MRP & Excise Duties

Issued

18 Oct 1996

Source

State Excise Website

Category

Excise Page Pdf

What This Document Says

MAHARASHTRA eGAZETTE ANALYSIS

Document Type: Compilation of Rules and Notifications
Subject: Maximum Retail Price (MRP) Fixation and Excise Duties under Bombay Prohibition Act, 1949

PART I: MAHARASHTRA POTABLE LIQUOR (FIXATION OF MAXIMUM RETAIL PRICES) RULES, 1996

Original Notification: G.N. H.D. No. ARM. 1096/21/7/EXC-3, dated 18th October 1996
Effective Date: 1st January 1997
Authority: Section 143(2)(hl)(ii) of Bombay Prohibition Act, 1949
Amendment History: 21 amendments from 1996 to 2011

KEY PROVISIONS

Rule 1 — Title and Commencement
Rules came into force from 1st January 1997.

Rule 2 — Definitions

Manufacturer: Holders of PLL, BRL, CL-I licenses or Form 'K' registration certificate
Maximum Retail Price (MRP): Maximum price at which potable liquor (excluding country liquor in pack form) may be sold to ultimate consumer, inclusive of all taxes, duties, freight, transport charges, dealer commission, and delivery charges
Foreign Liquor: All liquor produced or manufactured outside India (added by amendment dated 10-7-2007)
MRP must be printed on each pack as: "Maximum/Max. Retail Price Rs. ___ (inclusive of all taxes and duties)" or "MRP Rs. ___ (inclusive of all taxes and duties)"

Rule 3 — Declaration Requirements
Manufacturers must declare manufacturing cost and MRP in quadruplicate to:

District Superintendent of State Excise (for domestic manufacturers)
Commissioner (for exporters to Maharashtra)
FL-I licensees (for imported liquor removal from customs)

Rule 4 — Subsequent Changes
Any variation in manufacturing cost or MRP must be declared in advance in quadruplicate.

Rule 5 — MRP Regulation Formula

(A) SALE TO LICENSEES (OTHER THAN CSD)

Country Liquor:

4.5 × manufacturing cost + Sales Tax

Foreign Liquor (Spirits):

If cost ≤ Rs. 120/bulk litre: 5 × cost + Sales Tax
If cost > Rs. 120/bulk litre: 5 × cost + 5 × (excess over Rs. 120) + Sales Tax

Beer & Mild Liquor:

Fermented liquor (except Beer): 3.75 × cost + Sales Tax
Mild liquor (except Beer): 3.5 × cost + Sales Tax
Beer ≤8.75% proof spirit: 3.5 × cost + Sales Tax
Beer >8.75% proof spirit: 4 × cost + Sales Tax

Wine:

If cost ≤ Rs. 40/bulk litre: 4 × cost + Sales Tax
If cost > Rs. 40/bulk litre: 4 × cost + (excess over Rs. 40) + Sales Tax

Special Provision for Maharashtra Grape Wine (without alcohol/blending):
(Duty remitted until 23rd December 2011)

If cost ≤ Rs. 40/bulk litre: 3 × cost + Sales Tax
If cost > Rs. 40/bulk litre: 3 × cost + (excess over Rs. 40) + Sales Tax

(A1) FOREIGN LIQUOR (IMPORTED)

Spirits:

Same multipliers as domestic Foreign Liquor + Customs Duty

Wine (Imported):

If MRP ≤ Rs. 900: 2 × cost + Rs. 400/bulk litre + Customs + Sales Tax
If Rs. 900 < MRP ≤ Rs. 6,000: 2 × cost + Rs. 300 + Customs + Sales Tax
If MRP > Rs. 6,000: 2 × cost + 5% of MRP + Customs + Sales Tax

(B) SALE TO CANTEEN STORES DEPARTMENT (CSD - ARMED FORCES)

Foreign Liquor (Spirits, excluding Rum):

If cost ≤ Rs. 120/bulk litre: 3.8 × cost + Sales Tax
If cost > Rs. 120/bulk litre: 3.8 × cost + 5 × (excess over Rs. 120) + Sales Tax

Rum:

