APEA Section 16 : Establishment of Distilleries and Warehouses

Act

Summary

Section 16 of The Andhra Pradesh Excise Act, 1968, outlines the authority of the Commissioner to establish, continue, or license distilleries and warehouses with government sanction. It specifies conditions for manufacturing spirits, licensing distilleries or breweries, and managing warehouses for intoxicants. The section also mandates duty payment before removing intoxicants and applies primarily to distilleries producing potable spirits.

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Explanation using Example

Example 1: Establishing a New Distillery

Introduction: ABC Spirits, a company based in Andhra Pradesh, wants to establish a new distillery to manufacture spirits for potable purposes.

Application: According to Section 16(1)(a) of The Andhra Pradesh Excise Act, 1968, the Commissioner can establish a distillery with the government's prior sanction. ABC Spirits must apply for a license, adhering to any conditions imposed by the government.

Outcome: If ABC Spirits complies with the conditions and obtains the necessary sanction, they can legally establish and operate the distillery. Non-compliance or failure to obtain the sanction may result in legal action or denial of the license.

Conclusion: Compliance ensures legal operation, while non-compliance could lead to business delays or penalties.

Example 2: Licensing a Brewery

Introduction: XYZ Breweries seeks to construct and operate a new brewery in Andhra Pradesh.

Application: Under Section 16(1)(c), the Commissioner can license the construction and working of a brewery with gov...

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