Unit Run Canteen – Important Points of General Nature

Unit Run Canteen – Important Points of General Nature

Stocking of Unauthorised Goods in Canteens
Army Headquarters, QMG‟s Branch letter No 47412/Q/Can dated 30 July 75 addressed to Headquarters Commands with copies to Naval Headquarters, Air Headquarters and Dte Gen NCC is reproduced below for information of all concerned.

“There have been reports received at this Headquarters that unit-run-canteens are often resorting to local purchase of their requirements from the civil market.‟‟

Vide Para 2(f) of Army Order No 584/73 (Refer Appendix 2A ), it has been laid down that „„Under no circumstances, any goods other than those obtained from the CSD or through its direct suppliers authorised by CSD to deliver the goods directly, are to be stocked in the Unit-Run-Canteens‟‟.

In accordance with AO 355/71, the URCs are forbidden from purchasing from sources other than CSD, any article or liquor except those required in preparation of meals and fresh vegetables/fruits. Stocking of goods which are of a description similar to those items which feature in CSD Price-List is also not permissible even in the regimental shops. The concession of exemption of GST/Sales Tax, where specifically granted by State/Central Governments is admissible only when items are purchased through CSD.

Direct purchases by the unit‟s leads to the following:-

(a) Central/States have exempted the GST/Other taxes on purchases made and sale of such goods by the CSD to the Armed Forces personnel. Direct purchases made by the unit canteens are not exempted from the tax. Moreover, goods directly procured are liable to the levy of sales tax/GST even when sold to the members of the Armed Forces. Any violation of this rule amounts to violation of the Central/State laws.

(b) Direct purchases adversely affect the bargaining power of the CSD. If a dealer feels that he can supply the goods directly to a unit canteen, he will obviously not agree to give maximum concessions to the CSD. This results in CSD not getting the maximum benefit and thus resulting in higher prices.

(c) Direct purchase of items causes loss to the CSD, and ultimately to a wider crosssection of clientele, without any gain to the unit canteen. Such losses also result in lesser profits which are given back to formations/units in the form of Profit Appropriation.

(d) Direct purchase by the units reduces their own purchases from the CSD. This automatically reduces the Quantitative Discount which is allowed to the unit canteens in proportion to the purchases made by them during the financial year.

(e) Units do not have the requisite expertise and, therefore, there is a possibility of the suppliers taking undue advantage in supplying sub-standard goods at higher prices.

(f) The local suppliers sometimes offer incentives to the canteen staff for the sale of their goods which is not desirable.

Issue of Items Inside the CSD Depots by URCs

The CSD Area Depots strive to render proper and impartial service to the unit-runcanteens. However, it has been observed that some of the URCs tend to pamper CSD staff by giving them items out of the stores collected by them for obtaining petty favors or to gain mutual benefit. It is an unhealthy practice. It also creates administrative and security problems for the Depot. To discourage such a practice, instructions have been issued to all Depots that no staff member will take any item from the URCs coming for collection inside the Depot premises. To ensure that the representatives of the URCs do not violate the above instructions, a certificate is required to be furnished by them as per specimen given below:-

CERTIFICATE

This is to certify that no item from the stores or liquor collected by us has been given to any of the CSD staff.

Signature
Number, Rank and Name of the Unit representative
Name of the Unit
Gate Pass No Date
Initials of Area/Addl Manager/Asst Manager

Consumer Service Cell
11.6 A „Consumer Service Cell‟ is functioning at CSD, HO Mumbai since 1988. It deals with all the complaints received with regard to rates, non-extension of consumer promotion schemes, after-sales-service and the quality of goods supplied by the CSD. URCs and individual entitled consumers are advised to get in touch with the Cell in case no satisfactory reply is received from the Depot Managers/ Regional Managers with regard to their complaints. The complaints may be addressed to DGM(MS), CSD, „Adelphi‟, 119, MK Road, Mumbai – 400 020 or email to dgmms@csdindia.gov.in.

Suggestions and Feedback

11.7 Views and suggestions of customers are of prime importance to the CSD. With a view to utilize such feedback, a suggestion box as well as a suggestion book is available in each Depot. In case any URC or customer visiting the Depot has any suggestion on any aspect of the CSD services, the same may be dropped in the suggestion box or recorded
in the suggestion book available with the Depot Manager/Assistant Manager. They can email on depot email id (refer chapter 14) with a copy to dgmms@csdindia.gov.in.The Depot will take necessary action on the suggestions so received/recorded

Supply of Rum/IMFL/BIO and Breezer

11.8 There are three categories of liquor in CSD. These are as follows:-

(a) Matured Rum. Matured rum is matured for a period ranging between one to seven years. Some of the known brands in CSD inventory are Old Monk, Contessa and Mc Dowel Celebrations etc. White rum is also matured rum.

(b) IMFL. Whisky, Brandy, Beer, Gin, Vodka, single malt whisky, taqiula, scotch whisky, BIO, Breezer etc come under the category of IMFL.

11.9 Orders for liquors are placed for various brands listed with the Department based on the following criteria :-

(a) Demands generated by virtue of off-take of an item.

(b) The items positioned at Depots should ordinarily be adequate to meet the demand of URCs for a period of 60 days.

(c) Popularity of an item and brand.

(d) Minimum combined order on a distillery for an Area Depot is at least 550 to 600 cases as that is the minimum quantity carried by one truck.

URCs must project their demand for their preferred brands to enable the CSD to place the orders correctly. There may be difficulty initially to position stocks as per units‟ choices. However, if the item gets continuously demanded, suitable orders will be placed for the required and demanded products.

Scales of Liquor and Drawal

Scales of Liquor. The scale of liquor items to be issued to the various categories of service personnel is promulgated by QMG‟s Branch from time to time. The latest information with regard to scale of liquor for issue to Service personnel is laid down vide QMG‟s Branch letter No 96219/Q/DDGCS dated 07th Oct 2008 placed at Appendix 11A.

Applicability of RTI Act 2005

In view of Supreme Court Judgment dated 28/04/2009 in RR Pillai case, Unit Run Canteens are not covered by RTI Act 2005. CIC has reviewed its earlier order in case cited as CIC/LS/A/2012/000665 and has reiterated that URCs being private ventures are not covered by Right to Information Act 2005. (Authority DDGCS Office letter No. 96029/Q/DDGCS/C Case dated 13/04/2017 Appendix 11 B)

Exemption of URCs from FSSAI License

Food Safety and Standards Authority of India has granted exemption to URCs from the purview of the FSSAI licensing vide their office order no. File no. 1(68)/2012/Defence/FSSAI dated 15.01.2016 (Appendix 11D).

All URCs are requested to display the same FSSAI license number issued by FSSAI to the dependent CSD Depots. Once a URC moves out of the jurisdiction of one CSD Depot to another CSD Depot, FSSAI license number shall also be changed accordingly. (Authority DDGCS letter No. 96102/Q/DDGCS dated 27.01.2016) Appendix-11 C).

However it is reiterated that CSD Depots will issue a copy of their FSSAI license to URC with stipulations that FSSAI license number of CSD Depot is specific to and ONLY for item / articles issued by CSD Depots and not to non CSD items sold by URCs. URCs are required to render a certificate to this effect to respective Area Depots. (Authority: CSD HO letter No. 5/LIF/FSSAI/1576 dated 12.08.2016. Appendix-11 E.)

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