LexThe Andhra Pradesh Excise Act, 1968.
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THE ANDHRA PRADESH EXCISE ACT, 1968
ACT 17 OF 1968
ARRANGEMENT OF SECTIONS
SECTIONS
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement
2. Definitions
CHAPTER II
ESTABLISHMENT AND CONTROL
3. Appointment of Commissioner
4. General control of Commissioner over Collector
5. Appointment of regional officers
6. Appointment of Excise superintendents and Excise Assistant
Superintendents
7. Appointment of other subordinate staff
8. Delegation
CHAPTER III
IMPORT, EXPORT AND TRANSPORT
9. Import of Intoxicant
10. Export of Intoxicant
11. Regulations of transport of intoxicants
12. Permits for transport of intoxicants
CHAPTER IV
MANUFACTURE, POSSESSION AND SALE
13. Manufacture etc., of excisable articles prohibited except under a
licence
14. Possession of excisable articles in excess of the quantity prescribed
15. Sale or buying of excisable article without license prohibited
16. Establishment of distilleries and warehouses
17. Grant of exclusive privilege of manufacture, etc.,
18. Duties of licences with regard to measurement and testing
19. Prohibition of employment of children and of persons suffering from
contagious diseases
20. Closing of shops for preservation of public peace
CHAPTER V
EXCISE DUTY, COUNTERVAILING DUTY, ADDITIONAL EXCISE DUTY AND
ADDITIONAL COUNTERVAILING DUTY
21. Excise duty or countervailing duty or additional excise duty or
additional countervailing duty on excisable articles
22. Modes of levying duties
23. Payment for exclusive privilege
23.A- Payment by the Corporation
2
23.B- Payment by the Corporation from dated 21.07.1993
24. Owner or other person in possession of excise trees to give intimation
of unwillingness to tap excise trees etc.
25. Recovery of duty under this Act from persons other than the
licensee in certain cases
26. Rent to which the owner or person in possession of excise trees is
entitled
27. Prohibition of cutting down or destroying excise trees
CHAPTER VI
LICENCES AND PERMITS
28. Forms and conditions of licence etc.
29. Power to take security and counterpart agreement
30. Technical defects, irregularities and omissions
31. Power to cancel or suspend licence etc.
32. Power to withdraw licence
33. Surrender of licence
CHAPTER VII
OFFENCES AND PENALTIES
34. Penalties for illegal import,export etc.,
35. Penalty for rendering denatured spirit fit for human consumption
36. Penalty for misconduct of licensees, etc.,
37. Penalty for adulteration etc., by licensed vendor or manufacturer
37.A- Penalty for adulteration resulting in death etc., -
37.B Order to pay compensation
38. Penalty for consumption in chemist's shop
39. Manufacture, sale or possession by one person on account of another
40. Penalty for cutting down or destroying excise trees
40.A- Penalty for false statement made in declaration or affidavit
41. Penalty for offences not otherwise provided for
42. Presumption as to commission of offence in certain cases
43. Criminal liability of the licensee for the acts of servants
43. A- Punishment for allowing premises etc., to be used for Commission
of an offence
44. Enhanced punishment after previous conviction
45. Liability of certain things to confiscation
46. Confiscation by Prohibition and Excise Officers in certain cases
46A. Issue of show cause notice
46B. Order of confiscation in the absence of offender
46C. Appeal
46D. Order of confiscation not to interfere with other punishments
46E. Bar of jurisdiction
46F. Property confiscated when to vest in Government
47. Compounding of offences
47-A. Special powers of the Commissioner in regard to compounding of
offences
48. Penalty for vexatious delay
49. Penalty for Prohibition and Excise Officer refusing to do duty
50. Penalty for abetment
50.A – Penalty for assault
50.B – Penalty for Criminal Conspiracy
3
CHAPTER VIII
DETECTION, INVESTIGATION AND TRIAL OF OFFENCES
51. Landholders, officers and others to give information
52. Power to enter and inspect places of manufacture and sale
53. Power to arrest without warrant, to seize articles liable for
confiscation and to make searches
53-A. Obligation of officers to assist each other
54. Powers of Magistrate to issue a warrant
55. Power to search without warrant
56. Power to Prohibition and Excise Officer and Special Enforcement
Bureau Officer in matters of investigation
56.A - Cognizance and trial of offence
57. Report by investigating officer
58. Report by Prohibition and Excise Officer or Special Enforcement
Bureau Officer
59. Arrest, search, etc., how to be made
60. Security for appearance in case of arrest without warrant
60.A- Non-bailable offences
61. Procedure for prosecution and credit of fines to Prohibition and Excise
Department or to Special Enforcement Bureau
62. Magistrate's power to impose enhanced penalties
63. Appeals
64. Revision
65. Recovery of Government due
66. Government's lien on property of defaulter
67. Recovery of dues by lessee under section 17
68. Power of Government to exempt etc.,
68.A – Exemption of the Government from taking out license or permit for
production, manufacture, etc., of any intoxicant
68-B.Power of State Government to notify exemptions or grant relaxations
69. Protection of action taken under this Act
70. Limitation of suits
71. Offences by companies etc.,
72. Power to make rules
73. Repeal and Savings
4
THE ANDHRA PRADESH EXCISE ACT, 1968
ACT 17 OF 1968
[29th August, 1968]
AN ACT TO CONSOLIDATE AND AMEND THE LAW RELATING TO THE
PRODUCTION, MANUFACTURE, POSSESSION, TRANSPORT,
PURCHASE AND SALE OF INTOXICATING LIQUOR AND DRUGS, THE
LEVY OF DUTIES OF EXCISE AND COUNTERVAILING, DUTIES ON
ALCOHOLIC LIQUORS FOR HUMAN CONSUMPTION A ND OPIUM,
INDIAN HEMP AND OTHER NARCOTIC DRUGS AND NARCOTICS AND
TO PROVIDE FOR MATTERS CONNECTED THEREWITH IN THE
STATE OF ANDHRA PRADESH.
