Liquor Sales Policy 2017-18

HIMACHAL PRADESH BEVERAGES LIMITED

(A Government of Himachal Pradesh Undertaking)

Circular No: HPBCL/LSP/ 2017-18/18941 Dated: 29Th March, 2017

Liquor Sales Policy for 2017-18

This circular/notification has been issued under the mandate of condition No. 2.38,
6.13 and 7.15 of The Excise Announcements for the year 2017-18 and pertains to
sales/ disposal of liquor. Retail vendors are requested to take note to the procedure
prescribed in this circular for the Financial Year 2017-18 and it comes into effect
immediately.

1. Submission of initial Documents:-

1.1Buyers desirous of procuring liquor from HPBL shall submit the
following documents, before they can be allowed to transact with the
HPBL.
(1) Details of the organization of the buyers to be given in its letterhead in
the format in Annexure – 1 and Annexure – 2.
(2) A certified copy of the license/ provisional license or any other
documentary evidence granted/ issued by the competent authority of
Excise and Taxation Department, Himachal Pradesh under the
Himachal Pradesh Excise Act, 2011 and the rules framed there under
as applicable to the buyer.
(3) Certificate, if any, in Form 27G of the Income Tax Act, 1961 For
reduced rate of tax collected at source (TCS)
(4) Undertaking as in format in Annexure – 3.

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2. Issue of Stocks:-
2.1 In the first month of first quarter of 2017-18, the retailer will first verify
the availability of the stock from the web portal of the HPBL and
accordingly upload his intend along with details of amount deposited in
the bank account of the HPBL and will download the so uploaded indent
for the purpose of issuance of e-Excise pass/manual pass from the
Excise & Taxation Department and after obtaining the excise pass the
retailer/buyers will go to the concerned depot to lift his booked stock
where the Depot Incharge will firstly verify the genuineness of payment
from the Bank Statement of HPBL bank account and also of the excise
pass submitted before him by the buyer, only then the depot incharge will
issue the stock to the buyer and will generate the invoice electronically.
In case of non-functioning of HPBL Portal for any reasons sales can be
made on manual invoices also with prior approval of General Manager
(operation).
To facilitate the process of supply of liquor, each and every retailer will
have to upload mandatorily his advance indent for remaining two months
of the first quarter within first fortnight of April 2017 i.e. latest by 15Th
April 2017 and for subsequent quarters thirty days before the start of the
quarter on the portal of the HPBL for the supply of any brands of liquor
which are registered with HPBL and are approved by the Excise and
Taxation Commissioner, Himachal Pradesh as per his lifting requirement
as per Annual Quota of liquor of his vend or vends as fixed by the Excise
& Taxation Department. Advance indents so uploaded by the retailer(s)
will be made viewable to approved manufacturers/suppliers who will
supply the brands and the quantity so intended by the retailers within a
period of fifteen days and will have to keep and maintain with them the

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 adequate stock of such demand at least equal to the demand for fifteen
days which should generally be delivered to HPBL as per weekly
demand. If the manufacturer/supplier wilfully fails to do so within the
above prescribed periodicity, the HPBL will take necessary action to de-
register the brand(s) and will recommend to Excise and Taxation
Commissioner for necessary action against the manufacturer/supplier.
Besides this, manufacturer/supplier shall be held responsible for any
loss/damages/claims accrued to HPBL due to non supply of the brands
and the quantity of the liquor as per advance intends of the
retailers/desirous buyers.

And if the retailer does not lift the brands and the quantity of the liquor as
per his advance intend within the quarter he shall be liable to pay a
penalty which shall be equal to 1% of the value of the quantity of the
liquor that remains short of his Advance Indent for first three days and
part thereof and at the same ratio for subsequent slab of every next three
days or part thereof. And if this penalty amount is not paid by the retailer
the same shall be recovered or adjusted from any subsequent payments
that are credited by the concerned retailer in the bank account of the
HPBL.
Besides above penal action his advance indent will lapse automatically
for that quarter and he will not be entitled to any compensation or claim
for damages if the supply of liquor to him fall short of the quota fixed in
respect of his vend or vends for his own fault.
For actual supplies, the retailer will have to follow the same process as
prescribed in the first part of the para 2.1 above.
If the retailer fails to lift the liquor within three working days after booking

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on HPBL software he shall be liable to pay a penalty as prescribed as under:
(1) For first seven days or part thereof : 0.5% of the value of
indent/demand note
(2) For next seven days or part thereof : 1% of the value of
indent/demand note

However, these rates may be revised by the MD HPBL from time to time.
In exceptional circumstances where the delay is on account of factors
beyond the control of buyer like natural calamity and contingencies alike,
MD HPBL may condone the delay charges.

