LexThe Himachal Pradesh Excise Act, 2011
Himachal Pradesh · state statute
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THE HIMACHAL PRADESH EXCISE ACT, 2011
ARRANGEMENT OF SECTIONS
Sections:
CHAPTER-I
PRELIMINARY AND DEFINITIONS
1. Short title.
2. Definitions.
3. Country liquor and foreign liquor.
4. Power to limit application of notifications, license etc. issued.
CHAPTER-II
ESTABLISHMENT AND CONTROL
5. Financial Commissioner and Collector.
6. Other classes of Excise Officers and their powers and
jurisdiction.
7. Persons appointed under this Act to be public servants.
8. Power to enter and inspect.
9. Power to investigate.
10. Powers of Excise Officer to search, seize etc.
11. Powers of Magistrate to issue warrant for search or arrest.
12. Powers of Excise Officers to obtain information.
13. Police Officers to aid Excise Officers etc. and to take charge
of articles seized.
14. Power to close liquor vends.
CHAPTER–III
PRODUCTION, MANUFACTURE, POSSESSION,
IMPORT, EXPORT, TRANSPORT, PURCHASE OR
SALE
PART-A
MANUFACTURE
15. Prohibition of manufacture of liquor except under this Act.
16. Establishment or licensing of distilleries, breweries winery or
warehouse.
2 THE HIMACHAL PRADESH EXCISE ACT, 2011
17. Prohibition of removal of liquor manufactured or stored in a
distillery, brewery or warehouse etc.
PART-B
POSSESSION
18. Prohibition of possession of liquor.
19. Possession of unused and printed labels, corks, etc. by certain
person to be punishable.
20. Prohibition of possession of liquor un-lawfully manufactured,
imported, transported etc.
PART-C
IMPORT, EXPORT AND TRANSPORT
21. Prohibition of import, export or transport of liquor.
22. Power of the State Government to prohibit or permit import,
export or transport of liquor.
PART-D
SALE etc.
23. Prohibition of sale etc. of liquor.
24. Prohibition of sale etc. of adulterate liquor.
25. Power of the State Government to declare limit of sale of
liquor by retail and by whole sale.
26. Prohibition of sale to minor or his employment.
CHAPTER–IV
LICENSES, PERMITS AND PASSES
27. Grant of leases of manufacture, sale etc.
28. Fees and other conditions for grant of licenses, permits and
passes.
29. Power to cancel or suspend licenses etc.
30. Power to cancel any other license and to recover fee.
31. No compensation or refund claimable for cancellation or
suspension of license etc.
32. Power to withdraw license etc.
33. Technical irregularities in license etc.
34. No claim in consequence of refusal to renew a license etc.
35. Surrender of license.
THE HIMACHAL PRADESH EXCISE ACT, 2011 3
CHAPTER-V
DUTIES OF EXCISE AND COUNTERVAILING DUTIES
36. Excise duty and countervailing duty.
37. Manner in which duty be levied.
38. Payment for grant of leases.
CHAPTER-VI
OFFENCES AND PENALTIES
39. Penalty for unlawful production, manufacture, possession,
import, export, transport, sale etc.
40. Penalty for rendering or attempting to render denatured spirit
fit for human consumption.
41. Penalty for mixing noxious substance with liquor.
42. Payment of compensation.
43. Penalty for certain acts by licensee or his servant.
44. Penalty for fraud by licensed manufacturer or vendor or his
servant.
45. Penalty for consumption of liquor in chemist‟s shop.
46. Penalty for consumption of liquor in public places.
47. Penalty for offences not otherwise provided for.
48. Manufacture, sale or possession by one person on account of
another.
49. Enhanced punishment for certain offences after previous
conviction.
50. Attempt to commit or abet offences punishable.
51. Procedure relating to arrests, searches etc.
52. Report by investigating officer for institution of proceedings.
53. Offences to be bailable etc.
54. Security for appearance in case of arrest without warrant.
55. Cognizance of offences.
56. Presumption as to commission of offence in certain cases.
57. Liability of employer for offence committed by the employee
or agent.
58. Relevancy of statements under certain circumstances.
59. Penalty for any excise officer making vexatious search,
seizure, detention or arrest.
4 THE HIMACHAL PRADESH EXCISE ACT, 2011
CHAPTER-VII
CONFISCATION
60. Confiscation of article in respect of which offence committed.
61. Inspection and seizure of vehicle, conveyance and liquor
liable to confiscation.
62. Confiscation of vehicle or conveyance by Excise Officer in
certain cases.
63. Issue of show cause notice before confiscation under section
62.
64. Penalty in lieu of confiscation.
65. Disposal of seized liquor during the pendency of trial.
CHAPTER–VIII
COMPOSITION
66. Composition of offences by the Collector.
67. Composition of certain other offences.
CHAPTER–IX
APPEAL AND REVISION
68. Appeal.
69. Revision.
70. Bar of certain proceedings.
CHAPTER–X
RECOVERY OF DUES
71. Power to recover license fee etc.
72. Power of Collector to take grants under his management or
resell and recover deficiency.
