MANUAL FOR UNIT-RUN-CANTEENS 2008

SERVICE TO SERVICES
CSD proudly dedicates this manual to the troops who silently toil in service of the nation
Canteen Stores Department

1. The Canteen Services in India have undergone a rapid and radical transformation since 1948. Several innovative, procedural and functional changes have taken place over the past five decades in the Department to keep pace with the continually reforming economy and fast changing market scenario vis-a-vis growth of the organization. 2. The first edition of this manual was published in 1977 followed by its revised edition in 1978, 1999, and 2005. because of changes that have taken place in the terms of purchasing powers. consumer preference & technology etc the govt orders are also revised and therefore, updating of this manual become necessary. 3. The prime objective of CSD is to provide quality goods with definite price advantage to our customers. Apart from the various Service Formation Headquarters interacting with State Governments to reduce/exempt VAT, CSD has given a new impetus to the whole effort, with good results, so that customers get quality goods at the most competitive rates. 4. CSD has embarked on refining the existing systems to make it more vibrant and efficient. The integrated Canteen Stores Department System (ICSDS) to link all depots with the Head Office is likely to be made functional in less than a year's time. This will assist in better inventory management and efficient ordering thereby reducing denials to Unit Run Canteens. 5. While the basic concept remains unchanged, instructions, Govt. Orders and Standard Operating Procedures have undergone many changes. These have now been incorporated in this updated edition. 6. The revised Unit-Run-Canteen(URC) Manual contains compilation of information and govt orders on various aspects concerning the canteen services. These will be sourced as guideline and will be useful for the formations and units not only in the matters pertaining to the canteen services as a whole but also in organizing and running their own canteens effectively for benefits of troops and customers. However rules and regulation issued by the Govt. will take precedence over there guideting contained in this manual. 7. All Unit and Formation Commanders are requested to ensure the copies of monthly bulletins, price lists and the catalogue are displayed at prominent places and are freely available for the perusal of customers. It is hoped that this URC Manual will prove useful as a compendium of ready references on important issues concerning the canteen services. 8. CSD this year is celebrating its Diamond Jubilee and keeping the spirit of these celebrations, the endeavour has been made to make CSD very vibrant and friendly to our esteemed customers' needs and aspirations. 9. Suggestions, if any may be addressed to DGM(MS), CSD, Head Office, Mumbai-400 020.

Maj. Gen. S.P. Rai Chairman, Board of Administration & General Manager, CSD

First Published in Second Revised Edition Third Revised Edition Fourth Revised Edition Fifth Revised Edition

1977 1978 1999 2005 2008

Published by : Government of India Ministry of Defence

Canteen Stores Department, Adelphi, 119, Maharshi Karve Road,

Mumbai - 400 020

GENERAL INFORMATION
q The contents of this manual are informative in nature and should not be quoted as authority, except where an authority has been specifically indicated. q The information contained in this manual is largely compiled from inputs obtained from Deputy Directorate General Canteen Services, New Delhi. Queries/clarification, if any, on any matter contained in this manual should be addressed to Dy Dte Gen Canteen Services, L-1 Block, Room No. 16, Church Road, New Delhi - 110 001. q A blank sheet has been provided at the end of each chapter for incorporating amendements/additions, if any, which may be made subsequently. In addition to the same last few pages have been kept for miscellaneous amendment. q Kindly access the CSD website (www.csdindia.com) for the latest updated version of the Manual for Unit Run Canteen 2005. q Suggestions, if any may please be communicated to DGM (MS) as under :-

DGM(MS) E-mail ID : [email protected] DGM(MS) Fax No. Website of CSD : 022-22014713 : www.csdindia.com

DGM(MS) Tele No. : 022-22017674 / 022-56382942

For Restricted Circulation Only

Acknowledgements

Maj. Gen. S. P. Rai, Chairman, Board Of Administration and General Manager, CSD Brig T. K. Sinha, Vice Chairman of BOA & Joint General Manager I, CSD Shri. S. K. Sood, Joint General Manager II CSD Lt. Col. Kulbir Singh, Deputy General Manager (MS) Cdr Ranjeet Bhatnagar, Deputy General Manager (Base) Shri N. Chandrasekar, AGM (GS) Shri Lakhwinder Singh, Area Manager (Mumbai) Shri T. Pugalendhi, Manager (MR) The Department would also like to thank all officers and Staff of Management Services Branch who were involved in the preparation of the Manual.

CONTENTS
CHAPTERS
Sr. No. 1 2 3 4 5 6 7 8 9 : : : : : : : : : Description An Overview of Canteen Stores Department and its Operations Organisation of Canteen Services URC - CSD Interface Provisioning and Indenting Payment by URCs Reimbursement of Transportation Charges Collection of Stores Leakage of Canteen Stores, Denials and Discrepancies Entitlement and Procedure for Purchase of Items Against-Firm-Demand (AFD) Category I Taxes Important Points of General Nature Quantitative Discount Guidelines for URCs Miscellaneous Circulars CSD website CSD's Ten Commandments Rights of the CSD Customer Record of Amendments Pg. No. 1 9 14 43 48 50 54 57 63

10 11 12 13 14 15 16 17 18

: : : : : : : : :

84 93 113 117 123 152 155 156 157

CHAPTER - 1

AN OVERVIEW OF CANTEEN STORES DEPARTMENT AND ITS OPERATIONS

Introduction
1.1. The Canteen Stores Department (CSD) has been in the service of the Defence Services for more than five decades. The Department which made a modest beginning with four Depots and a turnover of less than Rs 48 lakhs has now grown into 34 Area Depots and has crossed a turn-over of Rs 4791.72 crores in 2006-07. The clientele has also grown steadily from a few thousand British soldiers in 1942 to over four million Services households today. Of them, nearly 90% of the clientele comprises JCOs, Other Ranks and their families. CSD provides its consumers, all over the country, quality products of daily use at rates less than those prevailing in the market. These items are meant for sale to troops, ex-servicemen and their families. The Department by itself does not come in direct or daily contact with its customers. Only Managers/In-Charges (ICs) of Unit-Run-Canteens (URCs) interact with the Department/CSD Area Depots. These Managers/ICs represent the needs of the clientele while demanding items from the Depots. It is, therefore, necessary that these persons must really be aware of what their customers' need. Needless to say, the Department continues to be scrutinised every day by the customers for availability, rates and range of the products. While the CSD attempts to provide a wide range of consumer items (the range at present is approximately 3135 items including items Against-Firm-Demand) yet the constraints of funds, infrastructure and inventory management inhibit the Department from being lavish. Despite the said constraints, the range in various product categories is fairly wide. For example, there are nearly 41 variants of bathing soaps and 23 indices of tooth-pastes, 350 plasticware items and 30 varieties of whisky in the CSD inventory.

1.2

1.3

Organisation
1.4 CSD functions under the Ministry of Defence. It employs a few serving officers on deputation from the Armed Forces. However, the remaining workforce comprises civilian Central Government employees covered under CCS Rules. The outline organisation of the CSD is given at Appendix 1A to this chapter. CSD Head Office is located at Mumbai. The Department controls and manages its field operations through a network of 34 Area Depots located across the length and breadth of the country. These Depots have been grouped into five regions based on the Indian States and their contiguity. Accordingly, the Northern Region with its office at BD Bari (Jammu) covers the states of J & K and Punjab. The Western Region with its office at Delhi controls the Area Depots located in the states of Delhi, Haryana, Himachal, UT of Chandigarh, Rajashthan and Gujarat. The Central Region has its office at Lucknow and it takes care of UP Madhya Pradesh

1.5

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and Uttaranchal. The Eastern Region with its office at Narangi (Guwahati) controls the Area Depots located in the states of West Bengal Jarkhand and the seven states in North-Eastern India. The Southern Region has its head office at Khadki and it controls the field operations in the states of Maharashtra, Andhra Pradesh, Tamilnadu, Karnataka, Kerala, Goa, Orissa and Union Territory of A & N Islands. 1.6 Each region is commanded by a Regional Manager (RM). As would be seen from Appendix 1A to this chapter that each of the said regions has six to eight Area Depots under its control. The Area Depots are categorised as small, medium, large and extra large depots depending upon their annual turnover and dependency. On an average, each Area Depot caters to about 100 URCs. Though the Department functions on commercial lines, it is also governed and bound by Government rules and financial regulations. The Department strives to be as professional and business-like as possible, within the constraints of strict Governmental control and limited manpower, warehousing and infrastructural resources. The Department takes all possible measures to get as close to the clientele as possible, inter alia, by opening as many depots as possible. However, for the opening of new depots, the Department requires the Governments sanction including that for the manpower. The need to open a new depot is to emanate with justification from the users through the Service Headquarters.

1.7

Objectives
1.8 The following are the main objectives of the CSD :

Provide consumer goods of high quality to the troops wherever they are at prices cheaper than the prevailing market rates, as far as possible. Ensure that the level of consumer satisfaction is maintained at the maximum. Generate reasonable profitability to sustain the organisation, permit growth and provide additional facilities for troops and their families. Formulate and execute development programmes to improve and maintain organisational effectiveness. Periodically analyse and assess the diverse long-term needs and aspirations of Defence Services and undertake timely measures to meet them.

Inventory
1.9 There are nearly 3135 items in the CSD inventory including those Against-Firm-Demand (AFD). Each item has an independent Identification Number called Index Number. The inventory appears large because of separate indexing. However, in real terms, the inventory is much smaller. For example, Colgate Toothpaste tubes of 50 gm, 100 gm, 150 gm and 200 gm are four separate indices in the inventory although practically it is the same item, but in different sizes.

URC Manual 2008 2

1.10 Every effort is made to ensure that the CSD inventory achieves the following :

Have at least two to three different suppliers of similar products to ensure unfailing availability and alternatives at all times. Cater for the Officers, JCOs, ORs and ex-Servicemen as per their needs and purchasing capacities. Provide a variety of established and popular brands. Generate adequate competition amongst suppliers to ensure quality and price advantage. Cater to the needs of all types of clientele, e.g. male, female and from a baby to an aged person.

1.11 Inventory Classification. The inventory has been classified as Vital, Essential and Desirable, based on the visualised needs of the CSD customers. This classification for each individual item is shown in the pictorial price-list issued bi-annually by the Department. 1.12 Inventory Grouping. For the purposes of warehousing management and ease of indenting by URCs, the inventory has been grouped as follows, based on functional commonality. This grouping is as indicated in the Pictorial Price-List published by the Department bi-annually on April and October every year and issued to all URCs. Group I II Items covered Toiletries and Cosmetics Electrical / Electronic Appliances, Cookers, Crockery, Wall Clocks, Kitchenware, Sewing Machines and other Household requisites Hosiery items, Bicycles, Plasticware, Footwear, Luggage items, Undergarments and other General Use items Wrist Watches, Smoker's Requisites, Shotgun Cartridges etc. Liquor Food, Stationery & Medicinal Items Televisions, Audio & Video Systems, Refrigerators, Washing Machines, Two-wheelers, Cars, Tractors, Cooking Ranges, (ovens), Airconditioners, Microwave ovens etc.

III

IV V VI VII (AFD Items)

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AFD Items
1.13 AFD items have been divided into two categories. Category - I. These items are not stocked by the depots but are arranged by CSD and collected by consumers directly from dealers e.g. Refrigerators, TVs, Washing Machines, Air conditions microwave, Ovens, Cars, Tractors, Two-wheelers etc. These are supplied as per the following procedure :

The individual customers will obtain information from CSD Area Depot Manager about the availability of these items with the respective dealers. The dealers, in turn, will keep CSD Area Manager informed about the availability of the items from time to time. The individual customer is required to submit the prescribed form (available with depots) duly filled-in and countersigned by the Unit Commander of the unit (ex-servicemen may get the form countersigned by Station Headquarters or DSS & A Board), alongwith a crossed bank draft in favour of "Canteen Stores Department Public Fund Account (Main)", towards the price of the item. The AFD application form can be downloaded from CSDs website www.CSDindia.com. After completion of formalities at the depot, like preparation of Official Receipt, Local Supply (LS) Order on supplier etc, the individual is given an authority letter and a copy of LS Order which is to be submitted to the distributor/dealer for getting the delivery of the item demanded. Normally, AFD-I category items are delivered, based on availability with local dealers.

Category - II. These items are procured by CSD at its Area Depots and sold to consumers through URCs against firm demand i.e. Music Systems, Pedestal Fans, Ovens, Geysers, Foot Model Sewing Machines, Cooking Ranges, Air Coolers, coir mattress and few other high-value household durable goods (details contained in the Pictorial Price-List) as per the following procedure :

A separate indent marked AFD-II, duly signed by the Canteen Officer, should be sent to the depot once a month alongwith the normal demand. Based on the above indent, orders are placed by the depot on the firm for the supply of the item.

URC Manual 2008 4

On receipt of the item at the Area Depot, the same is invoiced and issued to the URC. Normally it takes three to four weeks for receipt of such items from the suppliers. URCs must ensure immediate collection of such items from the depot. Demand for AFD-II category items, once placed, cannot be cancelled.

Introduction and Deletion of Items

1.14 CSD reviews its inventory periodically and deletes items that are no longer popular with the customers. This is to give way to new items introduced in the market so that the customers keep getting latest products in market and improved variety at all times. 1.15 The procedure for introduction of new items in the CSD inventory is that once a supplier applies to introduce an item in the CSD, a decision to introduce or otherwise is taken by the Screening Committee comprising of representatives (Brigadier and equivalent) of the three Services, nominated by the Services HQ. This committee meets on the fourth Friday of every month. The popularity of the item, its price and availability of all India After-Sales Service is ensured before the price is negotiated. The items are finally considered for introduction by the Board of Administration (BOA) headed by General Manager (GM), CSD. Once items are recommended by the preliminary screening committee food/liquor items are sent to Composite Food Laboratory (CFL) for quality tests. Factory inspection is also conducted before introduction.

Quality Control
1.16 Providing quality items at the lowest price to primary objective of CSD there is well defined proven system of quality control of items supplied through CSD. It is important to note that stringent quality control measures, both proactive as well as reactive, are taken by the Department. Measures taken to ensure quality are enumerated below :-

Proactive Measures
1.17 On Initial Introduction.

Technical Data Specification (TDS) & Master Samples are obtained from suppliers. Factory inspection including R & D and Quality Control facilities are checked at site.

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In case of liquor and food items, hygiene inspection of the factory is carried out by Army medical authorities. The product is also tested by the Composite Food Laboratory (CFL).

1.18 Routine Testing. Food and Liquor Items.

Samples of food and liquor are drawn from 13 CSD Area Depots co-located with and in the vicinity of CFLs at least once in six months and sent for testing. Samples of matured rum are drawn from 13 nominated Depots once in three months for testing. Samples of Beer are drawn every month for testing. Samples for testing are drawn from lots, at random, by a Board of Officers.

Medicines.

CSD handles medicines of proven quality only, supplied by reputed manufacturers. Drugs and medicines are sold well before the expiry period. In case of a complaint, the sale of the affected lot is stopped and action is taken against the firm.

Cosmetics/Toilet Requisites.

Testing of these items is arranged by the CSD Head Office centrally through Regional Testing Centres or approved government/private labs. Each item is tested at least once in six months.

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Household Goods, Travellers Requisites and Consumer Durables.

Master Samples are maintained by the Department. The Department generates a list of 50 items at random every month and draws samples from CSD Area Depots and compares the same with Master Samples/TDS. Testing is carried out through approved testing agencies. All items are tested at least once in six months.

Reactive Measures
1.19 Quality checks are conducted under the following circumstances apart from regular/routine tests carried out by the Department :

URC Complaints. Individual complaints or suggestions. Samples are drawn by senior officers during their visits to Depots and tested. Complaint by Depot Managers.

1.20 In all such cases where deviations are found by the Department, stringent action is taken, such as imposition of penalty and/or suspension of sale/orders. In the event of repeated deviations, the item is deleted from the CSD range.

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Appendix 1A (Refers Para 1.4)

ORGANISATIONAL STRUCTURE OF CANTEEN STORES DEPARTMENT

General Manager Joint General Managers 1 & 2

DGM (P&A)

DGM (MS)

DGM (F&A)

DGM (GS)

DGM (LIF)

DGM (EDP)

DGM (BASE) AGM (SECY)

REGIONAL MANAGERS (RMs)

NORTH Area Depots B. D. Bari F Srinagar Udhampur Bhatinda Jalandhar Leh Pathankot

SOUTH Area Depots Khadki F Bangalore Secunderabad Vishakhapatnam Mumbai (under DGM-BASE) Kochi Chennai Port Blair WEST Area Depots Delhi F Ambala Jaipur Ahmedabad Bikaner Hissar CENTRAL Area Depots Lucknow F Agra Bareilly Meerut Jabalpur Dehradun

EAST Area Depots Narangi F Misamari Masimpur Dimapur Calcutta Baghdogra Ramgarh

Location of RMs office

ABBRAVIATIONS : DGM AGM P&A MS F&A GS LIF EDP BASE SECY : : : : : : : : : : Deputy General Manager Assistant General Manager Personnel & Administration Management Services Finance & Accounts General Stores Liquor, Imported Items & Food Products Electronic Data Processing Base Depot, Sewri, Mumbai. Secretary

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CHAPTER - 2

ORGANISATION OF CANTEEN SERVICES

2.1 For a better appreciation of the Canteen Services vis-a-vis the part played by the Canteen Stores Department, it is desirable to understand the composition and broad functions of various organs of the organisation. The Canteen Services comprise of the following :(a) Board of Control Canteen Services (BOCCS). (b) Executive Committee (EC) of the BOCCS. (c) Deputy Directorate General Canteen Services (DDGCS), Quartermaster General's Branch, Army Headquarters. (d) Board of Administration (BOA) of CSD. 2.3 The constitution and main functions of the BOCCS, EC of the BOCCS, DDGCS and the BOA of CSD are given below. The same are also depicted at Appendix 2A to this chapter.

2.2

Board of Control Canteen Services (BOCCS)

2.4 Composition. Chairman Vice-Chairman Members Raksha Mantri (RM) Rajya Raksha Mantri (RRM) 1. 2. 3. 4. 5. Defence Secretary Financial Adviser, Ministry of Defence (Finance) Quartermaster General (QMG), Army Headquarters Chief of Personnel (COP), Naval Headquarters Air Officer-in-Charge Administration (AOA), Air Headquarters

Secretary 2.5 Duties.

6. DDGCS

(a) To advise the Government on the general policy with regard to the Canteen Services. (b) To control general expenditure and the financial policy of the Canteen Stores Department and to advise the Government on the disposal of profits. (c) To make appointments, dispose off appeals and hold reviews as postulated in relevant rules.

URC Manual 2008 9

Executive Committee of Board of Control Canteen Services (EC of BOCCS)

2.6 Composition. Chairman Members Additional Secretary, Ministry of Defence (MOD) 1. Quartermaster General (QMG), Army Headquarters. 2. Additional Financial Adviser, Ministry of Defence (Finance) (dealing with CSD matters). 3. Chairman, Board of Administration (BOA) & GM, CSD. 4. Joint Secretary (Ordinance) DDGCS

Secretary 2.7

Duties. The Executive Committee will exercise all the powers of the Board of Control unless they consider it fit that a certain matter be referred to the Board of Control. Some of the specific powers that the Executive Committee will exercise are as follows :(a) To consider and decide matters beyond the powers of the Board of Administration/ General Manager. (b) Issue of any directions or orders on matters within the jurisdiction of the Board of Administration or General Manager wherein the Committee considers it fit to do so. (c) Consider and recommend regular establishment of Canteen Stores Department, Head Office and its installations for sanction by the Government. (d) To consider and decide claims for compensation made by the Unit-Run-Canteens in respect of breakages, shortages and damages where the amount to be paid to the UnitRun-Canteens on any one item at any one time exceeds Rs 5000/-. (e) To review and to delegate powers to the Board of Administration/General Manager where considered necessary.

2.8

In respect of cases which affect a particular service, the Executive Committee will obtain the views of the particular Service HQ before arriving at a decision. The Executive Committee will meet six monthly or on as required basis at New Delhi or Mumbai and will review the functioning of the CSD for the preceding quarter and take decisions on the cases put up to it.

2.9

URC Manual 2008 10

Deputy Directorate General Canteen Services (DDGCS), QMGS Branch

2.10 Composition. Deputy Director General Canteen Services (DDGCS) Joint Director Canteen Services (JDCS) Deputy Director Canteen Services (DDCS) Brigadier

Lt Col

CSO

These posts may also be filled by suitable officers on deputation. 2.11 Duties. DDGCS will act as Secretary and his office will function as the Secretariat of the Board of Control and the Executive Committee of the Board of Control and generally assist the QMG in the supervision of the Canteen Services including, inter-alia, the following :(a) Watch progress of execution and implementation of policy laid down by Government, Board of Control and the Executive Committee of the Board of Control. (b) To deal with all correspondence with lower formations on CSD matters. (c) Establishment and administration of Canteen Services in peace and operational areas according to the requirements and the policy laid down by the Government, Board of Control or the Executive Committee of the Board of Control. (d) Frame recommendations regarding establishment for Canteen Stores Department Head Office and its installations. (e) Arrange transportation facilities for canteen stores and personnel. (f) Receive and deal with statements of accounts rendered by the Canteen Stores Department.

(g) Visits to CSD establishments and personal liaison with lower formations. (h) Consult the MOD (Finance) in all matters concerning the Section and the Canteen Stores Department which have a financial implication.

URC Manual 2008 11

Board of Administration
2.12 Composition. The management of the Department will be vested in the Board of Administration which will consist of :General Manager, CSD Joint Genral Manager Representative of Finance Representative of QMG Chairman Vice Chairman Appointed by the MOD (Finance) Appointed by QMG

2.13 Representatives of the Navy and Air Force are also associated with the proceedings of Board of Administration as special invitees in so far as the proceedings relate to introduction/deletion of items in the inventory. (Authority : Letters No B/00054/1/DDGCS dt 24 Nov 86 and No B/00054/DDGCS-1 (89) dt 18 Oct 89) DDGCS as special invitee at the direction of GM/CSD. 2.14 Duties. The Board of Administration will perform the duties indicated herein below subject to any general or special orders issued by the Board of Control or any Committee of the Board of Control. The executive authority will be vested in the General Manager, who will be Chairman of Board of Administration. 2.15 The Board of Administration will be responsible to the Board of Control through the QMG for the following :(a) Introduction/deletion of items in the CSD inventory. (b) To approve E&W projects falling within its power. (c) To approve purchase orders above Rs. 10 lacs. (d) To sanction loans to URCs exceeding Rs. 2 lacs and below Rs. 5 lacs. (e) To recommend cases not within its power to Executive Committee of BOCCS for sanction.

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Appendix 2A (Refers to Para 2.3)

BROAD OUTLINE STRUCTURE OF CANTEEN SERVICES

Board of Control Canteen Services (BOCCS) Chairman Vice Chairman Members Secretary : : : : Raksha Mantri Raksha Rajya Mantri Defence Secretary, Financial Advisor MOD (Finance), QMG, COP and AOA DDGCS

Executive Committee (EC) of BOCCS Chairman Members Secretary : : : Additional Secretary MOD QMG, Addl Financial Advisor MOD (Finance), JS(O) and GM, CSD DDGCS

DDGCS Composition : DDGCS : JDCS : DDCS

BOA Chairman : GM, CSD Vice Chairman : JGM I Members : Finance rep appointed by MOD (Finance) : QMGs rep, appointed by QMG In Attendance : JGM II Secretary : AGM (Secy) Special invitee : DDGCS [at the discretion of GM/CSD]

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CHAPTER - 3

URC - CSD INTERFACE

Role of URCs
3.1 URCs serve as a vital link between the CSD and ultimate customers. The main role of URCs is to provide the day-to-day requirements of consumer items and durables to the troops, wherever they may happen to be posted, at a price cheaper than the market. There are about 3600 URCs all over the country which are playing a pivotal role in achieving the above objective.

Registration
3.2 Units are required to obtain sanction for operating a URC from the Sub-Area Commander / Brigade Commander or Higher Formation Commander or their equivalents in the other two Services. Formation Commander may sanction opening of URCs of their own formation headquarters also. After the sanction is obtained and intimated to CSD Head Office, a Registration Number is allotted to the URC by the CSD. On the basis of such registration, URCs are authorised to purchase canteen stores from the CSD Area Depot on which they are dependent. Existing formation headquarters and units wishing to run their own URCs should obtain sanction and registration in accordance with the provisions of Army order A019/2003 reproduced as Appendix 3A and 3B to this chapter. The guidelines contained therein will also be applicable to the other two Services. The Registration Number is required to be indicated on the indent failing which the indent will not be accepted by the CSD Area Depot, for execution. Whenever a unit moves from one location to another, it will inform the CSD Area Depot on which it is dependent as well as the one on which it is to be based in future, quoting its Registration Number and endorsing copies to AGM (Secretary) CSD HO, Mumbai.

3.3

Use of Abbreviation CSD

3.4 Unit-Run-Canteens are not permitted to use the abbreviation 'CSD' for their own canteens as this has and is likely to cause complications / misunderstanding regarding employment by URCs of civilian staff, if any, and fixation of their pay and allowances, besides exemptions of Sales Tax and other such allied matters. Sales Tax exemption has been granted by the Government only to the CSD (The exception being the INCS - Indian Naval Canteen Service). Further, the usage of abbreviation CSD by URCs may also lead to misunderstanding by outside agencies who seem to believe that URCs are funded from Public Funds. In this connection, clarifications given by the Dy Dte General Canteen Services vide their Circular No 96029/Q/DDGCS dt 10 Feb 95 (Appendix 3C to this chapter) and Govt of India, Ministry of Defence, vide their letter No BOCCS/00181/Q/CAN/5469/D (MOV) dt 27 Oct 1977 (Appendix 3D to this chapter) may be referred. Therefore, URCS should not use 'CSD' as prefix or suffix.

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Financial Assistance / Loans to URCs

3.5 3.6 To assist URCs to improve their canteen facilities and to keep sufficient inventory, some funds are made available in the CSD budget every year which are disbursed as loans to URCs. Refundable loans are granted by the CSD Head Office to formations and units who need financial assistance to establish their URCs or for expansion of existing canteens. The prescribed form for making the application to obtain financial assistance is given at Appendix 3E and Annexures 1 and 2 to this chapter. On receipt of the application, CSD Head Office scrutinizes the financial position of the canteen and determines the quantum of loan based on the strength of serving and retired defence personnel dependent on the URC and the sale potential in relation to their spending capacity. Where an application for financial assistance is for expansion of existing canteens or for a second loan, a copy of Trading Profit and Loss Account and Balance Sheet should accompany the application. Financial Powers to Sanction Loans. General Manager, CSD, has been vested with financial powers to sanction loans to URCs upto Rs 2 lacs. The Board of the Administration is empowered to sanction loans upto Rs 5 lacs. Beyond Rs 5 lacs, all loans to URCs are sanctioned by the Executive Committee of Board of Control Canteen Services. However, case is under consideration for enhancing the loan ceiling to Rs. 10 lakh. In this connection, Appendix 3F to this chapter refers. Terms and Conditions. The financial assistance is granted on the following terms and conditions. (a) Loan extended, in the form of stores, to URCs is repayable within a period of five years in fixed five yearly or ten half-yearly instalments as approved by the BOA. Depending upon the size and the repaying capacity of the URC upto a maximum of Rs 5 lakhs can be sanctioned by BOA. Loans exceeding Rs 5 lakhs can be sanctioned only with the approval of Executive Committee of BOCCS, taking into account repaying capacity and justification. (b) The first loan bears an interest at the rate of 4.5% per annum and second and subsequent loans bear an interest @ 6.5 % per annum, or as revised from time to time. (c) The unit commanders are responsible for repayment of the loan instalments regularly on the due dates, failing which penal interest @ 15% per annum will be charged from defaulting URC. (d) The Promissory Note and Undertaking as per specimen given at Annexure 1 and 2 to Appendix 3D to this chapter will be signed by the unit commander in favour of the President of India on a valid Stamp Paper. (e) A new unit commander, when he takes over the unit, will also take over the URC with its assets and liabilities and will execute and forward, to CSD. Head Office, Mumbai, Promissory Note and the Agreement given at Annexure 3 and 4 to Appendix 3E of this chapter respectively. (f) CSD Head Office, Mumbai, will be intimated immediately in the following cases so that the documents and records can be updated.