2.2 Stock shall be issued to buyers during working hours, which shall
ordinarily be between 11 Am and 6 Pm. Issue of Stock before or after
these hours shall be at the discretion of the Depot manager and shall be
exceptional. Issue of stock shall be made to those retailers who fulfill
the following conditions in addition to others:
(1) Authorised signatory is present.
(2) Necessary Funds have been credited to the HPBL Accounts.
(3) Vehicle for taking delivery has been brought and is available in the
depot premises.

The delivery shall be made on the first come first serve basis amongst
those who fulfill the above three prerequisites.

2.3 Ownership of stocks sold to buyers shall pass on to them

immediately after delivery at the depot. Buyers are therefore advised to
verify the goods before accepting delivery. If the buyer so desires, Depot
Managers shall allow prior inspection of Carton Boxes (CB) before
delivery popularly called “Open Delivery”, as no claims for shortages or
breakages shall be entertained thereafter.

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 2.4 Buyers shall be responsible for un-stacking, loading the purchased goods
into their vehicle and transport the same to their destination at their risk
and cost. Any damages arising during handling of goods at this stage
shall be their responsibility. Under no circumstances, shall any claim for
damages be entertained after handing over the goods and no depot shall
accept return of goods after issue/delivery.

2.5 The HPBL will not generally sell loose bottles. However the Depot
Manager/Incharge may allow lifting of loose bottles considering the
factor of quota of a retailer fixed by the department, when the situation
arises so that the retailer is directed to take delivery in loose
bottles. IMFL brands (except – wine) having MRP of more than Rs.
1,000/- per bottle can be sold in loose.

2.6 The Sales Invoices raised on the Buyer shall be subjected to terms
stipulated in this Policy.
3. Sale Price:-
3.1 The price to be charged for the stock issued shall be as fixed by the
Excise and Taxation Commissioner, Himachal Pradesh.
3.2 The Buyer may seek clarifications in the Sales Invoices raised by the
HPBL within 3 weeks of the sale. Corrective action as may be necessary
would be taken based on the Buyers representation. Generally, the HPBL
would not entertain clarification on the Sales Invoices raised after 2
months of the sale.

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 3.3 The buyer will have to submit a monthly detail of purchases made from
and payments made to HPBL by the 7Th of next month on the format in
Annexure – 4.
3.4 The HPBL is entitled to recover differences due to short billing,
excess dispatches or any other reasons, immediately after such
instances are noticed by it. Such amounts if not paid immediately upon
demand shall carry an interest of 18% per annum. Further the HPBL is
entitled to adjust such amounts out of any payment received or out of any
other credit lying in favour of the buyer.
3.5 In addition to an interest of 18% per annum, the buyer/ licensee shall be
liable to pay a minimum penalty of Rs 1000/- per instance or maximum
10% of amount whichever is higher for debit balance or any other dues
for any reasons for which buyer/licensee is responsible apart from other
legal liabilities and remedies that the HPBL may resort to.
3.6 Notwithstanding anything to the contrary contained in any law for the
time being in force, any amount to be recovered from the
retailer/buyer/licensee on account of dues of the stocks sold including all
other amounts which remains unpaid after the due date, shall be
recoverable as arrears of land revenue under the provisions of the
Himachal Pradesh Land Revenue Act, 1954.
4. Payment for stocks purchased:-
4.1 Issue of stocks shall be against ‘e’payment through Internet Banking
or Direct Credit in the account of the HPBL through Challans/ RTGS /
NEFT into various Bank Branches authorized by HPBL. Cash/ Pay
Order/ Demand Draft will not be accepted by the Depot. No credit sale is
allowed.