If cost ≤ Rs. 120/bulk litre: 2.6 × cost + Sales Tax
If cost > Rs. 120/bulk litre: 2.6 × cost + 5 × (excess over Rs. 120) + Sales Tax

Fermented/Mild Liquor:

3.15 × cost + Sales Tax

Wine:

If cost ≤ Rs. 40/bulk litre: 3.6 × cost + Sales Tax
If cost > Rs. 40/bulk litre: 3.6 × cost + (excess over Rs. 40) + Sales Tax

Maharashtra Grape Wine (CSD rates, duty remitted until 23-12-2011):

If cost ≤ Rs. 40/bulk litre: 2.7 × cost + Sales Tax
If cost > Rs. 40/bulk litre: 2.7 × cost + (excess over Rs. 40) + Sales Tax

Proviso:
If specific duty exceeds ad-valorem duty, MRP shall not exceed: 2 × manufacturing cost + excise duty/countervailing duty

Rule 6 — Supplementary Instructions
Commissioner may issue written supplementary instructions.

PART II: EXCISE DUTY SCHEDULE

Notification: G.N., R.D. No. 10504/39, dated 23rd July 1949
Authority: Section 105(1), Bombay Prohibition Act, 1949
Effective Date: 1st January 1997
Amendment History: 43 amendments from 1949 to 2011

COMPLETE EXCISE DUTY SCHEDULE

Sr.	Excisable Article	Rate of Duty
1	Ale, Porter, Cider — ≤8.75% proof spirit (5% v/v)	150% of manufacturing cost OR Rs. 33/bulk litre (whichever higher)
1	Ale, Porter, Cider — >8.75% proof spirit	175% of manufacturing cost OR Rs. 42/bulk litre (whichever higher)
2	Beer — ≤8.75% proof spirit (5% v/v)	150% of manufacturing cost OR Rs. 33/bulk litre (whichever higher)
2	Beer — >8.75% but ≤14% proof spirit (8% v/v)	175% of manufacturing cost OR Rs. 42/bulk litre (whichever higher)
3	Mild Liquor — ≤8.75% proof spirit (5% v/v)	150% of manufacturing cost OR Rs. 33/bulk litre (whichever higher)
3	Fermented Liquor — >8.75% but ≤14% proof spirit (8% v/v)	175% of manufacturing cost OR Rs. 42/bulk litre (whichever higher)
4	Beer from Microbrewery	Rs. 42/proof litre
5	Alcoholic Essences	Rs. 75/proof litre of alcohol content
6	Liqueurs, Cordials, Mixtures (containing spirit, except medicinal/toilet preparations)	Rs. 150/proof litre of alcohol content
7	Rectified Spirit	Rs. 250/proof litre of alcohol content
8	All Other Spirits (excluding denatured spirit & country liquor)	300% of manufacturing cost OR Rs. 240/proof litre of alcohol content (whichever higher)
9(a)	Wine — Own brands from Maharashtra grapes, no alcohol/blending (remitted until 31-12-2021)	100% of manufacturing cost (currently remitted)
9(b)	Wine — Own brands from Maharashtra grapes, with alcohol addition	125% of manufacturing cost
9(c)	Wine — Own brands from imported bulk wine/concentrate/juice OR blended, with/without alcohol	150% of manufacturing cost
9(d)	Wine — Foreign brands from imported bulk wine/concentrate/juice OR blended, with/without alcohol	200% of manufacturing cost
10(a)	Country Liquor — Using cashew apple/mhowra flower spirit	Rs. 10/proof litre of alcohol content
10(b)	Country Liquor — Using other base spirits	250% of manufacturing cost OR Rs. 95/proof litre of alcohol content (whichever higher)

KEY DEFINITIONS (from Explanation)

Proof Litre of Alcohol Content:
Quantity of 1 litre of Proof Spirit

Proof Spirit:
Mixture of alcohol (ethanol C₂H₅OH) and water containing 57.06% alcohol by volume at 60°F (15.55°C)

100° Proof = 57.06% alcohol by volume
75° Proof (25° Under Proof) = 42.795% alcohol by volume

