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GOVERNMENT OF KARNATAKA

No. FD 4 PES 2024 Karnataka Government Secretariat

Vidhana Soudha,

Bengaluru, dated:23.08.2024.

NOTIFICATION

Whereas the draft of the Karnataka Excise (Excise Duties and Fees) (Third

Amendment) Rules, 2024, was published as required by sub-section (1) of Section 71

of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) in Notification No: FD

4 PES 2024, dated: 21.06.2024 in Part-IV A of the Karnataka Gazette (Extraordinary)

No.301 dated: 21.06.2024 inviting objections and suggestions from all persons likely

to be affected within seven days from the date of its publication in the official Gazette.

And, whereas the said Gazette was made available to the public on 21^st June

2024.

And, whereas objections and suggestions received in this behalf have been

considered by the State Government.

Now, therefore, in exercise of the powers conferred by Sub Section (1) of Section

71 of the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966), the Government of

Karnataka hereby makes the following rules, namely:-

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 27^th August 2024.

¨sÁUÀ – 4J

Part – IV A

23

2024

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01

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BENGALURU, FRIDAY, 23, AUGUST, 2024(BHADRAPADA, 01, SHAKAVARSHA, 1946)

. 408

No. 408

2

2. Amendment of rule 2-AE:– In the Karnataka Excise (Excise Duties and

Fees) Rules, 1968, (hereinafter referred to as the said rules), in Rule 2-AE, in sub-rule

(2), after the proviso, the following proviso shall be inserted, namely:-

“Provided further that, any supplier who proposes to increase the Declared

Price declared under sub-rule (1) shall submit the following to the Excise

Commissioner, namely:-

i.

The detailed Cost Sheet showing details of items and costs involved in arriving

at the Declared Price under this sub-rule, 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.

The supplier should give an undertaking on a stamp paper to the effect that the

Declared Price offered under this sub-rule is the lowest, when compared to the

neighbouring States like Telangana, Andhra Pradesh, Tamil Nadu, Kerala,

Maharashtra and Goa and in any case, shall not be more than 10% of the Lowest

Declared Price offered in the neighbouring States”.

3. 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:-

“(c) 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 by the

Retailers while issuing invoices. 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

(M.Rajamma)

Under Secretary to Government,

Finance Department (CT-2 & Co-ordination)

3

IV

–

i.

4

ii.

–

(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: 2024.08.26 17:41:53 +05'30'