantee in form
M.C.14.
11.13 Sales under
this license shall only be of such preparations as the Divisional Excise
Taxation Director may approve and sales of medicinal preparations duty free
shall only be made to such Government and charitable hospitals and dispensaries
as have been approved by the Punjab Government.
11.14 The license
shall be granted or renewed subject to the payment of [Rs. 20,000] as annual
fee, which shall be payable within 15 days of the grant of the license or in
case of the renewal within 15 days of the
commencement of the financial year for which the renewal is sought.
11.15 If the
approved manufacturer goes out of business, he shall dispose of his stock of
rectified spirit and un-issued preparations in such manner as the Director,
Excise and Taxation may direct. 11.16 The
approved manufacturer shall not transfer or divide his interest in the business
without the previous permission of the Excise Commissioner.
11.17 The
Chemical Works shall, at all times be open to inspection by authorized
Government servants who may take any necessary samples for analysis.
11.18 The cost or
a portion of the cost of the Excise staff required for supervision may be
charged to the approved manufacturer, as the Excise Commissioner may direct.
11.19 Work in the
Chemical Works shall only be carried on during such hours as may be fixed by
the Director, Excise and Taxation. The works shall only be opened in the
presence of the officer in charge, appointed to supervise the work there.
11.20 Only the
approved manufacturer or his Manager and such servants, as are required to be
there, shall enter the Chemical Works. The approved manufacturer shall furnish
to the officer in charge a list containing the names of the Manager, or
Assistant Manager employed by him and of all the employees whose duties require
them to enter the Chemical Works. He should inform the officer-in charge of any
changes which are to be made in the list. The officer in charge shall forward a
copy of such list to the Collector.
11.21 If the
licensee from any cause, physical or mental, becomes incapable of carrying on
business, or dies, or becomes insolvent, or (in the case of a company) is wound
up, the Collector may either (1) cancel the license or (2) continue it in the
name of the legal representative of the licensee. Neither the licensee nor any
other person shall be entitled to any compensation or damages whatsoever in
respect of the revocation, cancellation, or determination of the license.
Section.
Manufacture.
11.22 No
preparation, other than those previously approved by the Excise Commissioner
shall be manufactured under these rules.
11.23 Rectified
spirit and absolute alcohol, obtained or prepared under these rules, shall not
be sold to public or trade provided that transfers from one Chemical Works to
another may be made with the special sanction of the Excise Commissioner.
11.24 Rectified
spirit may be obtained in bond without pre-payment of duty from any distillery
in the Punjab or elsewhere in quantities not less than 10 gallons at a time,
under a permit issued by the Collector of the district of destination. In any
case, however the quantity in the possession of the approved manufacturer shall
not exceed a limit fixed by the Excise Commissioner and an unnecessarily large
stock of spirit shall not be carried by the approved manufacturer.
11.25 Immediately
on receipt of the consignment, the officer in charge shall enter in ink upon
the pass the bulk gallons, strength and proof gallons found by him after
gauging and proving as well as the transit wastage in proof gallons for each
vessel. The passes shall be retained along with other accounts and kept in a special
book file. The Excise Commissioner after considering the monthly return
furnished under rule 11.44, may call upon the approved manufacturer to pay duty
at such rate not exceeding the tariff rate, as he thinks fit on the whole or
any part of the wastage which may appear excessive or due to theft or fraud.
11.26 Rectified spirit shall be emptied
forthwith into locked vessels in the spirit store of the
Chemical Works. Each such vessel shall be fixed and gauged
and shall be marked with words “Rectified spirit……. Store Vessel” the capacity
of the vessel and a distinctive number. Tables shall be compiled to show the
contents of each inch and tenth of an inch of its depth in register Form D-6.
Excise ticketed locks shall be placed on the man door and discharge cocks of
such vessels. The officer in charge must take the dip in each store vessel once
every time the spirit is issued as a check on loss or abstraction. The dip thus
taken must be entered in the diary in Form D-9 and the prescribed account in
Form M.C.I.