Manufacturing Cost:
Cost declared by manufacturer/exporter under Maharashtra Potable Liquor (Fixation of Maximum Retail Prices) Rules, 1996

ADDITIONAL NOTIFICATION

G.O. H.D. No. ARM. 1096/21/EXC-3, dated 26th December 1996
Change: Effective date of Government Notifications dated 13-9-1996 and 4-10-1996 postponed from 1st January 1997 to 8th January 1997

SUMMARY

This document establishes a comprehensive framework for:

MRP calculation methodology using cost-based multipliers varying by product category, sales channel (retail vs. CSD), and manufacturing location (domestic vs. imported)
Excise duty rates based on either percentage of manufacturing cost or fixed rates per litre, whichever is higher
Special concessions for Maharashtra grape-based wines and Armed Forces supplies through CSD
Mandatory declaration procedures for manufacturers and importers to ensure price transparency and tax compliance

The rules have been extensively amended (21 times for MRP Rules, 43 times for Excise Duty Schedule) reflecting Maharashtra's evolving liquor taxation policy from 1949 to 2011.

मराठीत सारांश

# महाराष्ट्र दारूबंदी कायदा — MRP आणि Excise Duty समजावून सांगतो

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## थोडक्यात:
**महाराष्ट्र सरकारने 1996-97 नंतर दारूचे किंमत (MRP) आणि Excise Duty कसे ठरवायचे हे नियम बनवले आहेत. हा कायदा सरकारला tax मिळायचा आणि दाराचे किंमत नियंत्रणात ठेवायचा.**

---

## KEY बातमी (सोप्या भाषेत)

### **1) MRP (Maximum Retail Price) म्हणजे काय?**

थोडक्यात: **दारु shop वर किती किंमतीला विकायचे हे सरकारने ठरवून दिलेले आहे.**

- हिमधे सर्व tax, delivery charge, shopkeeperचे commission सव्व समाविष्ट आहे
- हीच किंमत bottle/pack वर print असायला हवी
- उदाहरण: "MRP Rs. 500 (inclusive of all taxes and duties)"

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### **2) MRP कसे तयार होते? (महत्वाचे)**

सरकारने **cost-based formulas** बनवले आहेत. म्हणजे:

#### **देशी Spirits (Foreign Liquor):**
- जर manufacturing cost ≤ Rs. 120 per litre: **किंमत = 5 × cost + Sales Tax**
- जर cost > Rs. 120: **किंमत = 5 × cost + extra (5 × जास्तीचा भाग) + Sales Tax**

उदाहरण: जर cost Rs. 100 असेल, तर MRP = (5 × 100) + tax = Rs. 500 (हवेसहवे)

#### **Beer:**
- Light Beer (≤8.75% alcohol): **3.5 × cost + Sales Tax**
- Heavy Beer (>8.75% alcohol): **4 × cost + Sales Tax**

#### **देशी दारू (Country Liquor):**
- **4.5 × cost + Sales Tax**

#### **Wine (वाईन):**
- जर cost ≤ Rs. 40: **4 × cost + Sales Tax**
- जर cost > Rs. 40: **4 × cost + (जास्तीचा भाग) + Sales Tax**

#### **विशेष सूट महाराष्ट्र Grape Wine (local):**
- ज्याला alcohol मिक्स नहीं केलेली: **3 × cost** (कमी rate)
- सरकारने 2011 पर्यंत हा tax माफ केला होता

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### **3) Armed Forces (CSD) ला वेगळी किंमत**

सेना shop (Canteen Stores) ला सस्ती दारु दिली जाते:

- **Spirits (Rum वगळता):** 3.8 × cost (लोकांना 5 × cost, तर सेनेला 3.8 × cost)
- **Rum:** 2.6 × cost (सर्वात सस्ते)
- **Beer/Wine:** आणखी कमी multiplier

**कारण:** सैनिकांना सरकार सहाय्य करते

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### **4) Imported Foreign Liquor (विदेशातून आयात केली दारु)**

या दारु ला Customs Duty लागते हिचा अतिरिक्त खर्च:

#### **Imported Wine (विशेष नियम):**
- **MRP ≤ Rs. 900:** दुप्पट cost + Rs. 400 + Customs + Tax
- **Rs. 900-6000:** दुप्पट cost + Rs. 300 + Customs + Tax
- **MRP > Rs. 6000:** दुप्पट cost + 5% + Customs + Tax

(फक्त महागाल शराब ला 5% हिसाब लागतो)

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## **EXCISE DUTY (Government ला कर) — समजावून सांगतो**

### **थोडक्यात:**
**जेव्हा दारु बनते, तेव्हा maker ला सरकारला कर देणा पडतो. हा कर "Excise Duty" कहलतो.**

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### **Excise Duty कसा लागतो?**

**दोन तरीके:**
1. **Percentage तरीका:** manufacturing cost चा 150%, 175%, 250% इत्यादी
2. **Fixed तरीका:** प्रति litre एक निश्चित रुपये (Rs. 33/litre, Rs. 42/litre इत्यादी)

**जे काय जास्त असेल, तेच लागतो!**

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### **विविध दारु वर Excise Duty:**

| दारु प्रकार | Duty |
|-----------|------|
| **Beer (हलकी)** ≤8.75% alcohol | 150% cost किंवा Rs. 33/litre (जे जास्त) |
| **Beer (जड)** >8.75% alcohol | 175% cost किंवा Rs. 42/litre (जे जास्त) |
| **Mild/Fermented Liquor** | 150-175% cost किंवा Rs. 33-42/litre |
| **Spirits (सर्व)** — Rum, Vodka इत्यादी | **300% cost किंवा Rs. 240/proof litre** (सर्वात जास्त!) |
| **Rectified Spirit** (industrial use) | Rs. 250/proof litre |
| **Wine (शराब)** — देशी | 100-200% cost |
| **Country Liquor (पारंपरिक)** | 250% किंवा Rs. 95/proof litre |

**कड़ी वास्तव:** Spirits वर सबसे जास्त कर आहे! (300% = 4 गुणा खर्च!)

---

### **Proof Litre म्हणजे काय?**

**Proof Spirit = 57.06% शुद्ध alcohol + पाणी**

- 100° Proof = सर्वात मजबूत
- 75° Proof = कमी मजबूत

(यह technically समजून घेण्याचा गरज नाही — production साठी महत्वाचे)

---

## **महाराष्ट्र Grape Wine — विशेष सूट**

**2011 पर्यंत सरकारने local grape wine ला tax माफ केला:**

- अगर महाराष्ट्र अंगूरातून देशी wine बनवली (alcohol मिक्स केला नाही): **100% duty माफ**
- जर imported concentrate वापरली: सामान्य 150% duty

**उद्देश्य:** महाराष्ट्रातले wine industry वाढवणे

---

## **कधी हे नियम लागु झाले?**

- **MRP Rules:** 1 January 1997 पासून
- **Excise Duty:** 1 January 1997 पासून (पण मूल कायदा 1949 चा आहे)
- **Amendments:** 1996-2011 मध्ये 21 + 43 = 64 बदल!

---

## **व्यावहारिक उदाहरण:**

**Foreign Liquor की bottle बनवायची:**

1. **Maker ची cost:** Rs. 100/litre
2. **Excise Duty:** 300% = Rs. 300
3. **तर total:** Rs. 400 (सरकारला)
4. **MRP तयार:** 5 × 100 + tax + transportation = Rs. 550-600
5. **Shop वर बिकणे:** Printed MRP = **Rs. 550**

---

## **मुख्य विनियम:**

✓ **Manufacturers** ला MRP + cost सरकारला अग्रिम declaration करायचे
✓ **किंमत बदलली** तर फिरून declare करायचे
✓ **Printed MRP** गलत असला तर penalty
✓ **Different rates** imported vs. देशी दारु साठी
✓ **CSD सैनिकांना** सस्ती दारु मिळते

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## **निष्कर्ष:**

हा कायदा **सरकारला tax मिळवून** आणि **दारुचे किंमत नियंत्रणात** ठेवून साधारण जनतेला **overcharging** रोखणे हे हेतू आहे. 🍷

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MRP &amp; Excise Duties