GOVERNMENT OF KARNATAKA ANNUAL REPORT FOR THE YEAR
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1 GOVERNMENT OF KARNATAKA STATE EXCISE DEPARTMENT ANNUAL REPORT FOR THE YEAR CHAPTER-1 VISION, MISSION, OBJECTIVES AND STRUCTURE 1.1 Vision: 1.2 Mission : Optimization of Excise Revenue while preventing the use of unsafe liquor and ensure informed consumption in hygienic conditions. Implementing State Excise policies and procedures by regulating manufacture, transport, possession, sale and other activities of the trade in spirit, spirituous preparations, potable liquor and other intoxicants, and monitoring collection of associated taxes. 1.3 Objectives : 1. Generate optimal revenue for the state exchequer 2. Regulate manufacture, transport, possession and sale of all excisable articles 3. Effective enforcement and inspection to control crime 4. Impart training for better efficiency & formulate e-governance initiatives 1.4 Functions : 1. Collection of excise revenue. 2. Issue of licences for manufacture, transport, possession and sale of all excisable articles. 3. Conduct inspections of licenced premises, raids and road watches regularly. 4. Review performance at regular intervals. 5. Training of Officers and Staff. 6. Verification of EVCs and permits. 7. Registration, investigation and prosecution of cases. 8. Monitor transaction of all excisable articles. 9. Computerization of departmental activities. 1
2 (I) State Acts and Rules. 1. The Karnataka Excise Act The Karnataka Prohibition Act The Rules framed under the above Acts. 4. Narcotic Drugs and Psychotropic Substances (Karnataka) Rules Karnataka Prevention of Dangerous Activities of Bootleggers Drug-offenders, Gamblers, Goondas, Immoral Traffic Offenders and Slum Grabbers Act (II) Central Acts and Rules. 1. The Medicinal and Toilet Preparation (Excise Duties) Act 1955, and Rules Narcotic Drugs and Psychotropic Substances Act 1985 (Central Act No. 61 of 1985) 1.5 ORGANISATION AND STRUCTURE: The Department is headed by the Excise Commissioner who belongs to the I.A.S. Cadre (Super time scale). The Headquarters of the Department is in Bangalore. The Excise Commissioner is assisted by one Additional Commissioner of Excise who belongs to IAS Cadre, two Additional Commissioners of Excise, one Joint Commissioner of Excise (Head Quarters and Administration). The other senior staff comprising Joint Commissioner of Excise (Distilleries and Breweries), Deputy Commissioner of Excise (Legal Cell), 5 Superintendents of Excise including Headquarters Assistants I and II, 6 Deputy Superintendents of Excise, a Deputy Director (Statistics) and an Assistant Director (Statistics) on deputation from Directorate of Economics and Statistics, a Senior Accounts Officer and Senior Audit Officer(Internal Audit) on deputation from the Accountant General s Office also assist the Excise Commissioner STATE EXCISE INTELLIGENCE BUREAU: The Joint Commissioner of Excise heading the State Excise Intelligence Bureau (S.E.I.B.), is headquartered in Bangalore and has jurisdiction throughout the State. The Joint Commissioner assists the Excise Commissioner on intelligence, inputs and prevention of excise offences such as illicit distillation, adulteration of liquor, illegal spirit movement, illegal transportation of liquor and evasion of Excise Duty etc. The 2
3 S.E.I.B. works under the direct control of the Excise Commissioner. In addition, there are four Excise Intelligence Bureaus in Bangalore (Urban) district each headed by a Superintendent of Excise under the administrative control of the Deputy Commissioners of Excise of Bangalore East, West, North and South districts who assist in enforcement and implementation of the Excise Act and Rules ENFORCEMENT AND INSPECTION DIVISIONS Further, for administrative efficiency, the state is divided into six administrative divisions. Each division is headed by a Joint Commissioner of Excise. The jurisdiction of each division is as below; Sl.No. Name of the Division Jurisdictional Districts 1. Bangalore Division Bangalore (U), Bangalore (R), Kolar, Tumkur, Ramanagarand Chikkaballapur 2. Belgaum Division Belgaum, Bijapur, Dharwad, Bagalkote and Haveri 3. Gulbarga Division Bidar, Gulbarga, Raichur and Yadagiri 4. Hospet Division Bellary, Chitradurga, Davanagere, Koppal and Gadag 5. Mangalore Division D.Kannada, U.Kannada, Udupi,Kodagu and Shimoga 6. Mysore Division Mysore, Mandya, Hassan,Chickmagalur