11.27 The
charging and discharging pipes of spirit store vats, and all vessels used for
the store of spirit, all mandoors of such vats or vessels, and the doors of
sprit store, laboratory and the warehouse shall be so fitted as to enable them
to be closed with two locks, the keys for which are not interchangeable, and of
which one lock shall be a Revenue lock (ticketed) in charge of the officer
incharge and the other a lock in charge of the approved manufacturer. The keys
of all the revenue locks shall be kept by the officer in charge in whose
absence no door or vessel in the Chemical Works may be unlocked or remain
unlocked.
11.28 Any
distilling or converting apparatus which may be erected shall be locked with
ticketed locks, and the reservoirs, trap vessels, worms etc, in which potable
spirit may be contained or received shall be so constructed as to prevent
abstraction of spirit before the officer in charge has taken an account of it.
11.29 No spirit
shall be removed from any store vessel until an account of the quantity and
strength has been taken by the officer in charge.
11.30 Whenever
any preparation is to be manufactured, the spirit required for such preparation
shall be obtained from the spirit store for the manufacture of particular
preparations. The spirit thus obtained shall be added without delay in the
presence of the officer in charge to the respective materials to be treated;
and to every percolator or other vessel in which the spirit is placed, there
shall be attached a label in form M.C 8 showing the description of the
preparation, the date with the quantity and strength of all spirit placed in it
from time to time and the date on which any of the finished products were
removed to stock with the quantity so removed.
11.31 Spirit
recovered from residues shall be either:-
(a)
transferred to a gauged and locked vessel kept for the
purpose and thence removed for use as required; or
(b)
used at once in continuation of the process from which
it was obtained; or
(c)
destroyed in the presence of the officer in charge, who
shall certify in red ink in the diary in Form D-9 its quantity and apparent
strength except where the quantity exceeds one gallon, in which case the
previous approval of the Excise commr. should be obtained; or
(d)
kept for use in some special way approved by the Board
of Revenue.
11.32
If it is not intended to recover from the residues
the contained spirit, the residues must be destroyed in the presence of the
officer in charge who will record this as directed in rule 11.31.
11.33 In
cases in which it is necessary to use some quantity of a finished preparation
instead, of or in addition to rectified spirit, the quantity so required shall
be taken from the warehouse and added in the presence of the officer in charge
without delay to the materials to be treated. Such quantity shall be shown
separately in columns 2, 3 and 4 of Form M.C.3 with a reference to the number
of the batch from which it was taken, and on the label attached to the
percolator or other vessel. It shall also be shown in Form M.C 4 the entry in
column No. 8 being “used in manufacture of …” It shall however, be deducted
from the monthly total of column No.10 of Form M.C 3 since the spirit contained
in it is replaced in stock and is not shown as issued in Form M.C.7.
11.34 (1)
The finished preparations shall be kept separate from those in the course of
preparation and be stored in a separate store room approved for the storage of
finished preparations, called the “Warehouse”. The door of the warehouse must
be fastened with Excise ticketed locks. The words “warehouse for bonded
medicinal and other preparations” must be painted on the door in which these
preparations are allowed to be stored. Similarly the words “Spirit Store” and
“Laboratory” shall be painted on the doors of the rooms set apart as such.
(2) Finished preparations may be stored:-
(a)
in bulk, in jars or bottles containing not less than
one quart (40 fluid ounces), or
(b)
stored ready for issue in bottles of not less than two
fluid ounces capacity, every bottle containing not less than 2 fluid ounces of
a preparation.
(3)
Every preparation stored in bulk must be measured to
the storage vessels to the nearest fluid ounce by the officer in charge who
must them close and seal the vessel with his official seal.
(4)
The description, quantity and true strength of the
preparation must then be recorded on a label in Form M.C 8, by the approved
manufacturer or his agent and each label must also bear the distinctive serial
number corresponding with the number entered in the prescribed register (Form
M.C.3)
(5)
In the case of preparations stored in bulk the label on
every vessel must be signed and dated by the officer incharge.
(6)
When any of the contents of a vessel refereed to in
clause (2) (a) has been removed, the officer in charge must enter on the label
attached thereto the quantity taken out and the manner of disposal with his
signature and date. Finished preparations shall only be removed from the
warehouse in accordance with an application in Form M.C 6. The approved
manufacturer must state in Form M.C 6 the number of bottles or jars in which
each preparation is contained and the bulk quantity to be removed.
