The ARUNACHAL PRADESH EXCISE ACT, 1993

(J) 
THE ARUNACHAL PRADESH EXCISE ACT, 1993 
(Act No. 6 of 1993) 
(Received the assent of the Governor on 8th July, 1993 and 
Published in AP EOG No 48.Vol VI Dtd 14.7.1993. 
1.The Arunachal Pradesh Excise (Amendment) Act, 1993 ( 
Act No. 7 of 1993). Received the assent of the Governor on 
1st Nov, 1993 and Published in AP EOG No 96.Vol VI Dtd 
19.1.1994) 
AN 
ACT 
to provide law relating to excise and levy of duty of excise in 
Arunachal Pradesh. 
BE it enacted by the Arunachal Pradesh Legislative 
Assembly in the Forty-fourth Year of the Republic of India as 
follows:- 
CHAPTER-I 
PRELIMINARY 
1. (1) This Act may be called the Arunachal Pradesh Excise 
Act, 1993. 
(2) It shall extends to the whole of Arunachal Pradesh. 
(3) It shall come into force on such date as the Government 
may, by notification appoint and such date may be notified 
for different areas. 
2. (1) In this Act, unless there is anything repugnant in the 
subject or context - 
(a) "Apong" means any fermented rice millet, or other grain 
and in whatever name it may be called locally and includes 
Arrack and any liquid obtained there from but does not 
include beer; 
(b) "beer" includes ale, stout, porter and all other fermented 
liquor made malt, and such other substances as the State 
Government may specify on this behalf ; 
(c) "bottle" means to transfer liquor from a cask or other 
vessel to a bottle or other receptacle for the purpose of sale, 
whether any process of rectification be employed or not ; 
and includes re-bottling ; 
(d) "Collector" means the Collector of the District and 
includes any officer appointed by the State Government to 
exercise and perform all or any of the powers and functions 
of the Collector under this Act ; 
(e) "denaturant" means any substance prescribed for 
admixture with spirit in order to render the mixture unfit for 
human consumption ; 
(f) "denature" means mixing of spit with one or more 
denaturants in such manner as may be prescribed for the 
purpose of rendering it unfit for human consumption ; 
(g) "Exercisable article" means :- 
a) any alcoholic liquor for human consumption, or 
b) any intoxicating drug ; but does not include medicinal 
and toilet preparation containing alcohol or any 
intoxicating drug. 
"Explanation":-ln this clause the expressions "medicinal 
preparation and toilet preparations" have the same meaning 
as assigned to in the "Medicinal and Toilet Preparations 
(Excise Duties) Act, 1945". 
Short title extent and 
commencement. 
Definitions. 

(h) "excise duty" and "countervailing duty" means any such 
excise duty or countervailing duty, as the case may be, as is 
mentioned in entry 51 of List-II in the Seventh Schedule to 
the Constitution. 
(i) "Excise Commissioner" means the officer appointed 
under S8ction 5 ; 
j) "Excise Officer" means the Collector or any officer or other 
person appointed or invested with powers under section 5 ; 
(k) "Excise Revenue" means revenue derived or derivable 
from any duty, fee, tax, payment (other than a fine imposed 
by a Criminal Court) or confiscation imposed or ordered 
under this Act or any other law for the time being in force 
relating to liquor or intoxicating drugs; 
(I) "Export" means to take out of Arunachal Pradesh 
otherwise than across a customs frontier as defined by the 
Central Government ; 
(m) "import" (except in the phrase "import into India") means 
to bring into Arunachal Pradesh otherwise than across a­ 
customs frontier as defined by the Central Government ; 
(n) "Intoxicant' means- 
1. any liquor, or 
11. any substance from which liquor may be distilled and 
which is declared by the State Government by 
notification in the Arunachal Pradesh Gazette to be 
an intoxicant for the purpose of this Act, or 
111. any intoxicating drug ; 
(o) "intoxicating drug" means- 
1. the leaves, small stalks and flowering of fruiting tops 
of the Indian hemp plant (Cannabis Sativa L.), 
including all forms known as bhang, siddhi or ganja; 
11. charas, that is. the resin obtained from the Indian 
hemp plant, which has not been submitted to any 
manipulations other than those necessary for packing 
and transport ; 
111. any mixture, with or without neutral materials of any 
of the above forms or intoxicating drug, or any drink 
prepared there from ; and 
rv. any other intoxicating or narcotic substances or any 
fermenting agent which the State Government may 
specify in this behalf by notification, such substance 
or agent not being opium, coca leaf, or a 
manufactured drug as defined in the Narcotic Drugs 
and Psychotropic Substances Act, 1985. 
(p) "Liquor" means intoxicating liquor and includes all liquid 
consisting of or containing alcohol and any substance which 
the State Government, by a notification may declare to be 
liquor for the purpose of the Act; 
(q) "manufacture" includes - 
1. every process whether natural or artificial, by which 
any intoxicant is produced or prepared, 
ii. every process for the rectification, flavouring, 
blending, or colouring of liquor or for the reduction of 
liquor for sale, and 
111. re-distillation, 
(r) "Notification" means notification m the 
Arunachal Pradesh Gazette ; 
(s) "place" included building, house, shop, booth, 
vessel raft, vehicle and tent ; 
(t) "Prescribed" means prescribed by rules made 

