(a) The Collector of the district shall be the authority competent to issue licences in form ML-2 and ML-5.
(b) In the districts where there are no Additional Collectors or Revenue Officers, the Collector of the district shall be the authority competent to issue licences in Form ML-4. In the district where there is an Additional Collector or a District Revenue Officer, the additional Collector or the District Revenue Officer, as the case may be, shall be authority competent to issue licences in Form ML-4.
Provided that no licence inform ML-4 shall be granted by the District Revenue Officer, Additional Collector or Collector as the case may be except with prior approval of the Commissioner of Prohibition and Excise.
(c) The authorities mentioned above shall be competent to issue transport permits in Form ML-6 in respect of the licences issued by them.
7. Procedure for the grant of licences and permit- (1) Licences in Forms ML-2 and ML-4 (a)- (i). Any person or institution including a Sugar Mill Factory producing Molasses desiring to deal in molasses by way of sale, import or export shall make an application to the Collector of the district for the grant of a licence in Form ML-2. The application shall be in Form ML-1 and shall be affixed with a court feelabel of the value of one rupee and fifty paise.
Any person or institution desiring to possess and use molasses for any of the purposes mentioned in rule-3 shall apply to the authority specified in rule 6 for the grant of licence in Form ML-4. The application shall be made in Form ML-3.
(ii) In the case of application for the grant of ML-4 licences for the manufacture of cattle feed and poultry feed, the following items of machinery shall be installed in the manufacturing premises except the small units adopting hand mixing:-
(a) Molasses storage tank with pump:
(b) Grinders;
(c) Dis-integrator and mixer;
(d) Molasses mixer;
(e) Hopper and
(f) Storage bins.
Explanation- „Small Unit‟ means the unit adopting hand mixing and producing a quantity of 2 metric tonnes or less of compounds of cattle or poultry feed per day.
(b) On receipt of an application in From ML-1, the Collector shall refer it to the Superintendent of Police or Commissioner of Police as the case may be, who shall arrange to enquire into the bonafides of the applicant and desirability or otherwise of granting the licence.
No licence in Form ML-2 will be issued unless the Collector is satisfied that the grant of the licence is not detrimental to the enforcement of Prohibition in the area in which it has been applied for. The Order refusing the grant of a licence shall contain the reasons for such refusal.
(c) On receipt of an application in Form ML-3 the authority competent to issue a licence in Form ML-4 may grant the licence applied for after satisfying himself that the applicant follows Indian Standard Institution formula or the formula approved by the Industries Department or Animal Husbandry Department (in the case of cattle feed or poultry feed manufacturers) that the applicant has obtained Small Scale Industries Certificate from the Industries and Commerce Department and Sales Tax Registration Certificate from the Commercial Taxes Department, that the premises in which the business is proposed to be carried on is suitable for the purpose and that adequate storage facility, has been created for proper storage of molasses. If however, the licensing authority has reason to suspect the bonafides of the applicant or correctness of any of the particulars furnished by him he may make such enquiries as deemed necessary before deciding to grant the licence. The licensing authority may after such enquiry for good and sufficient reasons to be communicated in writing to the applicant, refuse to grant the licence applied for:
Provided that grant of licence in Form ML-1 will not automatically entitle the licensee to get allotment of molasses. Molasses will be allotted by the Commissioner of Prohibition and Excise taking into consideration the estimated availability and demand of molasses in the State the purpose for which molasses is required the need for ensuring the supply of molasses to distilleries and the proper utilization of the Previous allotment of molasses by the licensee.
(d) A fee as specified in the Table below, shall be levied on every licence granted under clause (b) or (c) of this sub-rule.
THE TABLE Annual Quota of licence Licence fee per annum.
(in metric tones) Rs.
(1) (2) 1-10 2,000 11-50 6,000 51-100 15,000 101-200 18,000 201-500 35,000 501-1000 40,000 1001-5000 45,000 5001 and above 50,000 ( * Enhanced vide G.O. (Ms) No.47 P & E VIII Dept. Dt.15.09.2012.)