73. Excise revenue to be first charge and recoverable as arrears of
land revenue.
CHAPTER-XI
GENERAL PROVISIONS
74. Measures, weights and testing instruments.
75. Power to exempt.
76. Delegation of powers.
77. Power to regulate advertisement.
78. Establishment of check posts or barriers.
THE HIMACHAL PRADESH EXCISE ACT, 2011 5
79. Protection of action taken in good faith.
80. Powers of the State Government to make rules.
81. Powers of Financial Commissioner to make rules.
82. Repeal and savings.
_________
THE HIMACHAL PRADESH EXCISE ACT, 2011
(ACT NO. 33 OF 2012)1
(Received the assent of the President of India on the 19 th July, 2012
and was published both in Hindi and English in the Rajpatra, Himachal
Pradesh, dated 18th August, 2012, pp. 2737-2849).
An Act to consolidate, amend and update the law relating to production,
manufacture, possession, import, export, transport, purchase and
sale of intoxicating liquors and levy of duties of excise and
countervailing duties on alcoholic liquors.
Amended, repealed or otherwise affected by,-
1. H.P. Act No. 10 of 2024 2 assented to by the Governor on the 3rd
December, 2024, published both in Hindi and English in the Rajpatra,
Himachal Pradesh on the 9th December, 2024 , pp. 9387-9396,
effective from 1st April, 2025.
BE it enacted by the Legislative Assembly of Himachal Pradesh in the
Sixty-second Year of the Republic of India as follows:-
CHAPTER-I
PRELIMINARY AND DEFINITIONS
1. Short title .- This Act may be called the Himachal Pradesh Excise
Act, 2011.
2. Definitions.- In this Act, unless there is anything repugnant in the
subject or context,-
(a) “beer” means alcoholic beverage prepared from malt or
grain with or without addition of sugar and hops and
includes black beer, ale, stout, porter and such other
substance as may be specified by the State Government;
1. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of
Objects and Reasons see the Rajpatra, Himachal Pradesh, dated 24 th December,
2011, pp. 4813 and 4841-4842.
2. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of
Objects and Reasons see the Rajpatra, Himachal Pradesh, dated 6 th September,
2024, pp. 5590,5591 and 5597. Act came into force from. 1st April, 2025 vide
Notification No. EXN- F(1)-3/2024, dated 26th March, 2025 , published in the
Rajpatra, Himachal Pradesh dated 27th March, 2025, p. 14671.
6 THE HIMACHAL PRADESH EXCISE ACT, 2011
(b) “to bottle” means transfer of liquor from a cask or other
vessel to a bottle or other approved receptacle and includes
rebottling ;
(c) “brewery” means premises where beer is manufactured and
includes every place therein where beer is stored or
wherefrom it is issued;
(d) “Collector” means any officer appointed by the State
Government, under sub-section (2) of section 5 of this Act;
(e) “denatured” means effectually and permanently rendered
unfit for human consumption;
(f) “distillery” means premises where spirit is manufactured
and includes every place therein where it is stored or
wherefrom it is issued;
(g) “excise duty” and “countervailing duty” mean any such
excise duty or countervailing duty, as the case may be, as is
mentioned in entry 51 of List -II of the Seventh Schedule to
the Constitution;
(h) “Excise Officer” means any officer or person appointed, or
invested with powers, under section 6 of this Act;
(i) “excise revenue” means revenue derived or derivable from
any payment, duty, license fee, or other fee levied or
payable, fine or penalty imposed or confi scation ordered
under this Act, or the rules made thereunder, but does not
include a fine imposed by a court of law;
(j) “export” means to take out of Himachal Pradesh otherwise
than across a custom frontier as defined by the Central
Government;
(k) “Financial Commissioner” means the Excise and Taxation
Commissioner appointed under sub-section (1) of section 5;
(l) “import” (except in the phrase “import into India”) means
to bring into Himachal Pradesh otherwise than across a
customs frontier as defined by the Central Government;
(m) “license” means a license granted under this Act;
(n) “liquor” means intoxicating liquor and includes all liquid
consisting of or containing alcohol, whether obtained by
fermentation or by subsequent distillation, and also includes
any substance which the State Government may, by
notification, declare to be liquor;
(o) “manufacture” includes any process, whether natural or
artificial by which any liquor is produced or prepared, and
also re -distillation, and every process fo r the rectification,
THE HIMACHAL PRADESH EXCISE ACT, 2011 7
reduction, flavoring, blending or colouring or bottling of
liquor;
(p) “medicinal preparations” and “toilet preparations” shall
have the same meaning as assigned to them under the
Medicinal and Toilet Preparations (Excise Duties) Act,
1955;
(q) “molasses” means heavy dark coloured viscous liquid
produced, in the final stage of manufacture of Gur or Sugar
including Khandsari Sugar, from sugar cane or Gur, when
liquid as such or in any form or admixturer containing sugar
which can be fermented;
(r) “notification” means a notification issued under this Act or
the rules made thereunder and published in the Official
Gazette;
(s) “pass” means a document which actually authorizes the
removal or transportation of liquor;
(t) “permit” means a no objection statement issued by the
Collector of the district of destination concerned or an
officer authorized in this behalf in the import and transport
of liquor and includes a document authorizing possession of
liquor exceeding the limit of retail-sale;
(u) “place” includes a building, shop, tent, enclosure, booth,
vehicle, vessel, boat and raft;
(v) “prescribed” means prescribed by rules made under this
Act;
(w) “sale” includes any transfer otherwise than by way of gift;
1[(wa) “spurious liquor” means liquor made by improper
distillation;]
(x) “State” means the State of Himachal Pradesh;
(y) “State Government” means the Government of Himachal
Pradesh;
(z) “spirit” means any liquor containing alcohol obtained by
distillation, whether denatured or not;
(za) “transport” means to move from one place to another place
within the State;
(zb) “vehicle” means wheeled conveyance of any description,
which is capable of being used for movement and includes
aircraft, boat, vessel, raft, motor vehicle, a c art and any
carriage by cattle;