(7)
Sub-rule (4) must be followed in respect of
preparations referred to in sub-rule (2) (b), but the contents of bottles are
to be checked at the time of issue according to the following scale:-
Whenever the
number of bottles in any consignment does not exceed 100, the officer in charge
is to measure one in every 25 and fraction of 25 to 50 and one in any remaining
number upto 100. When the number exceeds 100, three bottles are to be measured
in the first 100 one in every 50 and fraction of 50. A larger proportion should
be measured, should the officer in charge consider it necessary. The Officer n
charge must certify in Form M.C.6 the number of bottles issued and how many
were checked measurement. Only standard gallon measures and graduated glass
measures, approved by the Excise Commr. are to be used in gauging preparations.
11.35 Samples of
any finished preparation may at the time of its removal to the warehouse be
taken for despatch to the Chemical Examiner for analysis and test of the amount
proof spirit contained therein. Not less
than ten percent of the preparations issued from the Chemical Works in the
month should thus be sampled. The Officer in charge is responsible for ensuring
that not less than this percentage of issue is sampled monthly. The following
procedure shall be observed in sampling the preparations:-
(1)
A sample shall not be less than 3 fluid ounces.
(2)
Every sample must be taken in duplicate personally by
the Officer in charge. The cork of every bottle must be sealed by him with a
revenue seal and the name of every preparation must be stated on a label
affixed to each bottle. The duplicate samples should be kept under Excise lock
until the result of analysis has been reported, unless specially asked for by
the Chemical Examiner to replace the original samples or to repeat an analysis.
Duplicate samples to which no further reference can be needed may be returned
to the approved manufacture.
(3)
The samples must be placed in a case and securely
fastened with tape or wire provided by the approved manufacturer and be sealed
by the officer in charge with a revenue seal and delivered without delay at the
expense of the approved manufacturer to the Chemical Examiner.
(4)
An advice letter in Form M.C 9 must be dispatched to
the Chemical Examiner at the same time.
11.36 The
approved manufacturer must submit, if required, samples of all or any of his
medicinal preparations to such medical officer as Government may designate for
test, and must agree to abide by any rules drawn up by the medical Officers of
Government authorized in this behalf with a view to ensuring the efficacy and
purity of the medicinal preparations produced in the Chemical Works
11.37 At
the time of issue the approved manufacturer shall declare the strength of the
finished preparations and all calculations of duty on rectified spirit
contained in finished preparations from
the warehouse shall be made according to the strength declared by the approved
manufacturer unless the result of the Chemical Examiner has been received
before issue. If the strength of a sample actually found by the Chemical
Examiner does not exceed the declared strength by three degrees, then no
correction need to be made in the strength of the preparation shown in the
registers, but if the actual strength exceeds the declared strength by 3
degrees or more, then the strength of the preparation as well as the quantity
shown in proof gallons shall be corrected accordingly. A surcharge of duty
shall be levied in the later case if any issued have been allowed from the
particular before the receipt of the Chemical Examiner’s report. No refund will
be allowed if the strength declared by the approved manufacturer is found
higher than the actual strength reported by the Chemical Examiner. At the close
of each month the officer in charge shall make a list giving the name of the
preparations, number of gallons manufactured, batch number declared strength
and strength found on analysis during the month in regard to which the strength
found by the Chemical Examiner exceeded the declared strength by three degrees
or more. The list shall be sent by the District Excise and Taxation Officer to
the Director, Excise and Taxation who may impose a penalty to the extent of 10 times
the shortage of duty on the quantity manufactured.
Section D------Issue of Tinctures, Extracts
and other preparations.
11.38 An
account of all medicinal or other preparations received into and issued from
the warehouse shall be maintained in Form M.C 4. All issues shall be made only
on application by the approved manufacturer in Form M.C.6 which shall be
accompanied by a treasury receipt in token of payment of the prescribed duty on
the preparations concerned.
The officer in
charge, after satisfying himself that the amount of duty has been paid into the
treasury or has been duly accounted for, shall issue the preparation applied
for and grant the transport or exports pass in Form L-46 in accordance with the
provisions contained in the Punjab Liquor Import, Export, Transport and
Possession Order and the Punjab Liquor Permit and Pass Rules
Provided that
except in the case of samples no such transport or export pass shall be issued
in the name of the approved manufacturer himself.
