The DELHI EXCISE ACT, 2009

THE DELHI EXCISE 
ACT, 2009 [Delhi Act 10 of 2010, dt. 1-7-20101 
An Act to consolidate, amend and update the Excise Laws relating to manufacture, 
import, export, transport, possession, purchase, sale, etc., of liquor and other intoxicants, 
in the National Capital Territory of Delhi and for matters connected therewith or 
incidental thereto. 
Be it enacted by the Legislative Assembly of the National Capital Territory of Delhi 
in the Sixtieth Year of the Republic of India as follows:— 
CHAPTER I 
PRELIMINARY 
1.  Short title, extent and commencement 
(1) This Act may be called the Delhi Excise Act, 2009. 
(2) It extends to the whole of the National Capital Territory of Delhi. 
(3) It shall come into force on such dater  as the Government may, by notification 
in the Official Gazette, appoint. 
2.  Definitions 
In this Act, unless the context otherwise requires,— 
(1) "alcohol" means ethyl alcohol of any strength and purity having the 
chemical composition C2H4OH; 
(2) "alcoholic beverage or potable liquor" means any beverage containing 
alcohol in conformity with the BIS standards which may be intoxicating and 
is fit for human consumption; 
(3) "alcoholic strength by volume (% vol.) of a mixture of water and alcohol" 
means the ratio of volume of alcohol, measured at 20°C, contained in the 
mixture to the total volume of the mixture; 
(4) "appellate authority" means the Deputy Commissioner, the Excise 
Commissioner, or the Financial Commissioner, as the case may be, for the 
purposes of this Act;  
(5) "authorized officer" means an officer authorized to exercise and power or 
to perform any duties and functions conferred on or imposed under this 
Act; 
(6) "Assistant Commissioner" means an officer appointed by the Government 
as Assistant Commissioner of Excise under section 5 of this Act; 
(7) "beer" means alcoholic beverage prepared from malt or grain with or 
without addition of sugar and hops and indudes black beer, ale, stout, 
porter and such other substance as may be notified by the Government; 
(8) "BIS standards" means standard prescribed by Bureau of Indian Standards 
( or the st ndards prescribed by any other Central Government authority, 
constit
t 
ted under the relevant Act; 
1  W.e.f. 4-10-2010 vide Noti. No. F-10(5)/Fin (T&E)/2009-10/SSF/103, dt. 4-10-2010. 
SECTION 2 
- Th- (9) "black jaggery" means coarse brown sugar made from palm tree or cane 
juice ordinarily unfit for human consumption but contains sufficient 
quantity of fermentable sugar for manufacture of ethyl alcohol; 
(10) "blending" means mixing of two or more spirits which may be of different 
strengths and different qualities; 
(11) "blended warehouse" means a licensed private bonded warehouse or part 
of a public bonded warehouse, established under this Act for storing liquor 
on which duty has not been paid; 
(12) "bottling" means transfer of liquor from a cask or other vessel to a bottle or 
other approved receptade for the purpose of sale whether any process of 
rectification be employed or not and includes rebottling; 
(13) "bottling plant" means premises where bottling of liquor is done and 
includes every place therein where it is stored or wherefrom it is issued; 
(14) "brewery"means premises where beer is manufactured and includes every 
place therein where beer is stored or wherefrom it is issued; 
(15) "compounding" means the manufacture of alcoholic beverage by addition 
to spirit of a flavouring or colouring matter or both; 
(16) "counterfeit liquor" means a liquor in respect of which— 
(a) there is any violation of any right under the Trade Marks Act, 1999 (47 
of 1999) or the Copyright Act, 1957 (14 of 1957) or any other similar 
Act in force, or 
(b) in respect of which an offence under section 481 or section 483 or 
section 486 of the Indian Penal Code, 1860 (XLV of 1860) has been 
committed; 
(17) "country or traditional liquor" means plain or spiced spirit which has been 
manufactured in India from material recognized as base for country or 
traditional spirit namely mahua, rice, gur, molasses etc. and notified as such 
liquor by the Government; 
(18) "Delhi" means the National Capital Territory of Delhi; 
(19) "denaturant" means any substance completely miscible in spirit and of such 
a character that its addition renders the material, or any aqueous dilution 
of it, non-potable; 
(20) "denatured spirit" means spirit with added denaturant to render it 
effectively and permanently unfit for human consumption; 
(21) "Deputy Commissioner" means the officer appointed by the Government 
as Deputy Commissioner of Excise under section 5 of this Act; 
(22) "distillery" means premises where spirit is manufactured and includes 
every place therein where it is stored or wherefrom it is issued; 
(23) "duty" means the excise duty or the countervailing duty as mentioned in 
Entry 51 of List II of Seventh Schedule of the Constitution, or, as the case 
may be, special duty; 
(24) "excisable article" means any alcoholic liquor for human consumption or 
any other similar article which the Government may declare to be an 
excisable article; 
(25) "Excise Commissioner" means the officer appointed by the Government as 
