On receipt of the application and after consulting the Collector of the district in which the distillery is proposed to be opened regarding the suitability of the site, and buildings, if there be any already, and on any other points, and on receipt of the Collector's opinion, and after such further enquiry as he may deem necessary, the Excise Commissioner shall decide whether the licence for the opening of the distillery should be granted or not. In deciding whether a licence for the working of a private distillery is to be granted or not, the Excise Commissioner will take into full consideration the purpose for which it is proposed to open the distillery and the demand or necessity for such a distillery.

Purposes for which distilleries may be opened. Distilleries may be opened for:

(1)

Supply of country spirit ;

(2)

Supply of foreign liquor ;

(3)

Supply of spirit for the manufacture of chemicals, medicated articles, etc., or for other industrial purposes;

(4)

for any or all of the above purposes combined.

(c) If the Government sanctions opening of a Distillery in any area, the Excise Commissioner shall take necessary steps to establish the distillery under section 15 of the Assam Excise Act, 2000 and inform the applicant and the Collector of the district in which the distillery is to be opened. He shall also inform the applicant the amount of security to be furnished by him/her for the due performance of the conditions on which a license may be granted to him. The amount of security deposit may be fixed at fifty percent of the Distillery licence fee or more according to the volume of business.

(d) Construction of distillery - Plans: The applicant shall then be called upon to make arrangements for the construction of the distillery. Upon completion of the building and after the still and other appliances and apparatus have been set up, he must file two fresh copies of the plans before the Collector who shall cause them to be verified in any manner he thinks proper, and then submit one copy of the Excise Commissioner for examination and for comparison with the plans first submitted, and for any further verification he may think necessary. After final approval by the Excise Commissioner, a licence will be granted by him to the applicant in the prescribed from in Excise Manual Volume III. The applicant shall be bound to conform to the orders of the Excise Commissioner regarding any addition or alteration to the buildings, stills, vats or other permanent apparatus or plant which he considers necessary whether before or after the final plans are submitted, for the proper security of the revenue or to render illicit practices impracticable.

(e) Additions or alterations to buildings, stills, etc. require previous sanctions of Excise Commissioner. No addition or alteration to the buildings, stills or other permanent apparatus as shown in the plans finally submitted by the applicant shall be made without the previous sanction of the Excise Commissioner obtained through the Officer-in-charge and the Collector. If the Excise Commissioner so directs, such additions or alterations may be permitted by the Collector subject to the Excise Commissioner's approval. When any such additions or alterations are made, fresh plans must be submitted to the Excise Commissioner through the Collector with a certificate from the officer-in-charge that they are correct. If the Excise Commissioner so directs the Officer-in-charge of the distillery may, with the permission of the Collector, allow minor alterations to be made to such buildings or stills and other permanent apparatus subject to subsequent approval of the Excise Commissioner.

(f) Excise Commissioner may at any time verify description and plans. It will be open to the Excise Commissioner to verify at any time of the descriptions and plans above mentioned and on proof or error, to require fresh ones to be submitted for sanction. Such verification may be made by any officer deputed for the purpose, and such officer shall be allowed full access to the premises. Sanction to the plans may be withheld until any point in respect of which they differ from plans already sectioned has been rectified to the satisfactions of the Excise Commissioner. The distiller shall be bound to carry out such rectification within a reasonable time to be fixed by the Excise Commissioner.