(2) Import /Export licence in form ML-5 (a) Every dealer or consumer holding a licence in Form ML-2 or Form ML-4 as the case may be, desiring to import molasses from places outside the State and every dealer desiring to export molasses outside the State shall apply to the Collector of the district for a licence in Form ML-5 for the import or export of molasses. The application shall be affixed with a court fee label of the value of one rupees and fifty paise and shall contain the following particulars:-
(i) Name and address of the applicant
(ii) Description of licence held by him
(iii) Quantity of molasses allowed for possession under the licence
(iv) Quantity of molasses proposed to be imported/exported.
(v) Name and address of person from/to whom it is proposed to import/ export the molasses.
(vi) Mode of conveyance and route.
(vii) The date by which it is proposed to complete the import/ export.
Each import/export shall be covered by a separate Import/export licence and a separate application shall be made for the purpose.
(b) On receipt of the application aforesaid, the Collector shall after verifying that applicant is in possession of a valid licence and that the quantity proposed to be imported/exported does not exceed that allowed under his licence, grant an import/export licence in Form ML-5. The molasses imported/exported shall not be disposed of in any manner while in transit.
Provided that the Commissioner of Prohibition and Excise, Madras may when he is satisfied that the quantity to be exported/imported is so large that the export/import has to be made in instalments, issue General Permit for any specified quantity to be exported imported subject to such conditions as may be prescribed from time to time.
(c) Escort, as decided by the Commissioner of Prohibition and Excise from time to time, shall be provided to each consignment of molasses exported or imported, from the production centre within the State upto the Tamil Nadu State border or from the point of entry into the State of Tamil Nadu to the destination as the case may be. The cost thereof shall be remitted to Government Account in advance by the transporter
(cc) Every licences in From ML-5 shall pay rupees three* hundred per M.T. on the quantity of molasses exported outside the State towards. A.S.F. before taking delivery of molasses from the Sugar Mill for export.
( * Enhanced vide G.O.Ms.No.52 P & E (VIII) Dept., Dt 03.08.2006.)
** (ccc) Every licensee, holding licencs in Form ML-2 or ML-4 desiring to import molasses from outside the state shall pay Rs.300/- per M.T. on the quantity or molasses imported towards A.S.F before obtaining a licence in Form ML-5 from the Collector concerned.
( ** Inserted vide G.O.Ms.No.42, H.P & E(VIII) Dept., dt.02.07.2008).
(d) The Collector shall issue the requisite number of fly-leaves along with the licence in Form ML-5, fly leaf for a portion of the total allotment to cover each consignment, so that, that each total of all the fly leaves shall be equal to the total allotment for export or import.
When the ML-5 licensee takes delivery of any consignment of molasses from a sugar mill, he shall present one fly –leaf according to the quantity to be taken delivery of, and the Bondage Officer shall make entries thereof in the fly-leaf and deliver the quantity indicated in the fly-leaf. In the case of import, the licensee should produce the fly-leaf and get entries from the sugar mills ……………… at the time of taking delivery of the stock. The receipt of the consignment at the licensed premised shall be verified and brought to stock register of the licensee by the Taluk Excise Officers.
(3)(a) (i) On receipt of the ML-4/ML-6 licence the distillery should obtain from the District Revenue Officer concerned, 15 copies of the ML-4 licence and ML-6 permits for utilizing the same in accompanying every consignment of molasses drawn from various Sugar Mills subject to the condition that the Distillery Officer of the distillery concerned should keep the original of ML-4licence/ML-6 permit. The Distillery Officer shall maintain a register in the Form ML-7 to account for the receipt of consignment of molasses in the distillery.
(ii)When the allotment of molasses to distilleries made at a time is for a quantity exceeding. 1,000 tonnes the Distillery Officers concerned may themselves issue the required additional number of attested copies of ML-6 licence. The copies so issued should be recovered with proper entries besides making entries in the original ML-6, licence and filed by the Distillery Officer on the completion of the particular allotment.
(iii) On receipt of orders of allotment of molasses, the distillery should obtain from the Distillery Officer 15 copies of fly leaves, each fly leaf for a portion of the allotment. The total quantity in all the 15 fly leave shall be equal to the total allotment. When the distillery takes delivery of any consignment of molasses from a sugar mill, the distillery shall present only fly leaf, according to the quantity to be taken delivery of and the bondage officer shall make entries in the fly leaf and deliver the quantity indicated therein. The Distillery Officer shall make entries of the consignment received at the distillery in the original fly leaf with him for the total allotment. He may call for and verify the 14 fly leaves for part quantities with the entries in the original fly leaf as to whether all consignments taken delivery of have been received in the distillery.