Excise Commissioner under section 3 of this Act; 
(26) "excise officer" means any officer or person appointed or invested with 
powers under this Act; 
2 THE DELHI EXCISE ACT, 2009 
aECTION 2 THE DELHI EXCISE ACT, 2009 3 
(27) "excise revenue" means revenue derived or derivable from any payment, 
duty, fee, tax, confiscation or fine, imposed or ordered under the provisions 
of this Act, or of any other law for the time being in force relating to 
intoxicants but does not include fine imposed by a court of law; 
(28) "excise tree" includes the gul, mahua, coconut, palm, palmyra, date, begani 
or doddasal tree or any other tree, the fermented or unfermented juice of 
which contains alcohol and from which toddy or any other liquor can be 
prepared; 
(29) "export" means to take out of Delhi to any other State within the country; 
(30) "export out of India" with its grammatical variations and cognate 
expressions means taking out of Delhi to any place outside India; 
(31) "extra neutral alcohol or silent spirit" means spirit as may be specified by 
the relevant Central Government Authority; 
(32) "fermented liquor" means liquor obtained by the process of fermentation 
and includes beer, ale, stout, porter, wine, pachwai, fermented taxi and any 
other similar liquor; 
(33) "Financial Commissioner" means the Financial Commissioner of the 
National Capital Territory of Delhi; 
(34) "foreign liquor" means any liquor imported by land, sea or air into India; 
(35) "Government" means the Lieutenant Governor of the National Capital 
Territory of Delhi appointed by the President under article 239 and 
designated as such under article 239AA of the Constitution; 
(36) "illicit liquor" means any liquor manufactured or stored or distriLuted or 
sold, in contravention of the provisions of this Act or the rules framed 
thereunder or liquor on which appropriate duty or fee leviable under this 
Act or the rules framed thereunder, has not been paid and includes foreign 
liquor on which appropriate duty of customs has not been paid; 
(37) "import" means to bring into Delhi from any other State of the country; 
(38) "import into India" with its grammatical variations and cognate 
expressions, means bringing into Delhi from any place outside India; 
(39) "Indian liquor" means liquor manufactured in India by process of 
distillation or using alcohol obtained by distillation such as whisky, brandy, 
rum, gin, vodka, liqueurs, but does not include country. liquor or fermented 
liquor; 
(40) "intoxicant" means and includes,— 
(a) any liquor; 
(b) any spirit; 
(c) any intoxicating drug; 
(d) any other article, which the Government may from time to time declare 
to be intoxicant, except the substances covered under the Narcotic 
Drugs and Psychotropic Substances Act, 1985, for the purpose of this 
Act; 
(41) "intoxicating drug" means— 
(a) the dried leaves of the Indian hemp plant known as bhang, sidd hi or 
patti or cannabis sativa, 
4 THE DELHI EXCISE ACT, 2009 
(b) any mixture with or without natural materials of bhang, siddhi or patti 
or cannabis sativa or any drink prepared therefrom; 
(42) "Legislative Assembly" means the Legislative Assembly of the National 
Capital Territory of Delhi; 
(43) "Licence" means a licence granted under this Act and the rules framed 
thereunder; 
(44) "licensing authority" means an officer who is authorized to grant, suspend 
and cancel licence, permit and pass under this Act; 
(45) • "Lieutenant Governor" means the Lieutenant Governor of Delhi appointed 
by the President under article 239 of the Constitution; 
(46) "liquor" means any alcoholic beverage and includes whisky, brandy, beer, 
wine, toddy, trai, pachwai, vodka, gin, tequila, country liquor, arrack and 
intoxicating liquid consisting of or containing alcohol as may be specified 
under BIS standard besides any similar substance which the Government 
may by notification declare to be liquor for the purpose of this Act; 
(47) "major and minor offences" 
(a) major offences mean— 
(i) adulteration; 
(ii) sale of non-duty paid liquor, (NDPL); 
(iii) illicit manufacture, possession, transport, transit and sale of liquor; 
(iv) rendering denatured spirit fit for human consumption; 
(v) mixing noxious substance with liquor; 
(vi) tampering with sealed bottles; 
(vii) sale to minor, 
(b) the remaining offences under this Act shall be minor offences; 
(48) "manufactory" means any distillery, brewery, winery or any establishment 
distilling, brewing, manufacturing, blending or bottling liquor; 
(49) "manufacture" includes any process— 
(a) incidental or ancillary to the completion of manufactured intoxicants, 
(b) whether natural or artificial, by which any intoxicant is produced or 
prepared and also re-distillation and every process for the rectification, 
reduction, flavouring, blendng or colouring of liquor, or 
(c) which in relation to intoxicant involves packing or repacking of such 
article in bottle or unit package or labelling or re-labelling of bottles or 
unit package, including the declaration or alteration of maximum 
retail price (MIRP) on it or adoption of any other treatment on the 
intoxicant for sale to the consumers. 