BE it enacted by the Legislature of the State of Andhra Pradesh in the
Nineteenth Year of the Republic of India as follows:-
CHAPTER 1
Preliminary
1. Short title, extent and commencement - (1) This Act may be called the
Andhra Pradesh Excise Act, 1968.
1[(2) It extends to the whole of the State of Andhra Pradesh:
Provided that on and from the date of commencement of the
Andhra Pradesh Prohibition Act, 1995 the provisions of the Act shall, in so far
as they are inconsistent with the provisions of the said Act cease to operate.]
(3) It shall come into force on such date as the Government may, by
notification, appoint.
2. Definitions - In this Act, unless the context otherwise requires,--
(1) "Arrack" includes all liquor produced or manufactured in India and
supplied by the Government other than Foreign Liquor and 2[Indian Made
Foreign liquor];
3[(1-A) “Bar” means the privilege granted under the Act to an
Establishment, where food is served, for sale of Indian Made Foreign Liquor
and Foreign Liquor in loose for consumption on the licensed premises.]
(2) "Beer" includes ale, stout, porter and all other ferment ed liquors
usually made from malt;
4[(2-A) “Bona fide purpose” means the privilege granted under the Act for
the sale or use as the case may be, of any intoxicant, any material or any liquor
and does not include Indian Made Foreign Liquor, Foreign Liquor and Toddy.]
5[(3) "Bottle" means to transfer liquor from one cask to another cask or
from a cask or vessels to a bottle, jar, flask, pot , closed packet, basket, tin,
barrel, case, receptacle, bag, sack or wrapper or any other receptacle in any
form in which intoxicant is packed for the purpose of sale whether or not any
process of manufacture is employed and includes re-bottling;]
(4) "Buy" or "buying" includes any receipt including gift;
1 . Substituted by the Act No.17 of 1995, S. 34
2. Substituted by the Act No. 17 of 2006, S.4
3 . Inserted by the Act No. 35 of 2005
4 . Inserted by the Act No. 35 of 2005
5 . Substituted by the Act No.4 of 1994, S. 2
5
(5) "Collector" means the Collector of a district and includes 1[the Joint
Collector] or any person appointed by the Government to exercise the powers
and to perform the functions of a Collector under this Act;
(6) "Commissioner" means the officer appointed under section 3;
2[(6-A) “Corporation” means the Andhra Prade sh Beverages Corporation
Limited, Hyderabad.]
(7) "Cultivation" or "cultivating" includes the tending or protecting of a
plant during growth and does not necessarily imply raising it from seed;
(8) "Denatured" means subjected to a process prescribed for the purpose
of rendering unfit for human consumption;
(9) "Excisable article" means 3[any alcoholic liquor for human
consumption; or any intoxicating drug;]
(10) "Excise duty" or "countervailing duty " means the duty of excise or
countervailing duty, as the case may be, mentioned in entry 51 in List II of the
Seventh Schedule to the Constitution 4[and includes additional excise duty or
additional countervailing duty, as the case may be;]
(11) "excise officer" means the Commissioner, the Collector or any officer
or other person lawfully appointed or invested with the powers under the
relevant provisions of this Act;
(12) "excise revenue" means revenue derived or derivable from any duty,
fee, tax, rent, fine, penalty or confiscation levied, imposed or ordered under the
provisions of this Act or any other law for the time being in force relating to
intoxicating liquors or intoxicating drugs;
(13) "excise tree" includes the tree of mohwa, coconut, palm, palm yrah,
date, bagani, sago, sendhi, or any tree of the species of palm or palmyrah, from
the fermented or unfermented juice of which toddy or liquor can be prepared;
(14) "export" means,-
(a) to take out of any area of the State to which this Act extends to
any other area of the State to which this Act does not extend;
(b) to take out of the State otherwise than from a Customs station as
defined in section 2 of the Customs Act, 1962 (Central Act , 52 of
1962).