3.7

3.8

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(i) In case of change of designation of unit or move to a new location. (ii) When a unit is merged with another unit, fresh loan documents as mentioned in sub-para 3.8 (d) above will be executed by both the unit commanders. (g) On receipt of orders for disbanding of a unit, CSD Head Office will be informed immediately and the unit commander who has executed the legal documents, will obtain clearance of the loan from CSD Head Office, Mumbai, by refunding the balance of the loan with interest. 3.9 Loans are NOT given in Cash. The Unit-Run-Canteens will be extended credit facilities to the extent of loan sanctioned for drawal of stores from the dependent Depot.

3.10 As the authority to sanction loans is vested with the Board of Administration, which meets once a month, it takes between six to eight weeks before a loan is finally sanctioned.

Winter / Monsoon Stocking

3.11 Units located in snow-bound areas and in A & N Islands are extended special credit facilities. (a) Units located at Leh and Siachin Glacier. These units are entitled to credit facility upto a maxinum of Rs 3 lacs for a maximum period of three months. The units will liquidate their debt with CSD Depot, Leh prior to their deinduction from the region. (Authority : DDGCS, QMGs Branch, Army Headquarters letter No 96031 / Q / DDGCS dt. 26 Aug 93, reproduced at Appendix 3G to this chapter) (b) Units located in Snow-bound Area. Such units are allowed to draw stores in advance from the CSD Area Depot upto a maximum amount of Rs 60,000/- for the entire winter season. (c) Units located in A & N Group of Islands. Similar concession as (b) above is admissible to units located in A & N Group of Islands, during the entire monsoon season during the year when normal shipping contact between the mainland and the Islands is not possible due to adverse weather conditions. 3.12 Procedure. (a) Interest on the amount of loan or outstanding credit will be charged @ 4.5% per annum. (b) URCs availing the credit facility will have to pay the entire cost of stores by the end of winter / monsoon season. Thus it is advisable that the URCs make periodical remittances. (c) URCs have to accept liablity for full payment of stores to CSD, even if any of the stores losses are incurred by them because of deterioration and/or damage due to inherent hazards of operational areas.

Units Proceeding on UN Missions

3.13 Units going abroad on UN Missions are permitted to take additional interest-free loans. Such units may contact Deputy Director General Canteen Services, Room No 16, L-1 Block, Church Road, New Delhi-110 011. URC Manual 2008 16

Repayment of Loans
3.14 Units which have obtained loans shall make regular repayments. Units which are in arrears in repayment will be reminded of the responsibility to make the payment in time. Failure even after that would force the CSD to report the matter to higher formation headquarters.

Temporary Credit Facilities to URCs

3.15 GM, CSD, is empowered to grant Temporary Credit Facility upto Rs 2 lacs to needy URCs for a period not exceeding 30 days. However, it is to be ensured that URCs shall avail this credit facility for their genuine requirement beyond normal average purchases for the last three months and the amount must be repaid within the stipulated period of 30 days. Nonrefund of Temporary Credit amount by URCs within the stipulated period will result in levy of penal interest @ 18% per annum.

Pictorial Price-Lists
3.16 A Pictorial Price-List, containing coloured photographs of the items, is issued to all the URCs twice a year viz in April and October, free of charge through their dependent Depots. The URCs must acknowledge receipt to the Depots.

Price Revisions
3.17 Price revision circulars, including price of newly-introduced items, are issued by the CSD Head Office as on 1st and 16th of every month to be implemented from 16th of the month and 1st of the following month respectively. However, in some cases, e.g. change in government levies, price revisions are implemented with immediate effect. Price revision circulars are serially numbered during each financial year. The aim of giving consecutive serial numbers to such circulars during each financial year is to enable the URCs to implement the same without missing any circular, and thereby avoid any financial loss to them at a later date.

Monthly Bulletins
3.18 To reach out to the customers directly, Monthly Bulletins are being published by the CSD Head Office and distributed since Jan 97. The Bulletins contain information about the new arrivals, deletion of items, gift offers, one-to-one replacements and other matters of consumer interest. URCs are expected to display the Monthly Bulletins in the dispensers already provided to them for the purpose. All URCs are requested to ensure to collect their monthly Bulletin copies from their dependent depot by 20th of every month. The bulletin is also available on the CSD web site viz. www.csd.india.com.

Depot-level Bi-monthly Circulars / Bulletins

3.19 Depot-level Bi-monthly Bulletins are issued by Area Depot Managers to the units dependent on them. These contain the information about price changes, URC meetings, deletions, introduction of new items, information which is of interest to URCs and the customers.

URC Manual 2008 17

Quarterly URC Meetings

3.20 Regular URC meetings on quarterly basis are held at Depot level to facilitate URCs to have interaction with the Depot and to resolve their problems. In order to derive maximum benefit from this forum, unit commander must depute their Canteen Officers to attend such meetings. These meetings are now being organised under the aegis of the local formation / Station Headquarters as per the QMGs Branch letter No 96131/Q/DDGCS dt 31 Mar 98, placed as Appendix 3H to this chapter. These meetings should be attending by the canteen officers of concerned URCs.

Consumer Forum
3.21 Consumer Forum Meets are being organised under the aegis of QMG's Branch once in every six months in which representatives of Army Commands, and Naval and Air Headquarters participate. In this forum, problems of consumers and those of wider cross-section of the URCs are discussed to evolve solutions.

Visits to Depots
3.22 With a view to impart knowledge of products available in CSD range, and to enhance consumer awareness, Area Depots organise visits by customers to the Depot on a fixed day in a month. Station Commanders may fix the day under intimation to CSD Area Depot and dependent units concerned. It is equally important that Station Headquarters give wide publicity and also extend administrative support to customers to visit the Depot.

After-Sales Service Dealers' Directory

3.23 A Regionwise After-Sales Service (ASS) Directory has been published by the CSD on 01 Jan 98 and distributed to all URCs so as to enable them to avail After-Sales Service facilities for various products at their respective stations. The information contained therein should be passed on to the needy customers. The directories must be updated periodically by obtaining the necessary information from the Area Depot. The units moving out on relief should hand over this document to the relieving unit.

3.24 Collection of Indented/Demanded Stores by URCs Within 45 Days

Instances have come to notice that, after giving the regular indent/demand of items. URCs are unable to collect the stores/assembled stocks with in 45 days on one or other pretext such as unit having no sufficient funds to pay or moved out of station/another location. To avoid that situation, URCs are hereby advised to observe their funds position. In case, if the unit is moving out to a different location, the URC canteen officer/OC/CO should intimate the Depot Manager so that a recourse would take place as far as the stocks are concerned. If the URC is unable to lift the demanded stocks from depot, within 30 days of collection schedule. Canteen officer should intimate the reasons by fastest means for non-collection. The depot will not issue stores against fresh indent if the previous indents are not collected. URC Manual 2008 18

Appendix 3A

QUARTERMASTER GENERALS BRANCH

AO 19/2003/QMG PROCEDURE FOR OBTAINING SANCTION TO OPERATE A UNIT CANTEEN Reference : a) AO 584/73 b) AO 5/97 c) AO 161/73 Appendices : a) b) Appendix A Application format for obtaining sanction to operate a Unit Run Canteen. Appendix B Application format for obtaining fresh sanction in respect of para military forces.

General : 1. As per policy URC is given an independent registration number which facilitates it to draw the stores from the dependent depot direct. An extension counter cannot be given a registration number and therefore, cannot draw stores from the depot but has to draw from dependent URCs. As per directions of the COAS, it is proposed to est a chain of URCs and extension counters all over India to provide CSD facilities to ex-servicemen. There are certain remote areas where ex-servicemen concentration is large but no defence establishment exist to run a URC/ extension counter. Extension counters for ex-servicemen opened in such areas earlier were not found to be economically Viable. Mob canteen do not solve the problem as only grocery stores can be sold through them. Para-force a need has been established to open a URC for exservicemen in such remote areas to make them economically viable. In view of the above, it is felt that a new Army Order may be issued to permit the opening of URCs where no active unit is located but have large concentration of ex-servicemen within close vicinity.

2.

3.

Aim : 1. The aim of this Army Order is to lay down procedure for obtaining saction (by allotting new registration number) to operate a Unit Run Canteen.

Layout : 1. Sanction to operate a Unit Canteen is accorded by the Bde/Sub Area or higher Formation Commanders. Formation Commanders may sanction opening of Unit-Run-canteen of their own Formation Headquarters. Unit seeking sanctions will submit applications to HQ Bde/ Sub Area as per proforma at Appendix A.

URC Manual 2008 19

2.

Sanction to run the canteen will be subject to the following conditions : a) Unit has on its posted strength the number of personnel not below hundred (including the attached personnel) or where dependency of ex-servicemen (including their families) are not below five thousand. b) The Unit will not ask for any increase in their authorised establishment solely for the purpose of running the canteens. c) No free transport is to be used in the running of canteen. In area affected by insurgency or disturbances, however, the use of free transport is permissible. Military personnel may be employed to run the canteen services during specific contingencies with the express permission of Formation Commanders / Commandants Category A establishments/the Controlling Authority. However, para 2(b) above will be kept in mind while employing the military personnel. d) For over all supervision of the canteens, unit are to detail an officer and also ensure that the accounts are audited quarterly by the Regimental Audit Boards. e) All Canteen Stores are to be retailed strictly at prices laid down in the CSD Retail Price list issued from time to time except that the local excise and other taxes like octroi and sales tax where applicable may be added. f) Under no circumstances, any goods other than those obtained from the CSD or through its direct suppliers authorised by CSD to deliver the goods direct are to be stocked in the Unit Run Canteens. g) To ensure regular supply of canteen stores, newly raised Units/Formations are to be instructed to attach a copy of their application for sanction to operate their own canteen with their initial indent placed on the Dependent CSD Depot. h) As and when the Unit is redesignated / recognised, amalgamated / disbanded or there is any change in address, it will inform CSD Mumbai and the Depot on which dependent, accordingly. After according the necessary sanction, the Sub Area / Bde / Higher Formation Commanders will forward the application to CSD with a copy to the Unit certifying that the strength indicated comprises those eligible for CSD facilities under the rules. CSD Mumbai will register the Unit Run Canteen and forward a formal intimation of Sub Area / Bde / Higher Formation with a copy to the Unit. Canteen Stores are obtainable by the units at whole sale rates if drawn direct from the CSD Depots. An additional charge at one percent as handling charge in levied, if stores are drawn through a Station Canteen. However, Unit Run Canteens are authorised to draw stores direct from CSD Depots and will not be compelled to purchase the requirements of Canteen Stores through Station / Formation HQ Canteens. Units requiring financial assistance to run their own canteen or for expansion of their existing canteens can apply for grant of a loan to CSD Mumbai as per procedure laid down in AO 161/73.

3.

4.

5.

URC Manual 2008 20

6.

Other then from regular units of Army, Navy and Air Force, the following are also eligible for running their own canteens under the existing policy : a) Para military forced under the operational / administrative control of the Army. b) GREF units (excluding Liquor / beer) c) NCC Units at Group HQ Level (for Regular Ar) d) My Staff and entitled NCC personnel e) TA Units (For regular Army personnel and TA personnel embodied for service / training) f) CDAs staff/establishment (excluding Liquor / beer) g) Sainik Schools (excluding Liquor / beer) h) Ordnance Factories (excluding liquor / beer) i) Embarkation HQs j) Establishments under the control of DGI, Min of Defence k) Rashtriya Indian Military College In case of fresh sanctions in respect of para military forces the applications form at Appendix B to this Army Order will be used. This Army Order supersedes AO 584/73 and AO 5/97.

7. 8.

Space for future Amendments (a) (b) (c) (d) 96001/Q/DDGCS A Natarajan Lt Gen Adjutant General

URC Manual 2008 21

Appendix A to AO 19/2003

FORMAL APPLICATION FOR RUNNING A UNIT CANTEEN

1. 2. Name of Unit Strength i) ii) 3. 4. 5. 6. 7. All ranks Attached personnel if any

Source of getting finance for the canteen Monthly turnover and expected profits (Approx) CSD (I) Depot from which the unit proposes to draw canteen stores. Any other reason justifying the opening of a new canteen i.e. location of no other canteen nearby. Certified that : a) b) c) d) e) No sanction has been accorded in the past to operate the unit run canteen / sanction is not traceable. No application has been forwarded through any other channel except the one under consideration. There has been no change in the designation of the unit. No canteen contract or will be engaged to operate the canteen in any circumstances. The unit will not ask for any increase in its authorised establishment on this account. Signature of the OC of the Unit

Station Date Recommended

URC Manual 2008 22

Annexure B to AO No. 19/2003

APPLICATION FORM FOR REGISTRATION OF UNIT RUN CANTEENS FOR PARA MILITARY FORCES UNDER OPERATIONAL / ADMINISTRATIVE CONTROL OF ARMY
1. 2. 3. 4. Name of Unit Station Authorised Strength Date from which deployed under the operational / administrative control of the Army Nearest CSD Depot from which the Unit proposes to draw the canteen stores Date from which sanction to run the canteen is required Certified that : a) b) c) d) e) No credit facilities will be asked for in any circumstances. No loan will be asked for to operate the canteen. The stores will be purchased against payment and once these are purchased, will not be returned back under any circumstances. No quantitative discount will be claimed. No canteen contractor will be engaged to operate the canteen in any circumstances. :

5.

6. 7.

Signature of the OC Bn

URC Manual 2008 23

Appendix 3B (Refers to Para 3.2) Tele 23092347 Integrated HQ Min of MOD (Army) Quartermaster Generals Branch Dy Dte Gen Canteen Services Army Headquarters New Delhi-110001 22 Aug. 2007 No. 96001/Q/DDGCS Headquarters Southern Command (Q/Ops) Eastern Command (Q) Western Command (Q) Central Command (Q) Southern Western Command (Q) Northern Command (Q) ARTRAC (Q) Andman & Nicobar Command (Q) Naval HQ (PDPS) Air Headquarters (Dte Org) HQ DGNCC HQ Assam Rifles HQ Coast Guard (AD) HQ DGBR

REGISTRATION OF ESM CANTEEN

1. 2. A large no. of request are being received at this HQ and the CSD HO for allotment of URC Numbers to newly opened Ex-Servicemen canteens. As of necessity the ESM canteens have to be overall managed by some service Unit/HQ/ Static Formation. Further, these canteens are also not covered under the Army Order 19/2003. Accordingly the CSD Head Office can not process the case for allotment of URC Numbers to such canteens. It is requested that where required, extension counters of the URCs already registered be opened to service the ex-servicemen in the affected area. For administrative reasons inter state movement of goods, especially liquor must be avoided while opening such extension counters. Suitable instructions may please be issued accordingly. (BK-Pandey) Lt Col Joint Dir Canteen Services

3.

URC Manual 2008 24

Appendix 3C (Refers to Para 3.4) Tele : 391 9563 Dy Dte General Canteen Services Quartermaster Generals Branch Army Headquarters DHQ PO, New Delhi - 110 001 10 Feb 95

96029 / Q / DDGCS Headquarters, Southern Command Eastern Command Western Command Central Command Northern Command

SERVICE CONDITIONS OF CIVILIANS EMPLOYEES OF UNIT RUN CANTEENS - REPRESENTATIONS

1. Numerous representations addressed to President / PM / RM / COAS / QMG and other VIPs and petitions filed in various courts by the civilian employees of URCs regarding their service conditions are being referred to this Dte for redressal of their grievances. In this connection, it may be mentioned that all URCs are private undertakings of the units and their funds are non-government Funds. This Dte or CSD HQ has no Administrative control over the civilian employees of URCs as they are employed under certain terms and conditions mutually settled between the unit and the employees. The employees of these URCs are not Govt servants and therefore this office has no control / jurisdiction over the service conditions of such employees. The above position has already been fully explained in Govt of India, Min of Defence letter No BOCCS / 00181 / Q / CAN / D (MOV) dated 07 Nov 1977. However, URCs are covered under the Shops and Estt Act of various States in which the URCs are located. In view of the above, it is requested that the contents of this letter and enclosures be passed to all URCs under your command and the representations concerning the employees of URCs should not be referred to this Dte. Sd/(A A Rizve) Lt Col Offg DDGCS for Quartermaster General Copy to :Naval HQ (Dte of Pers) Air HQ (Dte of Org) Presidents Sectt GM, CSD AG Coord URC Manual 2008 25

2.

3. 4. 5.

Appendix 3D (Refers to Para 3.4) No BOCCS /00181 / Q / CAN / 5469 / D (MOV) Bharat Sarkar, Raksha Mantralaya, New Delhi, dt. 27th October 1977 To, The Chief of the Army Staff

Subject : STATUS OF UNIT CANTEENS AND THEIR EMPLOYEES

Sir, 1. Numerous representations from the employees of the Unit Canteens are forwarded to Army Headquarters, QMG's Branch Q / Canteens for action. This section deals only with the matters concerning the Canteen Stores Department, their depots and their employees and not the Unit Canteens or their employees. It appears that this position is not clear to the originators. CSD is a department under the Ministry of Defence. All its employees are Government employees. The Funds of this department form part of the Consolidated Fund of India and are thus Govt Funds. On the other hand, the Unit Canteens, like the Army Headquarters Canteen at South Block, are private undertakings of the units concerned. Their funds are Non-Govt Funds. The CSD has no Administrative control over the unit canteens or their personnel who are employed by the units under various terms and conditions mutually settled between the units and the employees. They are not Government servants and, therefore, this Ministry has no control over their service conditions and has no jurisdiction over the service condition of such employees. In view of the above, it is requested that the representations concerning the unit employees should not be forwarded to this Section. Your faithfully Sd/(P. Ray) Copy to :List 'B' ( Less QMG's Branch) Ministry of Defence / D (Est.2) Ministry of Finance (Defence) CGDA R & D Organisation, Min of Defence QMG's Branch, List E CAO's Branch, Ministry of Defence Joint Cipher Bureau Historical Section (India) Ministry of Defence, Distribution Section Services Sports Control Board School of Foreign Languages Armed Forces Information Office OC, Army HQ Camp, National Stadium, New Delhi All Deputy Secretaries URC Manual 2008 26 Avar Sachiv, Bharat Sarkar

2.

Appendix 3E (Refers to Para 3.6)

APPLICATION FORM FOR THE FINANCIAL ASSISTANCE FROM CANTEEN STORES DEPARTMENT, MUMBAI - 400 020
From : The Officer Commanding Ref : No: Date : To : The Chairman Board of Administration Canteen Stores Department Adelphi, 119 MK Road Mumbai - 400 020 Sub : GRANT OF LOAN TO UNIT-RUN-CANTEENS 1. 2. This Unit / formation canteen is registered with CSD under number URC The financial assistance amounting to Rs is needed for this unit-run-canteen due to the following reasons :* in the form of a loan,

In order to meet the requirements of the personnel dependent upon the canteen to the fullest possible extent, it is necessary to expand the trade for which additional finances are not available. OR This unit is in a position to provide only a portion of the funds from our resources to start the canteen but still more funds are required particularly to meet the working capital.

* 3. 4. 5. 6.

The loan will be repaid within years (for repayment maximum period of 5 years is allowed) in half-yearly / yearly instalments. A copy of the constitution / rules / regulations / byelaws governing this unit -run-canteen is enclosed. Copies of balance sheets showing the trading and profit and loss position during the last 2 years are also enclosed ( This is not applicable in case of new canteens). The terms and conditions governing grant of loan as detailed in Army order 161 / 73 have been understood and will be complied with. It is undertaken that the loan shall be utilised exclusively for this unit run canteen and only for making purchases from CSD and for no other purpose. Further details / informations are given in Appendix. We shall be pleased to furnish any more details, if so needed. OFFICER COMMANDING

7.

Encl : a/a *Strike out whichever is not applicable. URC Manual 2008 27

(Refers to Para 7 of Appendix 3E)

APPENDIX TO LOAN APPLICATION

1. Name and Address of the Unit previous name / designation (In case of redesignated units only) 2. Dependent on CSD Depot 3. Amount of Regimental / other Funds at the disposal of unit approximately Rs. 4. Since when the unit canteen has been in existence (Indicate month & year only) 5. Strength of personnel intended to be based on this canteen : (a) Officers (b) JCOs (c) OR (d) families and attached personnel, if any (e) Ex -servicemen Total 6. Estimated investment in the canteen on (a) Capital expenditure (furniture, fittings, equipments etc.) (b) Canteen Stores (c) Working Expenses

Rs. Rs. Rs. Total Rs.

7. Estimated monthly purchases from CSD : (a) Liquor / Beer (b) General stores (c) Cigarettes

Rs. Rs. Rs. Total Rs.

8. Estimated monthly sales : (a) Liquor / Beer (b) General stores (c) Cigarettes

Rs. Rs. Rs. Total Rs.

URC Manual 2008 28

9. Estimated monthly trading expenses including overheads: (a) Total staff salary (b) Clearing and cartages etc (c) Insurance of stocks, if any (d) Postage / telegrams / conveyance / rent / water / lighting charges / printing and stationery, telephones etc

Rs. Rs. Rs.

Rs. Total Rs. Rs.

10. Expected profit per mensum from the unit-run-canteen. (This should be exclusive of income from other sources mentioned below) 11. Whether you propose to run Tea Bar, Halwai Shop and other trade shop ? If so, give total estimated monthly net income from these sources

Rs.

OFFICER COMMANDING

URC Manual 2008 29

Annexure 1 to Appendix 3E (Refers to Para 3.8 (d))

PROMISSORY NOTE
Rs On demand, I, No Rank Date : 20

Name of (Name of the Unit) promise to pay to the President of India on order, the sum of Rs with interest thereon at the rate of 4.5% per annum with half yearly rests until payment for value received.

Accepted

Signature (Should be signed on revenue stamps worth Rs 1/-)

for and on behalf of the President of India

URC Manual 2008 30

Annexure 2 to Appendix 3E (Refers to Para 3.8 (d))

UNDERTAKING
The President of India WHEREAS ON the day of 20 , the President of India represented by Canteen Stores Department, a Department under the Ministry of Defence of the Government of India, (hereinafter referred to as the said Department) agreed to pay a cash advance in favour of of the sum of Rs (Rupees only) and on the further conditions agreed on between the (Name of Unit) and the said Department representing the President of India as are herein contained AND WHEREAS in consideration of the said advance on the day of I, (No.) Rank Name ( ) (Name of the Unit) duly signed and delivered to the said Department (acting for and on behalf of the President of India) my own Demand Promissory Note dated the day of 20 , for the sum of Rs (Rupees only) in favour of the President of India, I hereby personally agree and undertake that the said promissory note for Rs. (Rupees only) is to stand and be regarded as a continuing security and shall be enforceable for all money which now are or which may at any time hereafter become due and owing to the said Department representing the President of India on the said account and on any account whatsoever and whether or not from time to time there be nothing owing on the cash advance account or any account or the same respectively be at credit; AND I HEREBY FURTHER AGREE AND UNDERTAKE : (a) that the aforesaid loan will until payment bear interest at with half-yearly rests and will be recoverable in cash; % per annum

(b) that the liability hereunder and under the said Promissory Note shall be my personal liability; (c) the entire amount of the said loan will be repaid if the President of India so desires within the maximum period of five years in fixed instalments of Rs (Rupees only) each and at the interval of months commencing from provided, however, that nothing in this clause shall prejudice the right of the President of India to receive on demand the moneys payable hereunder and the said Promissory Note. (d) The stamp duty, if any, payable on this document shall be borne by the President of India.

URC Manual 2008 31

(e) The said promissory note dated the day of 20 for Rs and executed by me shall remain in full force and effect and my liability thereunder and under this letter shall not be revoked by me without the consent of the Government in writing. (f) That my liability shall not be impaired or discharged by reason of time being granted or by any forbearance shown to the said (state the name of the unit of the Canteen to which money is being advanced) or by any act or omission on the part of the Government or any person authorised by it whether with or without the knowledge or consent of the surety nor shall it be necessary for the Government to sue or take steps or proceeding against the said (State the name of the unit of the Canteen to which money is being advanced) before taking steps or proceedings against me.

IN WITNESS WHEREOF the said (Name of Unit) has signed these presents on the Signed by the said (Name of the Unit) in the presence of (Name and address of witnesses) (1) (2) Accepted Signature day of 20

for and on behalf of the President of India

URC Manual 2008 32

Annexure 3 to Appendix 3E (Refers to Para 3.8 (e))

(THIS AGREEMENT FORM IS TO BE EXECUTED BY THE INCOMING AND OUT GOING OFFICERS COMMANDING) PROMISSORY NOTE
Rs On demand, I, No Rank Date : 20

Name Unit promise to pay to the President of India on order, the sum of Rs. with interest thereon at the rate of 4.5% per annum with half yearly rests until payment for value received.

Accepted

Signature (should be signed on revenue stamp worth Re. 1/-) for and on behalf of the President of India

URC Manual 2008 33

Annexure 4 to Appendix 3E (Refers to Para 3.8 (e))

AGREEMENT
AN AGREEMENT made this day of 20 between the erstwhile Officer Commanding (name of the Unit) hereinafter called the Outgoing Officer (which expression shall unless repugnant to the context and meaning thereof mean and include his heirs, executors and administrators) of the First Part and the present Officer Commanding, (name of the unit) hereinafter called the Substituted Officer (which expression shall unless repugnant to the context and meaning thereof mean and include his heirs, executors and administrators) of the Second Part and the President of India, hereinafter called the Government (which expression shall unless repugnant to the context and meaning thereof mean and include his successors and assigns) of the Third Part : WHEREAS on the day of 20 the Government represented by Canteen Stores Department a Department under the Ministry of Defence of the Government of India (hereinafter referred to as the said Department) paid a cash advance to amounting to Rs. (also in words) upon the Outgoing Officer executing in favour of the President of India a demand promissory note dated the day of 20 for the sum of Rs. (also in words) and upon the further conditions agreed on between the Outgoing Officer and the Government as contained in the Letter of Guarantee executed by him dated the day of 20. AND WHEREAS a sum of Rs (also in words) is due and owing to the Government on account of the said cash advance made by the Government to as aforesaid and on other accounts. AND WHEREAS the said Outgoing Officer desires to be released and discharged from his liability under the said letter of guarantee and the said promissory note and at the request of the Outgoing Officer the Government has agreed to release and discharge the Outgoing Officer therefrom upon the Substituted Officer at the request of the Outgoing Officer agreeing to execute a promissory note for the sum of Rs and to fulfil, perform and observe all the conditions as are hereinafter contained : AND WHEREAS a promissory note dated the day of 20 for the sum of Rs (also in words) was duly executed by the Substituted Officer in favour of the President of India and delivered to the Government.