Provided
further that the issue of manufactured drugs other than prepared opium shall be
subject to the provisions of rules 18 and 19 of the Punjab Manufactured Drugs
Rules, contained in Chapter 27 of this volume.
11.38
When the licensee proves to the satisfaction of the
Collector that any medicinal preparation containing rectified spirit, after
having been issued under a pass from the bonded warehouse, without payment of
duty, on an indent signed by the Civil Surgeon or any other competent authority
have been retuned to him, in full and with seals intact, the Collector shall,
after such inquiry as he may consider necessary, allow the returned medicinal
spirituous preparations to be taken back on the stock of the licensee. The
officer incharge shall enter in the relevant registers the full particulars of
the preparations taken back and the orders of the Collectors. The Officer in
charge shall also maintain a separate file for such applications and orders of
the Collector thereon. Details of returned preparations shall also be given in
the remarks column of M.C. 11 to be submitted in accordance with rule 11.44 of
these rules.
11.39 The
approved manufacturer may make an advance deposit against payment of duty and
issues of finished preparations may then take place so long as a sufficient
balance is available. In this case the officer in charge shall keep an account
in Form D-15.
11.40 All
jars, bottles or other vessels and packages in which consignments are issued
shall be sealed by the Officer in charge with his official seal before they
leave the warehouse. Every jar, bottle, other vessel or package shall bear a
label in which the following particulars shall be specified in bold English
printed characters: (1) name of the approved manufacturer, (2) the place and
the district as well as the province of manufacture, (3) the percentage of
alcohol contained in such preparations, Medicinal and other preparations put up
in small bottles should be packed in boxes containing such number of bottles
that the total proof spirit content of the preparation contained in each box is
not less than 0.1 proof gallon. These boxes shall be securely fastened and
sealed by the Officer in charge.
Section-E. Accounts to be maintained and returns to be submitted.
11.41 The officer in charge shall
maintain a diary in Form D-9 in which he shall record from day to day all the relevant entries regarding
operations carried on in the chemical
works.
11.42 The following registers shall be
maintained by the approved manufacturer:(a)
M.C 2 Stock Account of Spirit used for
making tinctures, etc.
(b)
M.C 3 Register of
Operations in the Laboratory.
(c)
M.C 4 Stock
Account of each preparation.
d) M.C 6
Application for pass for the removal of medicinal or other preparation from the
Chemical Works.
(e)
M.C.8 Labels.
(f)
M.C 11 The monthly
return.
11.43 The following registers shall be
maintained by the Officer in charge:(a)
M.C 2 Vat Account of spirit received in
the spirit store.
(b)
M.C 5 Account of
spirit recovered in the Laboratory.
(c)
M.C 7 Account of
finished preparations issued from the warehouse.
(d)
M.C 9 Advice of
samples sent to the Chemical Examiner.
(e)
M.C 10 Account
of samples sent to the Chemical Examiner.
(f)
D-6 Table book
of spirit vats.
(g)
D-9 Inspector’s
Diary.
(h)
D-15 Register
regarding advance payment of duty.
11.44 At
the end of each month the approved manufacturer shall deliver statements in
form M.C.11 and in form M.C 13 in duplicate to the officer in charge who shall
after verification submit them to the Collector. The Collector shall forward
one copy direct to the Excise Commr. The duplicate copy being sent to the Commissioner
for information. The approved manufacturer shall also furnish such true
statements as may be required by the Collector in the forms prescribed under
the rules.
11.45 All
registers and forms of the M.C and D series shall be printed and supplied by
the approved manufacturer free of charge. Forms bound together shall bear
printed serial and consecutive numbers. Loose sheets of such forms as are
necessary shall also be supplied to the Officer in charge.
11.46 The
stock of spirit in the spirit store shall be taken by the Officer in charge on
the last working day of each month.
11.47 The
stock of medicinal or other preparations containing rectified spirit in the
warehouse shall be similarly taken.
11.47-A It is
found that the wastage in any chemical works is excessive or in the process of
manufacture, exceeds the following scale, the Director, Excise and Taxation may
after considering the monthly statement furnished under rule 11.44 call upon
the approved manufacturer to pay duty at such rate, not exceeding the tariff rate,
as he deems fit on the whole or any part of the wastage which may appear to be
excessive or due to theft or fraud.