and Chamarajanagara Every Revenue district in the State has a Deputy Commissioner of Excise who works under the supervision of Deputy Commissioner (Revenue) of the districts. The Deputy Commissioner of Excise discharges statutory responsibilities under the Karnataka Excise Act, 1965 and other statutory Acts and Rules. The enforcement work in the district is the responsibility of the Deputy Commissioner of Excise. There are 34 Deputy Commissioners of Excise, one each in the districts and one at the Head Office. Bangalore Urban district has 4 Deputy Commissioners of Excise because of its vast jurisdiction Superintendents of Excise, Deputy Superintendents of Excise, Inspectors of Excise, Sub-Inspectors of Excise, Excise Head-Guards and Excise Guards comprise the executive staff of the department. There are 63 Sub-Divisions, each headed by a Deputy Superintendent of 3
4 Excise who functions under the administrative control of the Deputy Commissioner of Excise of the district. Officers of the rank of Superintendents/ Deputy Superintendents of Excise/Inspectors of Excise assisted by other staff are posted to Distilleries, Breweries, and Wineries to supervise the transactions and to enforce the applicable Excise Laws. The Department also has a Central Chemical Laboratory headed by a Chief Chemist KSBCL AS SOLE LIQUOR DISTRIBUTING AGENCY: With an intention of canalizing wholesale trade of liquor and to curb illegal trade in the business, Karnataka State Beverages Corporation Limited was established in the year 2003 as a sole liquor distributing agency in the State. KSBCL has so far established 56 IML depots and 39 spirit depots all over the state. 2.1 FINANCIAL CHAPTER 2 PERFORMANCE OF THE DEPARTMENT Excise Revenue mainly emanates from the following sources. a) Excise Duty and Additional Excise Duty on IML, Beer and Wine. b) Licence fee on Distilleries, Breweries, Wineries and IML vending licences. c) Fines, fees and amount realised by confiscations. d) Miscellaneous. In addition to the revenue realised under the Karnataka Excise Act 1965, the State Government also gets revenue under Medicinal and Toilet Preparations (Excise Duties) Act, The Excise Revenue in the State has been steadily increasing from Rs.7.11 crores in the year to Rs crores in the year In the year the Excise Revenue collected was Rs crores and there is an increase of Rs crores in the year which is 15.89% growth. Expenditure made during the year of Rs crores towards salary of Officers and employees of the Department and for other expenses, and registered 0.86% to the total Excise Revenue. 4
5 The source wise Excise Revenue for the years , and areas follows:- (Rupees in Crores) SL NO SOURCE IML Beer Others(Including* KSBCL Prev. Fee) TOTAL * KSBCL Pre. Fee discontinued from EXPENDITURE : Total revenue realized and expenditure incurred by the department under salary and non-salary Heads during the years to are as follows:- (Rs in crores),particulars Revenue Expenditure Percentage of expenditure to total receipts. 2.3 PHYSICAL 0.86% 0.96% 0.86% PRODUCTION OF MOLASSES, RECTIFIED SPIRIT, IML, BEER AND WINE: The Production of Molasses, Rectified Spirit, IML, Beer and Wine for the years to are as follows:- (In lakh bulk ltrs) SL NO ARTICLES Molasses (in L.M.T) Rectified Spirit IML Beer Wine
6 2.3.2 SALE OF IML AND BEER: The sale of IML and Beer for the years to are as follows:- (In lakh carton boxes) SL NO ARTICLE IML Avg. per month Beer Avg. per month CRIME AND ENFORCEMENT : During the year under report, the Departmental Officers have conducted 82,008 raids and have booked 21,392 cases for violation of Excise Laws. 10,704 persons were arrested and 634 vehicles involved in the crime were seized. In addition to the above, the following excisable articles were seized SL NO ARTICLES QUANTITY (ltrs) 1. I.M.L Beer/Toddy/Fenny Arrack RS/NS Illicit liquor F.J. Wash Distillery, Brewery and Winery Units:- Number of Distilleries, Breweries and Winery units renewed for the year are as follows: Sl. No. Unit Number of Units 1. Primary Distilleries (manufacturing Spirit) Composite Distilleries (manufacturing both Spirit and IML) Units manufacturing only IML Breweries Wineries: A) Fruit Wine B) Fortified Wine