URC Manual 2008 34

NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO as follows :1. That the said promissory note dated the * day of 20 for Rs (also in words) shall remain in full force and effect until the Government agrees to its revocation or cancellation by the substituted Officer and shall be regarded as a continuing security and be liable to be enforced for the recovery of all moneys which now are or which may at any time hereafter become due and owing to the said department representing the President of India on account of the said advance or any account whatsoever and whether or not from time to time there be nothing owing on account of the said cash advance account or on any account whatsoever or the same respectively be at credit : 2. That the aforesaid sum of Rs * (also in words) shall until payment bear interest at 4.5 per cent per annum with half yearly rests and shall be recoverable in cash. 3. That the Government accepts the liability of the Substituted Officer to pay all moneys which now or which may at any time hereafter become due and owing to the said Department representing the President of India on account of the said advance to the said (state the name of the unit of the Canteen to which money has been advanced) or on any account whatsoever and the Government hereby releases and discharges the Outgoing Officer from all claims and demands whatsoever in respect of the said promissory note dated the day of 20 and in respect of the said letter of guarantee executed by him and the liability of the Outgoing Officer thereunder : 4. That the liability of the Substituted Officer hereunder shall not be impaired or discharged by reason of time being granted or by any forbearance shown to the said (state the name of the unit of the canteen to which money has been advanced) or by any act or omission on the part of the Government or any person authorised by it whether with or without knowledge or consent of the surety nor shall it be necessary for the Government to sue or take steps or proceedings against the said (unit of the canteen to which money has been advanced) before taking any steps or proceedings against the surety. 5. The said sum of Rs (in words also) will be repaid within a period of years in fixed instalments of Rs (in words also) each and at the interval of months commencing from provided, however, that nothing in this clause shall prejudice the right of the President of India to receive on demand the moneys payable hereunder and clause shall prejudice the right of the President of India to receive on demand the moneys payable hereunder and under the said promissory note executed by the Substituted Officer. 6. 7. of The stamp duty, if any, payable on the document shall be borne by the President of India. That the liability hereunder and under the said Promissory Note dated the executed by the Substituted Officer shall be his personal liability. day

URC Manual 2008 35

In witness whereof the said (outgoing officer) the said (Substituted Officer) and Shri for and on behalf of the President of India have hereunto respectively set their hands and seals the day and year first above written. Signed and delivered by the Said in the presence of : (outgoing officer) Witness : 1 2 Signed and delivered by the said in the presence of : (incoming officer) Witness : 1 2

Accepted

Chairman Board of Administration CSD for and on behalf of President of India

URC Manual 2008 36

No. PC to MF No. 95286/Q/BOCCS/1204/D(May 2007) Government of India Ministry of Defence New Delhi dated 17th July 2007 To, The Secretary, Board of Control Canteen Services, New Delhi. Subject : Enhancement of Financial Power of Quarter Master General to Sanction Loan to URCs. Sir, I am directed to refer to the Annexure to Govt. of India. Ministry of Defence Letter No. 2850/DFA(Q)/95 dated 29th May 1998 and to convey the sanction of the President of India in enhancement of financial powers of QMG to saction loans to URCs as under : a) Para 15 Power to sanction loan to URCs. Competent Financial Authority QMG b) c) Present Nil Recommended Beyond 5 lakhs and upto 25 lakhs

The above provisions of the Government letter will be implemented with immediate effect. This issues with the concurrence of Ministry to Defence (Finance/QB) Vide No. 1006/QB/ 2007 dated 2-7-2007. Yours faithfully, (Pradeep Kumar) Under Secretary to the Government of India Tel. No. 2301 2962

Copy to : Controller General of Defence Accounts, New Delhi The Director of Audit, Defence Services, New Delhi The Senior Dy Directors of Audit, Defence Services Southern Command and Western Command The Controllers of Defence Accounts, All Commands The Deputy Directors of Audit, Defence Services, Patna Central Command (AF), Dehradun and (Navy), Bombay The Ministry of Defence, D (Mov) 4 copies Air Headquarters 3 copies, Naval Headquarters 3 copies, QMGs Branch QI(E) 2 copies, QMGs Branch/Q/Can 100 copies, Quartering Directorate 10 copies, Office of the CDA (CSD) 10 copies. The Chairman Board of Administration : Canteen Stores Department Adelphi, Mumbai 400 020. URC Manual 2008 37

Appendix 3F (Refers to Para 3.7) Tele 23092347 Integrated Headquarters Min of Defence (Army) Quartermaster Generals Branch Dy Dte Gen Canteen Services New Delhi-110001 Aug 2006 No. 96027/Q/DDGCS Headquarters Southern Command (Q) Eastern Command (Q) Western Command (Q) Central'Command (Q) South Western Command (Q) Northern Command (Q) Army Training Command (Q) Andaman & Nicobar Command (Q) Naval Headquarters (Principle Dir Pers Services) Air Headquarters (Dte Org) HQ DG NCC (F&A) HQ Assam Rifles Coast Guard (AD) HQ DGBR (Q)

MONETARY LIMITS FOR ALL RANKS FOR PURCHASE OF CSD STORES (GROCERY ITEMS)
1. 2. A number of representations were being received from various quarters asking for upward revision of the laid down limits. With immediate effect, following will be purchase limits for purchase of CSD Stores. S. No. Rank Non AFD items (Value below Rs.500/-) Per Month Rs.6,000/Rs.4,000/Rs.2,500/AFD Items (Value above Rs.500/-) Per Year Rs.75,000/Rs.50,000/Rs.30,000/-

(a) (b) (c)

Officers JCO & Equivalent Ors & Equivalent

URC Manual 2008 38

3. 4. 5.

Local restrictions on lowermonetary limits on grocery may be laid by canteen management for implementation in their respective canteens. Commanders at all levels will ensure liquor is given strictly as per scale. No excess liquor above authorization will be given by any canteen without permission of station Commander. URC management will ensure attractive items are sold only to authorized personnel as on required basis and not in excess quantity. Strict watch be maintained where there is large difference in CSD and market rates such as suitcases, watches, pressure cookers, fans and other attractive toiletry and cosmetic items. Profile of customers be strictly watched for spending beyond means. Formation HQs will institute svl measures to ensure CSD goods do not find way to civil market. Strict disciplinary action be initiated against personnel indulging in sale of CSD items in market. Contents of this letter be disseminated to all concerned under your Command.

6. 7. 8.

(BK Pandey) Lt Col Jt Dir Canteen Services Copy to : CSD HO Mumbai - for infor pl.

URC Manual 2008 39

Appendix 3G (Refers to Para 3.11 (a)) Tele : 3019572 Quartermaster Generals Branch Dy Dte Gen Canteen Services Army Headquarters DHQ PO New Delhi-110 001 26 Aug 93

96031/Q/DDGCS The General Manager Canteen Stores Deptt ADELPHI, 119, M K Road, Mumbai - 400 020.

STOCKING OF CSD AT LEH

1. 2. Reference your letter No 1/Secy dated 24 Jul 93. Executive Committee has given their sanction on file vide our note 96031/Q/DDGCS dated 29 Jul 93 that credit facility has been enhanced from Rs 1 lakh to Rs 3 lakhs for a maximum period of 3 months for units located in Leh and Siachen Glacier. The units will liquidate their debit with CSD Depot Leh prior to their deinduction from Ladakh Region. In view of the above, you are requested to take action accordingly. Please acknowledge. (AA Rizve) Lt Col Jt Dir Canteen Services For Quartermaster General Copy to :HQ 3 Inf Div C/O 56 APO

3. 4.

CSD Depot Leh C/O 3 Inf Div

for information and necessary action please.

URC Manual 2008 40

Annexure 3H (Refers to Para 3.20) Tele : 3011347 Quartermaster Generals Branch Dy Dte Gen Canteen Stores Services Army Headquarters DHQ PO New Delhi - 110001 31 March 1998

96131/Q/DDGCS Headquarters Southern Command Eastern Command Western Command Central Command Northern Command ARTRAC

HOLDING OF REGULAR MEETINGS OF COMMANDING OFFICERS/ THEIR SECONDS-IN-COMMAND/OFFICERS INCHARGE UNIT-RUNCANTEENS AND CSD AREA DEPOT MANAGERS UNDER THE SUPERVISION OF RESPECTIVE FMN/STATION COMMANDERS
1. This directorate has been making all-out efforts to ensure that customers satisfaction level is maintained at the highest possible level and seeks regular feedback from Unit-Run-Canteens as well as Units and Formation Commanders. One important channel of getting regular feedback from Unit-Run-Canteens is Quarterly Meetings of representatives of Unit-RunCanteens with CSD Area Depot Managers. However, it is noticed with concern that such meetings are not being attended regularly by officers. Most of the time only NCOs/JCOs are detailed to represent formation/unit commanders in such important meetings. This approach defeats the very purpose of holding such meeting and results in poor interaction between the Unit-Run-Canteens and CSD Depot Area Managers. It has now been decided that, henceforth all Quarterly Meetings of Unit-Run-Canteens and respective CSD Area Depot managers will be held under the Chairmanship of co-located Station Commanders/Formation Commanders to ensure that the Commanding Officers/their Seconds-in-Command attend such meeting alongwith their Officers-In-Charge of Unit-RunCanteens. However, in the case of big stations where the Depots are located far away from mil stations a rep per station may be nominated to attend the forum who shall collect the discussion points from CSD pertaining to URCs and disseminate these down. This will also ensure that the latest policies, guidelines and information available with the CSD Area Depot Managers are shared at appropriate level and problems being faced by the Unit/Formation Commanders are resolved on the spot.

2.

URC Manual 2008 41

3.

Headquarters Command may kindly workout the modalities in respect of Area Depots located in their jurisdiction and issue the programme to URCs through respective Formation Headquarters. At station level the Station Commanders should also inform the Air Force and Navy formations/units of the programme. This policy must be disseminated to each formation/unit having Unit-Run-Canteens to achieve the desired results. Sd/(A N Hamir) Brigadier Dy Dte Gen Canteen Services for Quartermaster General

4.

Copy to :Naval Headquarters (Dte of Pers) Air Headquarters Dte of Org DG NCC DG Coast Guard Canteen Stores Department ADELPHI 119, M K Road, Mumbai - 400 020

For issuing necessary instructions to Regional Managers and Area Depot Managers.

URC Manual 2008 42

CHAPTER - 4

PROVISIONING AND INDENTING

Indent-cum-Invoices
4.1 Standard Indent-cum-Invoice Forms in two sizes are available with CSD Depots on nominal payment. These forms have been printed in sextuplicate and each booklet is in the shape of a pad containing 20 such sets of forms. Taking into account the cost of paper and printing and to ensure that these expensive pads are not misused, a nominal price is charged to the UnitRun-Canteens. Demands from URCs will be accepted only on the standard Indent-cum-Invoice Forms. Necessary instructions as to how the Indent-cum-Invoice is to be prepared have been printed on the pad itself for ready reference. In case of Depots which have computerised processing of indents, the URCs may submit computerised or manual indents in duplicate in the same format as that of printed indent. URCs should ensure that such computerised indents are legible with adequate spacing. Proper indenting needs the personal attention of the Unit Commanders/Canteen Officers. The following points should be taken into account while preparing indents :(a) Submit five copies of the Indent-cum-Invoice typed or handwritten in serial order. The sixth copy will be retained by the unit or two copies in case of computerised depots. (b) The indents be sent regularly to the CSD Area Depot once a month to reach NOT later than 10th of each month. (c) The indent should clearly indicate the probable date of collection, or collection date as fixed by depots. (d) Demands for items of different groups as listed in the CSD Price-List (Group I to VII) will start on separate pages. Even if just one item from a group is demanded, it should be written on a separate page. It should be ensured that at the end of each group, the lines meant for use at CSD Area Depot to record substitutes, newly-introduced items etc are left blank. (e) Separate indents should be prepared and submitted for the following items, as these items do not qualify for calculation of Quantitative Discount : (i) (ii) (iii) (iv) Edible oils. Tea / Coffee Bicycles. Wrist-Watches.

4.2

URC Manual 2008 43

(v) (vi)

AFD items. Safety matches and smokers requisites.

(vii) Hospital Comforts and Officers Rations. (viii) All items demanded for Government use/consumption. (ix) (f) Chocolates.

Full particulars of an item demanded viz. Index No alongwith Suffix, Case Pack, Qty and Description of goods should be mentioned.

(g) Clear indication of quantities should be given in specified accounting units e.g. cases, dozens, Nos, as the case may be. (h) Indents must clearly specify substitutes / alternative functional equivalents acceptable or not acceptable against specific items warranting such remarks. (i) (j) Indents will be signed by the officer empowered to raise the Indent duly affixing stamp showing name and rank of the officer and unit seal. Amendment / Cancellation of indents must be avoided. However, if amendment is made due to unavoidable circumstances, the initial of the officer/URC Rep authorised for collection should affix his signature against each such amendment to avoid manipulation of demand. Cancellation of indent involves infractuous paper work and manual labour work for taking back assembled stocks besides this CSD warehousing/distribution system is also disturbed. In depots where sales tax is applicable, taking back stock poses tax problem. Therefore, URCs should correctly assess their genuine requirement vis-a-vis availability of funds to avoid cancilation.

(k) The indents for Cigarettes, Bidies and Food items which have limited shelf-life, should be correctly worked out so that the stocks do not deteriorate in storage. (l) Liquor/Wines. (i) Every liquor indent should bear a certificate that the quantities indented are as per prescribed scales vis-a-vis strength of the unit.

(ii) Each liquor indent should indicate the Unit Excise Licence No. Please note that the State Governments have varying liquor policies and units moving from one State to another are required to obtain a new licence on their first entry to that State to become eligible for supplies of liquor from the feeding Depots. The various rules and procedures also differ which should be found out, understood and adhered to.

URC Manual 2008 44

(iii) The liquor indents will be signed only by an officer holding the rank of Lt Col or equivalent or above. In case the Officer Commanding of a unit is of the rank of Maj or below, then such indents will be countersigned by an officer of its higher formation holding the rank of Lt Col or equivalent or above. (iv) Duty-Free Rum / IMFL / Beer / Wines. If a URC is located in a duty-free area and/or if the issues are as per the allocation made by Formation Headquarters, the authority of the allocation incorporating Excise Notification for excise duty exemption should positively be quoted. If such authorisation has to be obtained every time a demand is sent to the Depot, such a requirement should be fulfilled in advance. If the duty-free supplies can be made on the authority or the countersignature of the Commanding Officer, this requirement should be complied with every time an indent is sent to the Depot, so that it is not returned for want of such stipulated procedural requirements.

Provisioning
4.3 During scarcity of some items, it is a common tendency among URCs to demand inflated quantities in the hope that CSD Depots will make supplies in relation to the quantities indented. This leads to a serious situation of excessive procurement. Once the supply position becomes normal, CSD Depots make supplies in exact quantities demanded which results in increased inventory at the unit canteens, thereby unnecessarily blocking their capital. At times, inflated demands are noticed in respect of items which are considerably cheaper in the CSD than in the market. It is obvious that there will be a great demand for such items and there is also a possibility of leakage of such stores to unauthorised persons. Thus, overindenting is to be avoided on both these counts. There are a few items listed as AFD (Against-firm-Demand) Category II in the CSD Pictorial Price-List which are not stocked by CSD Depots but are procured and supplied against firm demand. Units which indent for such items should immediately lift the stock on recepit of advice from the CSD Depot after making payment. A unit with limited funds at its disposal can render better service to its clientele, if there is a proper turnover of stores which can be achieved by methodical indenting of such of the items as are needed by them. The available funds should always be utilised with prudence and foresight. The basic principles of planned investment and rotation of funds cannot be ignored because a unit may not be well-versed in matters of finance. The money available needs to be invested in stores every month and replenishments obtained according to correctly assessed past off-takes, as also the anticipated sales. Any haphazard indenting will result in overstocking which will unnecessarily lead to blockage of funds and may ultimately result in writing-off of surplus stores unfit for sale due to their deterioration in storage.

4.4

4.5

4.6

URC Manual 2008 45

4.7

Each URC must maintain Stock Ledgers so that both the stock and monthly sales figures are readily available. The normal indenting of a unit should be on the basis of its off-takes of the past three to four months. Since it is difficult for a Unit Commander/Canteen Officer to verify the statistics from the Stock Ledger, it is desirable that the monthly sales are readily available in a separate register as calculated by the canteen staff every month. If there is abnormal variation in sales in the preceding months a proper analysis should be carried out before indenting the quantities. Some of the suppliers have their salesmen going round the URCs canvassing for their products. This may happen for those items which are not so popular in the market. Inflated demands on the CSD Depots on the basis of canvassing done by such salesmen should be avoided. It is likely that the Commanding Officer or the Canteen Officer may be convinced about the potential sale of the items canvassed which may, however, not be acceptable to the clientele. There is a tendency to indent for the most popular brands, specially in the case of liquor. This does not pose any problem during the period when such items are freely available. As a measure of safeguard, however, the names of substitutes acceptable in lieu should be given. Substitutes play a big role in meeting the demands of consumers. Firstly, they keep a check on the monopolistic trend of some popular brands and secondly, the popular brands, if not available, can be substituted with comparable brands which are often cheaper in price. If such substitutes are tried out by the units, non-availability of certain items will be reduced. Units are, therefore, requested to indicate the substitutes where required and acceptable. In case no substitute is acceptable then, indication to that effect must be given on the indent form so that the Depot does not supply any substitute. In case of liquor other than rum, it will be ideal if URCs give their preferences periodically.

4.8

4.9

4.10 A minimum of two functional equivalents are always to be maintained in the inventory so as to provide wider choice to customers. This will enable consumers to exercise their preference. Limiting the choice of items only to the preference of URC managment leads to deletion of desirable items from the inventory, customer dissatisfaction and monopolitic tendences. 4.11 To enable the Depots to verify the authenticity of the indenting authority, unit commanders are required to send the specimen signatures of the Canteen Officer of URC to the Depot so that the authority letter for collection of stores when issued by the latter can be verified from the specimen signatures held by the Depots. Similarly the signatures of the Accounts Officer who is responsible to issue the cheques will also be sent to the Depots for their record.

Short-Shelf-life Items
4.12 Stocks should be properly rotated on First-In First-Out (FIFO) basis to avoid obsolescence, wastage and surpluses. It is a very important aspect of stocking which requires constant review in respect of food and medicinal items. Normally food and medicinal items have shelf-life of about 6 to 12 months. In case of Baby Food and medicines, the expiry date is embossed on the tins/bottle labels. The Depots have instructions to indicate the expiry date specially in the case of Baby Foods, on the invoices which are issued by them to the units. Units must check manufacturing and expiry date, wherever applicable, at the time of collection URC Manual 2008 46

of stores. The units in their own interest can keep a record of such items immediately on receipt and arrange sale at their end so that short-shelf-life items are liquidated well before their expiry.

Newly-Introduced items
4.13 Information about newly-introduced items is communicated to units through the medium of Monthly Bulletins. These items are initially positioned only in limited quantity so as to assess the consumers response. Limitations of quantum of bank guarantees lodged by manufacturers also restricts the quantity of newly-introduced items that can be made available to the consumers through the URCs. Normally it takes six months to two years for any product to establish itself in the CSD because of the delays in consumer awareness, feedback and resultant provisioning based on the consumption pattern. 4.14 URCs are expected to collect newly-introduced items in limited quantity, on credit, for sale to consumers so as to gauge their response. However, URCs are welcome to return such items to the Depot within 60 days of collection, should these items not find favour with the customers. The Depots are not permitted to take back such stocks if sought to be returned after 60 days from the date of collection.

Errors in invoice
4.15 Any errors in invoice should be immediately notified to concerned CSD Depot for issuance of Debit/Credit notes.

Consumer Promotion Schemes

4.16 Due to changing marketing strategies, many of the companies are offering Consumer Promotion Schemes in civil Trade. CSD ensures that consumer schemes floated by the firms in civil are also extended to CSD customers. Generally, following types of Schemes are offered. Discounts like Rs.5/- off etc. Gift offers like toys, Books, Glass etc. Buy-one-get-one free offer. Scratch Cards/Gift Coupons. Additional quantity offer like 20% more. Coupon Redemption offer. If the offer is for a particular period, the offer will be available during that period. If the offer is on a stipulated quantity then the offer is extended till quantity lasts on first-come-firstserved basis. When gift offers are extended there is likelihood of change of casepack. URC representatives should ensure that offer packs are collected properly. URC Manual 2008 47

CHAPTER - 5

PAYMENT BY URCs
Payment Against Indent
5.1 On receipt of intimation from the Depots for collection of stores, URCs should arrange payment of the total value, indicated in the payment calling slip, to the Depot by Account Payee/NotNegotiable/Crossed Cheque drawn in favour of CANTEEN STORES DEPARTMENT PUBLIC FUND ACCOUNT (MAIN).

Dishonoured Cheques
5.2 Whenever any cheque issued by a URC is dis-honoured by the bank, further facility of payment by crossed cheques will be withdrawn and the concerned URC will be asked to make payment by Bankers Cheque/Demand Draft. Besides this, overdue interest @ 15% per annum will be charged on the amount of the cheque from the date of presentation to the bank till the date of its final realisation. In addition to this, overdue interest charged by the CSD bankers will also be borne by the concerned URC since cheques deposited by CSD are immediately credited against DD facility.

Statement of Accounts
5.3 Quarterly statements of account on Form CSF 26 are prepared by CSD Depots and are forwarded to URCs by the Depots showing transactions done during the quarter in respect of supplies made to URCs and payments received from them. URCs will ensure that the entries recorded in the statement are checked and tallied with their books of accounts and the counterfoil of statements (perforated portion) are sent to the Depot to confirm the balance. Non-receipt of counterfoil by Area Depots will be interpreted as automatic confirmation of the correctness of the quarterly statement by the Depot. On computerisation of the Depots, this statement will be forwarded every month. URCs are required to maintain proper record of Official Receipts issued by the Depots for the payments made by them. This will enable URCs to reconcile their accounts on receipt of quarterly statement of accounts. Goods in respect of some of the invoices shown on the left hand side of the statement may still be lying with the Depot awaiting payment. The statement of account will thus prompt the URC to make payment to take delivery of the goods. The importance of reconciliation of quarterly statements by URCs needs no emphasis as it is the only check to ensure that all stores issued by Area Depots are received by URCs and are correctly accounted for in the books of accounts.

5.4

5.5

URC Manual 2008 48

Bank Account
5.6 To avoid any problem and to make best use of the facilities offered by the banks, URCs may open their account in the same bank as that of the Depot. They should liaise with their bankers to avail special facilities that the banks may be offering from time to time eg utilisation of overdraft/DD facilities.

Debit / Credit Notes

5.7 Debit / Credit Notes are issued by Depots due to various reasons like error in pricing, issued but not charged, priced but not issued, audit direction, imposition of Govt. levies etc. In such cases, it will be incumbent on part of URCs to accept Debit/Credit Notes and losses, if any, should be adjusted against Q.D.

URC Manual 2008 49

CHAPTER - 6

REIMBURSEMENT OF TRANSPORTATION CHARGES

Local Delivery
6.1 Where the units are in a position to collect stores directly from the Depot, they may do so under their own arrangements after effecting payment and obtaining the Release Order.

Reimbursement of Transportation Charges to URCs

6.2 The policy hitherto followed by the Department for reimbursement of transportation charges to the URCs was to admit to the extent of actual hire charges incurred by the URCs or the freight charges incurred by the Department in despatching the stores by rail to the nearest rail head at Military Tariff Rate whichever was less. However, due to disproportionate increase in the road transport charges compared to the increase in Military Tariff Rates and also in consideration of the disadvantages faced by many of the units which are located away from the feeding depots as well as from rail heads, it has been decided to authorise the Depot Managers to reimburse to the URCs by floating Credit Note upto 50% of the difference between the freight rate as prescribed by State Road Transport Authority and that admissible as per MC Note subject to the following conditions:(a) Transportation charges are not reimbursable if the stores are conveyed by the URCs in Defence Department (DD) vehicle. URCs claming reimbursement will have to render a certificate from their Station Headquarters clearly indicating the distance of their location from the Dependant Depot. For URCs whose NRS is common with their feeding Depots, reimbursement shall be allowed equal to the value of MC Notes from the Depot railhead to their nearest out agency, e.g. units located at Shillong with NRS at Guwahati. All claims for reimbursement of transportation charges must be submitted to the feeding Depot showing, interalia, the Invoice No. and Date, value of goods, No of packages and Gate Pass / Packing Note reference etc within 30 days of collection of stores. Claims received after 30 days are liable to be disallowed. However, where URC is able to offer full justification and valid reason for late submission, the case may be referred to the Regional Manager concerned by the unit commander for waiving the late submission and to admit the claim, with a copy duly endorsed to the Depot.

(b)

(c)

(d)

URC Manual 2008 50

(e)

All such claims shall be accompanied with a certificate from the unit commander to the effect that the goods relating to the particular invoice have been received and the expenses claimed have actually been incurred by the URC. It should also show full details of expenditure incurred, mode of conveyance and freight expenses etc duly supported with the original transportation bill, to the Depot Manager for verification and return, if considered necessary. Under no circumstances will the reimbursement be made in cash. For details of calculation on reimbursement of Transportation charges, please refer para 8(b) of the price-list. Current circular issued in this aspect in placed as per appendix 6A.

(f) (g)

(h)

URC Manual 2008 51

Appendix 6A (Refers to Para 6.2[h])

CANTEEN STORES DEPARTMENT

ADELPHI, 119, M.K. ROAD, MUMBAI - 400 020. Website : www.esdindia.com E-mail : [email protected] Ref: 6/F & A / Co-ord / MCN / Fax : 022-2208 3324 Tel: 022-2208 3325 13 Apr. 2007 Accounts Circular No. 6 / 2007 To All Depot Managers / RMs

GOVERNMENT OF INDIA MINISTRY OF DEFENCE

REIMBURSEMENT OF TRANSPORTATION CHARGES

1. 2. Reference is made to letter No. 6 / F & A / Co-ord / MCN / 4140 dt 24 Sep. 05 and Accounts Circular No. 22 / 2005 and letter No. 6 / F&A / Co-ord / MCN / 6310 dated 06 Dec. 05. The case was taken up with DDGCS vide letter No. 6 / F&A / Co-ord / MCN dated 07 July 06 to seek a decision / amendment in the EC Meeting for overcoming the following difficulties encountered by the depots for processing the claims for reimbursement of transportation charges from URCs. (a) (b) 3. RTO rates not being available in most of the States for load carrying vehicles. URCs located beyond 200 Kms are not adequately / proportionately reimbursed.

Accordingly the matter was taken up by DDGCS office in the 75th EC Meeting held on 21 Feb 07 to consider the above anomalies and resolve the issue. The decision given by the EC after detail deliberations is as under :(a) (b) Where RTO rates are not available, Station Board rates will be taken for consideration of entitlement by the respective Depots. For URCs situated more than 200 Kms from the CSD Depot, 0.5% of the indent value or Station Board rate. which ever is less, will be allowed.

URC Manual 2008 52

4.

In view of the above, all Depot Managers are requested to adhere to the following parameters henceforth, while processing the claims received from URCs towards reimbursement of transportation charges. (i) URCs located within 50 Kms - of CSD Depots actual charges incurred restricted to RTO rates or where RTO rates available, Station Board rates or the freight reimbursement @ 0.15% of the indent value less local taxes and levies, which ever is less. URCs located within 51 to 200 Kms of CSD Depots actual charges incurred restricted to RTO rates or where RTO rates not available, Station Board rates or the freight reimbursement @ 0.25% of the indent value less local taxes & levels, whichever is less.

(ii)

(iii) URCs located beyond 200 Kms of CSD Depots actual charges incurred restricted to RTO rates or where RTO rates not available, Station Board rates or the freight reimbursement @ 0.50% of the indent value less local taxes and levies, whichever is less. 5. 6. All other condition for re-imbursement of transport charges enumerated in the earlier Accounts Circular No. 22 / 2005 dt 24 Sep. 05 will apply. The orders may be brought into effect immediately. Also, the pending claims of URCs if any, as on date may please be processed on priority. (NV Sreenivasa Rao) Wg Cdr DGM (F&A) For General Manager

CC : PA to GM / JGM-I / JGM-II } CC : All DGMs / AGMs / Managers at HO} - For information please. CC : The Secretary, BOCCS, New Delhi } CC : CDA (CSD) / RAC }

URC Manual 2008 53

CHAPTER - 7

COLLECTION OF STORES
Actions to be Taken Before Reaching the Area Depot
7.1 The unit representative should carry the following documents while coming for collection of stores :

Crossed cheque/demand draft drawn in favour of Canteen Stores Department Public Fund Account (Main) towards the value of the stores as intimated by the concerned CSD Area Depot. Ensure that cheque is signed by authorised signatory. In the event of any overwriting on the cheque, the same should be authenticated by the authorised signatory by affixing his full signatures. In case a blank cheque is brought for payment, then the representative should know the amount available in the credit of the URC in the bank so that a cheque for an amount over and above the balance available in the bank account is not tendered thereby avoiding the risk of having the cheque dishonoured. Representative must know how to fill up the amount in figures and words correctly and accurately. The unit representative should invariably carry a proper authority letter issued by the Commanding Officer/Canteen Officer of the unit with his signature duly attested. The unit seal as well as the name and rank of the officer signing the authority letter with his appointment should be affixed on the authority letter. Wherever a permanent authority letter has been issued in favour of a particular person for a particular period, a copy of the same should be carried by the representative for ready reference of the Depot. Though the unit representatives signatures are attested on the authority letter, it is necessary for him to carry his personal identity card for establishing the identity. In the case of liquor indents, necessary excise permit with enough validity period should be produced. The unit representative should also bring the unit forwarding letter reference and date of despatch of demand in case the same had been sent by post.