(15) "foreign liquor" includes every liquor imported into India, other than
Indian liquor and arrack;
(16) "Government" means the State Government;
5[(16A) “Grama/Ward Mahila Samrakshana Karyadarshi” means the
persons employed in Village/Ward Secretariat and Gram/Ward Volunteers
belonging to the Dep artment of Gram Volunteers/Ward Volunteers and Village
Secretariats/Ward Secretariats.]
(17) "import" except in the phrase "import into India" means,-
(a) to bring into any area of the State to which this Act extends from
any other area of the State to which this Act does not extend;
(b) to bring into the State otherwise than from a Customs station, as
defined in section 2 of the Customs Act, 1962 (Central Act , 52 of
1962);
1. Substituted by the Act No.4 of 1994, S.2
2 . Inserted by the Act No. 17 of 2006, S.2
3 . Substituted by the Act No. 20 of 1994
4 .Added by the Act No.9 of 2017, S.2
5 .Inserted by the Act No.17 of 2020, S.2
6
1[(18) "Indian Made Foreign Liquor" means liquor produced,
manufactured, or compounded in India after the manner of Gin, brandy,
whisky or rum imported from foreign countries and includes Wine, Beer, Mild
Punch’ and other liquors consisting of or containing any such spirits, but d oes
not include Foreign liquor;]
2[(18A) “In-house” means the privilege granted under the Act for sale of
Indian Made Foreign Liquor and Foreign Liquor by Club, Guest House of A.P.
Tourism Development Corporation, Military Canteen, Airport Transit lunge for
International Air passengers.]
(19) "intoxicant" means any liquor as defined in clause (21) or any
intoxicating drug as defined in clause (20) and includes gulmohwa (that is ,
mohwa flower):
(20) "intoxicating drug" means,-
(a) the leaves, small stalks and flowering or fruiting tops of the
Indian hemp plant including all forms known as bhang, siddi or
ganja;
(b) charas, that is, the resin obtained from the Indian hemp plant
which has not been sub mitted to any manipulations other than
those necessary for packing and transport;
(c) any mixture with or without neutral materials of any of the
above forms of intoxicating drug or any drink prepared therefrom;
and
(d) any other intoxicating or narcotic substance which the
Government may, by notification, declare to be an intoxicating
drug, such substance not being opium, coca leaf or manufactured
drug as defined in section 2 of the 3[Narcotic Drugs and
Psychotropic Substances Act, 1985 (Central Act 61 of 1985)]
(21) "liquor" includes,-
(a) spirits of wine, denatured spirits, methylated spirits, rectified
spirits, wine, beer, toddy and every liquid consisting of or
containing alcohol; and
(b) any other intoxicating substance which the Government may by
notification, declare to be liquor for the purposes of this Act;
(22) "manufacture" includes every process, whether natural or artificial,
by which any fermented, spirituous or intoxicating liquor or intoxicating drug
is produced, prepared or blended, and also re -distillation and every process for
the rectification of liquor;
4[(22-A) “Material” includes molasses, wash and such other substances
as the State Government may, by notification, specify;
(22-B) “Molasses” means the heavy dark coloured residual syrup drained
away in the final stage of the manufacture of jiggery or sugar or Akhandasari
sugar cane or gur containing solution or suspension, sugars which can be
fermented and includes any product formed by the addition to such syrup of
any ingredient which does not substantially alter the character of such syrup
but does not include any article which the State Government may, by
notification, declare not to be molasses, for the purpose of this Act;]
(23) "notification" means a notification published in the Andhra Pradesh
Gazette, and the term 'notified' shall be construed accordingly;
(24) "place" includes a house, building, booth, shed, enclosure, shop,
tent, vessel, raft and vehicle;
1 .Substituted by the Act No.17 of 2006, S.2
2. Inserted by the Act No.35 of 2005
3. Substituted by the Act No.20 of 1994
4. Inserted by the Act No.12 of 2005, S.2
7
(25) "police station” includes any place which the Government may, by
notification, declare to be a police station for the purposes of this Act;
(26) "prescribed" means prescribed by rules made under this Act;
(27) "rectification" includes every process whereby spirits are purified or
are coloured or flavoured by mixing any material therewith;
(28) "sale" or "selling" includes any transfer otherwise than by way of gift;
1[(28-A) “Shop” means the privilege granted under the Act for exclusive
sale of Indian made Foreign Liquor or Foreign Liquor in sealed or capsule
bottles or packages or tins to an individual in quantities not exceeding the
limits as prescribed without permitting consumption on the licensed premises;]
2[(28-B) “Special Enforcement Bureau” means the Department of Special
Enforcement Bureau.
(28-C) “Special Enforecement Bureau Officers” means the Commissioner
of Special Enforcement Bureau or any other officer employed/posted in Special
Enforcement Bureau or invested with powers under the relevant provisions of
this Act;]
(29) "spirit" means any liquor containing alcohol and obtained by
distillation, whether it is denatured or not;
(30) "toddy" means fermented or unfermented juice drawn from an excise
tree and containing alcohol;
(31) "Transport" means to move from one place to another within the
State, whether or not the intervening area lies wholly within the State, 3[ and
includes, to move from one place out side the State to any other place outside
in through the intervening area lying within the State.]