under this Act ; 
(u) "Sale" includes any transfer otherwise than by 
way of gift ; 
Explanation :-The supply of liquor by a club, mess, institute, 
society, lodge or other similar organisation by whatever 
name called to its members or their guests whether on 
payment of price or of any fee or subscription or not shall be 
deemed to be a sale within the meaning of this clause ; 
(v) "State Government" means the State 
Government of Arunachal Pradesh ; 
(w) "Spirit" means any liquor containing alcohol 
obtaining by distillation, whether it is denatured or 
not; 
(x) "transport" means to remove from one place to 
another within the State of Arunachal Pradesh. 
3. The State Government may, by notification, declare what, 
for the purpose of this Act or any portion thereof, shall be 
deemed to be "country liquor" and "foreign liquor" 
respectively. 
4. ( 1) The State Government may by notification, declare 
with respect either to whole of Arunachal Pradesh or to any 
specified local area, and as regards purchasers generally or 
any specified class of purchasers and either generally or for 
any specified occasions, what quantity of any intoxicants 
shall, for the purpose of this Act, be the limit of retail sale. 
(2) The sale of any intoxicant in any quantity in excess of the 
quantity declared in respect thereof under sub-section (1) 
shall be deemed to be a sale by wholesale. 
CHAPTER-II 
ESTABLISHMENTS, CONTROL, APPEAL AND REVISION 
5. (1) The administration of the Excise Department and the 
collection of the excise revenue within a district shall 
ordinarily be under the charge of the Collector. 
(2) The State Government may, for the whole of 
Arunachal Pradesh or any specified local area- 
(a) appoint an Officer of the Government to be the 
Excise Commissioner who shall, subject to such control as 
the State Government may direct from time to time be in 
charge of the administration of the provisions of this Act and 
rules made there under including collection of excise 
revenue; 
(b) appoint any other person to exercise all or any of the 
powers and to perform all or any of the duties, conferred and 
imposed on a collector by or under this Act. either 
concurrently with, or in subordination to, or to the exclusion 
of the Collector and subject to such control as the State 
Government may direct; 
(c) appoint any other officers of the Excise Department, 
to perform such powers and duties of the excise officer as 
the State Government may think fit ; 
(d) appoint officer of the designation 'Public Analyst' to 
be in charge of scientific analysis' of samples and materials 
in relation to administration of the Act; 
(e) order that all or any of the powers and duties 
assigned by or under this Act to any officer appointed under 
clause (c) of this sub-section shall be exercised and 
performed by any servant of the Government or any other 
person ; 
Power to declare 
"country liquor" and 
"foreign liquor". 
Definition of retail and 
wholesale. 
Establishments, 
delegation and 
withdrawal of powers. 

(f) delegate to the Excise Commissioner all or any of 
the powers conferred upon the State Government by or 
under this Act, except the powers to make rules ; 
(g) withdraw from any officer or person all or any of the 
powers or duties conferred or imposed upon him by or under 
this Act ; and 
(h) permit the delegation by the Excise Commissioner or 
the Collector, to any person or classes of persons specified 
in such notification, of any powers conferred or duties 
imposed upon him by or under this Act. 
6. (1) The Collector shall in respect of all proceedings under 
this Act, be subject to the control of the Excise 
Commissioner. 
(2) Orders passed under this Act or under any rule made 
hereunder shall be appealable in such cases, to such 
authorities and under such procedures as may be 
prescribed. 
(3) The State Government may revise any order passed 
by the Collector or the Excise Commissioner or by any 
officer exercising the powers of an appellate authority under 
any rule made under this Act. 
CHAPTER-Ill 
IMPORT, EXPORT AND TRANSPORT 
7. No intoxicant shall be imported, provided that State 
Government may allow importing of intoxicants by the 
Armed forces, Para-military forces and such other 
authorities for the purpose of scientific, industrial, medicinal 
and similar uses under a pass prescribed stipulating such 
terms/conditions as may be necessary. 
*[ Provided also the State Government may give general or 
special permission for its import, on satisfying with such 
conditions as imposed and on such payment of duty, if any, 
payable under Chapter V or on execution of bond for such 
payment thereof. ] 
8. No intoxicant shall be exported: 
Provided that State Government may allow exporting or 
transporting intoxicants by the Armed forces and Para­ 
military forces and by such other authorities for the purpose 
of scientific, industrial, medical and similar uses, under a 
pass prescribed stipulating such terms/conditions as may be 
necessary. 
*[ Provided also the State Government may allow its export 
or transport on satisfying with such conditions as imposed 
and on payment of such duty, if any, payable under Chapter 
V or on execution of bond for such payment thereof. ] 
[Inserted by the Arunachal Pradesh Excise (Amendment 
Act) 1993 (Act no 7 of 1993,s2 & 3 wef 
CHAPTER-IV 
MANUFACTURE, POSSESSION AND SALE 
9. Licence required for manufacture: (a) No intoxicant shall 
Licence be manufactured. 
(b) no Hemp Plant (Cannabis Saliva) shall be 
cultivated, 
(c) no portion of the Hemp Plant (Cannabis Sativa) 
from which an intoxicating drug can be manufactured or 
produced shall be collected, 
Control, Appeal and 
Revision. 
Import of Intoxicants. 
Export of transport 