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 4.2 Buyers who have an account with any Branch of the designated
Banks may transfer the due amount in the account of the HPBL
through ‘e’ payment through Internet Banking or Challan prescribed by
the HPBL. Bank Branches and Account number of the HPBL with these
banks where such payment can be made would be separately notified.
4.3 Buyer shall produce ‘e’ Challan of ‘e’ payment or a portion of the bank
Challan with the confirmation of the Bank to the concerned Depot based
on which goods would be issued.
4.4 Licensees may Deposit a fixed amount and lift stocks against such
deposit. The HPBL would not pay any interest on the deposit. They may
replenish the deposit periodically.

5. Tax collection at Source:-

5.1 The Income Tax Act, 1961 under Section 206 C provides for Tax
Collection at Source. Collection of Tax is based on the price of the
specified commodity. Alcoholic liquors for Human consumption are a
specific commodity and therefore, collection of Tax w.e.f. 01-11-2003 is
mandatory.
5.2 Tax has to be collected at the time of receipt of amount for sale of goods,
@ 1% of the Sale Price (inclusive of Excise Duty & other applicable
Taxes) to which surcharge & other notified levies viz cess etc. may be
added as specified.
5.3 Therefore, a part of the remittance made by the Buyer shall be first
appropriated towards tax to be collected. The Tax so collected would be
remitted by the Head Office necessary certificate forwarded to concerned
Depots for onward transmission to Buyers. Certificates shall be issued
quarterly in the relevant financial year.

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 5.4 The Buyer is entitled to approach the Assessing Officer for issue of a
certificate for Tax collection at a rate lower than the one prescribed. If the
certificate is received directly from the Assessing Officer, tax collection
would be affected at the rate specified in the certificate.
5.5 The HPBL shall not refund excess Tax collected (due to late submission
of Form-27G or any other reason) & buyers are advised to seek refund
from Income Tax Authorities.
5.6 Service Tax as applicable shall be borne by the retailer.

6. Jurisdiction
6.1 Any sale made by the HPBL shall be subject to the jurisdiction of
Shimla District Civil Court.

7. Review of the Policy

7.1 The above Policy is subject to periodic review. The HPBL is at liberty
to amend it or part thereof, if the circumstances so warrant.

Managing Director,
HPBL Shimla

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 Annexure – 1
Details of the Organization of the Buyer
(To be given on the letterhead of the Organization)

Name and address

of the Organization:

Type of the Company/Society/Partnership/ Sole Proprietorship

organization:

TIN No:
PAN No:
Email ID
Bank Name
Bank Branch Name
Account Number
IFSC Code
Particulars of the Chief Name Address Mobile No FAX No
Executive/
Managing Partner/
Owner
Particulars of the Name Address Mobile No FAX No
other Directors/ 1.
Partners, if any
2.

3.

Detail of the license/

any other documentary
evidence issued by
the HP Excise and
Taxation Department

Place: Sd/

Date: Chief Executive/ Managing Partner/ Owner

(Name)

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 Annexure – 2
Details of Units and Vends of the Buyer

Name of District

Name of Circle

Name of Units

Name of Vends Type of Vend

L-2 L-14 L-14 L-10 S-1-AA any other

A BB

Annual Quota
(vend wise)

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 Annexure – 3

UNDERTAKING TO BE GIVEN BY
LICENSEES (Buyers)
(To be given on the letter head of the organization)

To,
The Managing Director,
Himachal Pradesh Beverages Limited
Shimla, H.P

Subject: Purchase of Liquor – Ref: Sales Policy of the HPBL for the year 2017-18.

Dear Sir,

We are in receipt of the HPBL liquor Sales Policy for the year 2017-18 and have gone
through the same in detail. In this connection, we hereby undertake to purchase liquor
from the HPBL in accordance with the Liquor Sales Policy.

Thanking You,

Yours faithfully,

Signature of the Licensee/Buyer

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 Annexure – 4
Detail of purchases made from and payment made to HPBL during the month of …………

Name of Licensee

Address

PAN

Mobile Number

Detail of Purchases

Date Bill No Name of Type of Amount TCS Total

Godown Liquor

Detail of Payments

Date Mode of Payment Account RTGS/NEFT/Cheque Amount

RTGS/NEFT/Cheque/Cash number from Number
which the
payment has
been made

Date: Signature

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