4[(32) “Wash” includes fermented wort or a dilute solution of sugar from
which spirit is distilled.]
CHAPTER II
ESTABLISHMENT AND CONTROL
3. Appointment of Commissioner - (1) The Government may, by notification,
appoint an officer as the Commissioner of Excise for the State, who subject to
the general or special orders of the Government in this behalf, shall be the
chief controlling authority in all matters connected with the administration of
this Act.
(2) The Commissioner shall be competent to exercise all the powers of the
Collector under this Act and shall have the control of the administration of the
Excise Department.
4. General control of Commissioner over Collector - The Collector shall
exercise the powers and perform the functions assigned by or under this Act,
subject to the general control of the Commissioner.
5[5. Appointment of certain Officers and staff – 6[(1) The Government may
appoint such manner of Additional Commissioners, Joint Commissioners,
Deputy Commissioners and Assistant Commissioners of Prohibition and
Excise and District Prohibition and Excise Officers and such other officers as
they think fit for the purpose of performing the functions respectively conferred
on them by or under this Act.]
(2) The Government may sanction the appointment of as many
prohibition and Excise Superintendents, Assistant Prohibition and Excise
1. Inserted by the Act No.35 of 2005
2. Inserted by the Act No.17 of 2020, S.2
3. Added by the Act No.10 of 1989, S.2
4. Inserted by the Act No.12 of 2005, S.2
5. Substituted by the Act No.10 of 1989, S.3
6. Substituted by the Act No.17 of 1995, S.34
8
Superintendents and other subordinate staff as they think fit for the purpose of
performing the functions respectively conferred on them by or under this Act.
(3) The appointment to the post sanctioned in Sub -section (2) shall be
made by such authority as may be prescribed.
(4) all such officers shall perform the said functions within such area or
areas or in the whole of the State as the Government or the Commissioner may
assign to them.]
6. Appointment of Excise Superintendents and Assistant Excise
Superintendents - 1[XXXXX]
7. Appoint of other Subordinate staff –1[XXXXX]
8. Delegation - The Commissioner, the Collector or the Exci se Superintendent
may, by order delegate to any officer subordinate to him any of the powers
conferred on or functions entrusted to the Commissioner, the Collector, or the
Excise Superintendent by or under this Act, subject to such restrictions and
control as may be prescribed, and subj ect also to such limitations and
conditions, if any, as may be specified in the order of delegation.
CHAPTER III
IMPORT, EXPORT AND TRANSPORT
9. Import of intoxicant - (1) No intoxicant shall be imported except under a
permit issued by such officer, not below the rank of an Excise Superintendent,
and on such terms as may be prescribed, and on payment of such excise duty
or countervailing duty and fees, as may be levied under this Act:
Provided that the said officer may subject to such restrictions and
conditions as may be prescribed to ensure the collection of the excise duty or
countervailing duty, permit the import of an intoxicant without the payment of
the excise duty or countervailing duty:
Provided further that no countervailing duty shall be payable on the
intoxicant which, being liable to the payment of duty under the Indian Tariff
Act, 1934 (Central Act 32 of 1934) , or any other law for the time being in force
relating to the duties of customs on goods imported into India, has been dealt
with according to such law.
(2) The officer referred to under sub -section (1) may by an order, cancel
any permit issued under that sub-section for breach of any of the terms subject
to which it was issued or for any other reason to be recorded in writing therein.
10. Export of intoxicant - (1) No intoxicant shall be exported except under a
permit issued by such officer, not below the rank of an Excise Superintendent,
and on such terms as may be prescribed, and on payment of such fees as may
be levied under this Act:
Provided that no intoxicant produced or manufactured in India shall be
permitted to be exported unless the excise duty or countervailing duty to which
such intoxicant is liable, has been paid.
(2) The officer referred to under sub -section (1) may, by an order, cancel
any permit issued under that sub-section for breach of any of the terms subject
to which it was issued or for any other reason to be recorded in writing therein.
11. Regulations of transport of intoxicants – 2[(1) The Government may, by
notification, prohibit or regulate the transport of an intoxicant or any kind of
intoxicants from any area into any othe r area within the State or from any
1 . Omitted by the Act No.10 of 1989, S.4
2 . Substituted by the Act No. 10 of 1989, S.5
9
place outside the State to any other place outside it through the intervening
area lying with in the State, except under a permit issued under section 12.]
(2) No intoxicant exceeding such quantity as may be prescribed e ither
generally or for any particular area, shall be transported, except under a permit
issued under section 12.
12. Permits for transport of intoxicants – 1[(1) Any officer not below the rank
of an Assistant Prohibition and Excise Superintendent , authorized by the
Commissioner may issue a permit for the transport of intoxicants.]