(d) no liquor shall be bottled for sale, 
(e) no distillery or brewery shall be worked, and 
(f) no person shall use, keep or have in his 
possession any materials, steel, utensil, implement or 
apparatus whatsoever for the purpose of manufacturing any 
intoxicant other than Apong except under the authority and 
subject to the terms and conditions of a license granted by 
the Excise Commissioner : 
Provided that Apong may be used without a licence 
solely for the purpose of food or for domestic consumption 
not exceeding a limit of 1 O (ten) litres and not as an 
intoxicant or for the preparation of any intoxicating article or 
any articles for sale. 
10.(1) The Excise Commissioner may, - 
(a) Subject to any restrictions imposed by the State 
Government establish, or authorise the establishment of 
distilleries or breweries. in which liquor may be produced 
under a license granted under section 9 ; 
(b) discontinue or order for discontinuation of any such 
distillery or brewery ; 
(c) establishment or authorise the establishment of 
warehouse wherein any intoxicant may be deposited and 
kept without payment of duty ; 
(d) discontinue or order for discontinuation of any such 
warehouse; 
(2) No distillery, brewery or warehouse, as aforesaid, 
shall be established except by, or under the authority of, the 
Excise Commissioner. 
11. No person shall, except under the authority and subject 
to the terms and conditions of license granted by the Excise 
Commissioner, deposit or keep any intoxicant in any 
warehouse or other place of storage established authorised 
or continued under this Act. 
12. No intoxicant shall be removed from any distillery, 
brewery, warehouses or other place of storage licensed, 
established authorised or continued under this Act, unless 
the duty (if any) payable under Chapter V has been paid or a 
bond has been executed for the payment thereof. 
13. Subject to the provision of the Act: 
1. No person shall have in his possession any 
intoxicant. 
11. in excess of the quantity declare under section 4 to 
be the limit of retail sale ; and 
iii. not obtained from a licensed vendor except under a 
permit granted by the Collector: 
Provided that the restriction of this section shall not 
apply to a person producing Apong not exceeding 10 (ten) 
litres or domestic consumption. 
14. (1) A licensed vendor shall not have in his possession at 
any place other than that authorised by his licence any 
intoxicant in excess of such quantity as the State 
Government may under section 4 declare to be the limit of 
retail sale. 
(2) Notwithstanding anything contained in the foregoing 
provision if the State Government thinks fit so to do on the 
ground of health, morality or public order, it may, by 
notification, prohibit either absolutely or subject to such 
conditions as it may prescribe the possession of any 
Establishment of 
distilleries, breweries or 
warehouses. 
License required for 
Depositing or keeping 
intoxicant in warehouse 
or other place of 
storage. 
Payment of duty on 
removal from distillery, 
brewery, warehouse or 
other place of storage. 

intoxicant by all persons generally or by any specified class 
or classes of persons. 
15. No intoxicant and no portion of a hemp plant (Cannabis 
Saliva) from which an intoxicating drug can be manufactured 
or produced, shall be sold except under the authority and 
subject to the terms and conditions of a license granted by 
the Excise Commissioner in conformity with general 
instructions issued by the State Government in respect of 
settlement of any class or classes of vend licences : 
Provided that - 
(1) a license for such sale in more than one district shall be 
granted only by the Excise Commissioner or by a Collector 
Specially authorised in that behalf by the Excise 
Commissioner. 
(2) A cultivator or owner of any hemp plant 
(Cannabis Sativa) may sell without a License, those portions 
of the plant from which an intoxicating drug can be 
manufactured or produced, to any person Licence for the 
purpose under this Act, to any officer whom the excise 
Commissioner may authorise to purchase or receive the 
same. 
(3) no license shall be required for any of the 
following sales, namely:- 
(a) the sale of foreign liquor lawfully procured by any 
person for his private use, within the permissible limit when 
such sale is made by such person himself or on his behalf 
by his representative upon his quitting a station, or otherwise 
(b) the sale of Apong lawfully possessed and . 
intended to be used solely for the preparation of food for 
domestic consumption and not- 
i. as an intoxicating article, or 
11. for the preparation of any intoxicating article, or 
111. for the preparation of any article for sale. 
16. Within the limits of any military cantonment and 
within such distance from those limits as the Central 
Government may in case prescribe, no license for the 
manufacture or sale of liquor shall be granted except with 
previous consent of Commanding Officer. 
17. (1) The state Government may grant to any 
person, on such conditions and for such period as it may 
think fit the exclusive privilege for one or more of the 
following purposes, namely:- 
(a) manufacturing ; 
(b) sale of any country liquor or intoxicating drug within 
any specified local area: 
Provided that public notice shall be given of the 
intention to grant any such exclusive privilege and that any 
objection made by any person residing within the area 
affected shall be considered before an exclusive privilege is 
granted. 
(2) No grantee of any privilege under subsection (1) 
shall exercise the same unless or until he has received a 
license from the Excise Commissioner. 
License required for 
sale. 
Manufacture and sale of 
liquor in or near 
cantonments. 
Grant of exclusive 
privilege for 
manufacture and sale of 
Country liquor or 
intoxicating drugs. 