(1) For medicinal preparation:Per cent
(Monthly average)
(a) Extracts and concentrated infusions made
direct, by double percolation or distillation invacuo, from crude drugs such as
root, bark, leaf, rhizome …………....
.40 (b) tinctures and other
preparations made direct from crude drugs such as root,……… ..20 bark, leaf, rhizome, gum or
resing.
© Other tinctures and preparations………… 10 (2) For
non-medicinal preparation:-
(a)
Essencess made direct from crud drugs… 20
(b)
All other preparations……………………… 05
11.48 Nothing in these rules justifies
the use on a label or in an advertisement of words stating or implying that the
preparation is sold under a Government guarantee as to contents or quality.
11.49 If a fire
occurs in a Chemical Works, the Collector should immediately cause an enquiry
to be held by a gazetted officer in order to determine the liability of the
licensee to pay duty on the spirit wasted. No duty will ordinarily be assessed
on spirit on which duty has not been paid; but if duty has been paid on any
quantity of spirit contained in the preparations, although these have not left
the Chemical Works, the Collector must satisfy himself that the spirit was
really destroyed before any refund is paid. If such a refund is to be paid, it
shall be calculated on the actual quantity of spirit on which duty has been
paid. Once preparations have passed out of the Chemical Works no refund of duty
shall be paid upon them. The previous sanction of the Excise Commr. is required
before any such refund can be paid, and if either duty is to be levied or a
refund is to be granted the Collector in his report should come to a clear
finding whether the loss was due to preventable causes, which should have been
foreseen or guarded against by the licensee.
11.50 If the
approved manufacturer infringers or causes or permits any person to infringe
any of the conditions enumerated above or any of the conditions of his license,
the Collector may revoke and determine the license and he may forfeit to
Government the whole or any part of the security deposit.
Provided that
the revocation of the license or forfeiture of the security may be foregone on
payment of such sum not exceeding the amount of security deposit, as the
Collector may deem fit to accept.
11.51 The Excise Commr. reserves to
himself the right of adding to, altering, revising or changing these rules from
time to time either after or without consulting the licensee of a Chemical
Works, and the licensee shall be bound by these rules and the orders and
instructions issued by the Excise Commissioner under the Act or the Rules in
respect of Chemical Works in general of the licensee in particular, as may
be in force for the time being.
OFFICE OF THE DIRECTOR GENERAL
EXCISE AND TAXATION
GOVERNMENT OF THE PUNJAB
DATED LAHORE THE 26th
JUNE 2001
NOTIFICATION
NO.
2000-2001-1955-(C)/Ex(P)III. In
exercise of the powers conferred by Section 59 of the Punjab Excise Act. 1914
(1 of 1914), read with Government of the Punjab, Excise and Taxation
Department’s Notification No. 52-75/26-Ex.III, dated January 7, 1975, the
Excise
Commissioner, Punjab is pleased to amend the Punjab Chemical
Works Rules, 1933 contained in Chapter 11 of the Punjab Excise Manual, Vol. II,
with effect 1st
day of July, 2001 as follows:-
AMENDMENT.
In Rule 11.14
the Punjab Chemical Works Rules, 1933 for the figures, “1200” the figure
“10000” shall be substituted.
Sd-
Excise Commissioner
/ Director General
Excise and Taxation, Punjab
No. &
Date Even
A copy is forwarded to:-
1
The Superintendent, Government Printing Press, Punjab,
Lahore for publication in the next extra ordinary issue of Punjab Gazette. It
is requested that 200 copies of the Gazette Notification may be supplied to
this Department.
2
All administrative Secretaries to Government of the
Punjab.
3
All Heads of Attached Department in the Punjab.
4
The Registrar, Lahore High Court, Lahore.
5
All Commissioners of Divisions in the Punjab.
6
All Deputy Commissioners in the Punjab.
7
All Directors, Excise and Taxation in the Punjab.
8
All Deputy Inspector General of Police in the Punjab.
9
All Superintendents of the Police in the Punjab.
10
All Excise and Taxation Officers in the Punjab
Sd-
Director General,
Excise and Taxation Punjab, Lahore.
Notification
No.2002-2003/319-EXCISE & TAXATION(P)-I dated 30.06.2004 Excise
Commissioner/Director
General, Excise & Taxation, Punjab
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