(2) A permit under sub -section (1) may be either general for definite
periods and kinds of intoxicants or special, for specified occasions and
particular consignments only:
Provided that a general permit, shall be issued only to persons licenced
under this Act and may specify the maximum quantity of intoxicant that may
be transported at any one time.
(3) Every permit under this section shall specify-
(a) the name of the person authorised to transport intoxicants;
(b) the period for and the route through which the permit shall be
valid;
(c) the quantity, strength and description of intoxicants for which it
is issued; and
(d) any other particulars and conditions which may be prescribed.
Explanation - The expression 'person authorised' in this sub -section
shall include his servants and other persons employed by him and acting on
his behalf.
CHAPTER IV
MANUFACTURE, POSSESSION AND SALE
13. Manufacture , etc., of excisable article prohibited except under a
licence - (1) No person shall-
(a) manufacture or collect an intoxicant;
(b) cultivate hemp plant;
(c) tap an excise tree or draw toddy from any such trees;
(d) construct or work a distillery or brewery;
(e) bottle liquor for sale; or
(f) use, keep or have in his possession, any materials, stills,
utensils, implements or apparatus whatsoever for the purpose of
manufacturing any intoxicant other than toddy ;except under the
authority and subject to the terms and conditions of a lice nce
granted by such officer, not below the rank of an Excise
Superintendent, as may be prescribed.
2[Provided that the provisions of this sub-section, in so far as
they relate to establishing, continuing or licensing a distillery shall
apply only to those distilleries which manufacture spirits for
potable purpose and regulatory provisions relating to regulation
and supervision, shall be applicable to all distilleries.]
(2) A licence granted under this section shall extend to and cover
servants and other persons employed by the licensee and acting on his behalf.
1 . Substituted by the Act No. 10 of 1989, S.6
2. Clause (f) of sub-section (1) added by the Act No.11 of 2000, S.2
10
(3) Notwithstanding anything in sub-section (1), the Government may, by
notification, direct that in such area as may be specified therein it shall not be
necessary to take out a licence for the manufacture of liquor for bona fide home
consumption of the manufacturer.
14. Possession of excisable articles in excess of the quantity prescribed –
(1) The Government may, by notification, specify the maximum quantity of any
intoxicant which a person may have in his possession:
Provided that different maxima may be specified for different descriptions
or kinds of intoxicants.
(2) No person shall have in his possession any intoxicant in excess of the
quantity specified under sub -section (1), except under the authority and in
accordance with the terms and conditions of-
(a) a licence for the manufacture, cultivation, collection, sale,
buying or supply of such article, or
(b) a permit;
granted by such officer, not below the rank of Excise
Superintendent, as may be prescribed.
15. Sale or buying of excisable article without licence prohibited - (1) No
person shall sell or buy any intoxicant except under the authority and in
accordance with the terms and conditions of a license granted in this behalf:
Provided that a person having a licence to draw toddy from an excise
tree, may sell such toddy to a person licenced to buy toddy under this Act
without obtaining a licence for such sale but subject to such restrictions and
conditions as the Commissioner may, by general or special order, specify.
(2) A license for sale or buying under sub-section (1), shall be granted-
(a) by the Excise Superintendent, if the sale or buying is within a
district;
(b) by the Deputy Commissioner, if the sale or buying is in more
than one district within his jurisdiction; and
(c) by the Commissioner, if the sale or buying is in an area within
the jurisdiction of more than one Deputy Commissioner;
Provided that subject to such conditions as may be
determined by the Commissioner, a licence for sale or buying
granted under the excise law in force in any other part of India
may be deemed to be a licence granted under this Act.
(3) Nothing in this section shall apply to the sale of any liquor lawfully
procured by any person for his private use and sold by him or on his behalf or
on behalf of his representative in interest upon his quitting a station or after
his decease.
(4) Notwithstanding anything in sub-sections (1) and (2), no club or a
hotel shall supply liquor to its members or customers on payment of a price or
any fee or subscription except under the authority and in accordance with the
terms and conditions of a licence granted in that behalf by the Commissioner
on payment of such fees as may be fixed by him according to scale of fees
prescribed therefor.
16. Establishment of distillers and warehouses - (1) The Commissioner may,
with the previous sanction of the Government,-
11
(a) establish or continue a distillery in which spirit may be
manufactured 1[XXXX] on such conditions as the Government may
impose;
(b) discontinue any distillery so established or continued;
(c) licence, on such conditions as the Government may impose, th e
construction and working of a distillery or brewery;
(d) establish, continue or licence a warehouse wherein intoxicants
may be deposited and kept;
(e) discontinue any warehouse so established or continued.
(2) A warehouse established under sub -section (1), shall be for general
accommodation of intoxicants subject to duty, pending removal for local
consumption or for export.
(3) Without the sanction of the Government, no person shall remove any
intoxicant from any distillery, brewery, warehouse or other pl ace of storage
established, continued or licensed under this Act, unless the duty, if any,
imposed under this Act has been paid.
