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GOVERNMENT OF KARNATAKA

No. FD 4 PES 2024

Karnataka Government Secretariat

Vidhana Soudha,

Bengaluru, dated: 21.06.2024.

NOTIFICATION

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 the said section for the information

of all persons likely to be affected thereby and notice is hereby given that the said draft will

be taken up for consideration after seven 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 the 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 - 01.

DRAFT RULES

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

(Excise Duties and Fees) (Third Amendment) Rules, 2024.

(2) They shall come into force with effect from the 1^st day of July, 2024.

¨sÁUÀ – 4ಎ

Part – IVA

, 21

, 2024(

, 31,

, 1946)

BENGALURU, FRIDAY, 21, JUNE, 2024(JYEISHTA, 31, SHAKAVARSHA, 1946)

. 301

No. 301

2

2. Amendment of Rule 2-AE.– In the Karnataka Excise (Excise Duties and Fees)

Rules, 1968’ (hereinafter referred as the said rules), in rule 2-AE,-

(i) after sub-rule (2), the following sub-rule shall be inserted, namely:-

“(2-A) The detailed Cost Sheet relating to each quoted brand of Liquor

showing details of items and costs involved in arriving at the Declared Price

under this Rule shall be produced duly signed by the Chief Executive or his

power of attorney holder of the Distillery / Brewery / Winery / Supplier and

authenticated by a Chartered Accountant / Cost Accountant in practice”.

(ii) after sub-rule (3), the following sub-rule shall be inserted, namely:-

“(4) The Declared Price for the product declared under this rule should be less

than (or) equal to the Lowest Declared Price / Lowest Net Price offered by

the Manufacturer / Supplier in other States / Union Territories or to the

Canteen Stores Department, whichever is lesser.

(5) The invoice copy of sales made to other States or proof of approval of

Declared Price by the Excise Commissioner of the concerned State / Union

Territory or the Managing Director of the Government Corporation dealing

in Liquor should be furnished for verification of the Lowest Declared Price /

Lowest Net Price.

(6) In the event of reduction in the Supply Price / Declared Price in other State

or Union Territory, Corporations / Canteen Stores Department, the same

benefit should be passed on to Karnataka State also immediately i.e., the Basic

Price / Declared Price to Karnataka State should continue to be the lowest.

(7) The supplier should give an undertaking on a stamp paper to the effect

that the Declared Price offered to Karnataka State is the lowest in the country

including Canteen Stores Department”.

2. Amendment of Rule 2-AF.– In rule 2-AF of the said rules, in sub-rule (1), in the

explanation, after clause (b), the following clause shall be inserted, namely:-

3

“(c) Provided further that, after reckoning the Maximum Retail Selling Price,

the Additional Rounding-Off Excise Duty (AROED) is charged wherever

required at such a rate to ensure that the liquor prices are rounded off to the

next Rs.5/-. This AROED shall be part of the MRP build-up just like the Excise

Duty and would be included in total Excise Duty payable while issuing

permits. It shall be applicable at such a value and in such a manner that after

calculation of MRP, the MRP arrived is exactly a multiple of Rs.5/-”.

By Order and in the name

of the Governor of Karnataka,

(Manjula Nataraj)

Under Secretary to Government,

Finance Department (Excise).

4

–

(i)

A

(ii)

“(4)

5

–

“

(AROED)

(AROED)

(MRP)

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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

THAMMAIAH

Digitally signed by THAMMAIAH

DN: c=IN, st=Karnataka, 2.5.4.20=be54f34f4e31eae50203ca7fab5ceb3794f20a8460a2582ef28294d43b8f8b16, postalCode=560059,

street=BANGALORE, pseudonym=ca58c76cf7e2445d7a4f3f51407e025e,

serialNumber=4d9b284dcc53d39f1425f50485de07dd86efa302a3fce3729eddea0c1b5098e0, ou=GOVERNMENT OF KARNATAKA,

o=GOVERNMENT OF KARNATAKA, cn=THAMMAIAH

Date: 2024.06.21 18:44:03 +05'30'