Jammu and Kashmir Govt. issues Excise Policy 2022-2023; effective from 1st April, 2022 till 31st March, 2023

Finance Department, Jammu and Kashmir (“J&K”) has issued an Excise Policy (“Policy”) for the year 2022-2023, with effect from 1st April, 2022 and will remain effective till 31st March 2023, subject to revision by the Government at any point during the said period.

Key Highlights:

Objective:

• To bring about greater social consciousness and awareness about the harmful effects of consumption of liquor, alcoholic beverages, and drugs.
• To encourage transition from high to low alcoholic content beverages.
• To rationalize the number of taxes / duties and other levies to optimize revenues for common good.
• To check bootlegging / smuggling of liquor and narcotic drugs in the Union Territory of Jammu and Kashmir from neighbouring States / Union Territories.
• To provide choice of liquor brands, places for consumption to its consumers ·and a level playing field to all the stake holders.

• A licensee holding JKEL-1A license (i.e., License for wholesale vend of foreign liquor to the manufacturer outside the State for sale to JKEL-1 i.e., License for Wholesale vend of the Foreign liquor, Imported liquor and Wine to the trade only) shall be allowed to import liquor from any of its own distilleries or the distilleries located outside J&K with which it has a valid agreement to produce or bottle liquor on its behalf after paying a fees of Rs. 5 lacs for each source;

Retail Trade except JKEL-2

• The licence for operating liquor vends shall be granted strictly in-accordance with the provisions of the Jammu and Kashmir Excise Act, Svt. 1958 and rules framed there under.
• The Excise Commissioner shall grant new licenses i.e., Type B for retail sale of liquors on the premises on the premises, as per the provisions of Jammu & Kashmir Excise (“J&K”) Act, Svt. 1958, and Jammu & Kashmir Liquor License and Sale Rules, 1984, at the premises as he/she may deem fit keeping in view the revenue potential, on account of tourism activity or in general to provide a legitimate place to the consumers to curb the illegitimate consumption of liquor at unauthorized premises/places in the area and in the unserved/underserved areas.
• A non-refundable processing fee of Rs 75,000/- shall be charged for the processing requests for grant of Type A and B licenses.
• The department shall continue to issue Type D and Type E licenses as per the existing procedure.

• The allotment of vends shall be made by e-auction , through https://jkexcisedept.auctiontiger.net in a completely secure and transparent manner. The detailed procedure for e-auction / bidding instruction to the bidders shall be available on the e-auction portal and the official website of the Excise Department i.e., [www.jkexcise.nic.in].

Eligibility Criteria of bidders:

• Should not be below the age of 21 years
• Should be a domicile of UT of J&K
• Should have immovable property in UT of J&K worth up to 100 percent of the bid value and shall produce a property certificate to this effect from the competent Revenue Authority.
• Should not be convicted of any non-bailable offence by a criminal court.
• Should not be convicted, or reasonably suspected of committing or conniving at the commission of any non-bailable offence under the J&K Excise Act, Svt. 1958 or the Opium Act or the Dangerous Drugs Act, 1930 and shall produce a character certificate issued by the concerned District Superintendent of Police.
• Should not be defaulter of State Taxes Department under the J&K General Sales Tax Act 1962, Central Sales Tax Act and J&K Excise Act Svt. 1958.

Registration Fees:

• Non-refundable/non-adjustable Participation/Registration Fee of Rs. 25,000 to be paid online through portal.
• The minimum Reserve price to bid for each vend shall be Rs. 10 lacs.
• The bidder shall make his own arrangement for a shop/premises in the specified area and ensure that the premises selected/identified meet the requirements of the Excise Act and Rules made thereunder, including directions, if any, issued by the Court of competent jurisdiction in this regard. The bidder shall apply for clearance of the premises from the District Magistrate within 05 working days from being declared as H1. However, the license shall be issued after the issuance of clearance of the identified / selected premises / shop from the District Magistrate concerned.
• Verification of particulars/documents furnished by the successful bidder shall be made by the Committee/Officer authorized by the Excise Commissioner. The successful bidder shall be obliged to extend full cooperation in the verification process.

Grant of license to Manufacturing/ Bottling plant:

• The existing policy for issuance of licences for Distilleries, Breweries and Bottling Plants in J&K shall continue to remain in force.
• A non-refundable processing fee of Rs. 1 lac shall be charged for processing applications for setting up Distilleries, Breweries and Bottling Plants.
• At the time of letter of intent (“LOI”), a sum of Rs. 25 lacs shall be charged. The validity period of LOI shall be 3 years which can be extended for a period of 3 years subject to further payment of Rs. 3 lacs.
• For of renewal of licenses for trade in liquor except JKEL-Z licenses, the licenses shall be renewed in accordance with the provisions of the Jammu & Kashmir Liquor License and Sale rules, 1984, the Jammu & Kashmir Distillery rules 1946 and Jammu & Kashmir Brewery rules 2003.
• The Export Duty has been exempted.
• The Excise Duty and Import Duty on CSD/PMF shall be 25% less than that of Civil for all types of liquor.
• Further, there are provisions on Assessment Duty and Additional Assessment Duty as well.

Source: Finance Department, Jammu and Kashmir