(b) Transport permit in Form ML-6:- transport permit in Form ML-6 shall be issued along with every licence in Form ML-2 or Form ML-4 to cover all transport of molasses made by the licence to the licensed premises during the currency of his licence. Every consignment of molasses transported by the licence from a dealer in this State shall be accompanied by this permit. The dealer from whom the molasses is purchased shall enter the particular of each supply in space provided for the purpose in the transport permit. The consignment transported under the permit shall not be disposed of in any manner while in transit.
(c) Escort as decided by the Commissioner of Prohibition and Excise from time to time shall be provided to each consignment of molasses transported from the production centre to the destination and the cost there of shall be remitted to Government account in advance by the transported
(4) Duration of licences and permits:- Licence in Forms ML-2 and ML-4 will be issued for the financial year ending on the 31 st March immediately following unless the applicant has specially asked for a shorter period. **(In the case of licence where the annual possessional llimit is upto 250 metric tonnes, Licence is renewable once in two years subject to payment of twice the rate of licence fee.) The currency of each import/export licence in Form ML-5 shall be fixed by Collector after taking into account the distance and the mode of conveyance proposed to be used and shall in no case exceed three months at a time. The currency of the transport permit shall be the same as that of the corresponding licence in Form ML-2 or ML-4, with which it is issued.
(** inserted vide G.O. Ms. No. 233, H,P&E(VIII) Department, dated 09.10.2011)
5.Security- (a) In the case of applications for the grant of a licence in Form ML-2 or ML- 4, except distilleries, the licensing authority shall before granting the licence, require the applicant to deposit, in cash or in government Promissory Note, as Security for the due observance of the conditions of the licence, a sum determined at the appropriate slab rate specified below, applied to the quantity of molasses expected to be handled by the applicant per year:-
(i)(a) Rs.200/- (Rupees two Upto 100 metric tones of molasses per hundred only) year.
(b) Rs.500 (Rupees five Over 100 metric tones and upto 500 hundred only) metric tones of molasses per year
(c) Rs.1000/- Rupees thousand Over 500 metric tones, and up to 1000 only) metric tones of molasses per year
(ii) Rs.3,000/- (Rupees three Over 1,000 tonnes of molasses and up to thousand only) 3000 tonnes of molasses per year.
(iii) Rs.5,000 (Rupees five Over 3,000 tonnes of molasses and upto thousand only) 5,000 toonnes of molasses per year.
If, after the close of a full financial year after the grant of the licence, the quantity of molasses transacted by the licensee during that year is found to exceed the estimated quantity with reference to which the amount of the Security deposit was fixed at the time of the original grant of the licence, to the extent of attracting a higher slab the licensee shall be required to make the necessary additional deposit, before the licence is renewed for the next year. In case of nonobservance of the conditions of the licence, the security deposit may be forfeited to Government and the licence cancelled, provided that no forfeiture of deposit shall be made, unless the licensee has had a reasonable opportunity of showing cause against such forfeiture.
(b) In the case of licences in Form ML-2 and ML-4 already granted as on the date of coming into force of this clause, no further renewal of the licence shall be ordered unless and until the licensee makes a security deposit as prescribed in clause (a) above, applied to the annual average of the quantity of molasses transacted by the licensee during the previous three years.
(c) Application for renewal of licence in Form ML-2 and ML-4 shall be made at least one month before the date of expiry of the licence. The provisions of sub-rule (i) shall as far as may be apply renewal. Where an application for the renewal of the licence has not been made as above but it is presented before the date of expiry of the licence, it shall be subjected to the payment of an additional fee of 25 percent of prescribed licence fee payable in the manner laid down in clause (d) of sub-rule 1 of rule 7 and shall be accompanied by chalan in token of such payment. The licensing authority may admit such a belated application presented after the due date but before the date of expiry of the licence, provided good and sufficient reasons for the delay are shown to his satisfaction. Any application received after the date of expiry of licence shall be treated only as an application for a fresh licence. The licencing authority may refuse to renew a licence if he is satisfied that the licensee has violated or failed to apply with any of the terms and conditions of the licence. The reasons for such refusal shall be communicated to the applicant.