In rule 17-B of the said rules;-
(1) after sub-rule (1), the following provisos shall be inserted, namely:- “Provided that, in the case of Partnership firm, any change in the constitution of partnership that will result in implied effective change of control and management of the said partnership firm, i.e., if fifty percent or more of its stake in the profit sharing ratio changes hands and existing strength of group of partners loses fifty percent or more of the total stake of cent percent, then such a change in the constitution of partnership firm will attract the payment of transfer fee under Rule 17-B. This proviso is applicable for each change that has taken place in the partnership firm after 22-08-2017:
Provided further that, if changes in the partnership firm is below fifty percent, then such cases will not attract the payment of transfer fee under Rule 17-B. If the overall 4 changes in the partnership firm after 22-08-2017 remains within fifty percent of its stake in the profit sharing ratio and existing strength of group of partners does not lose fifty percent or more of the total stake of cent percent, then such a change in the constitution of partnership firm shall not attract the payment of transfer fee under rule 17-B.
(i) The change of fifty percent or more will be reckoned with reference to the existing Excise licence composition of firm and transferred Excise licence under rule 17-B and at the every stage of fifty percent or more of change of stake by exit and entry of partners in the firm, it shall attract the transfer fees under Rule 17-B.
(ii) The said provisos are not applicable to the cases, in which any changes that had occurred in the existing partnership firm, prior to 22-08-2017. In such cases, the licensee is bound to pay the transfer fee irrespective of any change in percentage of stake in the partnership firm or strength of group of partners or otherwise:
Provided also that, the transfer fee under Rule 17-B is also applicable in the event of conversion of partnership firm into a proprietary concern or vice-versa, irrespective of fifty percent or more of change in share or in other words effective control of the partnership firm.
(2) after sub-rule (2), the following sub-rule shall be inserted, namely:- “(3) Any changes including death of partner or reconstitution of partnership firm shall be brought to the notice of the Deputy Commissioner of Excise within forty five days from the date of the occurrence of death or change or re-constitution of partnership firm or conversion of partnership firm into a proprietary concern or vice-versa, failing which, the authority granting the licence shall have discretion to cancel the licence or impose a fine.
Provided that, a licence shall not be cancelled or no such fine shall be levied unless an opportunity of being heard is given to the licensee or the legal heir/heirs of the deceased licensee or the guardian of the legal heir”.