18. (1) A grantee of an exclusive privilege under 
section 17 shall not let or assign the same or any portion 
thereof unless he is expressly authorised, by a condition 
made under that section to do so. 
(2) Such letting or assignment shall be made only to 
a person approved by the Collector or if the letting or 
assignment extends to more than one district by the Excise 
Commissioner. 
The lessee or assignee shall not exercise any rights 
as such unless and until the Collector or the Excise 
Commissioner or as the case may be, has upon his 
application, granted him a license to do so. 
19 Every person who manufactures or sells any intoxicant 
under a license granted under this Act:- 
(a) shall supply himself with such standard 
measurers, standards weights and instruments duly 
stamped and verified by the competent authority as the 
Excise Commissioner may prescribe and shall keep the 
same in good condition; and 
(b) when such measures, weights or instruments 
have been so prescribed, shall on the requisition of any 
Excise Officer duly empowered by the Collector in this 
behalf, measure weight or test any intoxicant his 
possession, at such time and in such manner as such officer 
may require. 
20. (1) No person who is licensed to sell country 
liquor for consumption on his premises shall, during the 
hours in which such premises are kept open for business, 
employ or permit to be employed, either with or without 
remuneration any person under the age of twenty one years, 
in any part of such premises in which such liquor consumed 
by the public. 
(2) No person who is license to sell country liquor for 
consumption on his premises shall, without the previous 
written permission of the Excise Commissioner, during the 
hours in which such premises are kept open for business, 
employ or permit to be employed either with or without 
remuneration, any women, in any part such premises in 
which such liquor is consumed by the public. 
(3) Every permission granted under subsection (2) 
shall be endorsed on the license and may be modified or 
withdrawn. 
21. (1) The District Magistrate or a Sub-Division 
Magistrate, may notice in writing to the license require that 
any shop in which any intoxicant is sold shall be closed at 
such time or for such period as such Magistrate may think 
necessary for the preservation of the public places and 
maintenance of law and order. 
(2) If any riot or unlawful assembly is apprehended or 
occurs in the vicinity of any shop in which any intoxicant is 
sold, any Magistrate or any Police Officer of or above the 
rank of sub-Inspector present, may require such shop to be 
kept closed for such period as he may think necessary. 
(3) When any Magistrate or Police Officer makes a 
direction under sub-section (1) or sub-section (2) he shall 
forthwith inform the collector of his action and the reason 
therefor. 
Transfer of exclusive 
privilege. 
Maintenance and use of 
measures, weights and 
instruments by licensed 
manufacturers and 
vendors. 
Employment of young 
persons or women by 
licenced vendors. 
Power to close shops 
temporarily. 

CHAPTER-V 
DUTY 
22. Power to impose duty. 
(1) An excise duty or a countervailing duty, as the 
case may be at such rates as the State Government may 
direct from time to time, may be imposed either generally or 
for specified local areas *[or] in respect of Armed forces, 
Para-military forces and such authorities as prescribed on­ 
(a) any excisable article imported, or 
(b) any excisable article exported, or 
(c) any excisable article transported, or 
(d) any excisable article manufactured under any 
licence granted in respect of clause (a) of section 1 o, or 
(e) any Hemp Plant (Cannabis Sativa) cultivated, or 
any portion of such plant collected, under any license 
granted in respect of clause (b) or clause (c) of section 10, 
or 
(f) any excisable articles manufactured in any distillery 
or brewery licensed, established, authorised or continued 
under this Act. 
Explanation: - Duty may be imposed on any article under 
this sub-section at different rates according to the places to 
which such article is to be removed for consumption or 
according to the varying strength and quality of such article. 
*[Inserted by the Arunachal Pradesh Excise (Amendment 
Act) 1993 (Act no 7 of 1993),s 4 wef 
23. Ways of levying such duty - 
Subject to any rules made under section 77 any 
duty imposed under section 22 may be levied in any of the 
following ways ;- 
(a) On an excisable article imported :- 
i. by payment, upon or before importation, in the 
State of Arunachal Pradesh, 
ii. by payment upon issue for sale from a 
warehouse established, authorised or continued 
under this Act, 
(b) on an excisable article exported, by payment in 
the State of Arunachal Pradesh, 
(c) on an excisable article transported - 
1. by payment in the district from which the article 
is sent, or 
11. by payment upon issue for sale from a 
warehouse established, authorised or 
continued under this Act, 
(d) on intoxicant drugs manufactured, cultivated or 
collected, 
1. by a rate charged upon the quantity 
manufactured under a licence granted in 
respect of producing Apong issued for sale 
from a warehouse establish, authorised or 
continued under this Act, or 
(e) on spirit or beer manufactured in any distillery or 