URC Manual 2008 54

Actions to be Taken on Reaching the Area Depot

7.2 On reaching the Depot, the unit representative should ensure the following :

Check from the Accounts Section whether all indent-cum-invoices forwarded by his unit are priced and posted in the accounts ledger and are ready for collection. In case the unit representative brings alongwith him indent-cum-invoices for hydrogenated oil, tea, wrist watches, audios, liquor etc, he should obtain initials of Area/Additional/Assistant Manager of Area Depot and approach Invoice Section for obtaining a Control Number on each indent. These indents will be sent eventually to the respective computer section stores groups for extension. After extension of indents by the respective stores groups, these indents are priced by Invoice Section and passed on to the Accounts Section for posting in their ledger. After ensuring that all the indent-cum-invoices have been priced, the unit representative will carefully fill the correct final amount as ascertained from the Accounts Section in the blank cheque or handover the cheque prepared in advance. He should obtain proper Official Receipt duly signed by the Area/Additional/ Assistant Manager of the Depot for the remittance made by the URC. He should also ensure collection of invoice copies, debit/credit notes and release order. A release order is issued on the basis of the authority letter submitted by the unit representative. The unit representative should properly assess the exact number of trucks required for transporting the consignment and arrange for transport accordingly. Improper assessment may lead to part collection only. Once the transport is arranged, the unit representative should approach the storekeepers of all those groups from where the stores are to be collected for delivery. Unit representative should ensure that all the items charged for in the invoice are collected in full and nothing is left out. At times, due to posting error, a particular item though extended in the invoice, may not be available in the warehouse, resulting in non-issue of the item. In such an eventuality, the unit representative should invariably obtain endorsement on the invoice not only from the concerned storekeeper with his signature, but

URC Manual 2008 55

also from the CSD Area Depot Manager with his signature and stamp confirming the non-issue. The issue register, gate pass register, release order etc, should also be amended accordingly. This is absolutely essential for obtaining Credit Note at a later date.

The unit representative should carefully go through the indent cum-invoice vis-a-vis stores physically issued/loaded, so as to not only verify that the stores are issued strictly as per the quantities mentioned in the indent-cum-invoice, but also to ensure that consumer promotion offers are collected by him. The unit rep is required to acknowledge receipt of such consumer promotion/gift items, if and as applicable, in respect of the items contained in the indent cum invoice against his signatures and full name, on the Depot copy of the indentcum-invoice in token of having received the same for issuance to ultimate consumers. The unit representatives are required to furnish a certificate confirming that no item has been issued to any of the staff members inside the Depot premises. After completion of loading of stores, the unit representative should obtain necessary endorsements and signatures of the storekeepers concerned on the reverse of the release order and approach the person dealing with preparation of gate pass. The person issuing the gate pass will record relevant particulars in his register as also on the gate pass. He will then obtain the signatures of Area/Assistant Manager and return the gate pass to the unit representative. This gate pass will have to be surrendered to the security incharge/watchman on duty while moving out the trucks. The security staff are authorised to check the trucks in case of any doubt/complaint. Collection of stores at the Depot involves interaction with various sections in the office as well as warehouses. A single unit representative may not be able to handle all the operations. It is advisable that a team of at least two to three persons are deputed for collection of stores. Blank indent books can be obtained from the Depot by making necessary payment towards the cost of the indent books. The unit representative should make it a point to always visit the Receipt & Despatch Section of the Depot to collect Price-Revision circulars, Price-Lists, Monthly Bulletins and any other publications that are issued from time to time. In case of any difficulty at any stage in the collection of stores the unit representative should approach the Assistant Manager or Area Manager to get the problem resolved.

URC Manual 2008 56

CHAPTER - 8

LEAKAGE OF CANTEEN STORES, DENIALS AND DISCREPANCIES

Leakage of Canteen Stores
8.1. Stocks procured by the CSD are meant exclusively for sale to the defence forces personnel and the entitled civilian personnel paid out of the Defence Estimates. Units will take steps to prevent leakage of canteen stores to unauthorised persons as there are quite a number of items whose selling prices are far lesser than the prevailing market prices, particularly so in the case of liquor where State Governments have extended certain concessions to the defence forces.

8.2. In this connection, attention is invited to Army Headquarters letter No 41390/Q/CAN/Q1 (A) dated 01 Sep 1962 reproduced at Appendix 8A, AO 311/71 reproduced at Appendix 8B and QMGs Branch letter No 96425/Q/DDGCS dated 26 Jul 95 addressed to all Command Headquarters at Appendix 8C to this chapter.

Denials
8.3 Denial of items could take place due to non-receipt of stock by depot or temporary supply problems like price revision, transport strike, one-to-one replacement, production difficulties, flactuation of demand by URCs in a particular depot etc. To reduce denials, follow up DOs are extended by Depots for items denied if stocks are received in the same month. URCs should ensure to collect such follow-up DOs. In the event of demands being not met in full, units should first write to the Depot concerned. If no satisfactory reply is received, they may write to the Regional Manager(RM) concerned or to CSD, Head Office, Mumbai, giving references of invoices, documents and other relevant details for speedy examination and remedial action.

8.4

8.5

Discrepancies
8.6 The same procedure, as stated above, will be followed with regard to discrepancies in consignments arising out of shortages/breakages/wrong accounting from the factory packed/ repacked cases. Such claims should be supported by proceedings of a Board of Officers, which should be detailed to check consignments immediately on receipt by the URC. These should be duly countersigned by the unit commander. Such board proceedings should be forwarded to the Depot within one month from the date of collection of stores. Each case will be examined by the Depot/Head Office on its merit before compensation, if any, is given.

URC Manual 2008 57

Appendix 8A (Refers to Para 8.2) NO. 41390/Q/CAN/Q1(A) ARMY HEADQUARTERS 1 SEP 62

To, HQ Commands

PREVENTION OF LEAKAGE OF CANTEEN STORES

1. Instructions have been issued from time to time regarding preparation of indents, accounting and sale of Canteen Stores by Contractors/Units Run Canteens. The existing instructions have been consolidated, brought up to date and are contained in the succeeding paragraphs for strict compliance by all concerned.

Indenting of Canteen Stores

2. Indents for Canteen Stores and Liquor will be prepared separately and strictly in accordance with the strength of the units and the sale for issue wherever laid down. They will be placed on the Canteen Stores Department Depot concerned monthly, as far as possible. Indents so prepared will be thoroughly scrutinised by the unit commanders and signed after exaggerated demands, if any, have been duly adjusted. A copy of the indents placed on the Canteen Stores Department will be kept by the units for record. The Canteen Stores Department Depot responsible for making supplies will invariably forward a copy of the packing note to the OC Unit/Indenting authority in addition to a copy supplied to the Contractor in the case of a Contractor-run-Canteen. In respect of Unit-runCanteens, the copy of the packing note meant for the Officer-in-charge Canteen will be sent to the OC unit alongwith the relevant invoices.

3.

4.

5.

Sale of Canteen Stores

6. Cash memos will be issued for all sales effected to entitled personnel and their signature obtained at the counter on the relevant cash memos issued. Individual cash memos for sales involving small quantities of stores like cigarettes, soaps, bidies, matches, hair oil and the like, unless demanded by the customers may not be issued, but all such sales for the day may be recorded progressively in one or more cash memos depending on the number of such transactions for purposes of accounting sales tax and check by the inspecting officers.

URC Manual 2008 58

7.

Duplicate copies of cash memos issued will be retained for atleast one year for inspection by the OC Unit/Station or for a longer period as required by the local authorities for sales tax purposes. All Services canteens will arrange for the stamping of the words Canteen Services on the labels of all goods before they are put on sale or sold in canteens. Canteen Stores Department official Retail Price Lists will be displayed in a conspicuous place in all the canteens. Sales to unauthorised persons will NOT be permitted.

8.

9.

10.

Supply of Liquor/Beer
11. The officer countersigning the liquor/beer indents will forward the demands to Sub Area/ Brigade Headquarters/Administrative Commandant concerned based on the number of entitled personnel actually serving with the unit and also of those dependent on the indenting canteen. The details of strength of personnel will not, however, be revealed on the indents. Sub Area/Brigade Headquarters/Administrative Commandants will scrutinize the above reports with the strength figures in their possession and forward a certificate to the Canteen Stores Department Depot concerned to the effect that the demands placed by the Unit/Contractors in question have been verified and are correctly based on the strength of entitled personnel. Any discrepancy noticed will be reported immediately by Sub-Area/Brigade Headquarters/ Administrative Commandant to the Canteen Stores Department Depot concerned for readjustment in the following month and necessary action taken against indentors indulging in over-demanding.

12.

13.

Stock Control
14. Stock-taking of canteen stores will be carried out at least once a month by OC units or officers detailed by them and the physical balances reconciled with the stock ledger position having regard to the opening stocks, the packing note received from the Canteen Stores Department Depots and the cash memos held by the canteen showing actual sales made to bonafide personnel during the month. At the end of each month, the stocks held will be taken into account for assessing the requirements for the following month and fresh indents will be placed accordingly. Stock ledgers will be properly maintained which will be kept uptodate.

15.

URC Manual 2008 59

16.

Several State Governments have allowed concessional rates of excise duty on Indian Made Foreign Liquor and exemption from sales tax which obviously involve loss of revenue to them. It is, therefore, of paramount importance that strict control over sales is maintained to avoid abuse/misuse of concessions. The following letters addressed to Headquarters Commands on the subject are hereby cancelled :(a) Letter No 18503/Q/CAN dated 22 Feb. 49. (b) Letter No 41390/Q/CAN/Q1 (C) dated 8 Jul 52. (c) Letter No 18535/Q/CAN/Q1 (A) dated 12 Oct. 53. (d) Letter No 41390/Q/CAN/Q1 (A) dated 10 Oct. 55

17.

18. This may please be promulgated down to units.

Sd/QUARTERMASTER GENERAL Copy to :Naval Headquarters, Air Headquarters

Officer Commanding Army Headquarters Camp National Stadium, NEW DELHI

URC Manual 2008 60

Appendix 8B (Refers to Para 8.2)

AO311/71 : PURCHASE OF LIQUOR/BEER EX CSD-MISUSE THEREOF

1. Numerous complaints are being received from various sources that liquor issued to units/ formations from Canteen Stores Department with labels marked For Defence Services only Canteen Services, sometimes finds its way to civil market, instead of being consumed by the personnel for whom it is meant. The action of the units/formation in passing on liquor, in however a small quantity, is detrimental to their own interest and largely it would affect the Defence Forces as a whole, since the various State Governments allow concessional rate of excise duty for the liquor to be consumed by Defence Services personnel through CSD. By such abuse of concessions granted by State Government, there is every likelihood of their withdrawing the concessions. Formations should issue suitable instructions on the subject to units to avoid misuse of concession on excise duty granted for Defence Service personnel and see that liquor purchased by them through CSD does not find way to civilians.

2.

3.

URC Manual 2008 61

Appendix 8C (Refers to Para 8.2) Tele : 3016208 Dy Dte Gen Canteen Services Quartermaster Generals Branch Army Headquarters DHQ PO New Delhi-110 001 26 Jul 95

96 425/Q/DDGCS Southern Command Eastern Command Western Command Central Command Northern Command

LEAKAGE OF CSD ITEMS INTO CIVIL MARKET

1. There have been a spate of complaints recently regarding leakage of CSD stores into the civil market. This practice is not only detrimental to our interests, but also brings a bad name to the Services. What is of greater concern is the fact that these leakages seem to be in the knowledge of the unit commanders. As per reports, CSD stores are being sold to unauthorised persons with a view to increase regimental finances. There have been reports of stores being moved in DD vehicles in the guise of mobile canteens for disposal to agents in small towns/villages. On other occassions, CSD stores have been sold openly to the public at Fauji Melas. The Price Negotiation Committee of CSD makes determined efforts to get items at the cheapest rates possible through hard bargaining with the firms/suppliers. This benefit, combined with partial/full exemption of Sales Tax/Excise Duty by State Govts, results in major advantage to the troops. All these efforts get diluted if the benefits are passed on to unauthorised persons. We may eventually lose our hard earned privileges due to such undesirable and unethical practices. In view of the above, you are requested to issue suitable instructions to all concerned for instituting effective measures to ensure that CSD stores are not sold to unauthorised personnel in the civil market.

2.

3.

4.

(Sd/-) (SS Chohan) Brig DDG CS For Quartermaster General URC Manual 2008 62

CHAPTER - 9

ENTITLEMENT AND PROCEDURE FOR PURCHASE OF ITEMS AGAINST-FIRM-DEMAND (AFD) CATEGORY-I

Four-wheelers 9.1 Eligibility.
(a) All Defence personnel and equivalent officers of Civil Defence Estt. and CSD drawing basic pay not below Rs 3500/- per month as per the IV Pay Commission or Rs 10500/per month as per the V Pay Commission including Rank Pay. NPA for Medical officers will be added in the Basic Pay. The retired officers/ex-Service officers who were drawing, at the time of retirement, basic pay of atleast Rs 3500/- per month as per the IV Pay Commission or Rs 10500/- per month as per the V Pay Commission Report including Rank Pay are also eligible. Officers who retired prior to the above should have held the rank of Major and above for being eligible. In this connection, Appendix 9-A to this chapter be referres. (b) All persons below officer rank (PBOR) (Serving/Retd.) drawing basic pay of Rs.10,500/ - & above Appendix 9A refers. (c) All commissioned officers, serving and retired of Armed Forces who are authorized for canteen facilities. Appendix 9A-1 refers. (d) Widows of service officers who are authorized canteen facilities. Appendix 9A-1 refers. (e) Equivalent status civilian officers/officers of CSD who are authorized Canteen facilities. However, tax will be applicable as per policy of concerned state. Appendix 9A-1 refers. (f) All GREF personnel of officer grade, serving and retd., upto civilian officer Grade-III as per MOD notification no. SRO 329 dated 23rd Sept' 1950. Appendix 9A-1 refers.

(g) SSC and EC officers who have put in five years of reckonable service before being released are authorized to purchase car through CSD. Appendix 9A-2 refers. (h) All serving/retd. Hony commissioned officers irrespective of pay are entitled to pruchase all AFD items including car. Refer Appendix-9A-3. (i) (j) Parents of deceased unmarried service officers and SSCofficers are NOT ENTITLED refer AHQ LETTER NO. 96410/Q/DDGCS DT. 22nd Oct'03 (Appendix - 9A-4) All the serving JCOs and equivalent having minimum service of 15 years are entitled to purchase a car as per appendix 9A-5, 6.

URC Manual 2008 63

Tele 23092347 Integrated HQ of MOD (Army) Dy Dte Gen Canteen Services Army HQs / QMGs Branch L-I Block, New Delhi 10 Oct 2007 96029/Q/DDGCS Headquarters Southern Command Q (Ops) Eastern Command Q (Ops) Western Command Q (Ops) Central Command Q (Ops) South Western Command Q (Ops) Northern Command Q (Ops) ARTRAC Andaman & Nicobar Cornmand Q (Ops) Naval Headquarters (P & C) Air Headquarters (D/Accts) HQ DG NCC HQ Coast Guard (AD) HQDGBR DG Assam Rifles

PROCUREMENT OF AFD-I ITEMS FROM ANY OF THE DEPOT

1. 2. Presently as per chapter 9 para 9-1 (m) of Manual for Unit Run Canteen 2005, only Car is allowed to be procured from any of the depot. In the view of change of market dynamics and to provide better services to the CSD clientele, permitting procurement of AFD-I items from any depot of choice of CSD customers has been deliberated upon. After considering the views of other service HQs, QMG has approved the proposal on trial basis for six months, after which it shall be revalidated.

URC Manual 2008 64

3.

In keeping with the basic aim of preventing misuse of the facility, following preconditions shall be adhered to by all :a) AFD-I items include lucrative items where a considerable price difference exists between the CSD and the market. Accordingly, these items will be allowed to be purchased on smart cards since AFD limit (excluding car) is catered for in the smart card. b) The purchase will be through valid forms processed through the CSD. c) The form duly countersigned by the CO/OC of the unit will be verified by the CSD Manager concerned with an undertaking (on the form itself) that the individual is making a valid purchases as per authorisation. d) For all other entitled category of pers, the form will be verified by the CSD Manager / Station HQ or local authority involved with canteen management.

4.

The Smart Chips Ltd have been advised to suggest necessary software upgradation (at no cost) to incorporate time based item recording to prevent misuse of AFD-I facility. (B K Pandey) Lt Col Jt Dir Canteen Services

Copy to : 1) 2) CSD HO MUMBAI M/s Smart Chip Lts. 2nd Floor, Restaurant Block Chandiwala Estate MA Anandmai Marg, Kalkaji New Delhi 110019 W.r.t your letter No. 2/MS-13120/560 dt 15 May 07 Progress of para 4 be intimated to this Dte by 10 Nov 07

URC Manual 2008 65

(k) Applicant must not have possessed a four-wheeler whose first registration fell within the last two years on the day of submission of the application. In addition, the applicant will have to give an undertaking that he/she will not sell the vehicle within the next two years. (l) Formation Headquarters/Institutions connected with welfare activities of troops are also eligible for purchase of cars from CSD.

(m) As per the Finance Bill of 1998-99, quoting of PAN/GIR No allotted by Income Tax authorities is mandatory at the time of purchase w e f 01 Nov 1998. (n) Car can be purchased from any of the CSD Depots.

Two-wheelers/Refrigerators/TVs/VCRs/VCPs/Washing Machines/Air-Conditioners/ Generators

9.2

Eligibility.
(a) Serving officers of the three Services and JCOs and their equivalents in the other two Services. (b) Serving NCOs/OR and their equivalents in the other two Services. (c) All retired Service officers/JCOs/NCOs/OR and their equivalents in the other two Services. (d) Serving Defence Civilians of Defence Departments paid out of Defence Services Estimates.. (e) Widows of Service personnel provided they have not remarried. (f) Eldest child, of the deceased Service personnel if not survived by his wife, is also eligible for purchase provided the undermentioned conditions are fulfilled :(i) If a daughter, she should be unmarried and be in possession of driving licence (for two-wheelers). (ii) If a son, he should be between 18 to 25 years of age and should not be in service or commercially employed and should possess a driving licence (for two-wheelers).

9.3

Eligibility Period.
Eligibility period for all AFD CAT-I items including car is 2 years, irrespective of category of customer. Please refer Appendix 9A-5 (AHQ Letter No. 96412/Q/DDGCS dtd. 09/06/2003). For JCOs eligibility on four wheeler refer Annexure 9A-5, 6.

Actions at Customers Level

9.4 (a) Entitled customers will fill the Application Form available with CSD Area Depots and submit the same to the CSD Area Depot alongwith a Bank Draft for the value (after obtaining the same from the concerned Area Depot Manager). Formats of Application

URC Manual 2008 66

Forms for purchase of AFD Category-I items by entitled serving and retired personnel are given at Appendix 9-B and 9-C respectively. Indent for purchase of car is given at Appendix 9-D. (b) The Bank Draft should be drawn in favour of CANTEEN STORES DEPARTMENT PUBLIC FUND ACCOUNT (MAIN) payable at the location of the Area Depot. Cheques will not be accepted. (c) The application form must be countersigned by the Commanding Officer of the Unit/ Formation. In case of retired officers, the application must be countersigned by Station Commander (at least Colonel or equivalent) or Dy Director of Zila Sainik Board located nearest to his place of residence. (d) As per the requirement of Income Tax Department, customers are required to indicate their PAN/GIR No at the time of purchase of motor vehicles which require registration with the RTO. (e) If the customer does not have PAN/GIR No and makes the payment in cash or other than by crossed cheque then he/she is required to file declaration in Form-60. A customer with agricultural income having no other income chargeable to income tax, has to file declaration in Form-61, while making payment for the said purchases. These forms may be obtained from local Income Tax Office from whom clarification, if any, may also be sought. These requirements are mandatory w e f 01 Nov 98. (f) For any clarification/information, customers may approach nearest CSD Area Depot.

Availability of Items
9.5 It is the responsibility of the Area Manager of CSD Depot to obtain and provide information about the availability of the items. He will obtain this information from the suppliers/local dealers and keep himself apprised from time to time to avoid inconvenience to the customers.

Documents to be Obtained from the Depot

9.6 The customer should obtain the following documents from the depot :(a) (b) Local Supply (LS) order in original on the concerned dealer. Authority letter/release order with the specimen signatures of the customer or his authorised representative for obtaining delivery from the dealer. It is the responsibility of Area Manager CSD Depot to make a specific mention of consumer promotion/gift scheme, if any, on all copies of LS order and authority letter/ release order so that the customer is not deprived of his legitimate right by the firm/the dealer.

(c)

URC Manual 2008 67

(d)

The necessary invoice is issued by the CSD Depot for the item purchased by the customer, in due course of time, once the transaction is completed and the bills are received from the supplier. Sale letter addressed to RTO for registration of vehicle, wherever applicable.

(e)

Collection of Documents by the Customer

9.7 The customer should personally collect all the relevant documents from the Depot. He/she should bring his/her identity card, discharge certificate, pension book/pension payment orders (if retired), driving licence and necessary affidavit with regard to marital status in case of widow. In the case of serving officers only, in exceptional case, where the officer is unable to come in person due to valid reasons, proper authority letter with the signature of the nominee duly attested by the officer and countersigned by the Unit Commander can be accepted for effecting deliveries at the discretion of the Depot. Please refer to Appendix-9E.

Important Points for Information of Customers

9.8 The delivery of an item will be given to the same person who signs at the Depot and in whose favour the authority for collection has been given by the Depot. To clarify further, where an authority letter has been given in favour of a nominee by an officer, the collection can be done by the nominee only and not by the officer himself. This is because the Depot effects payment to the dealer after due comparison of the signature of the customer as obtained at the Depot on the authority letter/release order with the signature as appearing on the challan of the dealer for having effected the delivery. The above is to ensure proper delivery by the dealer to the right person and correct payment to the dealer by the Depot. The customer has to ascertain whether the item is being handled by a Depot, as all the items listed in the canteen range may not be handled by a particular depot due to various reasons such as sales tax problem, non-availability of dealers etc.

9.9

9.10 However, in case of non-availability of dealers for AFD Category-I items through CSD, URCs may approach CSD HO to arrange and approve appointment of dealers at the towns of major concentration of CSD clientele. 9.11 The price prevailing on the date of delivery will be payable by the customer. 9.12 Sales tax is payable as per the notifications issued by the concerned State sales tax authority, from time to time. Similarly octroi will be payable as per the notification of the local municipal authorities/cantonment boards, wherever applicable. 9.13 URCs may procure AFD category 1, items in bulk from the authorised dealer through CSD area depot for issuing the same to entilled customers depending on respective URCs following the procedures laid down in circular No 5D/AFD items/3711 dtd. 25 Oct. 2000.

URC Manual 2008 68

Appendix 9A (Refers to Para 9.1 (a)) Tele : 3019563 Quartermaster Generals Branch Dy Dte Gen Centeen Services Army Headquraters DHQ PO New Delhi - 110001 29 June 1998

96410/Q/DDGCS Headquarters Southern Command Eastern Command Western Command Central Command Northern Command ARTRAC

PURCHASE OF CAR THROUGH CSD

1. 2. Reference our letter of even number dated 17 July 1998. In view of the Fifth Pay Commission, the following category of Defence personnel and equivalent officer of civil Defence Establishments and Canteen Stores Department are eligible to buy Car through CSD. (a) Defence Service Officers drawing basic pay of Rs. 10,500/- per month (including rank pay) and above. (b) Officers who retired prior to the Fifth Pay Commission with a basic pay of Rs. 3,500/- or more (including rank pay). (c) Officers who retired in the rank of Major and above, prior to Fourth Pay Commission (as per the existing rules.). (d) All personnel below officer Rank (Servicing/Retired) drawing basic pay Rs. 10,500 & above are also entitled to purchase car through CSD. (JP Dwivedi) CSO DD CS For Quartermaster General Copy to :Air HQ Naval HQ For information

Canteen Stores Department ADELPHI 119, MK Road, Mumbai - 400 020. JGM - II : For information please. URC Manual 2008 69

Appendix 9A-1 (Refers to Para 9.1 (c to f)) Tele : 3011347 Quartermaster Generals Branch Dy Dte Gen Centeen Services Army Headquraters New Delhi - 110001 25th Sept 1998

96410/Q/DDGCS Headquarters Southern Command Eastern Command Western Command Central Command Northern Command ARTRAC

ELIGIBILITY FOR PURCHASE OF CAR THROUGH CSD

1. Of late, this office has been receiving a number of queries with regard to the eligibility for purchase of cars through CSD. As per the exciting, policy the following categories of personnel are eligible to avail this facility. (a) All commissioned officers, serving and retired, of the Armed Forces, who are authorised canteen facilities. This category does not include Honorary Commissioned officers. (b) Widows of service officers who are authorised canteen facilities. (c) Equivalent status civilian officers/officers of CSD who are authorised canteen facilities. However, they will have to pay sale tax as applicable in the concerned state. (d) All GREF personnel of officer grade, serving and retired, upto civilian officer grade III, as per Ministry of Defence Notification No SRO 329 dated 23 Sep' 1950, who are authorised canteen facilities. 2. 3. This policy letter supersedes all instrucions issued on the subject. The same may please be appropriately disseminated to all concerned. CSD Head Office only : Your are requested to instruct all CSD Depots accordingly. (Satish Kumar) Brig Dy Dir Gen Canteen Services Air HQ (Dte of Org) Naval HQ (Dte of Pers) Canteen Stores Department H O, Mumbai. All AHQ Branch/Dte URC Manual 2008 70

Appendix 9A-2 (Refers to Para 9.1 (g)) Tele : 23092347 Quartermaster Generals Branch Dy Dte Gen Centeen Services Army Headquraters DHQ PO New Delhi - 110001 13 Aug. 2004

96410/Q/DDGCS Headquarters Southern Command (Q) Eastern Command (Q) Western Command (Q) Central Command (Q) Northern Command (Q) Andaman &Nicobar Command (Q) Air Headquarters (Dte of Pers) Naval Headquarters (Dte of Org) Coast Guard Headquarters CSD Head Office, Mumbai

ELIGIBILITY FOR PURCHASE OF CAR THROUGH CSD

1. 2. 3. 4. Letter No. 96410/Q/DDGCS dated 22 Oct 2003 is hereby cancelled. SSC and EC Officers who have put in five years of reckonable service before being released, are authorised to purchase car through CSD. This has the approval of competent authority. CSD Head Office only : All CSD depots be intimated accordingly. (RS Khatri) Lt Col Jt Dir CS Copv to : COAS Sectt QMG Br/Q1 (E) DGBR DGNCC For Informationplease

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Appendix 9A-3 (Refers to Para 9.1 (h)) GOVT OF INIDA, MIN. OF DEFENCE CANTEEN STORES DEPARTMENT ADELPHI, 119 MK RD., MUMBAI - 400 020 Ref. No.:1/92/505 10 March 03

ENTITLEMENT OF CSD FACILITIES

QMG's Branch letter No. 96410/Q/DDGCS dated18th Feb. 2003, on the subject is reproduced hereunder for information and necessary action please. (V. S. RAO) AGM (SECRETARY) Distribution: 1. All DGMs/RMs 2. All AGMs 3. All CSD Depot Managers (2 copies) 4. Managers /AAOs at HO 5. PA to GM/JGM-I/JGM-II Quartermaster Generals Branch Dy Dte Gen Centeen Services Army Headquraters New Delhi - 110001 96410/Q/DDGCS Headquarters Southern Command Eastern Command Western Command Central Command Northern Command Army Training Command Andaman & Nicobar Command Coast Guard Headquarters Air Headquarters (Dte of Org) Naval headquarters (DPS) CSD HO, Mumbai All AHQ Branch/Dte 18 Feb. 2003

ENTITLEMENT OF CSD FACILITIES

1. With immediate effect all serving/retd hony commissioned officers irrespective of their basic pay are entitled to purchase all AFD items including Car from CSD as entitled to serving/retd commissioned officers. This has the approval of competent authority. Our letter No. 96410/Q/DDGCS dated 22 Oct 2001 and of even No. dated 05th Dec. 2001 may be treated as cancelled. Sd/(Ashok Kunzru) Brigadier Dy Dir. Gen. Canteen Services

3.