1. Clause “(wa)” inserted vide H.P. Act No. 10 of 2024.
8 THE HIMACHAL PRADESH EXCISE ACT, 2011
(zc) “warehouse” means a place where storage of liquor is
permitted and includes a relevant part of manufactory; and
(zd) “winery” means premises where wine is manufactured and
includes every place therein where wine is sto red or
wherefrom it is issued.
3. Country liquor and foreign liquor .- The State Government may
by notification declare what, for the purpose of this Act, shall be deemed to be
country liquor and foreign liquor.
4. Power to limit application of notification s, license etc. issued .-
Where under this Act, any notification is issued, any appointment made, any
power conferred, or any license, permit or pass granted, it shall be lawful for
the State Government to direct that-
(a) it shall apply to the whole of t he State or to any specified
local area or areas;
(b) it shall apply to all or any class of persons, officers or
functions and powers of such officers;
(c) it shall apply to all or any specified liquor(s) or classes
thereof; and
(d) it shall be in force only for some special period or occasion.
CHAPTER-II
ESTABLISHMENT AND CONTROL
5. Financial Commissioner and Collector .- (1) The State
Government may, by notification, appoint an Excise and Taxation
Commissioner who shall exercise all the powers of Financ ial Commissioner,
and subject to the control of the State Government, the general
superintendence and administration of all matters relating to excise shall vest
in him.
(2) The State Government may, by notification, appoint as many
Collectors as it may de em fit, to discharge in any specified area the functions
of the Collector under this Act and the Collector shall, subject to the control of
the Financial Commissioner, control all other Excise Officers within his
jurisdiction.
(3) The jurisdiction of the Financial Commissioner shall extend to the
whole State and the jurisdiction of Collectors shall extend to the areas of the
State in which they are for the time being employed.
1["6. Other classes of Excise Officers and their powers and
jurisdiction.- (l) There shall be the following classes of Excise Officers
within their respective jurisdictions:-
1. Section “(6)” substituted vide H.P. Act No. 10 of 2024
THE HIMACHAL PRADESH EXCISE ACT, 2011 9
(i) an officer not below the rank of Assistant State Taxes and
Excise Officer in the State Taxes and Excise Department;
(ii) Executive Magistrate not below the rank of Tehsildar; and
(iii) Police Officer not below the rank of Assistant Sub -Inspector
in the Police Department.
(2) The aforesaid Excise Officers shall exercise the powers to enter,
inspect, investigate, search and seize and obtain inform ation under sections 8,
9, 10, 12 and 54 of this Act.
(3) The State Government shall, by notification appoint Police Officer
or official, on secondment basis from the Himachal Pradesh Police, for
carrying out the purposes of this Act.]
7. Persons appointed under this Act to be public servants .- All
persons appointed under this Act shall be deemed to be public servants within
the meaning of section 21 of the Indian Penal Code, 1860.
8. Power to enter and inspect .- Any Excise Officer, not below such
rank as the State Government may, by notification specify,-
(a) enter and inspect, at any time by day or by night, any place in
which any licensed manufacturer carries on the manufacture
of or stores any liquor;
(b) enter and inspect, at any time, any place in w hich any liquor
is kept for sale by any person holding a license under this
Act;
(c) examine any accounts and registers, test, measure or weigh
any materials, stills, utensils, implements, apparatus or testing
instruments or liquor found in that place;
(d) seize any accounts, register, measure, weights or testing
instruments which he has reason to believe to be false or
incorrect; and
(e) seize any liquor which he has reasons to believe to be un -
accounted for in the accounts and registers maintained by the
licensee.