brewery licensed, established, authorised or continued 
under this Act, 
I. by a rate charge upon the quantity produced in 
or issued from the distillery or brewery, as the 
case may be, or issued for sale from a 
warehouse established, authorised or 
continued under this Act, or 
11. in accordance with such scale of equivalents 
calculated on the quantity or materials used, or 
by the degree or attenuation of the wash or 
wort, as the case may be the Government may 
prescribe. 
24. Instead of, or in addition to any duty liveable 
under this Act, the State Government may direct payment of 
a sum to be fixed by it in consideration of the same grant of 
any exclusive privilege under section 17. 
CHAPTER-VI 
25. Before the licenses are granted in any year in 
respect of retail sale of any intoxicant, the Collector shall 
take measures, in accordance with rules to be made by the 
State Government in this behalf, to enable him to ascertain 
local public opinion in regard to the licensing and location of 
shops. 
26. Every licence, permit or pass under this Act shall 
be granted for such period as may be prescribed. 
27. Any authority granting a licence under this Act 
may require the granted to execute counterpart agreement 
in conformity with the tenor of his licence and to give such 
security for the performance of such agreement, or to make 
such deposit in lieu of security, as such authority may think 
fit. 
28. (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 decision of the Excise Commissioner as to 
what is a technical a defect, irregularity or omission, shall be 
final. 
29. (1) Subject to such restrictions as the State 
Government may prescribe, the authority who granted any 
licence, permit or pass under this Act may cancel or 
suspend it- 
(a) If it is transferred or sublet by the holder thereof 
without the permission of the said authority ; or 
(b) if any duty or fee payable by the holder thereof be 
not duly paid ; or 
(c) 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 the terms or 
conditions thereof ; or 
(d) if the holder thereof is convicted of any offence 
punishable under this Act or any other law for the time being 
Payment for grant of 
exclusive privilege. 
Ascertainment of local 
public opinion. 
Grant of licence, permit 
etc. 
Counterpart agreement 
by licensee, and 
security or deposit. 
Technical 
irregularities 
omissions. 
defects, 
and 
Power to cancel or 
suspend licence, permit 
or pass. 

in force relating to revenue or of any cognizable and non­ 
bailable offence or any offence punishable under the 
Narcotic Drug and Psychotropic Substances Act, 1985 or 
under the Trade and Merchandise Marks Act, 1958 (43 of 
1958), or under any section which has been introduced into 
the Indian Penal Code by section 3 of that Act (Act XLV of 
1860) ; or under the Medical and Toilet Preparations (Excise 
Duties) Act, 1945 or. 
(e) if the holder thereof is punished for any offence 
under the Customs Act, 1962 or 
(f) where a licence, permit or pass has been grant on 
the application of the. holder of any exclusive privilege 
granted under section 17 on the requisition in writing of such 
holder; or 
(g) if the conditions of the licence, permit or pass 
provided for such conciliation or suspension at will. 
(2) When a licence, permit or pass help by any person 
is cancelled under clause (a), clause (b), clause (c), clause 
(d) or clause (e) of sub-section (1) the authority aforesaid 
may cancel any other licence, permit or pass granted to 
such person or by the authority of, the State Government 
under this Act. Or under the Narcotic Drugs and 
Pschycothropic Substances Act, 1985. 
(3) The holder of a licence, permit or pass shall not be 
entitled to any compensation for its cancellation or 
suspension under this section, or to the refund of any fee 
paid or deposit made in respect thereof. 
30. Whenever the authority who granted any licence 
under this Act considers that the licence should be 
withdrawn for any cause other than those specified in 
section 29 it may withdraw the licence either- 
(a) on the expiration of fifteen days notice in writing of 
its intension to do so, or 
(b) forthwith, without notice. 
(2) If any licence be withdrawn under subsection (1) 
the said authority shall, pay to the licence such sum (if any), 
by way of compensation as the Excise Commissioner may 
direct. 
(3) When a licence is withdrawn under subsection 
(1 ), any tee paid in advance, deposit made by the licence in 
respect thereof shall be refunded to him after deducting the 
amount (if any) due to the government. 
31. (1) Any holder of a licence granted under this Act to sell 
an intoxicant may, unless his licence is liable to cancellation 
or suspension under section 29 surrender the same on- 
1. the expiration of one month notice in writing 
given by him to the Collector of his intention to 
surrender it, and 
ii. payment of the fees payable for the whole 
period for which it would have been current but 
for such surrender : 
Provided that, if the Excise Commissioner is 
satisfied that there is sufficient reason for surrendering a 
licence, he may direct the licensing authority to remit to the 
Power to withdraw 
licence. 
Surrender of licence. 