Explanation: For the removal of doubt, it is hereby clarified that labelling of 
bottles or unit packages, imported into India or into Delhi, to comply with 
statutory requirements shall not be construed as manufacture; 
(50) "manufacturer" means any person who manufactures intoxicants and 
includes a manufacturer of alcohol subject to excise duty under the Central 
Excise Act, 1944 (1 of 1944); 
(51) "molasses" means heavy viscous liquid produced, in the final stage of 
manufacture of gur or sugar including khandsari, sugar from sugar cane or 
— SECTION 2 THE DELHI EXCISE ACT, 2009 5 
gur, when liquid as such or in any form or ad-mixture containing sugar 
which can be fermented; 
(52) "MRP" means the maximum price at which the liquor may be sold to the 
ultimate consumer and shall include all taxes, freight, transport charges, 
commission or trade margin payable to dealers, and all charges towards 
marketing, delivery, packing, forwarding and the like, as the case may be; 
(53) "notification" means a notification issued under this Act and the rules 
framed thereunder and published in the Official Gazette; 
(54) "officer-in-charge" means the excise officer authorized to supervise and 
control manufactory or warehouse; 
(55) "pachwai" means fermented rice, millet or other grain, and includes liquid 
obtained therefrom, whether diluted or undiluted, but does not include 
beer; 
(56) "permit" means an authorization granted under this Act and/or the rules 
framed thereunder; 
(57) "place" includes a house, building, shop, booth, tent enclosure, vessel boat, 
raft and vehicle; 
(58) "police station" means a police station having jurisdiction over the place 
and any other place, which the Government may, by notification, declare 
to be a police station for the purpose of this Act; 
(59) "prescribed" means prescribed by rules made under this Act; 
(60) "rectification" includes every process whereby spirit is purified or is 
coloured or flavoured by mixing any material therewith; 
(61) "rectified spirit" means un-denatured alcohol, including absolute alcohol, 
extra neutral alcohol and alcohol derived from malt as may be specified by 
the BIS standard; 
(62) "relevant laws" means the Indian Power Alcohol Act, 1948 (22 of 1948), the 
Motor Spirit Taxation Act, the Medicinal and Toilet Preparation (Excise 
Duties) Act, 1955 (16 of 1955), the Narcotic Drugs and Psychotropic 
Substances Act, 1985 (61 of 1985) and such other Acts relevant to excise 
revenue; 
(63) "retail price" means the price fixed by the Excise Commissioner for the sale 
of intoxicant at which the licensee is bound to sell the intoxicants; 
(64) "retail sale" means sale in quantities not exceeding the limits of sale by retail 
for any consideration or not; 
(65) "special duty" means a tax on the import of any excisable article being an 
article on which countervailing duty as is mentioned in Entry 51 of List II 
in the Seventh Schedule to the Constitution is not imposable on the ground 
merely that such article is not being manufactured or produced in the 
territory to which this Act extends; 
(66) "spirit" means any liquid containing alcohol obtained by distillation, 
whether denatured or not; 
(67) "spirituous preparation" means— 
(a) any medicinal or toilet preparation containing alcohol, 
(b) any antiseptic preparation or solution containing alcohol, 
(c) any flavouring extract, essence or syrup containing alcohol; 
6 THE DELHI EXCISE ACT, 2009 SECTION 4•- 7  
(68) "still" includes any apparatus or part thereof, for distillation or manufacture 
of spirit; 
(69) "sub-standard liquor" means liquor, which does not meet the BIS standards 
and includes liquor whose nature, substance or quality is so affected— 
(a) by liquor itself, or the package thereof which is composed, whether 
wholly or in part of poisonous or deleterious substances, 
(b) by virtue of unhygienic processing or presence in that article of any 
harmful substance, 
(c) by substitution of any inferior or cheaper substance whether wholly 
or in part, 
(d) by addition of substance directly or as an ingredient which is not 
permitted, 
(e) by the presence of any colouring matter preservative other than 
specified in respect thereof, 
(f) by the presence of worm, weevil or insect, 
(g) by virtue of its being prepared, packed or kept under insanitary 
conditions, or 
(h) by dilution; 
(70) "toddy and tari" means fermented or unfermented juice drawn from a 
coconut, palmyra, date or any other kind of palm tree; 
(71) "transit" means to move from one State to another through Delhi; 
(72) "transport" means to move from one place to another within Delhi; 
(73) "VAT" means tax on sale or purchase of goods referred to in Entry 54 of the 
State List (List-II) of the Seventh Schedule to the Constitution; 
(74) "warehouse" means a place where storage of liquor is permitted and 
includes the relevant part of manufactory; 
(75) "wholesale sale" means sale in quantities exceeding the limit of sale by 
retail; 
(76) "wine" means a fermented juice of grapes or other fruits with or without 
the addition of sugar or jaggery containing self-generated alcohol and 
includes fortified wine; 
(77) "winery" means—premises where wine is manufactured and includes 
every place therein where wine is stored or wherefrom it is issued. 