2[Provided that the provisions of this section in so far as they relate to
establishing, continuing or licensing a distillery s hall apply only to those
distilleries which manufacture spirits for potable purpose and other regulatory
provisions relating to regulation and supervision, shall be applicable to all
distilleries.]
3[17. Grant of exclusive privilege of manufacture, etc., - (1) Subject to the
provisions of section 28 and may rules made in this behalf, the Government
may, subject to such conditions as they may deem fit to impose, grant for a
fixed period to any person, either joint ly or severally, at any place, within any
such area in the State as may be specified, a lease or license or both for the
exclusive privilege,-
(i) of tapping, drawing toddy from any excise tree or selling or of
both; or
(ii) of manufacturing; or
(iii) of supplying or selling by wholesale or of both; or
(iv) of manufacturing, of supplying and selling by wholesale; or
(v) of selling by shop; or
(vi) of selling Bar; or
(vii) of selling by In-house; or
(viii) of selling or using for bonafide purp ose as may be specified
any liquor or other intoxicant or material as may be specified in
the said order.] (By Bare Act of 1968 of 17 Section)
(2) it shall be lawful for the Government to prescribe from time to time
different methods of selection for gran t of exclusive privilege for different
purposes under sub-section (1).
(3) Notwithstanding anything contained in sub -section (1), a lease or
licence or both in respect of 'Shop' may be granted 4[for a period not exceeding
two years at a time].
(4) No grantee of any privilege under subsection (1) or sub -section (3)
shall exercise the same unless the Commissioner of Prohibition & Excise or any
other officer authorised in this behalf issues a licence.
1 .Omitted by the Act No.23 of 1971, S.2
2 . Added by the Act No.11 of 2000, S.3
3. New section substituted by the Act No. 10 of 1984, S.2, and substituted by the Act No. 35 of
2005
4 . Substituted by the Act No.39 of 2006, S.2
12
(5) The Government may confer on any officer all or an y of the powers
mentioned in sub-sections (1) and (3).
(6) The Commissioner of Prohibition and Excise, may after due enquiry as he
may deem fit, permit a licence holder in respect of manufacture of any liquor or
intoxicant to sub -let such a privilege and grant a licence to the person who
holds the sub-lease, on collection of such fee as may be prescribed.]
18. Duties of license e with regard to measurement and testing - Every
person, who manufactures or sells any intoxicant under a licence granted
under this Act shall be bound, -
(a) to keep such measures, weights and instruments as the
Commissioner may specify on the licensed premises and to
maintain them in good condition; and
(b) on the requisition of the excise officer duly empowered in that
behalf, at any time to measure, weigh or test any intoxicant in his
possession in such manner as that officer may require.
19. Prohibition of employment of children and of persons suffering from
contagious diseases - (1) No person, who is licenc ed to sell any intoxica nt for
human consumption on his premises shall, during the hours in which such
premises are kept open for such purpose, employ or permit to be employed,
either with or without remuneration, any children under such age as may be
prescribed, in any part of t he premises where the intoxicant is consumed by
the public.
(2) No such person as is referred to in sub-section (1) shall employ or
permit to be employed either with or without remuneration, any person who is
suffering from leprosy or any other contagious disease.
20. Closing of shops for preservation of public peace - (1) The District
Magistrate may, by notice in writing to the 1[licensee/license holder] , require
that any 2[shop/bar] in which any intoxicant is sold shall be closed at such
times or for such period as he may think necessary for preservation of the
public peace.
Explanation - For the purposes of this section, the expression 'District
Magistrate' includes the Additional D istrict Magistrate or any other person
empowered to exercise the powers of District Magistrate.
(2) If any riot or any unlawful assembly is apprehended or occurs in the
vicinity of any such 2[shop/bar] any Magistrate of the first or second class may,
for r easons to be recorded in writing, require such 2[shop/bar] to be kept
closed for such reasonable period as he may think necessary.
3[(3) The 1[licensee/license holder] shall not, on account of closure of the
2[shop/bar] under this section, be entitled to any compensation or refund of
licence fee or lease amount.]
CHAPTER V
4[EXCISE DUTY, COUNTERVAILING DUTY, ADDITIONAL EXCISE DUTY
AND ADDITIONAL COUNTERVAILING DUTY]
21. Excise duty or countervailing duty 5[or additional excise duty or
additional countervailing duty ] on excisable articles - (1) The Government
may, by notification, levy an excise duty 6[including additional excise duty] on
any excisable article manufactured or produced in the State 7[XXXX] at such
1 . Substituted by the Act No.1 of 2010, S.2
2 . Substituted by the Act No.1 of 2010, S.2
3 . Substituted by the Act No.1 of 2010, S.2
4 . Heading of Chapter- V substituted by the Act No.9 of 2017, S.3
5 . Inserted by the Act No. 9 of 2017, S.4
6 . Inserted by the Act No. 9 of 2017, S.4
7 .Omitted by the Act No.23 of 1971, S3
13
rate, not exceeding the rates mentioned in the Schedule, as may be specified in
the notification.