holder thereof the sum so payable on surrender, and any 
fees paid in advance, or any portion of such sum of fees. 
(2) sub-section (1) shall not apply in the case of a 
licence for the sale of any country liquor or intoxicating drug 
in the exercise of an exclusive privilege granted under 
section 17. 
Explanation: - The words "holder of a licence" as used in 
this section, include a person whose tender or bid for a 
licence has been accepted, although he may not actually 
have received the licence. 
32. No person to whom a licence has been granted 
under this Act shall have any claim to the renewal of such 
licence, or, save as provided in section 30 any claim to 
compensation on the determination thereof. 
CHAPTER-VII 
DEPARTMENTAL MANAGEMENT OR TRANSFER 
33. If any holder of a licence granted under this Act, 
or any person to whom an exclusive privilege has been 
granted under section 17 contravenes any provision of this 
Act, or any rule made hereunder or makes default in 
complying with any condition imposed upon him by such 
licence or privilege, or 
if any holder of a licence, granted this Act 
surrenders the same under section 31, 
the Collector may (in the case of a licence, after 
the cancellation or surrender thereof and, in the case of an 
excius.ve privilege, at any time); 
(a) take the grant under management at the risk 
and loss of the persons to whom it was made, or 
(b) transfer the unexpired portion of the grant, at the 
risk and loss of the said person, to any other person. 
CHAPTER-VIII 
OFFENCES AND PENAL TIES 
34. If any person, in contravention of this Act, or of 
any rule, notification or order made, issued or given, or 
license, permit or pass granted under this Act ; 
(a) imports, exports, transport, manufactures, 
possess or sells any intoxicant, or 
(b) cultivates any hemp plant (Cannabis Sativa), or 
(c) collects or sells any portion of the hemp plant 
(Cannabis Sativa) from which an intoxicating drug can be 
manufactured or produced, or 
(d) bottles any liquor for purpose of sale, or 
(e) works any distillery or brewery, or 
(f) uses keeps or has in his possession any materials, 
steel. utensil, implement or apparatus, whatsoever for the 
Bar to right of renewal 
and to compensation 
Power of Collector to 
take grants under 
management or to 
transfer them. 
Penalty for unlawful 
import, export, 
transport, manufacture, 
possession, sale etc. 

purpose of manufacturing any intoxicant other than Apong, 
or 
(g) establishes any distillery, brewery, or warehouse, 
or 
(h) removes any intoxicant from any distillery, brewery, 
warehouse or other place of storage licensed, established, 
authorised or continued under this Act.- 
he shall be liable to imprisonment for a term which 
may extend to two years or to fine which may extend to five 
thousand rupees, or to both. 
35. (1) where an offence under this Act has been 
committed by a company, every person, at the time the 
offence was committed was in charge of and was 
responsible to, the company for the conduct of the business 
of the company, as well as the company, shall be deemed to 
be guilty of the offence and shall be liable to be proceeded 
against and punished accordingly : 
Provided that nothing contained in this sub-section 
shall render such person liable to any punishment provided 
in this Act, if he proves that the offence was committed 
without his knowledge or that he exercised all due diligence 
to prevent the commission of such offence. 
(2) Notwithstanding anything contained in 
subsection (1) where an offence under this Act has been 
committed by a company and it is proved that the offence 
has been committed with the consent or connivance of, or is 
attributable to, any neglect on the part of any Director, 
Manager, Secretary or other officer of the company such 
Director, Manager, Secretary or other officer shall also be 
deemed to be guilty of that offence and shall be liable to be 
proceeded against and punished accordingly cases. 
Explanation:- For purpose of this section - 
(a) "Company" means anybody corporate and 
includes a firm or other association of individual, and 
(b) "Director" in relation to a firm means a partner in the 
firm. 
36. In prosecutions under section 34, it may be 
presumed unless and until the contrary is proved, that the 
accused person has committed an offence punishable under 
that Section in respect of- 
(a) any intoxicant ; or 
(b) any steel, utensil, implement or apparatus 
whatsoever for the manufactured of any intoxicant other 
than Apong, or 
(c) any materials which have undergone any process 
towards the manufacture of an intoxicant or from which an 
intoxicant has been manufacture, for the possession of 
which he fails to account for satisfactorily. 
37. If any person alters or attempts to alter any 
denatured spirit, whether manufactured in India or not, with 
the intention that such spirit may be used for human 
Offences by companies. 
Presumption 
offence 
as to 
where 
possession rs not 
satisfactorily accounted 
for. 
Penalty for altering or 
Attempting to alter any 
Denatured spirit. 