9. Power to investigate .- (1) The State Government may, by
notification, invest any Excise Officer, with power to investigate any offence
punishable under this Act, committed within the limits of the area in which
the officer exercises jurisdiction.
(2) Every officer so empowered may within those limits exercise the
same powers in respect of such investigation as an officer -in-charge of a
police station may exercise in a cognizable case under the provisions of
Chapter XII of the Code of Criminal Procedure, 1973.
10. Powers of Excise Officer to search, seize etc.- (1) Whenever any
Excise Officer not below such rank as the State Government may, by
10 THE HIMACHAL PRADESH EXCISE ACT, 2011
notification, specify has reason to believe that an offence punishable under
this Act, has been, is being, or is likely to be, committed by any person, in any
place, and that a search warrant can not be obtained without affording the
offender an opportunity of escape or of concealing evidence of the offence, he
may, at any time, by day or night, enter and search such place.
(2) Any Excise Officer specified in sub -section (1) may seize
anything found in such place which he has reason to believe to be liable to
confiscation under this Act, and may detain and search and, if he thinks
proper, arrest any person found in such place whom he has reason to believe
to be guilty of such offence as aforesaid.
11. Powers of Magistrate to issue warrant for search or arres t.- A
Magistrate having reason to believe that an offence under this Act has been, is
being, or is likely to be, committed may-
(a) issue a warrant for the search of any place in which he has
reason to believe that any liquor, still, utensil, implement,
apparatus or materials, in respect of which such offence has
been, is being, or is likely to be, committed are kept or
concealed; and
(b) issue a warrant for the arrest of any person whom he has
reason to believe to have been, to be, or to be likely to be ,
engaged in the commission of any such offence.
12. Powers of Excise Officers to obtain information .- (1) Any
Excise Officer, not below such rank as the State Government may, by
notification specify, may by order require any person to furnish to any
specified authority or person any such information in his possession
concerning any unlawful import, export, transport, manufacture, sale,
purchase or possession of any liquor, or any material, still, utensil, implement
or apparatus whatsoever, for the purpose of manufacturing any liquor, as may
be specified in the order.
(2) Any person upon whom an order is served under sub -section (1)
shall be bound, in the absence of reasonable excuse, to furnish correct
information.
13. Police Officers to aid Excise Officers etc. and to take charge of
articles seized.- (1) All Police Officers shall aid the Excise Officers and other
authorities in carrying out the purposes of this Act.
(2) Every officer -in-charge of a police station shall take charge of,
and keep in safe custo dy, pending the orders of a Judicial Magistrate or
Collector concerned or an officer empowered under section 9 of this Act, to
investigate the case, all articles seized under this Act which may be delivered
to him, and shall allow any Excise Officer who ma y accompany such articles
to the police station, or may be deputed for the purpose by his superior officer
to affix his seal to the articles and take samples of and from them and all
samples so taken shall also be sealed with the seal of the officer -in-charge of
the police station.
THE HIMACHAL PRADESH EXCISE ACT, 2011 11
14. Power to close liquor vends .- The Financial Commissioner shall
prescribe the day(s) on which any liquor vend shall remain closed for
observance of the dry days approved by the State Government or the Election
Commission of India or the State Election Commission:
Provided that if the District Magistrate receives an information that a
riot or unlawful assembly has occurred or is likely to occur in the vicinity of a
liquor vend, he may, subject to the reasons to be recorded in writing, by order,
require the licensee of such a liquor vend to keep the vend closed at such time
as may be specified in such order:
Provided further that the order passed under the preceding proviso
shall, at one time, remain in force for not more than twe nty-four hours from
the time, when it is made:
Provided further that the District Magistrate shall inform the Financial
Commissioner and the Collector concerned of the order passed by him as soon
as such order is made.
CHAPTER–III
PRODUCTION, MANUFACTURE, POSSESSION, IMPORT, EXPORT,
TRANSPORT, PURCHASE OR SALE
PART–A
MANUFACTURE
15. Prohibition of manufacture of liquor except under this Act .-
(1) No person shall-
(a) manufacture or produce any liquor, or
(b) construct or work a distillery, brewery, winery or a warehouse
(wherein any liquor may be deposited and kept without
payment of excise duty or countervailing duty), or
(c) bottle any liquor, or
(d) use, keep or have in his possession, any materials, still,
utensils, implement or apparatu s whatsoever for the purpose
of manufacturing or producing any liquor,
except under the authority, and subject to the terms and conditions as
may be prescribed, in this behalf, by the Financial Commissioner.
(2) The State Government may, by notification, prohibit the use of
distilled liquor of any description in the manufacture of any kind or class of
liquor.