CHAPTER II 
ESTABLISHMENT AND CONTROL 
3. Appointment of Excise Commissioner 
The Government may, by notification, appoint an officer as Excise Commissioner 
who, subject to the control and orders of the Government in this behalf, shall be the chief 
controlling authority in all matters connected with the administration of this Act. 
4. Powers and functions of Excise Commissioner 
The powers and functions of the Excise Commissioner shall be— 
(a) to regulate, control and monitor manufacture, possession, import, export, 
transport, sale and consumption of liquor and other intoxicants; - 
(b) to curb illegal trade in liquor and illicit distillation; 
(c) to protect excise revenue and ensure prompt recovery; 
57",.....'TION  9 THE DELHI EXCISE ACT, 2009 7 
(d) to submit returns and information as required by this Act or the rules framed 
thereunder, to the Government upon all matters concerning excise; 
(e) to ensure social well-being through education for responsible drinking; 
(f) to introduce e-governance in various aspects of excise administration; 
(g) to submit to the Government an annual report on the administration of this 
Act in the format prescribed; 
(h) to perform such other functions and to exercise such other powers as may, 
from time to time, be entrusted or delegated to him. 
5.  Appointment of certain officers and staff 
The Government may appoint such numbers of Additional Commissioners, Joint 
Commissioners, Deputy Commissioners, Assistant Commissioners, Excise Inspectors 
and such other officers and staff as it may deem fit for the purpose of performing the 
functions under this Act. 
6.  Excise Intelligence Bureau 
(1) There shall be an Excise Intelligence Bureau, headed by the Excise 
Commissioner, consisting of such number of excise officers and staff as may be 
appointed by the Government and such other officers and staff as may be appointed by 
the Excise Commissioner with the prior approval of the Government. 
(2) The Excise Intelligence Bureau shall— 
(a) collect intelligence, keep surveillance and maintain information of excise 
offences; 
(b) collect and disseminate information regarding prominent excise offenders 
and history sheeters; 
(c) detect, monitor detection, investigation and trial of offences under this Act. 
7.  Excise administration 
(1) The Deputy Commissioner shall be the licensing authority who shall exercise 
all powers and functions under this Act, subject to the control and supervision of the 
Excise Commissioner. 
(2) The Deputy Commissioner shall, within the limits of his jurisdiction, exercise 
such powers and perform such duties and functions as are assigned by or under the 
provisions of this Act subject to such control as the Government may from time to time 
direct. 
(3) The Assistant Commissioner and other subordinate officers shall assist the 
Deputy Commissioner in exercising his functions. 
8.  Delegation and withdrawal of powers 
(1) The Government may delegate its powers to the Excise Commissioner subject 
to such limitations and conditions as may be specified in the order of delegation. 
(2) The Excise Commissioner and the Deputy Commissioner may, by order, 
delegate their powers under this Act to any subordinate officer subject to such 
limitations and conditions as may be specified in the order of delegation. 
(3) The Excise Commissioner or the Deputy Commissioner, as the case may be, 
may by an order also withdraw from any officer or person any or all the powers so 
delegated. 
9.  Investing persons with special powers 
The Government may, by notification, invest in any Government functionary not 
being an excise officer, with powers to perform all or any of the functions of any excise 
8 THE DELHI EXCISE ACT, 2009 SECTION IS 
officer under this Act, and such person shall, in the exercise of these functions, be deemed 
to be an excise officer. 
10. Reward for seizure of intoxicants and vehicles, etc. 
The Excise Commissioner may grant reward to excise officers out of the sum 
collected from the sale of intoxicants, apparatus and vehicles carrying such intoxicants, 
or otherwise and also to such informers for such work subject to such terms and 
conditions as may be prescribed. 
CHAPTER III 
LICENCE AND PERMIT FOR MANUFACTURE, POSSESSION, 
SALE, ETC., OF INTOXICANT 
11. Prohibition of import, export, transport, manufacture, possession, sale, etc. of 
intoxicant 
(1) No person shall construct or establish any manufactory or warehouse, bottle, 
import, export, transport, transit, manufacture, collect, possess, sell or purchase any 
intoxicant or use, keep or have in his possession any material whatsoever, still, utensil, 
implement, apparatus, label, cork, capsule or seal for manufacture of any intoxicant 
except under the authority and in accordance with the terms and conditions of a licence 
or letter of intent or permit granted under this Act and the rules framed thereunder. 
(2) The possession of labels, corks or capsules by its printer or manufacturer, as the 
case may be, will not amount to illegal possession and offence under this section if 
printed or manufactured under the authority from the holder of licence to manufacture 
intoxicant, issued under this Act. 
12. Grant of letter of intent, licence or permit 
Every letter of intent, licence or permit under this Act shall be granted on payment 
of such fees, for such period and subject to such restrictions, conditions and in such form 
and contain such particulars, as may be prescribed. 