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Appendix 9 A-5 Tele : 23092347 Quartermaster Generals Branch Dy Dte Gen. Canteen Services Army Headquarters DHQ PO New Delhi - 110001 09 June 2003

96412/Q/DDGCS Headquarters Southern Command Eastern Command Western Command Central Command Northern Command Army Training Command Andaman & Nicobar Command Air Headquarters (Dte of Org) Naval Headquarters (DPS) Coast Guard Headquarters CSD HO, Mumbai All AHQ Branch/Dte

ELIGIBILITY PERIOD FOR PURCHASE OF AFD CATEGORY-I ITEMS

1. As per the existing rules/policy, there is a wide variation in eligibility period for collection of various AFD-I category items between officers and PBOR both services and ex-servicemen. Therefore, a need is felt to rationalise the eligibility period and also bring all ranks at par for the eligibility since requirement of all personnel is almost the same. The competent authority has now decided to make the eligibility period for purchase of all AFD category-I items, including cars to 2 years, to the entitled category of persons, irrespective of category of the customer. Any AFD category - I item can now be purchased by the entitled customer only once in a period of two years, (i.e) a period of two years should have lapsed before purchase of same AFD category - I item. This policy letter supersedes all instructions issued on the subject. AO 32/84 is being amended accordingly. CSD Head Office only You are requested to instruct all CSD Depots accordingly. Chap 9 of "The Manual for URC - 1999" be suitably amended and disseminated to all command. Sd/(Ashok Kunzru) Brig DDGCS URC Manual 2008 73

2.

3. 4.

Appendix 9 A-5 (i) Goverment of India Canteen Stores Department Telegram : CANSIND Telex : 011-82761/011-85503 CASD IN Telephones : 203 71 20 / 40 / 42 / 80 Ref. 2/MS-13120/URC Manual/2404 All Depot Managers/Manager (AFD) ADELPHI 119 Maharshi Karve Road, Mumbai - 400 020. Date : 31 Oct. 2007

PURCHASE OF CAR BY JCOs AND EQUIVALENT

1. 2. Further to our letter No. 2/MS-13120/URC Manual/1488 dt. 18 Sept. 2006. As per existing policy, serving JCOs are auth to purchase cars up to 1000CC. Now the JCOs have been permitted to buy car upto 1300CC. However, instruction contained in DDGCS letter No. 96410/Q/DDGCS(P) dt. 12 Oct. 2007 shall be strictly complied with. The following to be ensured in addition to the existing instrs on the subject:(a) (b) 3. 4. Affidavit (Rs. 5/-) on non-judicial stamp paper with an undertaking that the vehicle is for personal use. Vehicle to be registered on self/wifes name and suitably covered in the affidavit.

All other terms and conditions will remain the same as per our letter No.2/MS-13120/URC Manual/1488 dt. 18 Sept. 2006. Please confirm receipt. (Kulbir Singh) Lt. Col. DGM (MS) cc : DDGCS - Acknowledge. cc : All RMs/All DGMs (including Base) cc : 2/MS-URC Manual cc : PA to GM/JGM-I/II

URC Manual 2008 74

Appendix 9 A-6 Tele 23092563 Integrated Headquarters of MOD (Army) QMGs Branch Dy Dte Gen Canteen Services L-I Block, New Delhi-110001 No. 96410/Q/DDGCS HQ Southern Command (Q) HQ Western Command (Q) HQ Central'Command (Q) HQ Northern Command (Q) HQ Eastern Command (Q) HQ South Western Command (Q) HQ ARTRAC (Q) HQ Andaman & Nicobar (Q) Intergrated Headquarters of MOD (Navy) Air HQs Coast Guard (HQs) CSD HO, Mumbai 8 Aug. 2006

PURCHASE OF CAR BY SERVING JCOs AND EQUIVALENT

1. Reference this HQ letter No. 96410/Q/DDGCS dated 23 Mar 06.

GENERAL
2. Due to changed socio-economic conditions and large number of requests received from the environments, it has been decided that purchase of four wheelers through CSD will be permitted to all the serving JCOs and equivalent with immediate effect. However, to ensure that the facility is not misused procedures and safeguards given in the succeeding paragraphs will be strictly adhered to.

ELIGIBILITY AND CONDITIONS FOR PURCHASES

3. Eligibility. Only serving JCOs and equivalent of the three services having minimum of 15 years colour service are entitled to purchase a four wheeler upto 1000CC capacity.

PROCEDURE AND CONDITIONS

4. (a) JCOs/ equivalent can purchase the second Car after seven years of the initial purchase. He is not allowed to sell the car before completion of two years from the date of purchase.

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(b) Commanding officers / OC Troops will give a certificate that the JCO is eligible to purchase a car from CSD and that his financial position allows him to purchase a car (Appendix B) (c) JCOs/ equivalent will apply on the form enclosed at Appendix A (which will be provided by CSD depot). The following documents shall be submitted along with the application: (i) A certified copy of Driving licence issued by the civil authorities. (ii) A certified from JCO / equivalent countersigned by the CO/OC troops that the individual has not purchased a car in the last seven years and that he will not sell the car before two year and that he is liable to pay the entire excise / sales tax concession in case of any violation. (iii) A certified copy of the pay book where in the entry with regard to purchase of car by the JCO is made. 5. Misuse : In case an individual is found to have violated any of the above conditions, that is, purchase of second car before seven years or sale of car before two years from the date of purchase, he will be liable to pay the full excise duty/ sales tax as applicable.

ACTION BY THE CSD

6. At the CSD depot level the following action will be taken on receipt of application from the JCO / equivalent (a) Verify the correctness of the details furnished by the JCO. (b) Cross check from CSD HO whether the JCO has already purchased a car from any other CSD depot. (c) Share the data with regard to purchase of car by JCOs with other depots. (d) The JCO will be allowed to purchase the car only after receipt of confirmation from CSD HO. CSD HO will be responsible for collecting the information of all purchases at the All India. Level. A consolidated quarterly report of all purchases will be forwarded by CSD Head Office to DDGCS. The policy will be revised after one year, after obtaining feedback from the environment. This office letter No. 96410/Q/DDGCS dated 23 Mar 06 may please be cancelled.

7.

8.

(I. Arumy Raj) Brig. DDG Canteen Services For Quartermaster General Copy to : Q1 / E - For information of QMG please QMGs Branch URC Manual 2008 76

Appendix A

APPLICATION FORM (CAR) FOR JCOS AND EQUIVALENT (SERVING ONLY)

1. Personal No. Rank Name

Date of promotion to JCO Rank Units name (Identity Card No. PAN / GIR No. ) Basic Pay Rs. (where applicable for JCOs)

Driving licence No. dated issued by (photocopy attached) (For JCOs and equivalent only). 2. 3. 4. 5. 6. 7. 8. 9. Place Date Signature of the Applicant Model No. Name of Dealer (full address) It is certified that I am eligible to buy a car through CSD, as per existing instructions on the subject. It is certified that I have not purchased any 4 wheeler (Car) during last seven years. I also undertake not to sell the vehicle within 2 years from the date of purchase. It is also certified that the Car applied is for my personal use and will not be sold/transfered to any person during the next two years. It is certified that I have got the entry made in my Pay Book as per the rules. I affirm that the above details, as submitted, are correct and shall be adhered to. I am liable to pay the entire Excise / Sales Tax concessions in case of any violation of above. Colour

COUNTERSIGNATURE
It is certified that the information / particulars / details given by the applicant are verified / scrutinised and found correct. Entry of purchase has been made in the Pay Book. Coutnersigned Round Rubber Stamp Rank Name Signature of OC Unit / Station Commander Note : If PAN number is not available declaration in Form 60 should be furnished as per IT Rules URC Manual 2008 77

Appendix B

CERTIFICATE
Certified that JC Rank Name is eligible to purchase a car and that his financial position allows him to purchase a car.

Commanding Officer

URC Manual 2008 78

Appendix 9B

INDENT FOR PURCHASE OF AFD CATEGORYI ITEMS BY ENTITLED SERVING PERSONNEL

1. 2. 3. 4. 5. 6. Name of the Indentor (In Block Letters) Personal Number Rank (If Civilian give full designation) Station of Delivery Unit/Formation and Address Item demanded

CERTIFICATE FROM THE INDENTOR

1. 2. 3. Certified that the above machine is required for my/my familys bonafide use and I undertake not to sell it within a period of two years from the date of purchase. Certified that I am married/bachelor. Certified that I had not purchased the item being indented now from the Canteen Stores Department during the last two years. Signature of the Indentor

CERTIFICATE FROM THE UNIT/FORMATION

Certified that
(Give Name and Rank of the Indentor)

is entitled to buy the above item through CSD in terms of Army Order No dated as amended from time to time. Signature of OC Unit/Formation with Rank & Name and Seal of Unit/Formation Notes : 1. Payment will be accepted only through bank draft drawn on Canteen Stores Department, Public Fund Account (Main). 2. Please ensure to produce your identity card at the time of registration/collection. URC Manual 2008 79

Appendix 9C

INDENT FOR PURCHASE OF AFD CATEGORYI ITEMS BY ENTITLED RETIRED PERSONNEL

Part I 1. 2. 3. 4. 5. 6. Name of the Indentor (In Block Letters) Personal Number Rank (Last held) (If Civilian give full designation) Station of Delivery Unit/Formation and Address (Last Employed) Whether the applicant is in receipt of pension or retention fee, if so a) b) c) d) e) 7. 8. 9. Amount of Pension sanctioned Details of Pension Book Period for which Retention Fee sanctioned Amount Retention Fee sanctioned Authority under which Retention Fee sanctioned

Present Address Permanent Address Details items applied for

Part II Certified that : 1. 2. 3. 4. Date Name Rank I am entitled to avail canteen facilities from the service canteen in terms of AO. The item applied for is required for me and my family use. I have not purchased the item from the CSD during the past two years. I undertake not to sell it within a period of two years from the date of purchase. Signature of Indentor

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Part III The particulars given of No. Name Rank are correct. Signature of the Certifying Authority with Name, Rank and Seal of the Unit/Station HQ Notes : 1. The certificate in Part-III should be got countersigned from the Officer Commanding of the unit where the applicant last served or the local Station Headquarters (Secretary / Dy Dir of Zila Sainik Board in case of retired personnel). Payment will be accepted only through a bank draft drawn on Canteen Stores Department Public Fund Account (Main). Payable at the place of the depot concerned. Please ensure to produce your Identity Card/Pension Book, Payment Order Discharge Certificate at the time of booking/collection.

2. 3.

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Appendix 9D

APPLICATION FORM FOR CARS (FOR OFFICERS)

1. P. No. Units Name (Identity Card No. Pan/GIR No. 2. 3. 4. 5. 6. Place Date 7. Signature of the Applicant It is certified that the information/particulars/details given by the applicant are verified/ scrutinised and found correct. Counter signed Round Rubber Stamp Rank Name Signature of OC Unit/Station Commander Notes : 1. 2. If PAN No. is not available, declaration in Form-60 should be furnished as per IT Rules. The certificate should be got countersigned from the Officer Commanding of the unit where the applicant last served or the local Station Headquarters (Secretary/Dy Dir of Zila Sainik Board in case of retired personnel). Payment will be accepted only through a bank draft drawn on Canteen Stores Department Public Fund Account Main payable at the place of the depot concerned. Please ensure to produce your Identity Card/Personnel Book Payment Order Discharge Certificate at the time of booking/collection. Model No. Name of Dealer (Full Address) It is certified that I have not purchased any 4 Wheeler (CAR) during last 2 years. I also undertake not to sell the vehicle within 2 years from the date of purchase. It is also certified that the car applied for is for my personal use and will not be sold/transferred to any person during the next two years. I affirm that the above details, as submitted, are correct and shall be adhered to. Colour ) Basic Pay Rs. Rank Name

3. 4.

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Tele : 23092347

Appendix 9-E (Refers to Para 9.7) Quartermaster Generals Branch Dy Dte Gen. Canteen Services Army Headquarters DHQ PO NEW DELHI - 110 001. 28 April 2003

96412/Q/DDGCS Southern Command Western Command Eastern Command Central Command Northern Command Army Training Command Andaman & Nicobar Command Air Headquarter (Dte of Org) Naval Headquarter (DPS) Coast Guard Headquarters All AHQ Branch / Dte

PURCHASE OF AFD ITEMS THROUGH AUTHORISED REPRESENTATIVE

As per the existing policy all AFD-I items i.e. T.V., Refrigerator, Scooter, Car etc. are required to be collected by the demanding bonafide customer. In case, the serving officer is not able to collect personally due to operational or other reasons, the delivery is given to his nominee based on a certificate signed by the Commanding officer/Formation HQ. However, this facility is not extended to the retd service personnel till now. The competent authority has now decided to extend the facility of collecting AFD items through a authorised representative to all entitled retd service personnel also. Procedure for collection of AFD items through authorised representative is as enunciated below : a) Where the bonafide customer is unable to collect in person due to valid reasons, proper authority letter with the signature of the nominee duly attested bythe bonafide customer and countersigned by the Unit Commander in case of serving service. Personnel and Station HQ/Zila Sainik Board in case of retired service personnel can be accepted for effecting deliveries at the discretion of the Depot. All the necessary docu in respect of the bonafide customer required to be perused at the depot will be brought by the authorised representative to book the AFD item. b) The delivery of an item will be given to the same person who signs at the Depot and in whose favour the authority for collection has been given by the Depot. To clarify further, where an authority letter has been given in favour of a nominee by an bonafide customer, the collection can be done by the nominee only and not by the bonafide customer, himself. This is because the Depot effects payment to the dealer after due comparison of the signature of the customer as obtained at the Depot on the authority letter/release order with the signature as appearing on the challan of the dealer for having effected the delivery. The above is to ensure proper delivery by the dealer to the right person and correct payment to the dealer by the Depot. Sd/(T Sambaiah) Lt Col Jt Dir CS URC Manual 2008 83

CHAPTER - 10

TAXES
Sales Tax
10.1 Levy of Sales Tax is a State subject, hence each State has its own sales tax laws. URCs should acquaint themselves with the Sales Tax Act and rules made thereunder by the respective States. They must ascertain whether they fall within the purview of the word Dealer under the relevant State Sales Tax Laws. If so, they must get themselves duly registered and should maintain necessary books of accounts as prescribed and file sales tax returns. Quite a few State Governments have exempted sales of CSD goods from the payment of sales tax. State Governments periodically change their policy on exemption of sales tax to the Defence Forces. Periodical visits should be made to the local sales tax authorities for ascertaining the latest position. This is especially true of exemptions applicable to ex servicemen and civilians working in various defence organisations. If a URC located in one State obtains its canteen requirements from a CSD Depot located in another State, the transaction will fall under the purview of Central Sales Tax (CST) and it will be necessary for such a URC to register itself under the CST Act and issue Declaration Form C to the Depot from which the goods are obtained. The CST Act and the rules made thereunder by the Central Government should also, therefore, be carefully studied. Sales Tax returns should be filed and assessment got completed, wherever applicable. 10.2 Declaration on Form D is authorised to be issued by the Government departments for purchases made for only such items as are required for the official use by them. It must be clearly understood that use of Form D for purchase of items for private/personal use/resale is prohibited under the law. Declaration on Form C is authorised to be issued by registered dealers making purchases in course of inter-state trade or commerce. Under no circumstances, URCs should purchase stores directly from the suppliers and issue declaration on Form D. Also, in States where sales tax is charged at concessional rates on sales made to government departments, URCs are NOT entitled to these concessional rates as they are not government departments.

Octroi
10.3 URCs should study local laws regarding Octroi, Terminal Tax and Cantonment Tax and pay the taxes wherever applicable. Under the existing orders, octroi, terminal tax etc, are to be recovered from the customers. It should be ensured that correct rates of octroi are paid after ascertaining the same from the local authorities. The recoveries can then be made from the customers accordingly.

Professional Tax
10.4 State Governments and local bodies are empowered to levy taxes on professions, trades, callings and employments. It has not been possible to obtain general exemption for the URCs from the payment of the above taxes. URCs should, therefore, study the provisions in this regard and pay such taxes, if levied by the State Government/Local Bodies.

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Value Added Tax

10.5 Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services. It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. It is a consumption tax because it is borne ultimately by the final consumer. 10.6 It is not a charge on companies. It is charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain.

Method for Collection

10.7 It is collected fractionally, via a system of deductions whereby taxable persons can deduct from their VAT liability the amount of tax they have paid to other taxable persons on purchases for their business activities. VAT also has the provision of a set-off for the tax paid at earlier stages in the chain. This mechanism ensures that the tax is neutral regardless of how many transactions are involved.

Applicability in CSD
10.8 As CSD buys items directly from manufactureres, VAT is paid along with purchase price. The vendors claim an offset of the amount of VAT already paid by them. Only the value addition done at CSD is subject to tax. For instance, when CSD purchases goods of Rs. 100 from a manufacturer and VAT of Rs. 12.50 is charged in the bill, CSD pays a total of Rs. 112.50 to the vendor. While selling these goods to URC profit margin of 7% is loaded on Rs. 100 (purchase price) only and not on Rs. 112.50 (invoice price). Thus, CSD charges a profit of Rs. 7 and the same is considered as value addition done by CSD. In the invoice to URC, the selling price of the item will be Rs. 107 whereas VAT @ 12.5% will be Rs. 13.37, the invoice price for URC will be Rs. 120.37 (i.e. Rs. 107+13.37). Out of the VAT of Rs. 13.37 collected by CSD Rs. 12.50 will be claimed as offset, as this had already been paid to the vendor and balance Rs. 0.87 (i.e. 12.5% on value addition of Rs. 7) will be deposited with the government. The same procedure is followed by the URCs, i.e. by charging VAT on the value addition done by them. Ultimately VAT is borne by the final consumer. For better understanding the method for calculation of VAT is enclosed as Appendix. 10.9 VAT in its common form is thus a sales tax levied according to value added. Introduction of VAT has resulted in avoidance of tax evasion and removed cascading effect of taxes. Thereby, increasing the revenue to the government without resulting any extra burden to the consumer.

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Appendix METHOD FOR CALCULATION OF VAT SL. No. 1. Item MANUFACTURER (a) Selling price of item including profit of manufacturer (b) VAT on selling price @ 12.5% (c) Selling price inclusive of Vat to CST depot (1 (a) + 1 (b)) CSD DEPOT (a) Invoice price at CSD depot (b) VAT reflected in invoice (c) Purchase price of item (2 (a) - 2(b)) (d) Profit @ 7% at CSD depot on purchase price (7% of 2(c)) (e) Selling price of item including profit at CSD depot (f) VAT on selling price at CSD depot (12.5% of 2(e)) (g) Selling price inclusive of VAT to URC (2(e) + 2(f)) (h) Offset claim by CSD (same as 2 (b)) (j) Net VAT payable to the Govt. (2 (f) - 2 (b)) UNIT RUN CANTEENS (a) Invoice price at URC (b) VAT reflected in invoice (c) Purchase price of item (3(a) - 3(b)) (d) Profit @ 6% at URC on purchase price (6% of 3 (c)) (e) Selling price of item including profit at URC (f) VAT on selling price at URC (12.5% of 3(e)) (g) Selling price inclusive of VAT to customers (3(e) + 3 (f)) (h) Offset claim by URC (same as 3 (b)) (i) Net VAT payable to the Govt. (3 (f) - 3 (b)) Amount Rs. 100.00 12.50 112.50 112.50 12.50 100.00 7.00 107.00 13.37 120.37 12.50 0.87 120.37 13.37 107.00 6.42 113.42 14.17 127.59 13.37 0.80

2.

3.

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VAT STATUS States Gujarat, Jharkhand, Bihar, Tamil Nadu, Andaman, Lakshwadeep Uttar Pradesh W. Bengal Madhya Pradesh Rajasthan Karnataka Uttaranchal Delhi Maharashtra Andhra Pradesh Kerala Goa Haryana Assam Himachal Pradesh Punjab Chandigarh Orissa Sikkim Nagaland J&K Arunachal, Tripura, Manipur, Meghalaya, Mizoram, Daman, Pondicherry, Dadra & Nagar Haveli Stores *Liquor Exempted AFD

Exempted Exempted 4% & 12.5% 3% 0 & 12.5% Exempted 4 & 12.5% 4 & 12.5% 0%, 1% & 12.5% 2%, 6.25% & 10% 4% 4% 4% 4% 0%, 1% & 4% 4% Exempted 1% 1% 4% & 12.5% 12.5%

Exempted 20% on all liquor products Exempted Exempted Exempted 20% on all liquor products Exempted 20% on all liquor products 70% on all liquor products Beer/Wine 60% IMFL 55% 20% 4% on all liquor products Rum Exempted IMFL/Beer 24% 4% 4% on all liquor products 4% Not Exempted 1% 1% 20% on all liquor products Not Exempted *(for liquor different tax rates are applicable in different states)

12.5% Exempted 1%, 4% & 12.5% 3% & 1% 12.5% 1% & 12.5% 12.5% 12.5% 12.5% 6.25% 12.5% 4% 12.5% 4% 4% 1% 12.5% 12.5% 1% 12.5% 12.5%

VAT percentages are subject to change as per notifications received from State Govt. URC Manual 2008 87

Frequently Asked Question (FAQ) During Quarterly URC Meeting

QUESTION NO.1 : ISSUE OF SUBSTITUTE/FORCE ISSUE OF ITEMS
1. Substitute/force of items without the specific consent of the URCs except in the case of newly introduced items, is not allowed. Circular No. 2/MS-13105/CFM-XIII/2897 dated 15 Dec. 2005 enjoins the RMs to sensitise the Depot Managers under their command to desist from adding/substituting the items in the indent of the URCs to obviate complaints from URCs. In order to provide functional equivalents to the clientele, the Depot Managers are authorised to issue substitute items of functional utility but with the consent of the URCs. Newly introduced items are also issued to URCs against a credit for 60 days without demand. Such new products can be returned by the URCs if not sold within 60 days issue. QUESTION NO.2 : INTRODUCTION OF COMPUTERS, STATIONERY AND MOBILE PHONES ETC. 3. Due to rapid up gradation of the models and frequent crash in prices, mfr of mobile phones and computers are reluctant to offer their products. Endeavour will be made to persuade mobile phone manufacturers to enlist their products in CSD. Few Stationery items which have adequate sale potential are likely to be enlisted in future. QUESTION NO. 3: LOW SHELF-LIFE ITEMS 4. All Depot Managers have been sensitised vide HO Circular No. 2/MS-13273/2003 dated 15 Nov. 2006 with regard to issue of items having sufficient shelf-life at the time of issue to the URCs. Items having shelf-life ranging from varied shelf-life period are to be issued in the following manner :Total Shelf-life period of the item Upto 12 months Beyond 12 months Minimum residual shelf-life for issue of URCs 50% 30% or 6 months residual shelf-life whichever is lesser

2.

The above is amplified further as follows :(a) Any item with a shelf-life of 12 months and below shall not be issued to URCs without a residual shelf-life of minimum 50% of shelf-life, as hither-to-fore. (b) Any item with more than 12 months of shelf-life can be issued upto 6 months of residual shelf-life

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5.

All concerned in the supply chain are to ensure that FIFO system is followed meticulously to avoid denials, loss of sales and consumer dissatisfaction. At times due to slow movement of the item at the URC level the shelf-life expires before the item is sold to the end consumer which results into loss of URCs limited resources. URCs are to plan their indents in a realistic manner to avoid such a situation. Frequency of collection of such shelf life items, may be increased to avoid loss to URCs in co-ordination with the depots. QUESTION NO.4 : REIMBURSEMENT OF TRANSPORTATION CHARGES

6.

Refer to CSD HO circular NO/ 6/F&A/Co-Ord/MCN/3614 dt. 13 April 2007. (Page 52) QUESTION NO. 5 : AFTER SALES SERVICE

7.

SOP of 2001 has provided for replacement of the damaged / defective product within warranty period ex CSD depot stock, after due verification. The local dealer of the firm will be advised to attend to the complaint where the warranty has expired. In case not attended, CSD depot will follow-up with the firm till resolving of the complaint. QUESTION NO.6 : BREAKAGE/REPLACEMENT OF ITEMS

8.

Replacement of defective/damaged/broken items as and when received from URCs alongwith Board Proceedings will be attended to by depots. In case of defective items which is within warranty period will be replaced ex stock debiting the value of the product to the firm. If the item is not available at the Depot during that period, necessary action to take back the item by affording credit note to the URC will be initiated, as the Department is committed to provide after sales service to the URCs Items out of warranty period will be attended to by the local dealer of the firm. In case of difficulty, CSD depots will take up with the manufacturers by email, FAX, telegram. All RMs have been requested vide Circular No. 2/Ms-13125/1822 dated 22 May 2001 & Circular No. 2/Ms-13133/Vol-III/2201 dated 16 Nov. 2005 to sensitize the Depot. Managers to take appropriate and prompt action in responding to the URC complaint related to replacement of damaged/defective/broken items to avoid raising of such issues at the higher forums viz Consumer Forum Meets. QUESTIONS NO. 7 : NON-AVAILABILITY OF WINE, CHAMPAGNE, SCOTCH WHISKY AND BREEZERS

9.

In order to meet the requirement of Wine, Champagne, Scotch Whisky & Breezers necessary guidelines have been issued to all Depot Managers vide our Circular No. 5/GP-V/Consumer Forum/3969 dated 01 Sep. 2006 wherein the following Depots have been identified as nodal depots for stocking of all brands of wines and champagne listed in the CSD inventory range to cater to the requirement of URCs of the respective commands/formations/units:a) Northern Command : CSD Depot, B D Bari b) South Western Command : CSD Depot, Jaipur c) Western Command : CSD Depots, Ambala, Jalandhar & Delhi d) Eastern Command : CSD Depot, Kolkata e) Southern Command : CSD Depot, Bangalore & Kirkee f) Central Command : CSD Depots, Lucknow & Dehradun

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10.

All Depot Managers were requested to go through the Circular and take necessary action to procure and position the stock to cater to the URCs of respective commands/formations/ units. QUESTION NO. 8 : NON-AVAILABILITY OF AFD DEALERS

11.

The manufacturers appoint dealers for servicing the CSD clientele in all the locations in India, while offering their products for enlistment. The dealers are generally those who are appointed for the civil trade also. Hence extensive dealer network for CSD clientele are available. However, based on the feedback of the customers, the manufacturers change the dealers from time to time and also expand their dealer network. Any addition to the dealer network based on the feedback of the clientele will be appointed in specific location in consultation with the firm. Regional Managers of CSD on the recommendation of the local Area Manager of CSD are empowered to approve such new dealers. QUESTION NO.9 : DEFICIENCY OF ITEMS IN SEALED CASES

12.

Any complaint with regard to deficiency of items/wrong accounting from the factory packed/ pre-packed cases, should be supported by Board Proceedings, detailed to check the consignment immediately on its receipt by the URCs. This should be countersigned by the Unit Commander. On receipt of such Board Proceedings forwarded within one month from the date of collection of stores, each case will be examined on its merits and compensation afforded. Simultaneously, the Depot take up the matter concerned companies/dealers to avoid recurrence of such complaints in future. QUESTION NO.10 : SUBSTANDARD PACKING

13.

CSD products undergo periodical testing and in case of complaints testing of the product is undertaken. Firms are constantly pursued to improve the inner, outer packing including shrinkwrap, to withstand the transit hazards. The improved packing is approved by CSD and the supplies are monitored at the depots. Any suggestion/complaint from the units are evaluated at CSD HO and corrective action initiated in consultation with the firms. QUESTION NO.11 : TNA ITEMS (TEMPORARILY NOT AVAILABLE)

14.

Due to non-availability of certain items at the time of extension of URC indents a remark is endorsed in the indent/invoice temporarily not available (TNA), so that at the time of collection if the item is available the depot can issue a follow-up Do for the TNA items to avoid denial as well as derive consumer satisfaction. Depots ensure that the URCs collect such follow up Dos. URCs may give alternate functional equivalents required by them, in case popular items are not available at the depots at the time of execution of the demands. Depots are also issuing bulletins informing products not likely to be available due to various reasons which is also highlighted by them during URC meeting and liaison visit to the units. Efforts are made at all levels at CSD HO, Depots and RMs to ensure that those products temporarily not available are procured in co-ordination with firms to ensure continuity of supplies. A major reason for the TNA is erratic demand pattern of many URCs resulting in excess/short stocking at the depots. This needs to be avoided by the units to reduce TNA to the minimum.