16. Establishment or licensing of distilleries, breweries winery or
warehouse.- The Financial Commissioner, subject to such restrictions or
conditions as the State Government may impose, may-
12 THE HIMACHAL PRADESH EXCISE ACT, 2011
(a) establish a distillery in which spirit may be manufactured
under a license granted under section 15;
(b) discontinue any distillery so established;
(c) license the construction and working of a distillery or brewery
or a winery;
(d) establish and license a warehouse wherein any liquor may be
deposited and kept without payment of duty;
(e) discontinue any warehouse so established; and
(f) make rules regarding-
(1) grant of licenses for distilleries, sti lls, breweries or
wineries;
(2) the security to be deposited by the licensee of a distillery,
brewery or winery;
(3) the period for which the license shall be granted;
(4) the inspection and examination of such distillery, brewery
or winery and the warehouses connected therewith and of
the spirit or fermented liquor made and stored therein;
(5) the management and working of the distillery, brewery or
winery;
(6) the form of accounts to be maintained and the returns to
be submitted by the licensee;
(7) the upkeep of buildings and plant;
(8) the size and description of stills, and other plant;
(9) the manufacturing, storing and passing out of spirit or
fermented liquor and the contents of passes;
(10) the prices to be charged by the licensee; and
(11) any other matters connected with the working of
distilleries, breweries or wineries.
17. Prohibition of removal of liquor manufactured or stored in a
distillery, brewery or warehouse etc .- No liquor manufactured or stored in
any distillery, brewery, wine ry or warehouse or any other place of storage
established or licensed under this Act shall be removed therefrom unless the
excise duty or, as the case may be, the countervailing duty, if any, levied and
payable under section 36 has been paid or a bond, as prescribed, has been
executed for payment thereof.
THE HIMACHAL PRADESH EXCISE ACT, 2011 13
PART-B
POSSESSION
18. Prohibition of possession of liquor .- (1) No person shall have in
his possession any quantity of liquor in excess of such quantity as the State
Government has under section 25, declared to be the limit of retail sale, except
under the authority and in accordance with the terms and conditions of-
(a) a license for the manufacture, storage, sale or supply of such
article, or
(b) a permit or a pass granted by the Collector in that behalf:
Provided that nothing contained in this sub -section shall apply to any
liquor in the possession of a common carrier or an Excise Officer or a Police
Officer or other official or person who has its lawful custody under this Act.
(2) A licensed ven dor shall not have in his possession at any place,
other than that authorized by his license, any quantity of any liquor in excess
of such quantity as the State Government has, under section 25, declared to be
the limit of sale by retail, except under a pe rmit granted by the Collector in
that behalf.
(3) Notwithstanding anything contained in sub -sections (1) and (2),
the State Government may, by notification, prohibit the possession of any
liquor or restrict such possession by such conditions as it may impose.
19. Possession of unused and printed labels, corks, etc. by certain
person to be punishable.- No person shall have in his possession any unused
and printed label, cork, capsule or seal duly approved by any authority under
this Act or under any rule or order made thereunder for use by a person
licensed to establish or work a distillery or brewery, winery or warehouse or
to bottle liquor, or any other label, cork capsule, or seal which is an imitation
of such unused and printed label, cork, capsule, or seal, as the case may be:
Provided that nothing therein shall apply to-
(a) a person licensed to establish or work a distillery, brewery,
winery or warehouse or to bottle liquor; or
(b) a person who, in execution or an order received from a person
specified in clause (a), manufactures or prints any such label,
cork, capsule or seal.
20. Prohibition of possession of liquor un -lawfully manufactured,
imported, transported etc .- No person shall have in his possession any
quantity of any liquor, knowing the sam e to have been unlawfully
manufactured, imported, transported, or knowing that the prescribed excise
duty, countervailing duty or other fee not to have been paid thereon.
14 THE HIMACHAL PRADESH EXCISE ACT, 2011
PART-C
IMPORT, EXPORT AND TRANSPORT
21. Prohibition of import, export or transport of liquor.- No liquor
shall be imported, exported or transported except,-
(a) after payment of any excise duty or fee or countervailing
duty, if any, to which it may be liable under this Act, or on
execution of a bond, as prescribed, for such payment, and
(b) in accordance with such conditions as the State Government
may impose.
22. Power of the State Government to prohibit or permit import,
export or transport of liquor .- (1) The State Government may, by
notification, prohibit,-
(a) the import or exp ort of any liquor into or from the State or
any part thereof, or
(b) the transport of any liquor.
(2) Save as otherwise provided by any rule made under this Act, no
liquor exceeding such quantity, as the State Government may prescribe, shall
be imported, exported or transported except under the authority of a pass
granted by the Collector:
Provided that on such conditions as the Financial Commissioner, may
prescribe, a pass granted under the excise law in force in another State may be
deemed to be a pass granted under this Act.
PART-D
SALE etc.
23. Prohibition of sale etc. of liquor .- (1) No liquor shall be sold
except under the authority and subject to the terms and conditions of a license
granted, in this behalf, by the Financial Commissioner or Collector , as the
case may be.
(2) No liquor shall be sold from a place other than the place specified
in the license granted under sub-section (1).