(2) The Government may, be notification, levy a countervailing duty
1[including additional countervailing duty] duty on any exercisable article
manufactured or produced elsewher e in India and imported into the State
2[XXXXX], at such rates as may be specified in the notification, which may not
exceed the rates of excise duty 3[or additional excise duty, as the case may be]
on similar excisable articles levied under sub-section (1).
(3) Different rates may be specified in sub -sections (1) and (2) for
different kinds of excisable articles and different modes of levying duties under
section 22.
22. Modes of levying duties - The excise duty, 4[additional excise
duty] 5[XXXX] the countervailing duty 6[and additional countervailing
duty] under section 21 shall be levied in one or more of the following modes:-
(a) rateably, on the quantity 7[or ad valorem of any excisable
article] produced or manufactured in or issued from a distille ry,
brewery or manufactory or warehouse , or imported into the State
8[at such stage or stages and in such manner as may be
prescribed];
(b) in the case of spir its or other liquors produced in 9[any
distillery established or continued or any distellery , brewery or
manufactory licensed under this Act] , in accordance with its
quality or strength or in accordance with such scale of equivalents
calculated on the quantity of materials used, or by the degree or
attenuation of the wash or wort, as the case may be, prescribed.
(c) in the case of tod dy, in the form of a tax on each variety of
excise tree from which toddy is drawn having due regard to the
period during which such tree is capable of yielding toddy;
(d) 10[By differenct rates of fees on licenses issued for different
purposes mentioned in the sub -section (1) of Section 17 as may be
prescribed.]
11[(e) In the form of Retail Excise Tax, Additonal Retail Excise Tax,
Manufacture Excise Tax or any other levy, tax, fee or cess, as may
be notified.]
9
12[23. Payment of exclusive privilege – (1) Instead of or in addition to any
excise duty, 13[additional excise duty] or fees leviable under section 21 and 22,
the Commissioner or any other 14[officer authorized] may accept payment of
a sum in consideration of the grant of lease or licence or both for the
exclusive privilege in respect of liquor or any other intoxicant under section 17.
1 . Inserted by the Act No.9 of 2017, S.4
2. Omitted by the Act No. 23 of 1971, S3
3 . Inserted by the Act No.9 of 2017, S.4
4 . Inserted by the Act No.9 of 2017, S.5
5 . Omitted by the Act No.9 of 2017, S.5
6 . Inserted by the Act No.9 of 2017, S.5
7 . Substituted by the Act No. 39 of 2006, S.3
8 . Added by the Act No.9 of 2017, S.5
9. Substituted by the Act No. 23 of 1971, S.4
10 . Substituted by the Act No. 35 of 2005
11. Clause (e) added by the Act No.2 of 2020, S.2
12. Substituted by the Act No.10 of 1984 and numbered as sub-sections(1) & (2) Added by the
Act No. 35 of 2005
13 . Inserted by the Act No.9 of 2017, S.6
14 . Substituted by the Act No. 35 of 2005
14
(2) It shall be lawful for the Government to prescribe different rates
of exclusive privilege fee for different purposes mentioned in sub-section (1)
of section 17].
1[23.A- Payment by the Corporation:-XXXX]
1[23.B- Payment by the Corporation from dated 21.07.1993:- XXXX]
24. Owner or other person in possession of excise trees to give intimation
of unwillingness to tap excise trees , etc., - (1) Where in any area, a duty
under section 21 is levied, the owner or other person in possession of the
excise trees in that area, who is unwilling to have his excise trees tapped or to
allow the drawal of toddy there from, shall, before the date notified in this
regard by the authority empowered to grant a license under section 13,
intimate his unwillingness in writ ing to the said authority. 2[Every such
intimation received before the date so notified may be approved by the
Commissioner subject to such rules as may be made in this behalf and shal l
take effect only on and from the date on which it is so approved; and the
intimation so approved shall not be revoked during the period of seventeen
months from the date so notified.]
(2) Where no such intimation is received by the said authority before the
date so notified, the licence applied for under section 13 may be granted to the
person applying therefor.
(3) 3[XXXX]
25. Recovery of duty under this Act from persons other than the licensee
in certain cases - Where the excise trees are tapped or toddy is drawn there
from without any licence under section 13, the duty payable 4[under this Act]
shall be recoverable primarily from the person who has tapped the excise trees
or caused them to be tapped and in default of payment by, or on failure of
recovery from such person, the duty shall be recoverable from the occupier, if
any, of the land in which the said excise trees are standing, or if the excise
trees do not belong to the occupier of such land or if the land is not occupied
by any person, from t he owner or other person in possession of the excise
trees, unless such owner or other person proves that the excise trees were
tapped or toddy was drawn there from without his knowledge.