13. Qualifications for grant of licence 
(1) While considering an application for grant of licence or permit, the licensing 
authority shall have regard that the applicant— 
(a) ,is a citizen of India; 
(b) is not a defaulter, or black-listed or debarred from holding an excise licence; 
(c) possesses good moral character and has no criminal background or has not 
been convicted of any offence punishable under this or other relevant Acts: 
PROVIDED that in case he is selected as licensee, he shall furnish within 
thirty days of the grant of licence a certificate issued by the Superintendent 
of Police of the district or the Commissioner of Police, as the case may be, 
of which place he is the resident, showing that he possesses good moral 
character and has no criminal background or criminal record; 
(d) is not in arrears of any Government or public dues; and 
(e) is solvent and has the necessary funds or has made arrangements for it, for 
conducting the business: 
PROVIDED that the details of such funds shall be made available to the 
licensing authority, if required; 
(f) possesses or has an arrangement for taking on rent   suitabl9  premises for the 
licence and such premises have not been constructed in violation of any law; 
SECTION 17 THE DELHI EXCISE ACT, 2009 9 
(g) shall not employ any salesman or representative who has criminal 
background or suffers from any infectious and contagious disease or is 
below twenty-one years of age. 
(2) The licence shall be liable for cancellation, if any document produced with the 
application is found to be false or forged. 
14. Power to take security and counterpart agreement 
Subject to such rules as may be prescribed, any authority granting a 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. 
15. Technical defects in licence and permit 
(1) No licence or permit granted under this Act shall be deemed to be invalid by 
reason merely of any technical defect, irregularity or omission in the licence or permit, 
or in any proceedings conducted prior to grant thereof. 
(2) The decision of the licensing authority, as to what is a technical defect, 
irregularity or omission shall be final and binding. 
16. Power to withdraw licence and permit 
(1) Whenever the authority which granted a licence or permit under this Act, 
considers that such licence or permit should be withdrawn for any reason, it may do so 
on expiry of fifteen days' notice of its intention to do so or forthwith for reasons to be 
recorded. 
(2) If any licence or permit is withdrawn, the licensee or the permit holder shall be 
refunded any fee paid in advance or deposit made by the licensee or the permit holder 
in respect thereof after deducting the amount recoverable by the Government. 
17. Power to suspend or cancel licence and permit 
(1) Subject to such restrictions as the Government may prescribe, the authority 
granting any licence or permit under this Act may suspend or cancel it in the following 
circumstances after giving reasonable opportunity of being heard— 
(a) if the licence or permit is transferred or sublet by the holder thereof without 
the permission of the licensing authority; 
(b) if any excise revenue payable by the holder thereof is not duly paid; 
(c) in the event of any breach by the holder of such licence or permit or by his 
servant, or by any one acting on his behalf, with his express or implied 
permission, of any of the terms and conditions of such licence or permit; 
(d) if the holder of licence or permit or his agent or employee is convicted of an 
offence punishable under this Act or any other law for the time being in 
force, relevant and connected with excise matters relating to excise revenue 
or of any cognizable and non-bailable offence under any other relevant law; 
(e) if the purpose for which the licence or permit was granted ceases to exist; 
(f) if the licence or permit has been obtained through mis-representation or 
fraud. 
(2) When a licence or permit is cancelled under sub-section (1), the aforesaid 
authority may cancel any other licence or permit granted to such person under this Act 
or under any other law relating to excise revenue. 
10 THE DELHI EXCISE ACT, 2009 SECTION 25-- 
(3) In the case of cancellation or suspension of licence under sub-section (1), the fee 
payable for the balance of the period for which any licence would have been current but 
for such cancellation or suspension, may be recovered from the ex-licensee as excise 
revenue. 
(4) The holder of a licence or permit shall neither be entitled to any compensation 
for the cancellation or suspension thereof nor to refund of any fee paid or deposit made 
in respect thereof. 
18. Bar to the right of renewal and to compensation 
No person to whom a licence or permit has been granted, shall be entitled to claim 
any renewal thereof, and no claim shall lie for damages or otherwise in consequence of 
any refusal to renew a licence or permit on the expiry of the period for which the same 
remains in force. 
19. Surrender of licence 
No holder of a licence granted under this Act shall surrender his licence except on 
the expiration of one month's notice in writing given by him to the licensing authority 
of his intention to surrender the same on payment of the fee payable for the licence for 
the whole period for which it would have been current but for the surrender: 
PROVIDED that if the licensing authority is satisfied that there are sufficient 
reasons for surrendering the licence, he may remit to the holder thereof the sum so 
payable, or any portion thereof, on surrender. 
20. Transfer of licence or permit 
The licence or permit granted under this Act is not transferable except with the 
prior approval of the licensing authority subject to such terms and conditions as may 
be prescribed. 
21. Grant of exclusive privilege of manufacture, etc. 
Subject to the provisions of this Act and the terms and conditions as may be 
prescribed, the Government may grant to any person a licence either jointly or severally, 
for the exclusive privilege of manufacturing, supplying by wholesale and sale by retail 
within any local area. 