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QUESTION NO. 12 : RAISING OF DEBIT AND CREDIT NOTES BY DEPOTS 15. The depots issue debit and credit notes after reconciliation of accounts. Units have been advised vide para 9 of the price list that errors in invoices should be brought to the notice of the depot for issuing debit and credit notes. The Govt. levy which generally is with retrospective effect, have to be paid by CSD hence recovered from the units. The QD therefore covers such eventualities. QUESTION NO. 13 : NON AVAILABILITY / SHORT SUPPLY OF SEASONAL ITEMS 16. Generally, depots receive stocks before the onset of the season. Units should project their demands before the onset of the season. The CSD depots can plan for further stocks so as to avoid non availability. To avoid blockage of funds in inventory excess stock cannot be positioned at the depots, hence units are to plan and lift their requirements in advance from the depots. QUESTION NO.: 14 : DELAY IN OFFERING OF GIFT SCHEME/DISCOUNT IN CSD WHEN INTRODUCED IN CIVIL. 17. It is mandatory for suppliers to extend gift scheme to CSD. In case if any default, bring to CSD notice. CSD will take suitable action. CPS appear late in URC because of the system of FIFO and shelflife of an item. In case any consumer in denied the CPS, depot/HO must be informed accordingly. In addition there are CPS exclusively for CSD clientele, which needs to highlighted. QUESTION NO. 15 : COSMETICS - NON AVAILABILITY OF SHADES & COLOURS OF LIPSTICKS AND NAILPOLISHES 18. Though CSD has vide range of cosmetics the range of Colours specifically in lipsticks and nail polishes available in the CSD are very limited and not suiting the demeanour of the Indian clientele (ladies) QUESTION NO. 16 : RETURN OF UNSOLD STOCKS 19. Units have been advised vide para 5 of the price list to exercise care while projecting their demand to the CSD depots so as to avoid unsold stocks. CSD depots, are not to issue any item without the consent of the units including functional substitutes (except newly introduced items). The unsold stocks cannot be taken back from the units being an audit requirement since it upsets the inventory planning. Any product, issued without the consent of the units is to be reported to CSD HO with full details, for analysis and issuing further instructions to the depot. Newly introduced items are given to the units on 60 days credit which can be returned to the depot if not sold within 60 days.

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QUESTION NO. 17 : BAR-CODING 20. Due to concerted effort by CSD 2213 indices have been registered with Barcode organization. As of now 350 indices are balance for barcoding. However, URCs are requested to identify items with ineffective Barcode so that necessary action can be taken. QUESTION NO. 18 : CSD RATE MORE THAN MRP 21. CSD negotiates the price with the manufacturers eliminating the margins of the distributors and lowest rate anywhere in the country. The discounts bargained by the CSD with the firms are thus high, being the largest buyer. Therefore, CSD price generally are lower than the MRP. Following aspects need be kept in view in case, the CSD price is reported to be higher than MRP. (a) On occasions firms in their anxiety to inform the clientele about the competitive pricing of CSD, prints the CSD price as the MRP resulting in the misconception. (b) On occasions where the firm offers special price off schemes on their products, such discounts are passed on to the units by the depot in their invoice. The MRP printed on the product will be higher till the discounts are passed on to the clientele by the units while selling the items from their counters. (c) The stocks held by the units are of old vintage, while the firm had reduced the MRP of the product subsequently on new stocks. Units are to be careful while preparing indents and also follow FIFO system of sale at their counters to avoid incident of CSD price higher than MRP printed on the packs. 22. However, on receipt of the complaint, following steps are taken : (a) Item is identified with the index no. The samples are kept in custody for investigation. (b) The CSD rate is checked with pricing circulars, suppliers MRP registered with CSD, wholesale price and retail price. (c) On identification of above factors the sale of index no. (item) is suspended and show cause notice is issued to supplier and surprise Market Survey is conducted. (d) On findings of the above, supplier is penalized and he is called of reduction of his prices in CSD. QUESTION NO. 19 : FOLLOW UP DEMANDS 23. Units have been advised vide para 5 of the price list about issue of items at the canteens. CSD depots therefore will follow up the previous demands of the units unless specifically intimated by the units.

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CHAPTER - 11

IMPORTANT POINTS OF GENERAL NATURE

Stocking of Unauthorised Goods in Canteens
11.2 Army Headquarters, QMGs 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. It has been further reported that sales tax exemption certificates in Form D are also being issued towards such purchases. This is irregular. 11.3 Vide Para 2(f) of Army Order No 584/73 (Reproduced as Appendix A to Chapter 3), 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. These instructions have been reiterated vide Army Headquarters, QMGs Branch letter No 96046/Q/DDGCS dt 22 Jan 98, placed at Appendix 11A(i) to this chapter. 11.4 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 Sales Tax, where specifically granted by State Governments is admissible only when items are purchased through CSD. In accordance with AO 427/71, the use of Forms C and D for purchases made from sources other than CSD is an offence under the law, unless the items are purchased for bonafide official use and not for resale. 11.5 Direct purchases by the units and the use of Sales Tax exemption Forms C and D towards such purchases are likely to lead to the following :(a) Various States have exempted the purchase tax as well as sales tax 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 purchase tax. Moreover, goods directly procured are liable to the levy of sales tax even when sold to the members of the Armed Forces. Any violation of this rule amounts to violation of the 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.

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(c) Direct purchase of items causes loss to the CSD, and ultimately to a wider cross-section 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

11.6 The CSD Area Depots strive to render proper and impartial service to the unit-run-canteens. 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 favours 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 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

11.7 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. URC Manual 2008 94

Suggestion and Feedback

11.8 Views and suggestions of customers are of prime importance to the CSD. With a view to utilise such feedback, a suggestion box as well as a suggestion book are 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. The Depot will take necessary action on the suggestions so received/recorded.

Imported Liquor
11.9 Due to non-availability of Free Foreign Exchange, the import has been stopped since 1984-85. No liquor is, therefore, being imported. However, the existing stocks available with the Department are being issued to the entitled persons till stocks last as per the scales given below to the retired Field Marshals, three Services Chiefs (retired and serving) and GM and ex GMs of CSD. (a) Field Marshals and Services Chiefs : on as required basis. (b) Retired Services Chiefs : (i) One bottle of scotch whisky per month. (ii) One bottle of imported Brandy/liquor/champagne each per month. (c) For General Manager and : One bottle scotch whisky per two months. ex GMs of CSD.

Imported Sports Goods

11.10 Due to non-availability of Free Foreign Exchange, the import has been stopped since 198485. No sports goods are, therefore, being imported.

Issue of Shot Gun Cartridges

11.11 Information with regard to procurement, distribution/issuance of shot gun cartridges by the Canteen Stores Department to the of URCs is summarised below :(a) The system of procurement and distribution of cartridges is governed by BOCCS policy Circular No A/43339/XI/Q/Can dated 08 May 1981 reproduced at Appendix 11B to this chapter. (b) Services/Command Headquarters will forward their consolidated demand in respect of all formations, units and Category A Establishments under their command. The total annual demanded quantity should not exceed the total authorisation of cartridges specified on the licences of registered weapons held by the Services personnel and dependent exservicemen attached to unit canteens under their command, plus Command/formation reserves not exceeding 15% thereof. Distribution of ammunition shall be regulated through canteens holding valid dealers licence.

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(c) Demands will be projected to CSD, Adelphi, 119, M. K. Road, Mumbai-20, under intimation to DDGCS, QMGs Branch, Army Headquarters, New Delhi-110011, by 30 Jun every year. (d) The CSD Head office will place orders on the Ammunition Factory, Kirkee accordingly. On receipt of consignment from the factory, the cartridges will be allotted in bulk to Naval HQ, Air HQ and HQ Commands of the Army for sub-allocation/distribution to the indenting units, formations and Category A Establishments, based on the demands placed by them. In case the Ammunition Factory supplies only a percentage of the total demand projected by the CSD, the allocations to all concerned will be regulated proportionately. (e) The formations, units and Category A Establishments to whom the sub-allocations of these cartridges are made, will be advised to lift the stocks within one month after these have been positioned at the concerned CSD Depots. (f) For exercising effective control on distribution, it is suggested that in small stations, only one unit or formation HQ canteen be nominated for dealing in ammunition for the entire station personnel. In bigger stations, a couple of canteens nominated by the respective controlling formation HQ should be able to cater to the requirement of personnel of the station. Such nominated and authorised canteens should be advised to obtain proper licence to deal in ammunition, if they are already not in possession of such a licence. Personnel of units not holding Arms Dealers Licence for dealing in ammunition, should be attached to nearest central canteen holding such a licence. These canteens should keep a record of licence particulars in respect of all Service/exservice personnel attached/dependent on them.

(g) Issue of 12 bore shotgun cartridges is authorised to the Defence personnel holding valid arms licence. Authorised individuals can purchase cartridges on production of valid licence to URC/formation HQ canteen. They will be issued only the quantity for which they are authorised as per the endorsement on the arms licence.

Supply of Rum/IMFL
11.12 There are three categories of liquor in CSD. These are as follows :(a) Contract Rum. The procurent of contract rum has been discontinued. (b) Matured Rum. Matured rum is a better quality rum which is matured for a period ranging between one to seven years. Some of the known brands in CSD inventory are Old Monk, Contessa, Old Adventure, Black Bull, Lord Nelson, Black Cat, Old Port, Caribay Deluxe etc. White rum is also a matured rum. (c) IMFL. Whisky, Brandy, Beer, Gin, Vodka etc come under the category of IMFL.

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11.13 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 to 90 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. 11.14 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.

Commemorative Liquor for Reunions/Special Occasions

11.15 To celebrate reunions or special occasion, units may require additional liquor over and above their normal monthly requirement/entitlement. The units may also like to get specially bottled liquor from a particular distillery for such occasions. The detailed procedure for obtaining commemorative liquor for reunions and special occasions is enumerated in QMGs Branch letter No 96220/G/DDGCS of 09 Oct 2000 reproduced at Appendix 11C to this chapter. URCs are guided to act accordingly.

Scales of Liquor and Drawal

11.16 Scales of Liquor. The scale of liquor items to be issued to the various categories of service personnel is promulgated by QMGs Branch from time to time. The latest information with regard to scale of liquor for issue to Service personnel is laid down vide QMGs Branch letter No 96219/Q/DDGCS dt 20 Aug - 2001, reproduced as Appxendix 11D to this chapter. 11.17 Drawal of Liquor by VVIPs. On the basis of authority of QMGs Branch instructions, Field Marshals, ex-Service Chiefs of Army, Navy, Air Force and ex General Managers of Canteen Stores Department can draw liquor from any Service canteen in the country. The list of such eligible officers is published every year by the QMGs Branch.

Issue of Liquor to Service Personnel Proceeding on Leave

11.18 The policy and procedure for issue of liquor to Service personnel, as also scale and authority for being in possession of liquor/beer during travel, while proceeding on leave have been laid down vide Army Headquarters QMGS Branch letter No 96004/Q/DDGCS dt 19 Mar 98 reproduced as Appendix 11-E to this chapter. URC Manual 2008 97

Appendix 11A (Refers to Para 11.3) Telephone : 3011092 Quartermaster Generals Branch Army Headquarters New Delhi - 110011 22 Jan 98

96046/Q/DDGCS Southern Command Eastern Command Western Command Central Command Northern Command Army Trg Command

SALE OF NON-CSD ITEMS BY URCs

1. It has been reported that of late Unit-Run-Canteens (URCs) are resorting to sale of non-CSD items from their premises which is directly against the instructions contained in Para 2(f) of Army order No 584/73 which lays down that under no circumstances any goods other than those obtained from the Canteen Stores Department (CSD) or through its direct suppliers authorised by CSD to deliver the goods direct are to be stocked in the Unit-Run-Canteens. 2. It is also observed that some of the suppliers are directly getting in touch with URCs and supplying their products without going through CSD channel. This practice may be resulting in small gains for the URCs but in overall context such practice tantamounts to cheating on taxes and also depleting the overall CSD profits available for allotment to URCs as Quantitative Discount (QD) and Grants-in-aid. 3. You are requested to take adequate measures at your end to prevent this unhealthy practice which may result in overall losses to the Services in the long run.

(GS Srivastava) Major General Dy QMG for Quartermaster General

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Appendix 11A(i) Tele 23092347 Integrated HQ Min of Def (Army) Dy Dte Gen Canteen Services QMGs Branch, R. No. 16 L-I Block, New Delhi-110001 21 Aug. 2007 No. 96102/Q/DDGCS Headquarters Southern Command (Q/Ops) Eastern Command (Q/Ops) Western Command (Q/Ops) Central Command (Q/Ops) Northern Command (Q/Ops) South Western Command (Q/Ops) Andaman Nicobar Command (Q/Ops) Army Training Command (Q/Ops) Naval HQ (PD PS) Air HQ (Dte of Accounts) DGBR (Q/Ops) DG NCC HQ Coast Guard DO Assam Rifles

SALE OF NON CSD ITEMS BY URCs

1. It has been reported that of late Unit Run Canteens (URCs) are resorting to sale of non-CSD items from their premises which is directly against the instruction contained in para 2 (f) of Army Order No. 19/2003 which lays down that under no circumstances any goods other than those obtained from the Canteen Stores Department (CSD) or through its direct suppliers authorised by CSD to deliver the goods direct are to be stocked in the Unit Run Canteens. It is also observed that some of the suppliers are directly getting in touch with URCs and supplying their products without going through CSD channel. This practice may be resulting in small gains for the URCs but in overall context such practice tantamounts to cheating on taxes and also depleting the overall CSD profits available for allotment to URCs as Quantitative Discount (QD) and Grants-in-aid. You are requested to take adequate measures at your end to prevent this unhealthy practice which may result in overall losses to the services in the long run. (BK-Pandey) Lt Col Joint Dir Canteen Services Copy to : DGM (MS CSD HO Mumbai-20 W.r.t. your letter No. 2 / MS-13120 / URC Manual / 1343 dated 17 Jul 2007

2.

3.

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Appendix 11B (Refers to Para 11.11) Telephone : 376208 Secretriat Board of Control Canteen Services, L-II Block Hutments, Room no. 37, Brassey Avenue, New Delhi 110 001. 8 May 1981

No A / 43339 / XI / Q/Can. To Air Headquarters, (Dte of Org) Naval Headquarters (Dte of Pers) Southern Command Eastern Command Western Command Central Command Northern Command

DGOF SHOTGUN CARTRIDGES 12 BORE : PROCEDURE FOR DEMANDING THEREOF

1. Distribution of the DGOF Shotgun Cartridges will henceforth be regulated through the Naval and Air Headquarters in the case of their respective Service units and formations and Headquarters Commands in respect of units and formations of the Army. The General Manager, CSD will make bulk allotment to the Services HQ/ HQ Commands annually. Sub-allocations of these cartridges to formations / Units of the respective Services will be regulated by the respective Service/Command Headquarters. The procedure outlined in the succeding paragraphs will be followed for demanding, provisioning and distribution of the cartridges for the shooting season commencing 1st Oct 1981 and there onwards. 2. Service/Command Headquarters will forward their consolidated demands in respect of all formations/Units and Cat A Establishments under their command. The total demanded quantity should not exceed the total authorisation of registered weapons held by Service personnel, Shikar Clubs and dependent ex-servicemen attached to unit canteens, as on their licences per annum plus Command/formation reserves not exceeding 15% thereof. Distribution of ammunition shall be regulated through only canteens holding valid dealers licences. 3. The first demand now projected should be for the block of ensuing two years initially, i.e. 1 Oct 81, 30 Sep 82 and 1 Oct 82, 30 Sep 83. Thereafter, annual demands will be projected to replenish the consumed stocks.

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4. Demands will be projected to CSD Adelphi, 119, M. K. Road, Mumbai -20, under intimation to this Headquarters by 30 Jan 81 for the year 1981-82 and for subsequent years by 31 Mar of each year on the format enclosed. The formations/Commands reserves may be utilized for meeting the requirement of Shikar Clubs and others, at the discretion of HQ Commands/Service Headquarters. 5. The CSD will place orders on the Ammunition Factory accordingly. On receipt of the consignment from the factory the cartridges will be allotted in bulk to Naval HQ, Air HQ and Commands of the Army for sub allocations/distribution to the intending units/formations and Cat A Establishments based on demands placed by them. In case the Ammunition Factory supplies only a percentage of the total demand projected by CSD, Mumbai the allocations to all concerned will be regulated proportionately. 6. In this connection it may, however, be mentioned that LG and SG Cartridges are neither available nor allowed to be issued on account of a ban imposed by the Ministry of Home Affairs. Hence, demands for these cartridges may not be forwarded to CSD, Mumbai, till the ban is lifted. 7. The formations/units and Cat A Establishments to whom the sub-allocations of these cartridges are made, will be advised to lift the stocks within one month after these have been positioned at the concerned CSD Depots. 8. For exercising effective control on distribution of ammunition, it is suggested that in small stations there should be one unit or formation HQ canteen dealing in ammunition for the whole lot of station personnel. In bigger stations, a couple of canteens nominated be the respective controlling formation HQ should be able to cater for the requirement of personnel of the station. Such nominated and authorised canteens should be advised to obtain proper licence to deal in ammunition, if they are already not in possession of such licence. Personnel of units, not holding Arms Dealers Licence for dealing in ammunition, should be attached to nearest Central Canteen, holding such licence. These canteens should keep a record of licence particulars in respect of all Service personnel attached/ dependent on them. However, if the unit/Station canteens are unable to procure the Arms Dealers, Licence due to reasons beyond control and even after protracted correspondence, such of the unit/ station canteens may be attached to the nearest CSD Depot and issued with the cartridges on the basis of production of valid licences and authority from the licencees, duly countersigned by the Station Commander concerned. However, prior approval of the CSD, Mumbai and this office for such an action would be sought by the concerned formation HQ. Sd/Balaji Vishvanath Col CCO and Secretary Board of Control Canteen Services for Quartermaster General Copy to :CSD Mumbai Army HQ Canteen, South Block New Delhi-11 Dte Gen NCC (Min of Def) URC Manual 2008 101

Appendix 11C (Refers to Para 11.15) Telephone : 301 6208 Branch, Quartermaster Generals

Dy Dte General Canteen Services, Army Heaquarters, DHQ PO New Delhi 110 001 96220/Q/DDGCS To, Headquarters, Southern Command Eastern Command Western Command Central Command Northern Command 09 October 2000

DEMAND FOR SPECIAL LIQUOR

1. 2. Reference Policy letter Nos. C/03425/Q/CS dated 04 July 1986 and 96220/Q/DDGCS dated 28 July 1999. In view of the number of representations received from the units/formations seeking a revision of the scales of autorisation of liquor for special commemorative occasions the issue was duly reviewed by the QMG. Based on the earlier authorised scale as also the scope of the celebrations, the scales have been revised as follows :(a) Whisky/Brandy/Gin : 2.5 Bottles per officer/officer guests and 01 Bottle per JCO/ JCO guests. b) Rum : 03 Bottles per JCO / OR including guests. c) Beer : 03 Bottles per individual in addition to Whisky/Rum 3. The authorisation has therefore, been duly enforced so as to cater for adequate supply for the occasions wherein large number of guests, both serving as well as retired, would be attending the celebrations spread over a period of five to six days. This revision seeks to restore the scale as was laid down vide, our policy letter NO. Nos. C/03425/Q/CS dated 04 July 1986. The procedure for demand and release of this special liquor will be as enumerated as under :(a) No unit or formation is permitted to purchase liquor directly from any distillery or breweries/wineries. All procurement of liquor/beer have to be channelised through the CSD only, so that the best price and concessions in matter of excise duty, sales tax and other levies can be obtained, as also proper quality control can be ensured.

4.

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(b)

Demands projected for the procurement of special commemorative liquor should be realistic. These are generally out of proportion to what should be a reasonable requirement for the particular occasion. Such inflated demands for special liquor would defeat the implicit understanding that are given for obtaining exemption from excise duties or other concessions, that such liquor are intended as a one time procurement, to be consumed, issued on such occasions only. All transactions will be through the CSD only. The issues shall be excuted through the dependent CSD Depots, under instruction from General Manager, Canteen Stores Department. However, The specially procured brands may be drawn, under arrangements of formation Headquarters/units ex distillery in their own transport/under their own arrangements with the permission of the GM, CSD and with the excise passes/permits issued by the dependent CSD Depot, on behalf of the CSD. All the specially bottled liquor will be got tested by the Army Food Laboratory, through this HQ and only when cleared by the Army Food Laboratory, these will be cleared for consumption by troops. In the event of distilleries agreeing to a special price to the indentor and the latter agreeing to lift the stocks on his own ex distillery on behalf of the CSD, the CSD shall charge a cover charge of 3.00% only over the actual amout billed By the distillery. Under such circumstances, no claim on account of leakages/ullages breakages shall be admitted. No. transportantion cost shall be charged. Duties will be levied as per the State excise rules where the liquor is consumed. No (NO) QD shall be payable to the unit/formation canteens for such special transactions. On the other hand, if the units desire that the special liquor should be issued ex CSD Depots, then over and above the procurement costs, a margin of 8% shall be charged to cover the cost of transportation, distribution and handling charges. All other levies as per the State Govt excise rules shall be extra. In this, however, the losses on account of ullages/leakages shall be reimbursable, as per the CSD practice under normal circumstances for normal issues. QD at the rate fixed shall be payable on these transactions. In case, the units do not seek a special packing or blends, but are willing to accept the regular "On going" brands with the CSD, these shall be issued at the fixed wholesale rates (duty free rates, if excise exemption certificate is produced by the indentor on the duty inclusive rate if no excise exemption is granted by the State Govts). Such special issues will be over and above the normal scales. QD will be admissible as per the prescribed rates. All requests for such special demands shall be addressed to the Deputy Director General Canteen Services, Quartermaster General's Branch, Army Headqurters, giving/the details of the blends, type of bottles and brand of liquor required/special packs sizes, alongwith quantities for each type of liquor/beer restricted to supply from not more than two distilleries. The indenting units/formations should also indicate whether the concerned State Govts have granted or agreed to grant excise exemption for the special liquor so demanded and if so to what extent. In case the manufactures have agreed to

(c)

(d)

(e)

(f)

(g)

(h)

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any special terms in the matter of price or special discount over the rates running with the CSD for such blends, these should also be clearly indicated and the agreement in this regard forwarded to the GM, CSD. All such requests should be submitted to the Deputy Director General Canteen Services, Quartermaster General's Branch, Army Headquaraters with a copy to the GM and chairman, Board of Administration, CSD, 'ADELPHI' 119 MK Road, Mumbai - 400 020 atleast six months in advance of the date of requirement. (j) All units while applying for specially bottled comemorative liquor for a particular occasion will also indicate the actual strength that is likely to be present at such occasions and the duration of the celebrations.

5.

Demands for special liquor are required to be forwarded as per format attached as AppendixA, through formation HQs, duly recommended by the higher formation Cdr by endorsing a certificate regarding correctness of the strength projected to include local/outstation guests, attending the function. This supersedes our letter No. 96220/Q/DDGCS dated 28 July 1999. Sd/(Satish Kumar) Brigadier Dy Dir General Canteen Services For Quarter Master Gen-

6.

eral Copy to :Naval Headquarters (Dte of Personnel Services) Air Headquarters (Dte of Organisation) GM, CSD, Mumbai. Internal All Heads of Arms/Services at Army HQ.

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Tele 2309 2347 Integrated HQ of MOD (Army) Quartermaster Generals Branch Dy Dte Gen Canteen Services Room No. 16, L-1 Block New Delhi-110001 02 Aug 2007 No. 96220/Q/DDGCS Headquarters Southern Command (Q) Eastern Command (Q) Western Command (Q) South Western Command (Q) Central Command (Q) Northern Command (Q) ARTRAC (Q) Andaman & Nicobar Command Air HQ (D/Org) Navel HQ (P&C) HQ DGNCC HQ Coast Guard (AD) HQ DGBR (Q) DG Assam Rifles

RELEASE OF SPECIAL LIQUOR

1. 2. Reference this HQ letter No. 96220/Q/DDGCS dated 09 October 2000. After due deliberation a conscious decision has been taken to review the scales laid down for special liquor. The following amendment may please be carried out in para 2 of letter ibid : For (a) Whisky/Brandy/ Gin : 2.5 Bottles per officer/officers guest and 01 Bottle per JCO / JCOs guest. Read (a) Whisky/Brandy/ Gin : 1 Bottle per officer / officer guest and JCO/JCO guest for 2 to 3 days function & Bottle for 1 day function. For (b) Rum : 03 Bottles per JCO/OR including guest. Read (b) Rum : 01 Bottle per JCO/JCO guest and OR/O guest for 2 to 3 days function & Bottle for 1 days function.

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3. 4.

Rum for JCOs / JCOs guest will not be drawn in case whisky has been drawn. This HQ letter No. 96220/Q/DDGCS dated 23 July 2007 be treated as cancelled.

(B K Pandey) Lt. Col Joint Dir Canteen Services

Copy to :CDS HO Mumbai Q1 (E) QMGs Branch

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GOVERNMENT OF INDIA MINISTRY OF DEFENCE CANTEEN STORES DEPARTMENT ADELPHI 119, M.K.ROAD, MUMBAI - 400 020. REF. NO. : 5/GP-V/7127/Scale/2518 SUB : SCALE OF IMFL EX CSD 1. Integrated HQ Min of Def (Army) QMGs Branch letter No. 96219/Q/DDGCS dated 10th Aug 2007 on the subject is reproduced hereunder for information and necessary action please. (S C KAPOOR) DY GEN MANGER (LIF) FOR GENERAL MANAGER DISTRIBUTION 1. 2. 3. 4. 5. 6. ALL DGMs / RMs ALL AGMs ALL AREA MANAGERs (Two copies) MANAGERs / AAOs AT HO PA to GM / JGM - I / JGM - II POLICY FILE Integrated HQ Min of Def (Army) Quartermaster Generals Branch Dy Dte Gen Canteen Services Room No. 16, L-I Block News Delhi - 110001. 10 Aug 2007 No. 96219/Q/DDGCS Headquarters Southern Command (Q) Eastern Command (Q) Western Command (Q) South Western Command (Q) Central'Command (Q) Northern Command (Q) ARTARC (Q) Andman & Nicobar Command Air HQ Dte of Accts, RK Puram DATE : 22 AUG, 2007

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Naval HQ (PDPS) HQ DGNCC HQ Coast Guard (AD) HQ DGBR (Q) DG Assam Rifles SUB : SCALE OF IMFL EX CSD 1. 2. Reference this HQ letter No. 96219/Q/DDGCS dated 31 May 2005. Authorised scales of liquor per month as existing are : No. (a) Rank Field Marshal, Admiral of the Fleet / Marshal of Air Force. COAS/CNS/CAS (Active / retd) Serving Vice chiefs of three services, Army Cdrs and equivalent Vice Chiefs, Army Cdrs and equivalent (Retd) Lt Gen & equivalent Serving / Maj Gen & equivalent (Serving) Lt Gen & equivalent (Retd) / Maj Gen & equivalent (Retd) Brig & Equivalent (Serving) Brig & Equivalent (Retd) All Officers upto Col & equivalent (Serving) All Officers upto Col & equivalent (Retd) JCOs and equivalent (Serving) JCOs and equivalent (Retd) ORs and equivalent (Serving) ORs and equivalent (Retd) Widows (All Ranks) Parents of deceased unmarried officers / PBOR Scales No limit

(b) (c) (d) (e) (f) (g) (h) (j) (k) (l) (m) (n) (o) (p)

No limit 18 16 14 14 12 12 10 08 06 06 04 50% of husbands entitlement 50% of entitlement of deceased officer/ Soldier.

3.

The following equivalent scales may be counted as one unit for accounting purpose : a) Wine (i) Wine 650 ml - Four Bottles equivalent to one unit (ii) Wine 330 ml - Eight Bottles equivalent to one unit

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b) Beer (i) Beer 650 ml - Four Bottles equivalent to one unit (ii) Beer 330 ml - Eight Bottles equivalent to one unit c) Bacardi Breezer (i) Bacardi Breezer 275 ml - 08 Bottles equivalent to one unit d) Liqueurs (i) Liqueurs 375 ml - 0.2 bottles. e) Whisky, Gin, Brandy, Rum and - 01 bottle of 750 ml. other IMFL with strength of 75 proof / 42.8% VV alchoholic contents. 4) All service Canteens under your command may be informed accordingly.