26. Rent to which the owner or person in possession of excise trees is
entitled - Where a license is granted, the owner or other person in possession
of excise trees shall be entitled to receive as rent for each excise tree from
which toddy is tapped or drawn , such sum, as may be prescribed which shall
not exceed fifty per cent, of the duty payable therefor, under section 23 and the
said rent shall be payable by the person from whom the duty under section 23
is payable and shall be deposited by him in the Government treasury, for being
paid to the owner or other person who is entitled to it, in such manner as m ay
be prescribed, 5[such sum as may be prescribed , 6[XXXXX], and the said rent
shall be paid, by the person from whom the duty under this Act is payable,
directly to the owner or other person who is entitled to it.]
27. Prohibition of cutting down or destroying excise trees - No person shall
without the permission of the Collector or such officer as may be empowered by
the Government in this behalf, cut down or destroy any excise tree 7[XXXXX].
Such permission may be given subject to such conditions and on payment of
such fees as may be prescribed.
1 . Omitted by the Act No.5 of 2012, S.3
2 . Substituted by the Act No. 6 of 1974, S.2
3 . Omitted by the Act No. 10 of 1989, S.7
4 . Substituted by the Act No.4 of 1979, S.2
5. Substituted by the Act No.4 of 1979, S.3
6. Omitted by the Act No.10 of 1989, S.8
7 . Omitted by the Act No.10 of 1989, S.9
15
CHAPTER VI
LICENCES AND PERMITS
28. Form and conditions of licence , etc. - (1) Every permit issued or licence
granted under this Act shall be issued or granted on payment of such fees, for
such period, subject to such restrictions and conditions, and shall be in such
form and shall contain such particulars, as may prescribed.
(2) The conditions prescribed under sub -section (1) may include
provision of accommodation by the lic ensee to excise officers at the licenc ed
premises on the payment of rent or other charges for such accommodation at
or near the licensed premises and the payment of the costs, charges and
expenses (including the salaries and allowances of the excise officers) which the
Government may incur in connection with the supervision to ensure
compliance with the provisions of this Act, the rules made thereunder and the
licence.
29. Power to take security and counterpart agreement - Subject to such
rules as may be pr escribed, any authority granting licence under this Act may
require the licensee-
(a) to give security for the observance of the terms of his licence,
and
(b) to execute a counterpart agreement in conformity with the tenor
of his licence.
30. Technical def ects, irregularities and omissions - (1) No licence granted
under this Act shall be deemed to be invalid by reason merely of any technical
defect, irregularity or omission in the licence or in any proceedings taken prior
to the grant thereof.
(2) The decis ion of the Commissioner as to what is a technical d efect,
irregularity or omission, shall be final.
31. Power to cancel or suspend licence, etc. - (1) Subject to such restrictions
as may be prescribed, the authority granting any licence or permit under this
Act 1[irrespective of the period to which the license or permit relates],-
(a) if any duty or fee payable by the holder thereof is not duly p aid;
or
(b) in the event of any breach by the holder thereof, or by any of his
servants or by any one acting on his behalf with his express or
implied permission, of any of the terms and conditions thereof; or
(c) if the holder thereof or any of his servan ts or any one acting on
his behalf with his express or implied permission, is convicted of
any offence under this Act; or
(d) if the holder thereof is convicted of any cognizable and non -
bailable offence or of any offence under 2[the Narcotics Drugs and
Psychotropic Substances Act, 1985] 3[(Central Act 61 of 1985)] ( or
under the Medicinal and Toilet Preparations (Excise Duties) Act,
1955 (Central Act 16 of 1955),or under the Trade and Merchandise
Marks Act, 1958 (Central Act 43 of 1958), or under section 481,
section 482, section 483, section 484, section 485, section 486,
section 487, section 488, or section 489 of the Indian Penal Code
or of any offence punishable under section 112 or section 114 of
1 . Inserted by the Act No.10 of 1989, S.10
2 . Substituted by the Act No. 10 of 1989, S.10
3 . Substituted by the Act No. 10 of 1989, S.10
16
the 1[Customs Act, 1962 (Central Act 52 of 1962) irrespective of the
fact whether such conviction relates to the period earlier or
subsequent to the grant of license or permit; or]
(e) if the conditions of the licence or permit provide for such
cancellation or suspension at will:
Provided that no licence or permit shall be cancelled or
suspended unless the holder thereof is given an opportunity of
making his representation against the action proposed.
(2) Where a licence or permit held by any person is cancelled under
clause (a), clause (b), clause (c) or clause (d) of sub -section (1), the authority
aforesaid may cancel any other licence granted or permit issued to such
persons under this Act or under the Opium Act, 1878 (Central Act I of 1878).
(3) The holder of a licence or permit shall not be ent itled to any
compensation for its cancellation or suspension nor to the refund of any fee
paid or deposit made in respect thereof.
32. Power to withdraw licence - (1) Whenever the authority which granted
any licence under this Act considers that such licen ce should be withdrawn for
any cause other than those specified in section 31, it may withdraw the licence
on the expExcerpt shown. Open the full act in Lexace.