22. Removal of liquor from manufactory, warehouse, etc., on payment of duty 
No liquor shall be removed from any manufactory, warehouse or other place of 
storage established under this Act without a relevant pass and unless duty and fee 
payable has been paid or a bond as maybe prescribed, has been executed for the payment 
thereof. 
23. Prohibition of sale to certain persons 
No person or licensed vendor or his employee or agent shall sell or deliver any 
liquor to any person apparently under the age of twenty-five years, whether for 
consumption by self or others. 
24. Prohibition of employment of certain persons 
No licensee shall employ or permit to be employed in his premises any person 
under the age of twenty-one years, or suffering from contagious disease. 
25. Closing of shops for preservation of public peace 
The Deputy Commissioner or any other officer authorized by him may, by notice 
in writing to the licensee, require that any shop in which any liquor is sold shall be closed 
at such time or for such period as he may think necessary for preservation of public 
peace: 
SECTION 29 THE DELHI EXCISE ACT, 2009 11 
PROVIDED that the total closure days in the licensing year shall not exceed fifteen 
- days in all or more than three days continuously at any one time: 
PROVIDED FURTHER that if the Excise Commissioner is of the opinion that any 
particular shop or all shops in any particular area shall be dosed for a period exceeding 
fifteen days in a year or more than three days continuously at any one time, he may do 
so for reasons to be recorded. 
CHAPTER IV 
EXCISE REVENUE 
26. Nature and components of excise revenue 
Excise revenue shall be levied and recovered under the following heads, namely:— 
(a) duty; 
(b) licence fee; 
(c) label registration fee; 
(d) import or export fee. 
27. Excise duty, countervailing duty and special duty 
(1) There shall be levied and collected duty on all intoxicants which are produced, 
manufactured, transported or imported into Delhi at such rates as may be prescribed, 
not exceeding the rates set forth in the Schedule. 
(2) There shall be levied and collected fees for terms, conditions and form of, and 
duration of, licence, permit and pass. 
(3) In computing the retail price, notwithstanding anything contained in 
sub-section (1) of section 27, the duty shall be so increased and computed that the retail 
price is rounded off up to the next higher multiple of ten rupees, as notified by the 
Government and such increased duty shall be collected by the Government in the 
manner prescribed. 
28. Power of Government to vary duty 
(1) Where, in respect of any intoxicant, the Government is satisfied that the duty 
leviable thereon under section 27 of this Act should be increased or decreased and that 
circumstances exist which render it necessary to take immediate action, the Government 
may, by notification in the Official Gazette, direct an amendment of the Schedule to be 
made so as to substitute for the rate of duty specified in the Schedule in respect of such 
intoxicant. 
(2) Every notification under sub-section (1) shall be laid before the Legislative 
Assembly, if it is sitting, as soon as may be after the issue of the notification, and, if it is 
not sitting, within seven days of its re-assembly, and the Government shall seek the 
approval of the Legislative Assembly to the notification by a resolution moved within 
a period of fifteen days beginning with the day on which the notification is so laid before 
the Legislative Assembly. If the Legislative Assembly makes any modification in the 
notification or directs that the notification should cease to have effect, the notification 
shall thereafter have effect only in such modified form or be of no effect, as the case may 
be, but without prejudice to the validity of anything previously done thereunder. 
29. Recovery of duty and other levies and lien on the property of defaulter 
(1) All excise revenue, payable to the Government under this Act, may be recovered 
from the person liable to pay the same or his legal successors or from his surety or his 
agent as if they were the arrears of land revenue. 
12 THE DELHI EXCISE ACT, 2009 SECTION 31 
(2) In the event of default in payment of excise revenue or otherwise, by any persc 
licensed under this Act, his manufactory, warehouse, shop or premises and all fittings, 
apparatus, stocks of liquor or material for the manufacture of the same, held therein 
shall be liable to be attached towards any claim for excise revenue or in respect of any 
loss incurred by the Government through such default and be sold to satisfy such claim 
which shall be the first charge upon the proceeds of such sale. 
(3) Where duty due is not levied or not paid or short-levied or short-paid or 
erroneously refunded,— 
(a) the Assistant Commissioner may, within four years from the relevant date, 
serve notice on the person chargeable with the duty which has not been 
levied or paid or which has been short-levied or short-paid or to whom the 
refund has erroneously been made, requiring him to show cause why he 
should not pay the amount specified in the notice. 
Explanation I : Where the service of the notice is stayed by an order of the 
court, the period of such stay shall be excluded in computing the aforesaid 
period of four years. 
Explanation II : For the purposes of this clause "relevant date" means— 
(i) in the case of intoxicants on which duty has not been levied or paid or 
has been short-levied or short-paid, the date on which the duty is to 
be paid under this Act or the rules made thereunder, 
(ii) in a case where duty is provisionally assessed under this Act or the 
rules made thereunder, the date of adjustment of duty after the final 
assessment thereof, 
(iii) in the case of intoxicants on which duty has been erroneously 
refunded, the date of such refund; 
(b) the Assistant Commissioner shall, after considering the representation, if 
any, made by the person on whom notice is served under clause (a), 
determine the amount of duty due from such person (not being in excess of 
the amount specified in the notice) and thereupon such person shall pay the 
amount so determined. 