(B K PANDEY) Lt Col Joint Dir Canteen Services

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Appendix 11E (Refers to Para 11.18) Tele : 301 6208 Quartermaster Generals Branch, Dy Dte Gen Canteen Services Army Headuqarters DHQ PO New Delhi - 110 001 19 March 1998

96004/Q/DDGCS Headquarters, Southern Command Eastern Command Western Command Central Command Northern Command Army Training Command

ISSUE OF LIQUOR TO PERSONNEL PROCEEDING ON LEAVE

1. Presently personnel proceeding on leave collect their authorised quota of liquor from their parent units and carry it on person. The existing procedure over-burdens the soldier by adding on to his luggage. In addition, there is the threat of breakages, harrassment while passing through States with prohibition and the chances of misuse during travel. Henceforth, the following procedure will be adopted for issue of liquor to personnel proceeding on leave :(a) Individuals be allowed to draw liquor from Unit-Run-Canteens nearest to their home stations. Station Commanders to nominate one of the URCs, preferably one of the static units to serve personnel on leave. However, to cater for those personnel who do not have URCs near their home stations, an option be given to draw liquor from own Unit Canteens as hitherto-fore (please refer to Government of India, Ministry of Defence letter No 47740/Q/CS/103/D (Mov) dated 09 January 1992 (Copy attached as Annexure 1 to this Appendix). To avoid malpractice, liquor be issued from URCs on production of leave certificate and identity card. Leave Certificate will have a certificate stating that leave quota of liquor has not been issued. The quota of liquor authorised to be drawn by the individual will be co-related with leave period and endorsed on the leave certificate.

2.

(b)

(c) (d)

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(e) (f) 3.

Nominated URCs in peace stations will be authorised to draw 10% additional quota of liquor to cater for personnel arriving on leave. In case there is need to draw more than 10% then the sanction of the next higher formation will be obtained. Parent unit will not draw liquor for personnel who are proceeding on leave.

Units and formations will intimate the concerned Station HQ details of personnel who will be drawing liquor during leave. This will facilitate in working out additional demand of liquor and ensuring supply to authorised personnel. Attention is drawn to Army Headquarters letter No 96219/Q/DDGCS dated 17 September 1992 for working out the authorisation of liquor quota (copy attached as Appendix D to this chapter) The above policy will come into effect w e f 01 April 1998. A feedback will be forwarded to this Dte in April 1999 giving out the progress with any suggestions.

4.

5.

Sd/(AN Hamir) Brig DDGCS For Quartermaster General Copy to :1. NAVAL HEADQUARTERS 2. AIR HEADQUARTERS 3. DG NCC 4. DGR 5. GM CSD

} For necessary action.

For information.

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Annexure 1 to Appendix 11E (Refers to Para 2 (b) of Appendix E) Government of India Ministry of Defence NEW DELHI 9 Jan 1992 No 47740/Q/CS/103/D (Mov) The Chief Secretary Government/Union Territory Administration of

Sub : CARRYING/POSSESSION OF LIQUOR/BEER BY SERVICES PERSONNEL WHILE SERVING IN OR PROCEEDING ON LEAVE THROUGH VARIOUS STATES AND UNION TERRITORIES OF INDIA
Sir, I am directed to say that in partial modification of the previous orders on the subject, the service personnel are hereby authorised to carry/possess the liquor/beer while proceeding on leave or passing through various States/Union Territories as per the following scales :Sr No Entitled Personnel Whisky, Brandy, Gin & Rum 8 6 4 3 Wine Beer & Cider

1. 2. 3. 4. 5. 6.

Lieut Generals and their equivalents in the Navy and Air Force. Major Generals and their equivalents in the Navy and Air Force. Brigadiers and their equivalents in the Navy and Air Force. Other Officers JCOs and their equivalents Other Ranks

2 2 2 2

48 48 48 15

2 (Rum Only) 2 (Rum only) Yours faithrully,

Sd/(PRAKASH CHAND) Under Secretary to the Government of India. URC Manual 2008 112

CHAPTER - 12

QUANTITATIVE DISCOUNT
Admissibility
12.1 The rate of Quantitative Discount (QD) payable to URCs is laid down by the Government from time to time. At present, QD is payable @ 4.5% in respect of goods on which CSD is loading a profit margin of 6% and above and QD @ 3.5% in respect of goods on which loading of profit margin of 5% only. on the total purchases made by all URCs excluding the following items :(a) Hydrogenated/Edible oil (b) Ghee (c) Coffee (d) Tea (e) Chocolates (f) Bicycles

(g) Safety Matches. (h) Smokers Requisites. (i) (j) Firm Demand items (AFD-I & II) Hospital Comfort

(k) Officers ration (l) All sales meant for Government Comsumption

(m) Other levies such as sales tax, central sales tax, octroi etc. 12.2 The value of government levies such as Sales Tax, Central Sales Tax (CST), Octroi, etc, is not taken into account while calculating the amount admissible for payment of QD. URCs accounts are credited with the amount admissible as per audited QD statements and intimation in this regard is sent to URCs. QD is issued in the form of stores only as per the government sanction. URC Manual 2008 113

Utilisation Certificate
12.3 Utilisation Certificate as given below is to be submitted by URCs in respect of QD drawn during the previous year prior to the release of QD by their dependant Area Depots. (a) Certified that stores worth Rs....................... against QD for the year ............... have been drawn from CSD Depot......... on ............. vidc OR No............................. dated ........................ (b) It is further certified that QD being a trade discount will not be diverted in whole or in part for any other activity or merged with any other fund /account.

Movement of URCs
12.4 When any URC dependant on one Area Depot moves out to another location and is based on another Area Depot for drawal of CSD stores, the QD amount will be transferred to the new Depot by issuing an inter-Depot transfer (CSF-411) with intimation to concerned URC/CSD HO (F & A Branch - GL Section).

Para Military and Disbanded URCs

12.5 Disbanded/merged canteens are NOT entitled for QD as per the existing government directives. Para Military units under operational control of the Army are entitled for QD.

Queries on QD
12.6 It has been noted that many URCs directly approach CSD Head Office (HO) to seek clarification to queries regarding QD. Since all relevant information on this matter is readily available with their concerned feeding Area Depots, URCs are advised not to correspond with HO and queries, if any, be resolved at the Area Depot level. Circular No 95281 / Q / BOCCS dt 28 Feb 96 regarding utilisation of QD by URCs is placed at Appendix12A to this chapter.

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Appendix 12A (Refers to Para 12.6) Tele : 3016208 Dy Dte General Canteen Services Quartermaster Generals Branch Army Headquarters DHQ PO New Delhi - 110011 28 Feb 96

No. 95 281/Q/BOCCS Heaquarters Southern Command Eastern Command Western Command Central Command Northern Command Army Training Command

Sub : QUANTITATIVE DISCOUNT - CSD

1. 2. A number of queries have been received regarding utilisation of QD by Unit-Run-Canteens (URCs). CSD has asked URCs to submit utilisation certificate as per directions of Min of Def (Fin) as under:(a) Quantitative Discount will be given directly to the Unit-Run-Canteens and not through any other agency and will be disbursed only in the form of stores by Canteen Stores Department. (b) This being a trade discount, it will not be diverted in whole or in part for any other activity or merged with any other fund/account. Para 2 (b) above is clarified as under :(a) A separate account for QD will not be maintained by units. (b) Proceeds from sale of stores received as QD will be merged with Unit Canteen Fund only as Canteen profits. (c) The profits including those on account of QD will be utilised for provisioning of additional amenities and promoting welfare activities of troops as per Army HQ QMGs Branch letter No 60306/Q/Can/Q1(A) dated 30 July 56 (copy enclosed as Annexure to this Appendix). This has the concurrence of Ministry of Defence (Finance). HQ Western Command and Eastern Command only. This disposes of your letter No 54519/ X/Q1 (Can) dated 06 Jan 96 and No 300501/1/Q(Can) dated 19 Jan 96, respectively. (SS Chohan) Brig DDGCS For Quartermaster General.

3.

4. 5.

Copy to :Naval HQ (Dte of Personnel Services) Air HQ (Dte of Org) GM CSD URC Manual 2008 115

Annexure 1 to Appendix 12 A DELHI TELEPHONE 31707 MILITARY TRUNK 330 Army Headquarters Quartermaster Generals Branch DHQ, PO New Delhi - 11 30 Jul 56

No 60306/Q/CAN/Q1 (A) To Headquarters Southern Command Eastern Command Western Command

Subject : DISPOSAL OF CANTEEN PROFITS IN RESPECT OF CANTEENS RUN BY UNITS AND ALSO CANTEEN STORES DEPARTMENT (INDIA) PROFITS
1. A query has been received at this Headquarters whether or not : (a) Os C units should be the sole authority to decide the distribution of unit canteen profits to the Unit welfare fund, officers mess fund or other such units funds; (b) Os C units can allot a portion of the Canteen Stores Department (INDIA) profits, when received, to their officers mess fund. 2. With regard to 1 (a) above, it is agreed that distribution of profits earned by unit-run-canteens should be at the discretion of the OC of the unit concerned. It has, however, been noticed that quite a number of COs do not know whether they can help JCOs/NCOs messes out of the canteen profits. It is confirmed that one way of helping these messes is to give them proportionate percentage of profits accrued to unit-run-canteens. As regards 1(b) above, the Board of Control, Canteen Services have ruled that not more than 1/3 of the Canteen Stores Department (INDIA) profits, when received, would be spent on amenities for officers, which represents approximately their total purchase from the Canteen Stores Department (INDIA). For Headquarters Southern Command only. This disposes of their letter No 100102/Q4 dated 7 Feb 56. Will you please promulgate this down to units. Sd/Lt Col for QUARTERMASTER GENERAL

3.

4. 5.

Copy to :Air Headquarters (Org & E) The Chairman Board of Administration Canteen Stores Department (INDIA) Post Box No. 512, Bombay - 1 URC Manual 2008 116

CHAPTER - 13

GUIDELINES FOR URCs

Guidelines to Officers-In-Charge (OsIC) Canteen
13.1 The Officer I/C Canteen is responsible for efficient management of the canteen. He must :(a) See that the Canteen is stocked with as wide a range of common user items as possible and non-CSD items are not purchased, except as authorised. Slow-moving items of costly nature are not to be stocked, unless requisitioned by the customers. (b) Monitor operation of the bank account personally. (c) Take over the daily cash collections from the Manager against initials in the appropriate column in the cash book. (d) See that the cash book is correctly written and initialled in the appropriate column. (e) Satisfy himself that the cash held by him tallies with the balance in the cash book daily. (f) Ensure that cash is deposited in the bank at frequent intervals, to avoid exceeding the prescribed limit of cash holding.

(g) See that adequate security precautions are taken as regards cash, stock and property, belonging to the Canteen. (h) Scrutinise all indents for purchase of goods with reference to the stock position, outstanding indents and sale trends of the items, before counter-signing the indents in question. (j) Check with reference to the books of account and statements, the result of business to explore ways and means of improving it and to ensure utilisation of the funds to the maximum advantage.

(k) Keep bulk stock of receipt books and cash memo pads in his own custody and issue them to the Manager and the salesmen only when required for current use, after satisfying himself that the previous ones have been fully used. (l) Ensure that stock-taking is conducted and discrepancies adjusted in a time-bound programme.

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(m) When handing over his duties to another officer, get the certificate of handing and taking over completed suitably in the cash book. (n) Ensure prompt action of quarterly reconciliation of statement of accounts received from CSD. (o) Do visits to CSD Depot for famili raision about products and procedures.

Guide Lines
The Basis of Functional Equivalents As per the CSD stockage policy, ideally, a minimum of two functional equivalents are always to be maintained in the inventory. This is to ensure wider choice to our customers. URC Management are to ensure that customers are offered the same privilege. For instance, different brands of food, liquor, General stores within the same category (Group & Sub-Group) are always to be made available to the customers only to the preference of the URC Management to the leads to deletion of desirable items from the Inventory, Customer Dissatisfaction, Monopolistic Tendencies. URC Management may please note this message to duly implement in future operations. URC Complaints / Customer Complaints All URC Managers / OIC / Commanding. Officers are to ensure that case reporting about non supply of AFD/Harrassment defective/damaged items by CSD customers, are to be immediately intimated to the Area Managers of the nearest CSD Depot. The details of the items viz. Lot Nos./ Batch No. etc., are to be promptly provided for necessary actions by the CSD Area Managers and also to ensure that complaints of any nature to be referred to the Depot Manager concerned first and if no response from the Depot Manager is received, then the case may be referred to concerned Regional Manager under intimation to HO CSD MS Branch, Mumbai for further necessary actions. 13.2 Newly introduction Items are being given to the URC,s for improving consumer satisfaction here being given to URCs in small quantities. URC,s are requested to accept the same and display in prominent places of the URCs for the consumer awareness URCs also having the options to collect the items on 60 days credit and if the item is not sold within the period they may return the same to the concerned depots.

Guidelines to Canteen Managers

13.3 The Manager is directly and personally responsible to the OIC canteen for the efficient management of the day to day business of the canteen. Broadly, the functions of the Manager are as follows :-

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(a) Receive money paid in settlement of the bills and issue proper receipts there-of. (b) Collect the cash sales money from the salesmen, check the correctness of the cash sales book and initial daily in the appropriate column therein. (c) Write the cash book and hand over daily to the OIC canteen, the cash collections against his initials in the cash book. (d) Take proper measures to ensure the safety of the cash, till it is handed over to the OIC canteen. (e) Ensure that books of account are maintained in accordance with the instructions contained and are upto date and correct. (f) Prepare a Trial Balance, Trading and Profit and Loss Account at the end of every month without closing the books and submit them to the OIC canteen.

(g) Produce to the audit board or civil auditors completed books of account together with necessary vouchers and documents, as and when necessary and tender satisfactory explanation on any point raised by them. (h) Report immediately to the OIC canteen, any loss or irregularity coming to his notice or any difficulty he may experience in managing the canteen. (j) Ensure that the staff employed in the canteen is fully conversant with the duties entrusted to them and effectively supervise their work.

(k) The Canteen Manager is personally responsible for the receipt, safe custody, sales and proper accounting of the stock of the canteen. He is also responsible for any deficiencies in canteen stock. (l) Ensure that quarterly reconciliation of statement of account received from CSD is promptly done and does not fall in arrears.

Audit
13.4 Audit of Canteen accounts is to be conducted as of 31st March every year.

Auditable Documents
13.5 All books and documents maintained in the course of business are auditable.

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13.6 The undermentioned books and documents duly completed are to be produced to the Audit Board :(a) Indent Book. (b) Purchase Book together with all invoices and other supporting documents. (c) Cash Sales Book with duplicates of cash memos. (d) Credit Sales Book with the duplicates of credit memos. (e) Stock Book and Stock Schedule. (f) Property Book together with cash memos or bills to support the transactions and Commanding Officers sanctions for them, where applicable.

(g) Container Book. (h) Cash Book together with bank statement/certificates, counterfoils of cheques, payingin-slips, receipts and vouchers supporting all payments and receipts. (j) Petty Cash Book together with documents supporting all payments.

(k) Personal Ledger. (l) Impersonal Ledger.

(m) Salaries Book. (n) Postage Book. (o) Record of Receipt Books. (p) Trial Balance, Trading and Profit & Loss Account and Balance Sheet, supported by required schedules and certificates. (q) Any other book or documents called for by the auditors.

Instructions for Audit Boards

13.7 The officers constituting the Audit Board or Civil Auditors are to satisfy themselves, amongst other things, of the following :(a) The accounts are arithmetically correct, balances have been correctly brought forward from the previous audit periods and the accounts have been maintained. URC Manual 2008 120

(b) All receipts and disbursements are duly supported by vouchers and having regard to the business of the canteen, the expenditure is legitimate and reasonable. (c) Overnight cash holding has not exceeded the upper limit set by the Commanding Officer. (d) Cash assets are available, as shown in the Balance Sheet. (e) No loans have been made to other Non-Public Funds. (f) Stocks held are not excessive with reference to sales trends and further purchases are not made, when adequate stocks are held.

(g) Stock-taking has been done correctly as prescribed and closing stock has been correctly valued. (h) Canteen property is properly recorded in the property book and the total value of property in the property book agrees with the balance in property account. (j) Depreciation has been correctly provided for.

(k) Assets are adequately insured and insurance premia paid up-to-date. (l) Sales Tax paid to Government is correct and is not in excess of collections in this account.

(m) All known liabilities are included in the Balance Sheet. (n) Adequate provision has been made for expected losses and credit has not been taken for unrealised profits. (o) The balance sheet reflects an accurate position of the canteen accounts. (p) Quarterly reconciliation of statement of account received from CSD is not in arrears.

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URC Manual 2008 122

Miscellaneous Circulars

URC Manual 2008 123

ARMY ORDER
QUARTERMASTER GENERALS BRANCH
AO 2/2006/QMG CANTEEN FACILITIES Reference : a) AO 109/72 b) AO 42/73 c) AO 32/84 Appendices : a) b) c) d) Application Format for Purchasing AFD Category I and II Items by Entitled Serving Personnel from CSD. Application Format for Purchasing AFD Category I and II Items by Entitled Retired Personnel from CSD. Application Format for Purchasing Four Wheelers (Car) from CSD by Entitled Serving Personnel. Application Format for Purchasing Four Wheelers (Car) from CSD by Entitled Retired Personnel.

General : 1. Canteen Stores Department (CSD) was initially set-up as a Central Government Department by nationalising the Canteen by disbanding Contractor Syndicate on 01 Jul 1942 with the charter to provide consumer stored to the Indian troops and their families. On 01 Apr 1977, CSD was redesigned as a regular Government Department under the Ministry of Defence CSF is a major welfare organisation working for the personnel of the Armed Forces, exservicemen and their families. With the passage of time, the other categories like serving Defence Civilians, CSD employees, General Reserve Engineers Force (GREF), Personnel of Coast Guard, Army Postal Service, Territorial Army, Defence Security Corps and Para Military forces (while under the operational and administrative control of Army) have also been entitled for the canteen facilities.

Aim : 2. The aim of CSD is a) Top provide consumer goods of high quality to troops wherever they are at a price cheaper than the prevailing market rate, as far as possible. b) To ensure that the level of consumer satisfaction is maintained at the maximum. c) To generate reasonable profit to sustain the organisation, permit growth and provide additional facilities for troops and their families. d) To formulate and execute development programms to improve and maintain organisational effectiveness.

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e)

To periodically analyse and assess the diverse long-term needs and aspiration of Defence Services and undertake timely measures to meet them.

Entitled Categories : 3. 4. The categories of personnel as given in succeeding paragraphs are entitled to draw stores from the CSD registered Unit Run Canteens (URCs). Serving / Retired / Widows of Service Personnel a) All serving personnel of Armed Forces i.e. Army, Navy and Air Force and their families. b) All Ex-servicemen pensioners paid from Defence Services Estimates. c) All Ex-service personnel who have been released from service honourably after five years of coloured service but before completion of qualifying persionable service and, therefore, are not in receipt of pension from the Defence Services Estimates. d) All Ex-service personnel released from Service on compassionate grounds at their own request having put in minimum five years of service. e) All Ex-service personnel released from service honourably after completion of minimum five years of service as a result of reduction in establishment / completion of specific period of engagement. f) All Ex-servicemen released on medical grounds attributable to military service without any stipulation of service rendered. g) Widows of Service officers including Honorary Commissioned / EC / SSC whether the officer expired while in service or after retirement. (Liquor authorised at the scale of 50% of the authorisation of the deceased). h) Widows of Service personnel other than officers who are in receipt of pension from Defence Services Estimates (whether the PBOR expired in service or after retirement), (Liquor authorised at the scale of 50% of the authorisation of the deceased). i) Widows of Service officers including Honorary / SSC / EC who get remarried and continue to draw pension from Defence Services Estimates. (Liquor authorised at the Scale of 50% of the authorisation of the deceased) j) Widows of Service personnel other than officers who get remarried and continue to draw pension from Defence Services Estimates. (Liquor authorised at the scale of 50% of the authorisation of the deceased) k) Dependent parents of serving / retired Service personnel (CSD facilities excluding liquor). EC/SSC Officers a) Serving SSC officers b) ECO / SSC officers who have put in five years of reckonable service before release. Personnel of Territorial Army (TA) a) TA personnel during embodiment (while physically serving in unit). b) TA personnel in receipt of pension (after completion of 15 years of embodied service or disability attributable to Military service)

5.

6.

URC Manual 2008 125

c) d) 7.

TA personnel in receipt of Gallantry Awards (CSD facilities including liquor as per authorisation) All departmental and non-departmental personnel of TA when they remain on the strength of TA unit are authorised CSD facilities excluding liquor and AFD items.

Personnel of Coast Guard a) All serving personnel of Coast Guard (CSD facilities including liquor as per authorisation) b) All retired personnel of Coast Guard drawing pension from Defence Service Estimate are authorised CSD facilities (liquor is authorised as per scales applicable to retired naval personnel of equivalent ranks) National Cadet Corps (NCC) Personnel a) Whole time NCC officers (CSD facilities including liquor as per authorisation) b) Part time NCC Officers c) Under Officers / Sgt Major Instructors employed on whole time or part time basis. CSD facilities d) NCC Cadets during period of training excluding either in annual camps or by attachment liquor and to regular Army Units. AFD Items e) Students, teachers and staff of Rashtrya Indian Military College, Military School and Sainik School. Personnel of General Reserve Engineer Force (GREF) a) All serving personnel of GREF. b) All retired GREF personnel who are in receipt of pension from Defence Service Estimate and those who have left after completing minimum five years of service. c) Widows of GREF personnels (all ranks) who are in receipt of family pension from GREF. (Liquor authorised at the scale of 50% authorisation of deceased) Personnel of Defence Security Corps (DSC) a) All serving DSC personnel. b) Ex-DSC personnel who are on receipt of pension from Defence Service Estimates. Personnel of Army Postal Service (APS) a) All serving personnel of APS. b) All APS personnel who have served for minimum five years in APS (Excluding liquor and AFD items) Defence Civilians : Following categories of civilian employees paid from Defence Services Estimates and also those employed in the under mentioned Ministries Departments are permitted to make purchase from Service Canteens (excluding liquor) : a) Ministry of Defence including those working in their respective attached offices and those working in lower military formations.

8.

9.

10.

11.

12.

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b) c) d)

e) f) g) h) 13.

Defence Audit Department. Executive Officer Cantonment Board Hindustan Aeronautics Ltd. while working at Air Force Station, Hyderabad, Jorhat, Air Force Academy. Dunigal (Hyderabad) and Air Force Station Yelahanka (Bangalore) Indian Defence Accounts Services who are serving on deputation to posts other then those in the Ministry of Defence (Fin). Secretariat Border Roads Development Board and HQ Director General Border Roads. Civilian employees of Unit Formation run Canteens. Serving and retired employees of Canteen Stores Department, who are getting pension from CSD Funds (facilities excluding liquor).

Personnel of Para Military Forces a) All serving personnel of Assam Rifles during services period. b) All Para Military Forces (BSF, CRPF, ITBP, SSB ect) officers and personnel as long as they remain under the operational administrative control of the Armed Forces. Ex-Gentlemen Cadets and Ex-Recruits : Those who are in receipt of disability pension are entitled to CSD facilities including liquor as per authorisation. Ex-personnel of Burma Army : Those who joined Burma Army prior to 1939 and are in receipt of pension from Government of India are entitled for CSD facilities including liquor. Foreign Military Personnel Attending Courses in India : Foreign Military personnel attending courses of instructions in our training establishments are entitled to CSD facilities including liquor (the scale of liquor will be as laid down for equivalent rank in our Services.) Canteen Facilities to Separated Families : a) Separated families of Service personnel are entitled to purchase canteen stores from Service canteen with the exception of liquor beet. b) A Separated Family for purposes of Canteen facilities is defined as a family the head of which is : i) A prisoner of war. ii) Separated from his family for short duration on account of his being away on temporary duty, courses of instruction, any other exigencies of service or the family visiting another station. iii) Posted to a station to which he is not precluded by order from taking his family but where married accommodation is not available. iv) Posted to a station to which he is not precluded by order from taking his family. c) In case where the wives of officers, JCOs and OR cannot purchase Canteen Stores themselves for any of the following reasons : i) The wife being a purdah lady. ii) The wife is unable to proceed regularly to obtain canteen stores due to her village being distant from the nearest Service Canteen. A representative may be nominated to purchase canteen stores on behalf of the separated family. In such cases the

14. 15. 16.

17.

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d)

nominated representative will draw the canteen stores on production of Smart Card authority letter issued from Station HQ / Secretary, Zila Sainik Board / Deputy Director, Zila Sainik Board Secretary of District Sailors / Soldiers and Airmens Boards. For the purpose of this concession, the family of an individual will comprise his wife and dependent children only.

Eligibility for purchase : 18. Eligibility Regarding Purchase of Items Against Firm Demand (AFD). All Ranks (serving retired) of Armed Forces are entitled to purchase AFD items like Refrigerator, Television, Washing Machine, Music System and other household durable goods. 19. Eligibility and other conditions for Purchase of Two Wheelers (like Motor Cycle, Scooter and Moped)) / Truck / Bus / Tractors. The following are eligible : a) All ranks (serving retired) b) Widows of service personnel (including remarried) c) Eldest child of the deceased service personnel, if he is not servived by his wife, provided the under mentioned conditions are fulfilled : i) If a son, he should be between 18 to 25 years of age and should not be in Service or commercially employed. ii) If a daughter, she should be unmarried. 20. Restriction Entitled category of persons should not have drawn brought any of the above items within last two years. Further, an undertaking is to be given by the entitled purchaser that he / she shall not sell the vehicle for two years from the date of purchase. Entitlement to four wheelers : 21. The following categories of personnel who are authorised CSD facilities are also entitled to purchase four wheelers. a) All Commissioned / Honorary Commissioned Officers (serving / retired). b) Widows of Service Officers. c) Equivalent status of Civilian Officers / Officers of CSD. However, they will have to pay sales tax as applicable in the respective State. d) All GREF Officers (serving / retired) e) All SSC and EC Officers who have put in five years of reckonable service before release. f) One of the parents i.e. either the father or the mother of unmarried deceased officers. g) Either of the officers child, if both the parents have died and the child is drawing pension from Defence Estimates.

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Procedure for booking and collection for AFD items : 22. Filling of Application Form a) Entitled customers will fill the application form available with CSD Area Depots / CSD web-site and submit the same to the CSD Area Depot alongwith a bank draft for the value (after obtaining the same from the concerned Area Depot Manager). Formats of application forms for purchase of AFD items by serving and retired persons are given at Appendices A and B respectively. Indent for purchase of car is given at Appendices C and D. b) The application form for Service personnel must be countersigned by the Commanding Officer of the Unit / Formation. In case of retired officers, the application must be countersigned by an officer in Station HQ or c) Documents to be obtained from the Depot : The customer should obtain the following documents from the depot : i) Local supply order in original on the concerned dealer. ii) Authority letter / release order with the specimen signatures of the customer or his authorised representative for obtaining delivery from the dealer. iii) The necessary invoice is issued by the CSD Depot for the item purchased by the customer, in due course of time, once the transaction is completed and the bills are received from the supplier. iv) Sale letter addressed to RTO for registration of vehicle wherever applicable. d) The customer should personally collect all the relevant documents from the depot. He/ she should begin his/her identity card, discharge certificate, pension book/pension payment order (if retired) driving licence and necessary affidavit with regard to marital status in case of widow. Collection of AFD Items through Authorised Representatives : Where the bonafide customer is unable to collect in person due to valid reasons proper authority letter with the signature of the nominee duly attested by the bonafide customer and countersigned by the Unit Commander in case of Serving personnel and Station HQ/Secretary, Zila Sainik Board/Deputy Director, Zila Sainik Board in case of retired Service personnel can be accepted for effecting deliveries at the discretion of the Depot. All the necessary documents in respect of the bonafide customer required to be perused at the Depot will be brought by the authorised representative to book the AFD item. The delivery of an item will be given to the same person only, who signs at the Depot and in whose favour the authority for collection has been given by the Depot.

e)

23.

DGOF Cartridges : DGOF cartridges will be issued by the Service Canteens against a valid Arms Licence in accordance with the quantities authorised therein but upto the maximum scales approved from time to time. The issuing authority will make an entry in the licence for the cartridges issued.