(3) No person shall allow consumption of liquor at any public place,
except under the authority of a license granted under sub-section (1).
(4) Nothing in this section applies to the sale of any foreign liquor
lawfully procured by any person for his private use and sold by him or on his
behalf or on behalf of his representatives in interest upon his quitting a station
or after his demise.
24. Prohibition of sale etc. of adulterate liquor .- No licensed
vendor and no person in the employ of such vendor or acting on his behalf
shall adulterate any liquor, which the vendor is licensed to sell, by adding any
substance in such a manner as to vary the prescribed strength or the quality of
THE HIMACHAL PRADESH EXCISE ACT, 2011 15
such liquor and no such vendor or person shall possess, store, sell or expose
for sale, any such adulterated liquor.
25. Power of the State Government to declare limit of sale of
liquor by reta il and by whole sale .- The State Government may, by
notification, declare with respect either to whole of State or to any local area
comprised therein, and as regards purchasers generally or any specified class
of purchasers, and generally or for any speci fied occasion, the maximum or
minimum quantity or both of any liquor, which for the purpose of this Act
may be sold by retail sale and by whole sale.
26. Prohibition of sale to minor or his employment .- (1) If any
license holder or any person acting on his behalf sells or delivers any liquor to
any person apparently under the age of 18 years, he shall be punishable with
fine 1[of thirty thousand rupees.]
(2) If a license holder or any person acting on his behalf employs, in a
liquor Vend or Bar or any other place where liquor or other intoxicants are
sold or stored or served, any person under the age of 18 years, he shall be
punishable with imprisonment for a term which may extend to 2[six months or
with fine of fifty thousand rupees] or with both.
CHAPTER–IV
LICENSES, PERMITS AND PASSES
27. Grant of leases of manufacture, sale etc .- (1) The State
Government may lease to any person, competent to contract, on payment of
such sum in addition to excise duty or countervailing duty, on such conditions
and for such period, as it may deem fit, the right–
(a) of manufacturing or of supplying by wholesale, or of both, or
(b) of selling by wholesale or by retail, or
(c) of storing for manufacture or sale,
any country liquor, foreign liquor, beer, wine spirit within any specified area.
(2) The State Government may lease to any person, competent to
contract, on payment of such fee and on such conditions as the Financ ial
Commissioner may direct under section 28, the right of manufacturing and
possessing for home consumption-
(a) country liquor by distillation from specified fruits or grains in
tribal areas, or
(b) country fermented liquor from grains in any specified area.
1. The words “which may extend to ten thousand rupees but shall not be less than two
thousand rupees” substituted vide H.P. Act No. 10 of 2024.
2. The words “ three months and with fine which may extend to fifty thousand
rupees” substituted vide H.P. Act No. 10 of 2024.
16 THE HIMACHAL PRADESH EXCISE ACT, 2011
Explanation.- For the purpose of this sub -section „tribal area‟ or
„specified area‟ shall mean such area which stand notified as „tribal area‟ or
„notified area‟ under the repealed Punjab Excise Act, 1914, on the date of
commencement of the Himachal Pradesh Excise Act, 2011.
(3) The Financial Commissioner may grant to a lessee, a license for
manufacturing or supplying the liquor in accordance with the terms of such
lease as may be approved by the State Government under sub -section (1);
provided that Collector may grant to a lessee, such licenses for sale of liquor
by wholesale or by retail as the Financial Commissioner may prescribe.
(4) The Collector may grant to a lessee under sub -section (2) a permit
in such form as the Financial Commissioner may prescribe.
28. Fees and other conditions for grant of licenses, permits and
passes.- (1) Every license, permit or pass, under this Act, shall be granted-
(a) on payment of such fees, if any,
(b) in such form and containing such particulars,
(c) subject to such restrictions and on such conditions, and
(d) for such period,
as the Financial Commissioner may direct.
(2) For the purposes of sub -section (1), the power of the Financial
Commissioner to issue directions shall include the power to direct the licensee
of a distillery, brewery, winery or warehouse to-
(a) provide free accommodation to the Excise Officer concerned
at or near the licensed premises, failing which to pay to the
State Government the rent and other charges for such
accommodation as may be fixed by the Financial
Commissioner; and
(b) pay to the State Government the costs, charges and expenses,
including salaries and allowances of such Excise Officers,
which the State Government may incur in connection with the
supervision of such distillery, brewery, winery or warehouse.
(3) The authority granting a license under this Act, may require the
licensee to give such security for the observance of the terms of his license, or
to make such deposit in lieu of security, as such authority may direct.
(4) Subject to the rules made by the Financial Commissioner, the
Collector may grant licenses for the sale of any liquor within a district:
Provided that a license for sale in more than one district shall be
granted by the Financial Commissioner only.