consumption, whether as a beverage, or internally as a 
medicine, or in any other way whatsoever by any method 
whatsoever or has in possession any spirit in respect of 
which he knows or has reason to believe that any such 
alteration or attempt has been made, he shall be liable to 
imprisonment for a term which may extend to two years or to 
fine which may extend to five thousand rupees, or to both. 
38. In prosecutions under section 37 when the 
accused person is proved to have been in possession of any 
spirit which is or contain or has been derived from denatured 
spirit and in respect of which any such alteration or attempt 
as is referred to in section 37 has been made, it may, from 
the mere fact of such possession, be presumed unless and 
until the contrary is proved, that such person.- 
I. has himself made such alteration or attempt or; 
II. know or, has reason to believe that such 
alteration or attempt has been made. 
39. In any prosecution under this Act it may be 
presumed, unless and until contrary is proved, that any spirit 
which contains any quantity of any denaturant is, or has 
been derived from denatured spirit. 
40. If any licensed manufacturer or licensed vendor, or 
any person employed by him and acting on his behalf, 
mixes, or permits to be mixed, with any intoxicant 
manufactured, sold or kept or exposed for sale by him, any 
noxious drug or any article prohibited by rule made under 
section 77, and such mixing does not amount to an offence 
punishable under section 272 of the Indian Penal Code (Act 
XL V of 1860) ; or has in his possession any intoxicant in 
respect of which such admixture has been made, he shall be 
liable to imprisonment for a term which may extend to 
eighteen months, or to fine which extend three thousand 
rupees, or to both. 
41. If any licensed manufacturer or licensed vendor, 
or any person employed by him and acting on his behalf, 
(a) sells or keeps or exposes for sale, as foreign 
liquor, any liquor which he knows or has reason to believe to 
be country liquor. and such sale does not amount to an 
offence punishable under section 417 or section 418 of the 
Indian Penal Code, or 
(b) marks any bottle, case, package other receptacle 
containing country liquor, or the cork of any such bottle, or 
deals with any bottle, case, package or other receptacle 
containing liquor, with the intention of causing it to be 
believed that such bottle, case package or another 
receptacle contains foreign liquor, and such making or 
dealing does not amount to an offence punishable under 
section 482 of the Indian Penal Code, he shall be liable to 
imprisonment for a term which may extend to eighteen 
months or to fine which may extend to two thousand rupees 
or to both. 
42. (1) If any licensed vendor, or any person in his 
employees and acting or his behalf, 
(a) in contravention of section 20 employs or permits 
to be employed in any part of his licensed premises referred 
to in that section, any person under age of 21 years or any 
Presumption as to 
Offence under section 
37 in certain 
Presumption as to any 
spirit which contains 
any denaturant. 
Penalty for adulteration 
by licenced 
manufacturer or his 
servant. 
Penalty for fraud by 
Licenced manufacturer 
Or vendor or his 
servant. 
Penalty 
unlawful 
for certain 
Acts of 
licensed vendors or 
their servants. 

do-man, or 
(b) sells any intoxicant to a person who is drunk and 
intoxicated, or 
(c) sells delivers any spirit or intoxicating drug to any 
person apparently under the age of twenty one years 
whether for consumption on or off the premises of such 
vendor, or 
(d) permits drunkness, intoxication, disorderly conduct, 
gambling or gaming on the premises of such vendor, or 
(e) permits any person whom he knows or has reason 
to believe, to have been convicted of any non-bailable 
offence, or 
(f) permits any prostitute to meet, or remain on the 
premises of such vendor whether for the purpose of crime or 
prostitution or not, he shall be liable to tine which may 
extend to two thousand rupees. 
(2) When any licensed vendor, or any person in his 
employ and acting on his behalf is charged with permitting 
drunkenness or intoxication on the premises of such vendor, 
and it is proved that any person who drunk on intoxicated on 
such premises, it shall lie on the person charged to prove 
that the vendor and the persons employed by him to all 
reasonable steps for preventing drunkenness or intoxication 
on such premises. 
43. If any person, without lawful authority, has in 
his possession any quantity of any intoxicant, knowing the 
same to have been unlawfully imported, transported or 
manufactured, or knowing that the prescribed duty has not 
been paid thereon, he shall be liable to imprisonment for a 
term which may extend to three thousand rupees, or to both. 
44. (1) If any chemist, druggist or keeper of a 
dispensary allows any intoxicant which has not been 
bonafide medicated for medicinal purpose to be consumed 
on his business premises by any persons not employed in 
his business, he shall be liable to imprisonment for a term 
which may extend to one year or to fine which may extend to 
three thousand rupees, or to both. 
(2) If any person not employed as aforesaid 
consumes any such intoxicant on such premises, he shall be 
liable to imprisonment which may extend to three months or 
to fine which may extend to one thousand rupees, or to both. 
45. If any holder of a license, permit or pass granted 
under this Act, or any person in his employ and acting on his 
behalf:- 
(a) fails to produce such license, permit or pass on 
the demand of any officer empowered by the State 
Government, by notification, to make such demand, or 
(b) in any case not provided for in section 34 wilfully 
contravenes any rule made under section 77, or 
(c) wilfully does any act, in breach of the conditions of 
the license, permit or pass for which a penalty is not 
prescribed elsewhere in this Act, 
Penalty for possession 
of intoxicant in respect 
of which an offence has 
been committed. 
Penalty for consumption 
in chemist's shop etc. 
Penalty for certain Acts 
by licensee or his 
servants. 