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Miscellaneous : 24. Definition of Family for the Purpose of Availing Canteen Facilities. The family will comprise of the following : a) His/her spouse b) Dependent parents c) Dependent children : i) Sons upto the age of 25 years or getting employment whichever is earlier. ii) Unmarried daughters All stores can be purchased by bonafide CSD consumers at any canteen across the country on production of Smart Card. In case of disabled personnel, liquor/general store can be collected by their authorised representative. However, all such persons should get a certificate from Armed Forces medical authorities certifying the disability of the individual. Any changes in the policy will be intimated to all concerned from time to time. This Army Order supersedes AO 109/72, AO42/7, AO32/84, 36/85, 16/90 and the following policy letters L a) 96410/Q/DDGCS dated 29 Jun 98 laying down criteria for purchase of car by Service/ Civilian Officers. b) 98410/Q/DDGCS dated 22 Oct 01 laying down criteria for purchase of car by PBOR. c) 96410/Q/DDGCS dated 05 Dec 01 laying down criteria for purchase of car by PBOR. d) 96410/Q/DDGCS dated 22 Oct 03 laying down criteria for purchase of car by parents of deceased unmarried Officers/SSC Officers.

25.

26. 27.

Space for Future Amendments : a) b) c) d)

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No. 96123/Q/DDGCS/2145/D(Mov)/2007 Government of India Ministry of Defence New Delhi. 17th July, 2007 To, The Secretary Board of Control Canteen Services New Delhi. Sub. : Constitution of Board of Administration of the Canteen Stores Department Sir. I am directed to refer to the Govt. of India letter No, B/00054/Q/CAN/313/S/D(Mov) dated 21 Mar 1979 and convey the sanction of the President to a decision of the 75th Executive Committee of the Board of Control Canteen Services that secretary, Board of control canteen services will henceforth attend the meetings of Board of Administration at CSD HQ as a special invitee. It will however, be the descretion of GM CSD to associate Secretary, Board of Control Canteen Services in the in-house meeting of the Board of Administration. This is issued with the concurrence of Min. of Def(fin) vide their U. O. No. 858/QB/07 dated 26-06-2007. Yours faithfully, (Pradeep Kumar) Under Secretary to the Government of India Tel. 2301 2962 Copy to :Controller General of Defence Accounts, New Delhi The Director of Audit, Defence Services, New Delhi The Senior Dy Director of Audit, Defence Services Southern Command and Western Command The Controller of Defence Accounts, All Commands The Dy Director of Audit Defence Service Patna Central Command (AF), Dehradun and (Navy), Bombay The Ministry of Finance (Def/QB) Air Hqrs... 03 copies Naval Hqrs QMGs Branch Q1(E) QMG Br. Q/CAN Quartering Directorate Office of the CGDA (CSD) The Chairman, Board of Administration Canteen Stores Department, Adelphi, 119 M. k. Road, Mumbai - 20. URC Manual 2008 131

04 copies 03 copies 02 copies 100 copies 10 copies 20 copies 20 copies

EXTENSION OF CANTEEN FACILITIES TO PERSONNEL OF TERRITORIAL ARMY (TA)

1. QMGs Branch letter No. 96029/Q/DDGCS dated 2nd Feb 2006 on the subject is reproduced here under for information and necessary action please. (N. Chandrasekar) AGM (Secretary) Distribution : 1) All DGMs/RMs 2) All AGMs 3) All CSD Depot Managers (2 copies) 4) Managers/AAOs at HO 5) PA to GM/JGM-I/JGM-II Quartermaster Generals Branch Dy Dte Gen Canteen Services Army Headquarters, New Delhi-110001 2 Feb 2006 No. 96011/Q/DDGCS Headquarters Southern Command (Q) Eastern Command (Q) Western Command(Q) Central Command (Q) Southern Western Command (Q) Northern Command (Q) Army Training Command (Q) Andaman & Nicobar Command (Q) Naval Headquarters (Principle Die Pers Services) Air Headquarters (Dte Org) DG NCC Coast Guard DGBR (Q) TA (GS BR/AHQ)

URC Manual 2008 132

EXTENSION OF CANTEEN FACILITIES TO TO PERSONNEL OF TERRITORIAL ARMY (TA)

1. As per the existing policy the following categories of TA personnel are authorised canteen facilities. a) b) c) d) 2. During Embodiment All facilities including liquor (while physically) serving in unit. Personnel in receipt of pension All facilities including liquor (After completion of 15 years of embodied service or disability. Attributable to Millitary Service). Gallantry Award Winners All facilities including liquor. All non departmental and departmental personnel of TA as long as they remain on the strength of TA unit.

With immediate effect TA personnel who have completed minimum five years of physical service honorable with regular TA Bn are authorised all canteen facilities on discharge / retirement. The above instruction may be promulgated to all concerned. Sd/(R. S. Khatri) Lt Col. Jt. Dr. CS

3.

URC Manual 2008 133

Tele 23092347 Army Headquarters Quartermaster Generals Branch Dy Dte Gen Canteen Services New Delhi-110001 31 Mar 2006 No. 96301/Q/DDGCS Headquarters HQ Southern Command/Q (Ops) HQ Eastern Command/Q (Ops) HQ Western Command/Q (Ops) HQ Central'Command/Q (Ops) HQ Northern Command/Q (Ops) HQ South Western Command/Q (Ops) Army Training Command/Q (Ops) HQ Andaman & Nicobar Command/Q Air Headquarters (Dte of Org) Naval Headquarters (DPS) Coast Guard Headquarters

SUB : ISSUE OF FULL LIQUOR QUOTA ON PRODUCING SMART CARD FROM ANY CANTEEN ACROSS THE COUNTRY
1. This HQ is receiving complaints from various quarters stating that some of the URCs are not giving full quota of liquor as authorized to an individual on smart card. Also it has been intimated by troops that URCs are not giving liquor on the smart card when they go on leave/ temporary duty. It is reiterated that all personnel of armed forces are authorized to draw their full liquor quota from any URC in the country on producing the smart Card. This is a facility extended to all ranks of Armed Forces. No URC will deny this facility to any authorized customer. Necessary action may be initiated against the defaulting URCs in future. Naval HQs have intimated that dependent members of their family are not being given canteen stores without smart card, as already informed, Naval HQs is in the process of implementation of CIMS, till such time canteen facilities may not be denied to them. HQ commands are requested to issue necessary instructions to call concerned on the above issues. Naval HQs only. This disposes off your query on the subject. (R S Khatri) Lt Col. Jt Dir CS ] ] ] ] ]

2. 3. 4. 5.

Copy to : - DGNCC - DGBR - DG Assam Rifles - CSD HO, Mumbai - Army HQ Canteen Q Block URC Manual 2008 134

For information please

Tele 23092563 Integrated HQ of MOD (Army) Quartermaster Generals Branch Dy Dte Gen Canteen Services Army Headquarter New Delhi-110001 8th May, 2007 No. 96003/Q/DDGCS Headquarters Southern Command (Q) Eastern Command (Q) Western Command (Q) Central Command (Q) South Western Command (Q) Northern Command (Q) Army Training Command (Q) Andaman & Nicobar Cornmand (Q) Naval Headquarters (Principle Dir Pers Services) Air Headquarters (Dte Org) HQ DG NCC (F&A) HQ Assam Rifles Coast Guard (AD) HQDGBR (Q)

CANTEEN FACILITIES TO EX-SERVICEMEN

1. A large number of cases are being received by this Directorate pertaining to Ex. Servicemen, who have not completed minimum five years of service honorably before being discharged. As per the policy in vogue, Ex-Servicemen should have served for minimum five years to be eligible for canteen. facilities. Policy also states that canteen facilities are authorized to individuals discharged on medical grounds attributable to military service with no stipulation of length of service rendered. Most of these representations are veterans who were being given these facilities so far. However, since the introduction of Smart Card, they have been denied these facilities. This includes EC officers who were released prior to completion of five years service and some Jawans who were released on Govt orders.

2.

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3.

The matter has been examined and it has been decided to extend CSD facilities including liquor to the following : a) b) Officers / PBOR who have been released under Govt. orders (e.g. EC Offr, Soldiers of W W II). EC Officers who had been absorbed into other Govt. Departments as part of re-habilitation package.

4.

The categories mentioned at Para 3(a) and (b) should forward their application alongwith their discharge papers duly recommended by the Station HQ of canteen on which they wish to be dependent, directly to the office of the DDGCS. Any other deserving case not covered at Para 3 above can also be similarly forwarded after recommendation of Station HQ for sanction. This has the approval of QMG. Our letter No. 96003/Q/DDGCS dated 07 Frb. 2007 may please be cancelled.

5. 6.

(I Arumy Raj) Brig Dy Dir Gen Canteen Services

URC Manual 2008 136

Tele 23092347 Quartermaster Generals Branch Dy Dte Gen Canteen Services Army Headquarter New Delhi-110001 29 March 2005 No. 96007/Q/DDGCS Headquarters Southern Command (Q) Eastern Command (Q) Western Command (Q) Central Command (Q) Northern Command (Q) Army Training Command (Q) Andaman & Nicobar Cornmand (Q) Naval Headquarters (Principle Dir Pers Services) Air Headquarters (Dte Org) HQ DG NCC (F&A) Coast Guard (AD) HQDGBR (Q)

CANTEEN FACILITIES : ARMY POSTAL SERVICE (APS) PERSONNEL

1. 2. 3. 4. Reference AO 32/84 and our letter of even number dated 01 July 97. Army Postal Service Personnel, who have served for minimum 5 years APS are entitled for Canteen Facilities on reversion to their parents cadre (i.e.) department of posts. This has the approval of QMG. Our letter No. 96007/Q/DDGCS dated 09 May 2001 may please be cancelled. (R. S. Khatri) Lt.Col. Jt Dir. Canteen Services Copy to : i) COAS Sectt for info ii) Q1 (E) for info iii) ARMY HQ Canteen for info iv) Addl DG APS for necessary action

URC Manual 2008 137

Tele 23092347 Quartermaster Generals Branch Dy Dte Gen Canteen Services Army Headquarters New Delhi-110001 No. 96003/Q/DDGCS HQ Southern Command/Q HQ Eastern Command/Q HQ Western Command/Q HQ Central'Command/Q Northern Command/Q Army Training Command/Q Andaman & Nicobar Command/Q Naval Headquarters (Principle Dte Pers) Air Headquarters (Dte. Org) HQ DG NCC HQ DGBR Coast Guard (AD) 14 Oct, 2004

SUB : CANTEEN FACILITIES FOR WIDOWS OF BATTLE CASUALTIES

1. 2. Reference Army Order 32/84 and our letter No. 96003/Q/DDGCS dated 1/10/99. With immediate the following two categories of widows are authorised canteen facilities. a) Widows of service officers (Incl Hony/SSC/EC/Commissioned officers) who get remarried and continue to draw pension from detence service Estimates, be authorised canteen facilities (including Iiquor) b) Widows of service personnel, who get remarried and continue to draw pension from Defence Service Estimates, be authorised canteen facilities (excluding liquor) 3. 4. This has approval of competent authority. The above instructions may be promulgated to all concerned. (R S Khatri) Lt Col. Jt Dir Canteen Services Copy to : AGs Branch This has the reference of your letter No. B/45322/112-2004/VIP REF/AG/R&W-1 dated 09 Sept 2004.

URC Manual 2008 138

Tele 23092347 Quartermaster Generals Branch Dy Dte Gen Canteen Services Army Headquarter L-1, Block, Room No. 16 Church Road New Delhi-110001 17 Sep 2003 No. 96010/Q/DDGCS Headquarters Southern Command Eastern Command Western Command Central Command Northern Command Army Training Command Andaman & Nicobar Cornmand Naval Headquarters Air Headquarters DG NCC DGBR Coast Guard

CSD FACILITIES TO THE DEPENDANTS OF SERVING PERSONNEL

1. Complaints have been received regarding availing of CSD facilities by the dependent of Serving / retired service personnel and family of deceased personnel, who do not fall within the laid down definition of dependents. In this regard the definition of the dependants of Serving / retired personnel is clearly given in AO 32/84. However, certain important issues are clarified as under : a) As per the existing policy the dependants of serving / retired personnel comprises of his wife and dependant children. b) In case of deceased un-married personnel either of parents are considered as dependant for the purpose of availing canteen facilities. c) CSD facilities can be availed by the dependants of serving / retired personnel if they are issued dependant cards by the Fmn / Units.

2.

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3.

In order to facilitate these facilities to genuine serving / retired personnel and their families, there is a need of proper procedures to be formulated at Unit level while issuing the dependant cards only to entitled personnel. The dependant cards issued by each Fmn/Units must be renewed annually. Fmn HQs may carry out surprise checks to ensure the above. There is a need to carry out detail scrutiny on the following before issue of a dependant card: a) Is the dependant financially below laid down limits? b) Is the dependant parents, serving, retired personnel from the three services Dependants of retired civilian are not entitled canteen facilities? c) Does the name of the dependant published in Unit Part II Orders? d) Is the parent of the dependant dead or alive? e) Does the dependant also has a Medical Card? The above may please be disseminated to all concerned.

4.

5.

(RS Khatri) Lt Col Jt Dir CS

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Tele 23092347 Quartermaster Generals Branch Dy Dte Gen Canteen Services Army Headquarter New Delhi-110001 24 Oct. 2005 No. 96003/Q/DDGCS NCC Gp HQ Canteen Valencia, Kankanady Mangalore-575002

CLARIFICATION REGARDING CSD FACILITIES TO RETIRED OFFICERS

1. 2. Reference your letter No. 23/1-3596/cant/05 dated 21 Jul 2005. As per policy all ranks, who have served for minimum 5 years in Armed Forced are authorised canteen facilities or personnel who are in receipt of Medical disability pension attributable to military service are also authorised canteen facility without any service limit / restriction.

(RS Khatri) Lt Col Jt Dir Canteen Services Copy to : Canteen Stores Department Adelphi 119, M.K. Road, Mumbai.

URC Manual 2008 141

Tele 23092347 Quartermaster Generals Branch Dy Dte Gen Canteen Services Army Headquarter New Delhi-110001 12 March 2003 No. 96003/Q/DDGCS Headquarters Southern Command Eastern Command Western Command Central Command Northern Command Army Training Command Andaman & Nicobar Cornmand Naval Headquarters (Dte of Pers) Air Headquarters (Dte of Org) DG NCC DGBR Coast Guard

EXTENSION OF CANTEEN FACILITIES TO EX-GENTLEMAN CADET

1. 2. Reference this Dte policy letter No. A/66622/III/Q/CS dated 24 Jun 1986. With immediate effect all ex Gentlemen Cadet, who are in receipt of disability pension are also entitled to canteen facilities including Liquor at par with retired officers of three Defence Services. This has the approval of competent authority. The above instructions may be promulgated to all concerned. (T Sambaiah) LT Col Joint Director Canteen Services Copy to : CSD HO Mumbai File No. 96015/O/DDGCS URC Manual 2008 142

3. 4.

MINISTRY OF DEFENCE (FINANCE) DAD (COORD)

Subject : Local purchase of stationary and other articles through Canteen Stores Department of Ministry of Defence. 1. The question of local purchase of stationary and other articles by units/formations of the Services, through Canteen Stores Department was under examination in the context of DMR&Fs Order No. 20 (1)/88/D (S & E), dated 12/10/1992, stipulating inter alia that Central Government Offices were not authorized to make local purchase of stationary and other articles through CSD. The Department of Personnel & Training have now clarified that with the promulgation of new General Financial Rules, 2005 the earlier instructions of the DOP&T on the subject are no longer applicable. The purchase of stationary and other articles for office use is now regulated under GFRs, 2005. A clarification issued in this regard by the Ministry of Finance vide their O.M. No. 1/12/E.II (A)/94, dated 29.7.2005 is enclosed. In view of the above clarifications, the items pertaining to ACG and other items available in CSD can be purchased by units/formations on a competitive basis by including CSD. This would ensure that cost effectiveness of CSD is availed of by units/formations instead of procuring such items from sources which may not be cost effective, apart from concomitant inconvenience in far flung areas. To this extent, the instructions in the aforementioned letter of 12/10/1992 would stand modified. Defence Secretary & Secretary (Defence Finance) have approved.

2.

3.

4.

(S. N. Misra) Jt. Secy. & Addl FA (2301-2204) VCOAS VCAS VCNS CISC CGDA MoD(Fin) I.D. No.27(68)/C/2000, dated 4/10/2006. Copy for information to : 1. Director (Q) 2. GM, CSD, Mumbai 3. Director (Fin/Q)

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Tele 23092347 10 Mar 2005 No. 96003/Q/DDGCS

ARMY HQ / QUARTERMASTER GENERALS BRANCH (CANTEEN SERVICES DIRECTORATE) CSD FACILITY : LIST OF ENTITLED PERSONNEL
1. 2. Reference your OM No. 5(1) / QB-03 dated 08 Feb 2005. As desired, a consolidated list of entitled categories of personnel for canteen facilities is forwarded herewith. (RS Khatri) Lt Col Jt Dir Canteen Services Min of Def / Fin Copy to : CSD HO Alongwith a copy of list as above. Mumbai

Coms Sectt QMG Br/QI (E) OGBR ORNCC

For Information Mean

URC Manual 2008 144

AUTHORISATION OF CANTEEN FACILITIES EXSERVICEMEN / RETIRED PERSONNELS

S. No. 1. Category Ex-Servicemen i) ii) Authorised when Retires at own request (should have minimum 5 year of Services). Released from service honourably as a result of reduction in establishment or after completion of specific period of engagement or on medical ground attributable to Military service.

2. 3. 4. 5.

Ex-GREF Personnel Ex-DSC Personnel Ex Coast Guard personnel Ex-Personnel of P & T Deptt Personnel (APS) Retired CSD employees Ex TA Personnel

Same condition applicable to on ex-servicemen Getting pension from Defence Service Estimate Getting pension from Defence Service Estimate Having minimum 10 years Service in APS or who retired directly from APS itself without reverting back to their parent Deptt. Getting pension from CSD funds (Excluding liquor) i) ii) Having a minimum of embodied service of 15 years. Personnel with disability attributable to Military service.

6. 7.

iii) Gallantry award winners 8. 9. Ex Recruits Ex-Gentlemen Cadet Who are in receipt of disability pension are entitled to avail canteen facilities including liquor. Who are in receipt of disability pension are entitled to canteen facilities including liquor at par with retired officers of three Defence Services. Who are in receipt of retention free from Defence Service Estimate During Non Training Period Who are in receipt of retention fee from Defence Service Estimates

10. 11. 12.

Ex ECOs/SSRC officer on the reserve list Reservists Personnel of Ex-States Forces

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13.

Family of Deceased Service Officer

Unmarried personnel who are killed in Military operation/aid to civil authorities / counter insurgency / internal security duties or due to accident while on duty are entitled all canteen facilities including liquor. Who are in receipt of pension from Defence Services Estimates including liquor. Who are in receipt of Pension from Defence Service Estimate are entitled for all facilities excluding liquor. Canteen Facilities (Excluding liquor) also either of the parents of deceased Unmarried Defence Service Personnel are entitled to purchased of four wheeler. All canteen facilities including liquor / AFD items during service period At par with three Defence Services during service period All canteen facilities including liquor / AFD item Attending Courses of instructions in our training Establishment Having minimum of embodied service of 5 years All canteen facilities including liquor during service period All Canteen facilities including liquor authorised so long as they remain under the operational / administrative control of the Army

14.

Widows of Officers including Hony Commissioned Widows of JCOs/ ORs Dependent Parents of Serving / Retired Defence Personnel All Serving personnel of the Army, Navy and Air Force Serving Coast Guard Personnel All serving GREF Personnel Foreign Military Personnel Personnel of Territorial Army Assam Rifles Police Battalions / BSF / CR PF

15. 16.

17.

18. 19. 20. 21. 22. 23.

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24.

Canteen Facilities NCC Personnel a) Whole time NCC Officers b) Associated NCC Officers c) Under Officers / Sgt Major Instructors employed on part time or whole time basis d) NCC Cadets during period of training either in annual camp or by attachment to regular Army Units e) Ex-Gentlemen Cadet Serving Defence Civilians Serving Civillians employees of URCs All Ranks / Serving / Retired All Ranks / Serving / Retired

All canteen facilities including liquor / AFD All canteen facilities except liquor / AFD do

do

25. 26. 27. 28.

During Service all facilities less liquor local taxes as applicable will be levied. do All entitled to purchase AFD items (Refrigerator, TV, Music System etc) through CSD All are entitled to purchase two wheelers through CSD

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Tele 2309 2563 Integrated HQ of MOD (Army) Quartermaster Generals Branch Dy Dte Gen Canteen Service Army Headquarters New Delhi - 110001. 05 Jun. 2007 No. 96036/Q/DDGCS Headquarters Southern Command (Q) Eastern Command (Q) Western Command (Q) South Western Command (Q) Northern Command (Q) Army Training Command (Q) Andaman & Nicobar (Q) HQ DG NCC (F&A) HQ Assam Rifles Coast Guard (AD) HQ DGBR (Q)

DISTRIBUTION OF CANTEEN PROFITS

1. 2. 3. Reference this office letter No. 96036/Q/DDGCS dated 19 Dec. 2006. Minutes of Army Commanders Conference held in Oct. 06 No. 00251/Oct 06/Q1 (A) dated 21 Nov. 06. Policy letter on distribution of canteen profits duly approved by COAS was issued. The policy lays down 75% of the net profit of URCs (ESM), towards designated command welfare fund and 25% for creating/improving local facilities by the Unit/HQ (running the URC). This is in variance to the Minutes of Army Commanders Conference which, envisages this ratio to be of 80 : 20. On receipt of a querry from one of the Commands on this variation, a feed back from all Commands was requested in which their views specifying any further changes required in the policy were sought.

4.

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5.

The requisite feedback has been received from majority of the commands and all of them have agreed with the policy letter issued on the subject. The matter was once again brought to the attention of COAS who has also approved the same. Therefore, no further changes to the policy are recommended and status quo as per our policy at 1 above shall be maintained. However this 75% profit to command welfare fund and 25% for creating/improving local facilities by the unit running the URCs does not specify utilization of the amount deposited in command welfare fund for the facilities / welfare measures of ex-servicemen. In order that the policy is not misinterpreted with the passage of time, it is recommended that Para 7 (c) be suitably amended.

Amendments : 6. The amended para 7 (c) shall read as under URC (ESM) 75% of the net profit to be deposited in designated Command Welfare Fund and 25% to be utilized by the HQ/Unit responsible for running the canteen. 75% of the net profit deposited in designated command welfare fund should normally be used for activities/facilities and welfare measures for ex-servicemen. 7. Sub para 8 (a) Amend para to read as follows Judicious distribution of Ex-Servicemen to various canteens.

(I. P. Singh) Brig Dy. Dir Gen. Canteen Services

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Tele 23062347 Integrated HQ Min of Def (Army) Quartermaster Generals Branch Dy Dte Gen Canteen Services Room No. 16, L-I Block New Delhi-110001 21 Aug. 2007 No. 96209/Q/DDGCS Dte of Accts, Air Headquarters West Block VI RK Puram

DRAWAL OF LIQUOR BY URC PROCEDURE THEREOF

1. 2. There are certain Military Station where A. F. Units are independent and function under the aegis of local Stn HQ. The indents of liquor should carry the office seal of Stn HQ. You are requested to issue necessary instructions to the URCs. (BK-Pandey) Lt Col Joint Dir Canteen Services Copy to : DGM (MS CSD HO Mumbai W.r.t. your letter No. 2 / Man Singh 13120 / URC Manual / 1929 dated 14 Jun 2007

URC Manual 2008 150

SUB : PROFIT MARGIN ON GS & LIQUOR ITEMS

1. The Profit Margin for the above subject is as under :RETAIL (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (n) All GS Items Soap & Soap Detergent Etc. Bicycle Dalda / Refined Oil / Ghee Wrist Watches Cigarettes AFD Category (I) AFD Category (II) Cadbury Chocolates Safety Matches IMFL RUM Tea 5% 3% 3% 1% 2% 3% (Only for FOUR WHEELER) 1% 1% 10% 10% 5% 1%

(m) Beer

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CHAPTER - 15

CSD WEB SITE

1. 2. The web site of Canteen Stores Department is available at www.csdindia.com. The web site provides the following facilities: (a) The consumer can get details of a product by either searching on the index No, Generic group type, gift scheme etc.

(b) The price and other details of AFD items can be queried as per user requirement. The details of dealers can also be viewed. (c) The web site also caters for uploading of tender inquiry details of CSD works/contracts. The web site also provides provisions to down load the tender documents.

(d) The web site also allows the viewers to browse the monthly bulletins and also download the same. (e) (f) Provisions have also been made to download forms for new introduction, AFD application forms and other details. Provision for login of URC with username & password will be made available in a phased manner at a later point of time.

(g) Quality complaints, feedback and suggestion for new introduction can also be done through the web site. E-mail ID of depots Depot Username Agra [email protected] Ahmedabad [email protected] Ambala [email protected] Masimpur [email protected] Bareilly [email protected] Bhatinda [email protected] Bangalore [email protected] Baghdogra [email protected] Mumbai Area [email protected] Calcutta [email protected] Delhi [email protected] Dimapur [email protected] Jaipur [email protected] Jabalpur [email protected] URC Manual 2008 152

Dehradun Jalandhar Khadki Lucknow Leh Chennai Meerut Misamari Narangi Pathankot Portblair Ramgarh Secunderabad Srinagar Udhampur Vizag B D. Bari Bikaner Cochin Hissar Mumbai Base

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

User-ID's of the email accounts at HO Appointment e-mail ID GM [email protected] JGM_I [email protected] JGM-II [email protected] DGM(F&A) [email protected] DGM(P&A) [email protected] DGM(GS) [email protected] DGM(LIF) [email protected] DGM(MS) [email protected] DGM(EDP) [email protected] AGM(SECY) [email protected] AGM(ACCTS) [email protected] AGM(ACCTS) [email protected] AGM(ACCTS) [email protected] URC Manual 2008 153

AGM(GS) AGM(GS) AGM(LIF) AGM(LIF) AGM(MS) AGM(MR) AGM(EDP) AGM(P) AGM(A) AGM(HRD&L) AGM(E&W) PA(GM) EDP Quality_complaints

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

E-mail ids of DDGCS/RMs DDGCS [email protected] RM(North) [email protected] RM(West) [email protected] RM(East) [email protected] RM(Central) [email protected] RM(South) [email protected]

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CHAPTER - 16

CSDS TEN COMMANDMENTS

1. CSD ensures provision of quality goods at rates cheaper than the civil market, even when all levies like Excise-Duty, Sales-Tax, Octroi etc are paid.

2.

CSD eliminates middle-mens margins and passes on the benefit to customers in the form of lower prices.

3.

CSD deals only with manufacturers of repute or with national level sole-selling agents.

4.

CSD ensures complete adherence to quality norms through regular tests and checks.

5. CSD label on products signifies a promise of quality that can be trusted.

6.

CSD publishes Pictorial Price-List and Monthly Bulletins to empower you in your purchase decisions.

7.

CSD widens your choice by stocking, in URCs, newly-introduced items. Subsequent provisioning is guided by your preferences.

8.

CSD provides consumer promotion schemes as applicable.

9. CSD ensures after-sales service for all durables.

10.

CSD passes on its efficiencies into welfare schemes for defence personnel and their families.

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CHAPTER - 17

RIGHTS OF THE CSD CUSTOMER

YOU CAN DEMAND

Testing of all consumer durables including electrical appliances, in your presence, and to your satisfaction. Guarantee cards duly filled, signed and stamped by the unit-run-canteen (URC). Replacement of faulty products within warranty period. Proper and efficient after-sales service and CSDs intervention in case of complaints. Food articles with adequate shelf-life. Consumer promotion schemes as applicable. To see Pictorial Price-List and Monthly Bulletins, published by the CSD. Information on availability of items Against-Firm-Demand (AFD), like automobiles, televisions, refrigerators, and washing machines. Appointment of dealers for AFD items in your town, if it has a major concentration of entitled CSD customers, and if such dealers exist in the civil market. Visit to the CSD Area Depot once a month on a date fixed by the Station Commander.

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URC MANUAL
RECORD OF AMENDMENTS
Sr. No. Authority for Amendment & Ref. Pg No./Nos. By whom corporated & signatures

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URC MANUAL
RECORD OF AMENDMENTS
Sr. No. Authority for Amendment & Ref. Pg No./Nos. By whom corporated & signatures

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