Bonded laboratories are suitable for large-scale manufacture of goods and require supervision from excise staff. They must have four distinct compartments and pay excise duty when goods are removed. Non-bonded laboratories are suitable for small-scale manufacture without excise staff oversight. They require three compartments and pay excise duty upon purchase of raw spirits. Advance security money is needed for bonded laboratories but not for non-bonded ones, though state governments can relax infrastructure requirements for low alcohol production.

1. BONDED
VS
NON-BONDED LABORATORIES

2. Manufacture in Bond Manufacture in out side bond
Suitable for large scale manufacture. Suitable for small scale manufacture.
Bonded laboratory is required to function
under the supervision of excise staff.
No excise staff is needed.
Excise duty is payable on the removal of
fished goods from bonded laboratory.
Excise duty is paid at the time of purchase of
rectified spirit
Construction of bonded laboratory must
have the following four distinct
compartments:
1. Raw sprit store.
2. Manufacturing room.
3. Finished goods store.
4. Office of excise staff.
Construction of non-bonded laboratory must
have the following compartments:
1. Raw sprit store.
2. Manufacturing room.
3. Finished goods store.
Advance Security money No Advance Security money needed.
No such relaxation. The State Government may relax conditions of
requirements of infrastructure if alcohol
consumption is less. (less than 100 ltr.)
The sprit can be obtained from a distillery or
a sprit warehouse by sending an indent
prepared only in two copy.
The sprit can be obtained from a distillery or a
sprit warehouse by sending an indent prepared in
triplicate.