7 2.3.5 IML LICENCES The number of IML licences renewed during the year: Sl. No. Kind of Licence CL-2(Retail Shops) CL-4 (Clubs) A (Star Hotels) CL-7(Hotels & Boarding Houses) CL-9 (Bars) C (MSIL Shops) RVB (Retail Vend of Beer) Others TOTAL MEDICINAL AND TOILET PREPARATIONS: Under the provisions of Medicinal and Toilet Preparations (Excise Duties) Act, 1955 enacted by Government of India, L.1 and L.2 licences have been granted for manufacture of Medicinal and Toilet Preparations containing Alcohol, Opium, Indian hemp and other Narcotic drugs and Psychotropic substances. During , 17 L1 and 7 L2 licences were renewed ALCOHOL BASED CHEMICAL UNITS: During , 47 licenses for use of Rectified Spirit and 59 DL-3, 2 DL-6 and 1 DL-9 licenses for use of denatured spirit have been issued TODDY Sale of toddy is allowed through Tappers Co-Operative Societies in Dakshina Kannada and Udupi districts. Revenue from this source is very insignificant compared to the revenue realised from other sources. 7
8 2.3.9 RETAIL SALE OF LIQUOR THROUGH MSIL: With an object of curbing over MRP sales, the Government have permitted Mysore Sales International Limited to open 463 retail outlets (CL-11c) in the state and so far MSIL has opened 383 outlets. CHAPTER 3 PERFORMANCE OF PUBLIC SECTOR UNDERTAKINGS, SOCIETIES AND SPVs [-Doesn t come under the purview of State Excise Department -] 4.1 AMENDMENTS : CHAPTER 4 AMENDMENTS AND NEW LEGISLATIVE MEASURES 1. The Government vide Notification No. FD/05/PES/2013(I) dated: revised the 17 slabs of the Declared Price relating to Indian Made Liquor by increasing Rs. 40/- in each slab. 2. The Government vide Notification No. FD/5/PES/2013 (II), dated 25 th February 2013 brought an amendment to Rule 17B of Karnataka Excise Licences (General Conditions) Rules, 1967 and doubled the fee collected for transfer of licences. 3. With regard to payment of Privilege fee, Section 24 of Karnataka Excise (Sale of Indian and Foreign Liquors) Rules, 1968 has been amended on The Government vides Notification No. FD/12/PES/2013 dated: has amended Karnataka Excise (Excise Duties and Fees) Rules, 1968 and increased the rates of AED on Indian Made Liquor by 16% to 40%. 4.2 REPORTS AND PUBLICATIONS: After the completion of every financial year, a publication is brought out by the department comprising Basic Excise Statistics highlighting revenue collections, production, sales, export and import of liquor, prevailing licence fee and duty structure, crime & enforcement activities, renewal of licences, telephone nos. and addresses of officers of the department etc. 8
9 CHAPTER 5 ACHIEVEMENT IN HR MANAGEMENT AND ADMINISTRATION 5.1 The number of sanctioned posts for the department is 5197, out of which 2942 posts are filled and the remaining 2255 posts are vacant. Details are given below:- Sl.No. Designations Pay Scale Sanctioned Working Vacant 1 Excise Commissioner (IAS) Addl. Commissioner of Excise (Hqtrs. & Admn.) (IAS) 3 Joint Commissioner of Excise (IAS) Addl. Commissioner of Excise Joint Commissioner of Excise Deputy/Joint Commissioner of Excise (Admin) 7 Deputy Commissioner of Excise Deputy Director of Statistics Senior Accounts Officer Senior Audit officer Superintendent of Excise Chief Chemist Asst. Director of Statistics Dy. Superintendent of Excise Senior Chemist Office Superintendent Inspector of Excise Asst. Accounts officer Sub Inspector of Excise First Division Assistant Stenographer Second Division Assistant Typist Head Guards Excise Guards Senior Drivers Drivers Group - D workers TOTAL
10 5.2 Statement showing the vacancy position and retirements during Group A & B Group-A Sanctioned Working Vacant (+) or (-) Retirements during the year (-)57 14 Group-B Sanctioned Working Vacant (+) or (-) Retirements during the year (-) Group C & D Sl. No. Designation Sanctioned posts Working posts Vacant posts Retirements during calendar year Inspector of Excise Sub Inspector of Excise Office Superintendent First Division Asst Stenographer Second Division Asst Typist Excise Head Guard Excise Guard Senior Driver Drivers Group D
11 5.3 Group wise and sex wise number of officers/ officials : Group- A & B Group-A No.of officers belonging to SC/ST Total Male Female Total SC ST Group-B No.of officers belonging to SC/ST Total Male Female Total SC ST Group-C and Group-D : Sl.No. Designation Sanctioned post Working strength 1. Inspector of Excise Sub Inspector of Excise Office Superintendent First Division Asst Stenographer Second Division Asst Typist Excise Head Guard Excise Guard Senior Driver Driver Male Female SC ST Group D RECRUITMENTS : Deputy Superintendents of Excise : Six posts of Deputy Superintendent of Excise have been notified in the year A proposal for direct recruitment of four Deputy Superintendent of Excise is submitted to Government for financial concurrence. 11