he shall be liable, in case (a) to fine which may extend 
to one thousand rupees, and in case (b) or case (c) to fine 
which may extend to two thousand rupees. 
46. (1) When any intoxicant has been imported, 
transported, manufactured or sold or is possessed by any 
person on Recount of any other person, and such other 
person knows or has reason to believe that such import, 
export, transport, manufacture or sale was, or that such 
possession is, on his account, the article shall, for the 
purposes of this Act, be deemed to have been imported, 
exported, transported, manufactured or sold by, or to be in 
the possession of, such other person. 
(2) -Nothing in sub-section (1) shall absolve any 
person who imports, exports, transports, manufactures, 
sells, or has possession of an intoxicant on account of 
another person from liability to any punishment under this 
Act for the unlawful import, export, transport, manufacture, 
sale or possession of such article. 
47. When any offence punishable under section 34, 
section 40, section 4 l, section 42, section 43, section 45 is 
committed by any person in the employ and acting on behalf 
of the holder of a license, permit or pass under this Act, such 
holder shall also be punishable in addition to the accused, 
as if he had himself committed the offence, unless he 
establishes that all due and reasonable precautions were 
exercised by him to prevent the commission of such offence. 
48. No person other than the actual offender shall be 
punished under section 46 or section 47 with imprisonment, 
except in default of payment of a fine. 
49. If any Excise Officer- 
(a) without reasonable grounds of susprcron, 
searches or causes to be searched, any place, under colour 
of exercising any power conferred by this Act, or 
(b) vexatiously and unnecessarily seizes any property 
of any person on the pretence of seizing or searching for 
any article liable to confiscation under this Act, or 
(c) vexatiously and unnecessarily detains, searches or 
arrests any person, or 
(d) without lawful excuse, cease or refuses to perform, 
or withdraws himself from the duties of his office unless 
expressly allowed to do so in writing by the Collector or 
unless he has given to him immediate superior two months 
notice in writing of his intention to do so, or 
(e) is guilty of cowardice, he shall be liable to 
imprisonment for a term which may extend to six months, or 
to fine Which may extend to one thousand rupees, or to 
both. 
50. If any person is convicted of any Act in 
contravention of any of the provisions of this Act, or of any 
rule, notification or order made, issued or given under this 
Act for which penalty is not prescribed elsewhere in this Act, 
he shall be liable to fine which may extend to two hundreds 
·upees. 
Import, export, 
transport, manufacture, 
sale or possession by 
one person on account 
of another. 
Criminal liability of 
Licence for Acts of 
servant. 
Imprisonment under 
section 43 or section 44. 
Penalty on excise 
officers making 
vexatious search, 
seizure, detention or 
arrest or refusing duty 
or being guilty of 
cowardice 
Penalty for offences not 
otherwise punishable. 

51. Every proceeding under this Act before the 
Excise Commissioner, a Collector or before any officer, of 
such rank as the State Government may by notification 
prescribe, who is exercising powers of a Collector, shall be 
deemed to be a "Judicial Proceeding" within the meaning of 
Section 228 of the Indian Penal Code (Act XLV of 1860) and 
every Collector or officer holding each proceedings shall, for 
the purpose of section 345, 346 and 348 of Code of Criminal 
Procedure. 1973 be deemed to be court. 
52. Whoever abets commission of any offence or 
attempts to commit any offence, punishable under this Act, 
shall be liable to the punishment provided for such offence. 
53. If any person after having previously been 
convicted of an offence punishable under section 34, section 
37, section 43 or section 44 or under similar provisions in 
any enactment in force prior to the commencement of this 
Act, subsequently commits and is convicted to an offence 
punishable under any of those section, he shall be liable to 
twice the punishment which might be imposed on a first 
conviction under this Act. 
54. (1) Whenever an offence has been committed 
which is punishable under this Act, the intoxicant, materials, 
steel, utensil, implement and apparatus in respect of or by 
means of which such offence has been committed shall be 
liable to confiscation. 
(2) Any intoxicant lawfully imported, exported, 
transported, manufactured, had in possession or sold 
alongwith, or in addition to, any intoxicant which is liable to 
confiscation under sub-section (1 ), and the receptacles, 
packages and coverings in which any such intoxicant as first 
aforesaid, or any such materials, steel, utensils, implement 
or apparatus as aforesaid, is found, 
and the other contents, if any of such receptacles or 
package and the animals, carts, vessels, rafts or other 
conveyances used in carrying the same - 
shall likewise be liable to confiscation : provided that 
no animal, cart. vessels, raft or other conveyances as 
aforesaid shall be liable to confiscation unless the owner 
thereof is proved to have been implicated in the commission 
of the offence. 
Explanation : For the purpose of this section "Owner" 
includes in relation to any animal, cart, vessel, raft or 
other conveyance - 
(a) which is in the possession of a minor, the guardian 
of such minor, or 
(b) which is subject of a hi repurchase agreement, the 
person in possession thereof under that agreement. 
55. (1) When, in any case tried by him, the Ma~istrate 
decides that anything liable to confiscation under section 54, 
he may either order confis

Excerpt shown. Open the full act in Lexace.

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