(5) Before any license is granted in any year for the retail sale of
liquor for consumption on any premises which have not been so licensed in
the preceding year, the Collector shall take such measures as the State
THE HIMACHAL PRADESH EXCISE ACT, 2011 17
Government may prescribe, as may best enabl e him to ascertain local public
opinion in regard to the licensing of such premises.
29. Power to cancel or suspend licenses etc .- Subject to such
restrictions as the State Government may prescribe, the authority granting any
lease, license, 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 excise duty or countervailing duty or, other fee payable
by the holder thereof is not duly paid; or
(c) in the event of any breach by the holder of such lease, license,
permit or pass or by his servants, or by any one acting on his
behalf with his express or implied permission, of any of the
terms or conditions of such license, permit or pass; or
(d) if the holder thereof is convicted of any offence punishable
under this Act or the Himachal Pradesh Value Added Tax
Act, 2005, the Central Sales Tax Act, 1956 or the Himachal
Pradesh Prevention of Specific Corrupt Practices Act, 1983 or
of any cogniz able and non -bailable offence, or any offence
punishable under the Narcotic Drugs and Psychotropic
Substances Act, 1985, or under the Trade and Merchandise
Marks Act, 1958 or under the Medicinal and Toilet
Preparations (Excise Duties) Act, 1955 or of any o ffence
punishable under sections 482 to 489 ( both inclusive ) of the
Indian Penal Code, 1860 or any offence referred to in section
135 of the Customs Act, 1962; or
(e) where a license, permit or pass has been granted on the
application of the grantee of a lease under this Act, on the
request in writing of such grantee; or
(f) at will, if the conditions of the license, permit or pass
provides for such cancellation or suspension.
30. Power to cancel any other license and to recover fee.- (1) When
a license, permit or pass held by any person is cancelled under clauses (a), (b),
(c) or (d) of section 29, the authority granting the license may cancel any other
license, permit or pass granted to such person by such authority within his
jurisdiction but if such o ther license, permit or pass has been granted by any
other authority, the Financial Commissioner may cancel or suspend the same.
(2) In the case of cancellation or suspension of a license under clauses
(a), (b), (c) or (d) of section 29, the fee payable fo r the balance of the period
for which any license would have been current but for such cancellation or
suspension, may be recovered from the ex-licensee as excise revenue.
31. No compensation or refund claimable for cancellation or
suspension of license et c.- When a lease, license, permit or pass is cancelled
or suspended under clauses (a), (b), (c) or (d) of section 29 or under section
18 THE HIMACHAL PRADESH EXCISE ACT, 2011
30, the holder of such lease, license, permit or pass, as the case may be, shall
not be entitled to any compensation for i ts cancellation or suspension nor to
the refund of any fee paid or deposit made in respect thereof.
32. Power to withdraw license etc .- (1) Whenever the authority
which granted a license, permit or pass under this Act considers that such
license, permit or pass should be withdrawn for any cause other than those
specified in section 29, it may,-
(a) withdraw the license, permit or pass on the expiration of
fifteen days‟ notice in writing of its intention to do so; or
(b) withdraw any such license, permit o r pass forthwith without
notice.
(2) If any license, is withdrawn forthwith without notice under clause
(b) of sub-section (1), there shall be paid to the licensee such sum, by way of
compensation, as the Financial Commissioner may direct.
(3) When a licen se, permit or pass is withdrawn under this section,
any fee paid in advance or deposit made by the licensee in respect thereof
shall be refunded to him, after deducting the amount, if any, due to the State
Government.
33. Technical irregularities in licens e etc .- (1) No lease, license,
permit or pass granted under this Act shall be deemed to be invalid by reasons
merely of any technical defect, irregularity or omission in the lease, license,
permit or pass or in any proceedings taken prior to the grant thereof.
(2) The decision of the Financial Commissioner as to what is a
technical defect, irregularity or omission shall be final.
34. No claim in consequence of refusal to renew a license etc .- No
person to whom a lease, license, permit or pass has been grant ed 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 lease, license, permit or
pass on the expiry of the period for which it remains in force.
35. Surrender of license .- No holder of a license granted under this
Act to sell liquor shall surrender his license except on the expiration of one
month‟s notice in writing given by him, to the authority which granted the
license, of his intention to surrender the same and on payme nt of the fee
payable for the license for the whole period for which it would have been
current but for the surrender:
Provided that if the authority is satisfied that there is sufficient reason
for surrendering the license, he may remit to the holder ther eof the sum so
payable on surrender or any portion thereof.
Explanation.- The expression “holder of a license” as used in this
section includes a person whose tender or bid or application for allotment of a
license for any liquor vend has been accepted, al though he may not actually
have received the license.
THE HIMACHAL PRADESH EXCISE ACT, 2011 19
CHAPTER- V
DUTIES OF EXCISE AND COUNTERVAILING DUTIES
36. Excise duty and countervailing duty .- (1) There shall be levied
and paid an excise duty or the countervailing duty, as the case may be, at such
rate or rates as the State Government may, by notification direct, on any
alcoholic liquor for human consumption-
(a) manufactured, produced or bottled in the State under any
license granted under section 15 of this Act;
(b) manufactured or produced elsewhere in India but imported or
transported into State; and
(c) imported, exported or transported in accordance with the
provisions of section 21 of this Act.