12 Excise Sub Inspectors : Notification has been issued by KPSC for filling up of 200 posts of Sub Inspector of Excise. Written examination is over and selection list is to be published. A proposal for Direct recruitment of 216 posts of Excise Sub Inspector is submitted to government for financial concurrence Excise Guards : Notification has been issued by KPSC for filling 350 posts of Excise Guards. Written examination is over and selection list is to be published. A proposal for direct recruitment of 373 posts of Guards is submitted to Government for financial concurrence Drivers : Government have accorded permission for recruitment of 100 Drivers for filling up of vacant posts in different offices of the department. The recruitment process is in progress. A proposal for direct recruitment of 183 posts of Drivers is submitted to government for financial concurrence. 5.5 TRAINING : Sl. Training Subject No. of officers deputed. No. 1. Police training for Deputy Superintendents of 37 Excise and Inspectors of Excise 2. Stress Management Sakala Right to Information Act KTPP Act and Government process 05 Re-engineering 6. NDPS, M & TP and Crime etc Management Development 01 Total
13 5.6 Filling up of posts on outsourcing basis : Stenographers and Typists : The Government has given approval to fill up vacant posts of Stenographers and Typists on outsourcing basis Vide Govt. letter No: FD /148/EPS/2010 dated: typists have been taken on outsourcing basis in the Excise Commissioner s office. 5.7 AWARDS/ MEDALS : - Nil Inspection of Subordinate Offices : Inspections conducted by DCs of Excise Sl.No. Designation 1. Deputy Commissioner of Excise, Tumkur Dist. 2. Joint Commissioner of Excise, (E&I), Mangalore Division 3. Joint Commissioner of Excise, (E&I), Mangalore Division 4. Deputy Commissioner of Excise, Bangalore(North) 5. Deputy Commissioner of Excise, Bangalore(North) 6. Deputy Commissioner of Excise, Uttara Kannada 7. Deputy Commissioner of Excise, Bangalore(North) 8. Deputy Commissioner of Excise, Bangalore(East) Offices Inspected Gubbi Range Kunigal Range Tumkur Range O/o Deputy Commissioner of Excise, U.K.Dist. O/o Deputy Commissioner of Excise, Kodagu Dist. Nandini Layout Range Platform KSBCL Depot Nandini Layout Range J.P. Distillery Karwar Range Vorion Distillery, dated: Rajmahal Vilas Range, dated: Inspections conducted by the Officers and staff of Excise Commissioner s Office Sl.No. Designation Offices Inspected 1. Joint Commissioner of Excise (D&B), Bangalore M/s Radico Ltd., Lessee of Yezdi Distilleries, Mysore. 13
14 6.1 INTERNAL AUDIT REPORT : CHAPTER Number of offices audited by the Internal Audit Wing. Office/ Establishment Number Deputy Commissioner Offices 01 Range Offices 03 Sub-Divisions Offices 01 Total Number of Audit Paras Raised. Officers Paras Money Value Non-Money Value DCE Offices 3-3 Sub-Divisions Ranges Number of Audit Paras Cleared. Officers Paras Money Value (Rs. in lakhs) Non-Money Value (Rs. in lakhs) Distilleries DCE Offices Sub-Divisions Ranges Total Number of LA & LC Questions received/ answered Session Starred Un starred Received Replied Received Replied Legislative Assembly Legislative Council Cases admitted in Karnataka Administrative Tribunal(KAT) Opening balance 214 Cases filed 56 Total 280 Cases disposed of 22 Balance (as on )
15 6.4 IMPLEMENTATION OF RTI ACT : Number of applications received, replied, rejected and number of responses pending in appeal under the RTI Act from to SI.No Details Total 1. Opening Balance Total Received Application during the Year Total Applications Total No of Disposed of During the Year Pending Applications at the end of the Year prescribed Fees Pending from Applicants No of request were Applicants were denied Access to 13 Information Along with Section of RTI Act Rule 8(1) (H) and Rule under No. of Application Pending at RTI Court Cases admitted in Karnataka High Court (Writ petitions) Opening balance 56 Cases filed 180 Total 236 Cases disposed of 193 Balance (as on ) Cases admitted in Excise Commissioner s Court Opening balance 132 Cases filed 174 Total 306 Cases disposed of 209 Balance (as on ) 97 Excise Commissioner. 15
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