30. Interest payable for failure to pay excise revenue 
If the excise revenue payable by a person under this Act or the rules made 
thereunder is not paid within time, he shall be liable to pay on the sum due, a simple 
interest at the rate of twelve percent per annum from the date next following the day on 
which such payment became due. 
Explanation : Where the duty determined to be payable is reduced or increased by 
the appellate authority or court, the interest shall be payable on such reduced or 
increased amount of excise revenue, as the case may be. 
31. Power to reduce or waive interest in certain cases 
Notwithstanding anything contained in this Act, the Excise Commissioner may, 
on the application made in this behalf by a person, with the approval of the Government 
and after recording his reason for so doing, reduce or waive the amount of any interest 
payable by him under this Act if he is satisfied that— 
(a) to do otherwise would cause genuine hardship to the person having regard 
to the circumstances of the case; and 
(b) the person has co-operated in any proceeding for the recovery of any 
amount due from him. 
SECTION 35 THE DELHI EXCISE ACT, 2009 13 
Accounts and returns 
Every licensee shall maintain such accounts and submit to the authorized officers 
such returns in such forms containing such particulars relating to stock, apparatus, duty, 
fee payable and paid to the Government and such other information at such intervals 
as may be prescribed. 
CHAPTER V 
OFFENCES AND PENALTIES 
33. Penalty for unlawful import, export, transport, manufacture, possession, sale, 
etc. 
(1) Whoever, in contravention of provision of this Act or of any rule or order made 
or notification issued or of any licence, permit or pass, granted under this Act— • 
(a) manufactures, imports, exports, transports or removes any intoxicant; 
(b) constructs or works any manufactory or warehouse; 
(c) bottles any liquor for purposes of sale; 
(d) uses, keeps or has in his possession any material, still, utensil, implement 
or apparatus, whatsoever, for the purpose of manufacturing any intoxicant 
other than toddy or tari; 
(e) possesses any material or film either with or without the Government logo 
or logo of any State or wrapper or any other thing in which liquor can be 
packed or any apparatus or implement or machine for the purpose of 
packing any liquor; 
(f) sells any intoxicant, collects, possesses or buys any intoxicant beyond the 
prescribed quantity, 
shall be punishable with imprisonment for a term which shall not be less than six months 
but which may extend to three years and with fine which shall not be less than fifty 
thousand rupees but which may extend to one lath rupees. 
34. Penalty for rendering denatured spirit fit for human consumption 
Whoever renders or attempts to render fit for human consumption any spirit, 
which has been denatured, or has in his possession any spirit in respect of which he 
knows or has reason to believe that such attempt has been made, shall be punishable 
with imprisonment for a term which shall not be less than two years but which may 
extend to five years, and with fine, which may extend to two lath rupees. 
35. Penalty for mixing noxious substance with liquor 
Whoever mixes or permits to be mixed with any liquor sold or manufactured or 
possessed by him any noxious drug or any foreign ingredient likely to cause disability 
or grievous hurt or death to human beings, shall be punishable— 
(a) if as a result of such an act, death is caused, with death or imprisonment for 
life and shall also be liable to fine which may extend to ten lakh rupees; 
(b) if as a result of such an act, disability or grievous hurt is caused, with 
imprisonment for a term which shall not be less than six years but which 
may extend to imprisonment for life, and with fine which may extend to 
five lakh rupees; 
(c) if as a result of such an act, any other consequential injury is caused to any 
person, with imprisonment for a term which may extend to one year and 
fine which may extend to two lakh fifty thousand rupees; 
14 THE DELHI EXCISE ACT, 2009 SECTION 40 
(d) if as a result of such an act, no injury is caused, with imprisonment which 
may extend to six months and fine which may extend to one lakh rupees. 
Explanation : For the purpose of this section, the expression "grievous hurt" shall 
have the same meaning as in section 320 of the Indian Penal Code, 1860 (XLV of 1860). 
36. Order to pay compensation 
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 
of 1974) the court, when passing an order under this Act may, if it is satisfied that death 
or injury has been caused to any person due to consumption of liquor sold in any place, 
order the manufacturer and seller, whether or not he is convicted of an offence, to pay, 
by way of compensation, an amount not less than three lakh rupees to the legal 
representatives of each deceased or two lakh rupees to the person to whom grievous 
hurt has been caused, or twenty thousand rupees to the person for any other 
consequential injury: 
PROVIDED that where the liquor is sold in a licensed shop, the liability to pay the 
compensation under this section shall be on the licensee. 