(2) The excise duty or countervailing duty may be imposed under sub-
section (1) at different rat es according to varying kind, strength, quality or
price of alcoholic liquor for human consumption.
(3) Notwithstanding anything contained in sub -section (1), no excise
duty or countervailing duty shall be levied on-
(a) any alcoholic liquor for human consumption imported into
India and which, on its importation, was liable to duty under
the Customs Tariff Act, 1975 or the Customs Act, 1962, and
(b) medicinal preparations and toilet preparations containing
alcohol on which excise duty is levied under t he Medicinal
and Toilet Preparations (Excise Duties) Act, 1955.
37. Manner in which duty be levied .- Subject to such rules
regulating the time, place and manner as the Financial Commissioner may
prescribe, such duty shall be levied rateably, on the quantit y of alcoholic
liquor for human consumption imported, transported or manufactured in, or
issued from a distillery, brewery, winery or warehouse.
38. Payment for grant of leases .- The State Government may, in
addition to or instead of any excise duty or cou ntervailing duty leviable under
this Chapter, accept a sum in consideration of the lease of any right under
section 27.
CHAPTER -VI
OFFENCES AND PENALTIES
39. Penalty for unlawful production, manufacture, possession, import,
export, transport, sale etc .- 1[(1) Whoever, in contravention of any
provisions of this Act, or of the rules made thereunder or notification issued,
or any order made, or of any license, permit or pass granted under this Act-
1. Section “39” substituted vide H.P. Act No. 10 of 2024.
20 THE HIMACHAL PRADESH EXCISE ACT, 2011
(a) produces, manufa ctures, possesses, imports, exports or t ransports any
liquor, or
(b) constructs or works any distillery or brewery or winery or warehouse, or
(c) uses, keeps or has in his possession any material, still, utensil, implement
or apparatus whatsoever, for the purpose of manufacturing or producing
any liquor,
shall be punishable for every such offence with imprisonment for a term
which may extend to three years but shall not be less than six months and with
fine which may extend to three lakh rupees but shall not be less than fifty
thousand rupees:
Provided that in the case of an offence relating to the possession of-
(i) a working still for manufacture of any liquor, the imprisonment for
a term which may extend to five years but shall not be less than
three years and with fine which may extend to three lakh rupees
but shall not be less than one lakh rupees;
(ii) lahan, the imprisonment for a term which may extend to five years
but shall not be less than one year and with fine which may extend
to five lakh rupees but shall not be less than fifty thousand rupees;
(iii) country liquor manufactured otherwise than in a licens ed distillery
or warehouse in Himachal Pradesh-
(a) in a quantity not exceeding seven -and-a-half litres, the
imprisonment for a term which may extend to one year but
shall not be less than six months and with fine which may
extend to one lakh rupees but sh all not be less than thirty
thousand rupees; and
(b) in a quantity exceeding seven -and-a-half litres, the
imprisonment for a term which may extend to three years but
shall not be less than one year and with fine which may
extend to five lakh rupees but sha ll not be less than one lakh
rupees;
(iv) foreign liquor other than,-
(a) manufactured in a licensed distillery or brewery o r winery or
warehouse in India; or
(b) imported into India on which custom duty is leviabl e under
the Customs Tariff Act, 1975 or the Customs Act, 1962,
the imprisonment for a term which may extend to three years b ut shall not be
less than one ye ar and with fine which may extend to three lakh rupees but
shall not be less than one lakh rupees:
THE HIMACHAL PRADESH EXCISE ACT, 2011 21
Provided further that in the case of an offence relating to import, export or
transport of-
(i) country liquor exceeding two hundred and twenty -five litres,
"FOR SALE IN HIMACHAL PRADESH" or eighteen litres
of liquor other than "'FOR SALE IN HIMACHAL
PRADESH”; or
(ii) foreign liquor exce eding two hundred and twenty -five litres,
"FOR SALE IN HIMACHAL PRADESH ” or eighteen litres
of liquor other than "FOR SALE IN HIMACHAL
PRADESH”; or
(iii) other spirits for which there is provision for grant of license,
permit and pass, exceeding five litres,
such imprisonment for a term which may extend to three years but shall not be
less than one year and with fine which may extend to three lakh rupees but
shall not be less than one lakh rupees”; and
(b) in sub-section (2), for the words "shall not be less than six months but
which may extend to two years and with fine which shall not be less than
fifty thousand rupees but which may extend to two lakh rupees", the
words "may extend to three years but shall not be less than one year and
with fine which may extend to three lakh rupees but shall not be less than
one lakh rupees.”.]
40. Penalty for rendering oExcerpt shown. Open the full act in Lexace.