(1)

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GOVERNMENT OF KARNATAKA

No: FD 9 PES 2022 Karnataka Government Secretariat

Vidhana Soudha,

Bengaluru,dated:09^th January 2023.

NOTIFICATION-III

The draft of the following rules further to amend the Karnataka Excise (Excise Duties and

Fees) Rules, 1968, which the Government of Karnataka proposes to make in exercise of the powers

conferred by section 71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) is hereby

published as required by sub-section (1) of section 71 of the said Act for the information of all persons

likely to be affected thereby and notice is hereby given that the said draft will be taken into

consideration after thirty days from the date of its publication in the official Gazette.

Any objection or suggestion which may be received by the State Government from any person

with respect to the said draft before the expiry of period specified above will be considered by the

State Government. The objections or suggestions may be addressed to the Additional Chief Secretary

to Government, Finance Department, Vidhana Soudha, Bengaluru - 560001.

DRAFT RULES

1. Title and commencement.- (1) These rules may be called the Karnataka Excise (Excise

Duties and Fees) (Amendment) Rules, 2023.

(2) They shall be come into force with effect from the 1^st day of July, 2023.

2. Amendment of rule 2.- In the Karnataka Excise (Excise Duties and Fees) Rules, 1968,

(hereinafter referred to as the said rules), in rule 2, for clause (1-A), the following shall be substituted,

namely:-

¨sÁUÀ – 4

Part – IV A

, 10

2023(¥ÀĵÀå 20

1944)

BENGALURU, TUESDAY, 10, JANUARY, 2023(PUSHYA, 20, SHAKAVARSHA, 1944)

. 11

No. 11

2

“(1-A). In case of Microbrewery, the Excise Duty applicable for twenty-five percent of the

annual installed capacity shall be paid along with the licence fee at the rate specified in Schedule

A. The next installment of Excise Duty applicable for twenty-five percent of the annual installed

capacity shall be paid, when the production of draught beer exceeds twenty-five percent of the

annual installed capacity or within the end of December month of the Excise year, whichever

is earlier. In case the production of draught beer exceeds fifty percent of the annual installed

capacity, the licensee shall pay Excise Duty for such quantity of excess production of draught

beer at the rate specified in Schedule A.”

3. Amendment of rule 2-AAA.- For rule 2-AAA of the said rules, the following shall be

substituted, namely:-

“2-AAA. In case manufacture of draught beer in Microbrewery, in addition to the

Excise Duty paid by the licensee under rule 2, an Additional Excise Duty applicable for

twenty-five percent of the annual installed capacity shall be paid along with the licence fee

at the rate specified in Schedule D1. The next installment of Additional Excise Duty

applicable for twenty-five percent of the annual installed capacity shall be paid, when the

production of draught beer exceeds twenty-five percent of the annual installed capacity or

within the end of December month of the Excise year, whichever is earlier. In case the

production of draught beer exceeds fifty percent of the annual installed capacity, the licensee

shall pay Additional Excise Duty for the quantity of excess production of draught beer at the

rate specified in Schedule D1.”

4. Amendment of Schedule-A.- In Schedule-A to the said rules, for Serial No.9 and the

entries relating thereto, the following shall be substituted, namely:-

”9. Beer manufactured in the Rs.10 per bulk litre”

Microbrewery

5. Amendment of Schedule-D1.- For Schedule-D1 to the said rules, and entries relating there

under the following shall be substituted, namely:-

3

“SCHEDULE D1

[See rule 2-AAA]

Sl.

No.

Name of the Article

Declared price range

per bulk litre of Beer

Rate of

Additional Excise

Duty/ Additional

Countervailing

duty per BL

From

To

Rs. Ps

Rs. Ps

1.

Beer manufactured in

the Microbrewery

00.00

25.00

Rs.25.00”

Above 25.00

By Order and in the name of

the Governor of Karnataka

(Manjula Nataraj)

Under Secretary to Government

Finance Department (Excise)

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R.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19

Licensed to post without prepayment WPP No. 297

SUNIL GARDE

Digitally signed by SUNIL GARDE

Date: 2023.01.10 17:21:25 +05'30'