(2) Any person aggrieved by an order under sub-section (1) may, within thirty days 
from the date of the order, prefer an appeal to the High Court: 
PROVIDED that no appeal can be filed by the accused unless the amount ordered 
to be paid under sub-section (1) is deposited by him in the court: 
PROVIDED FURTHER that the High Court may entertain appeal after expiry of 
the said period of ninety days if it is satisfied that the appellant was prevented by 
sufficient cause from preferring the appeal in time. 
37. Penalty for selling spurious liquor 
Whoever sells or keeps or exposes for sale as foreign liquor which he knows or has 
reason to believe to be Indian liquor shall be punishable with imprisonment which may 
extend to six months and fine which may extend to one lakh rupees. 
38. Penalty for possession of liquor unlawfully imported, non-duty paid, etc. 
Whoever has in his possession any liquor knowing the same to have been 
unlawfully imported, transported or manufactured or knowing the prescribed duty not 
to have been paid thereon, shall be punishable with imprisonment for a term which may 
extend to six months and fine which may extend to one lakh rupees. 
39. Penalty for consumption of liquor in chemist s shop 
(1) If a chemist, druggist, apothecary or keeper of a dispensary, allows any liquor 
which has not been bonafidely medicated for medicinal purposes to be consumed on 
his business premises by any person, he shall be punishable with fine which may extend 
to five thousand rupees. 
(2) If a person consumes any such liquor on such premises, he shall be punishable 
with fine which may extend to two thousand rupees. 
40. Penalty for consumption of liquor in public place 
Whoever, in contravention of this Act or the rules, notification or order made 
thereunder— 
(a) consumes liquor in a public place; 
(b) consumes liquor in public place and creates nuisance; 
(c) permits drunkenness or allows assembly of unsocial elements on the 
premises of liquor establishment, 
shall be punishable,— 
SECTION 46 THE DELHI EXCISE ACT, 2009 15 
-^\ (1) in case of an offence falling under clause (a), with fine which may extend to 
five thousand rupees; 
(2) in case of an offence falling under clause (b), with imprisonment for a term 
which may extend to three months and fine which may extend to ten 
thousand rupees; 
(3) in case of an offence falling under clause (c), with imprisonment for a term 
which may extend to six months and fine up to fifty thousand rupees. 
41. Penalty for uklawful advertisement 
Whoever prints, publishes or gives an advertisement directly or indirectly in any 
media soliciting the use of any liquor, shall be punishable with imprisonment for a term 
which may extend to six months or with fine which may extend to ten lath rupees, or 
with both: 
PROVIDED that this section shall not apply to catalogue and price list and 
advertisement generally or specially approved by the Excise Commissioner for display 
at the points of sale for consumer information and education. 
42. Penalty for employing minors or selling liquor to minors 
(1) If any licence holder or any person acting on his behalf, sells or delivers any 
liquor to any person apparently under the age of twenty-five years, he shall be 
punishable with fine which may extend to ten thousand rupees. 
(2) If a licence holder employs any person under the age of twenty-one years, he 
shall be punishable with imprisonment for a term which may extend to three months, 
or with fine which may extend to fifty thousand rupees, or with both. 
43. Penalty for assault and obstruction 
Notwithstanding anything contained in the Indian Penal Code, 1860 (XLV cif 1860) 
any person who assaults or threatens to assault or obstructs or attempts to obstruct any 
excise officer in the discharge of his official duties shall be punishable with 
imprisonment for a term which may extend to one year and with fine which may extend 
to one lakh rupees. 
44. Liability of employer for offence committed by his employee or agent 
The holder of a licence or permit granted under this Act, as well as the actual 
offender, shall be liable for an offence committed by his employee or his agent, unless 
he proves that due and reasonable precautions were exercised by him to prevent 
commission of such offence. 
45. Penalty for manufacture, sale or possession by one person on account of another 
(1) Where any intoxicant has been manufactured or sold or is possessed by any 
person on account of any other person and such other person knows or has, reason to 
believe thatsuch manufacture or sale was or that such possession is, on his account, the 
intoxicant shall, for the purposes of this Act, be deemed to have been 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 manufactures, sells or 
has in possession any intoxicant on account of another person, from liability to any 
punishment under this Act for unlawful manufacture, sale or possession of such 
intoxicant. 
46. Penalty for non-payment of duty or fee 
If any person fails to pay any duty or fee, which under this Act he is liable to pay, 
he shall be punishable with imprisonment for a term which may extend to one year and 
also with fine which may extend to one lath rupees. 
16 THE DELHI EXCISE ACT, 2009 SECTION 53 
47. Penalty for allowing premises, etc., to be used for commission of an offence 
Whoever, being a licensee under this Act and having the control or use of any-
house, room, enclosure, space, animal, or conveyance, knowingly permits it to be used 
for commission by any other person of an offence punishable under any provision of 
this Act, shall be punishable in the same manner as if he had himself committed the said 
offence. 
48. Penalty for attempt to commit an offence 
Whoever attempts to commit an offence punishable under this Act, shall be liable 
for half the punishment provided for the o

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