LexThe MP Excise Act
Madhya Pradesh · state statute
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THE MADHYA PRADESH EXCISE ACT, 1915
[Act No. II of 1915]
CONTENTS
Sections:
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement
2. Definitions
3.
4. Power to declare what shall be deemed to be “country liquor” and
“foreign liquor”, respective ly
5. Definition of retail and wholesale sale
6. Saving of enactment
CHAPTER II
ESTABLISHMENT AND CONTROL
7. Establishment and powers thereof
7-A. Establishment of flying squads
CHAPTER III
IMPORT, EXPORT AND TRANSPORT
8. Power to prohibit import, exp ort or transport
9. Restriction on import, export or transport
10. Requirement of pass for import, export or transport
11. Passes for import, export or transport
12. Passes issued by other authorities may be deemed passes granted
under this Act
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CHAPTE R IV
MANUFACTURE, POSSESSION AND SALE
13. Licence required for manufacture, etc. of intoxicants
14. Establishment or licensing of distilleries and warehouses
15. Payment of duty on removal from distillery, brewery or place of
storage
16. Possession of i ntoxicants generally
17. Licence required for sale of intoxicant
18. Power to grant lease of right to manufacture, etc
19. Lessee‟s permission to draw tan
20. Manufacture and sale of liquor in Military Cantonments
21. Duties of licensees with regard t o measurement and testing
22. Prohibition of employment of male persons under the age of twenty -
one years and of women
23. Prohibition of sale of liquor intoxicating drug to persons under the
age of twenty one years
23 -A. Prohibition of Advertisements r elating to liquor
24. Closing of shops for the sake of public peace
25. Duty on excisable articles
26. Ways of levying such duty
27. Payment for grant of leases
27 -A. Savings for duties being levied at commencement of the
Constitution
CHAPTER VI
LICE NCES, PERMITS AND PASSES
28. Form and conditions of licence etc
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28 -A. Payment of supervision charges
29. Power to take security from licensee
30. Technical detects, irregularities and omissions
31. Power to cancel or suspend licence, etc
32. Power to withdraw licences
33. Surrender of licences
33 -A
CHAPTER VII
OFFENCES AND PENALTIES
34. Penalty for unlawful manufacture, transport, possession, sale etc
35. Penalty for altering or attempting to alter any denatured spirit or
denatured spirituous prepa ration
36, Penalty for illegal possession
36 -A. Penalty for opening, keeping or using any place as a common
drinking house or for having care, management or control of, or tor
assisting in conducting, business of any such place
36 -B, Penalty for being d runk or for purpose of drinking in a common
drinking -house
36 -C. Penalty for permitting a place to be used for the commission by
other person of any offence punishable under Section 34, Section 35,
Section 36 or Section 36 -A
36 -D. Execution of bond to ab stain from commission of otfences
punishable under Section 34 or Section 36
36 -E. Magistrate to require a person to show -cause why he should not be
ordered to execute a bond for good behaviour
37. Penalty for offence not otherwise provided for
38. Penal ty for certain unlawful acts of licensed vendors
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38 -A. Penalty on licensed manufacturer or vendor of intoxicants for
mixing or permitting to be mixed with such articles any noxious drug
or any foreign ingredient or any diluting or colouring substance
39. Penalty for misconduct by licensees, etc
40. Penalty for allowing consumption in chemist‟s shop, etc
40 -A. Punishment for obstruction to, assault on officer etc
41. Manufacture, sale or possession by one person on account of another
42. Attempts to co mmit, and abatement of offences
43. Presumption as to commission of offences in certain cases
44. Criminal liability of licensee for acts of servants
45. Enhanced punishment after previous conviction
46. Liability of certain things to confiscation
47. Order of confiscation
47 -A. Confiscation of seized intoxicants, articles, implements, uten sils,
materials, conveyance etc .
47 -B. Appeal against the order of confiscation
47 -C. Revision before the Court of sessions against the order of
appellate authorit y
47 -D. Bar of jurisdiction of the Court u nder certain circumstances
48. Power of compound offences and impose penalty
48 -A. Special provision for the imposition of penalty by the Excise
Commissioner or Collector
49. Penalty on officers making vexatiou s search, seizure, detention or
arrest
CHAPTER VII -A
PENALTY FOR OFFENCES AGAINST LIFE
49 -A. Penalty for import etc. of liquor unfit for human consumption or
for altering or attempting to alter denatured spirituous preparation
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49 -B. Omitted
CHAPTER VIII
DETENTION, INVESTIGATION AND TRIAL OF OFFENCES
50. Land -holders, and others to give information
51. Power to enter and inspect places of manufacture and sale
52. Power to arrest without warrant to seize article liable to confiscation
and to make searche s
53. Power of Magistrate to issue a warrant
54. Power to search without a warrant
54 -A. Arrest without warrant for obstruction or assault
55. Power of Excise Officers in matters of investigation
56. Report by investigating officer
57. Report by Exci se Officer
57 -A. Police to take charge of articles seized
58. Arrests, searches etc., how to be made
59. Security for appearance in case of arrests without warrant
59 -A. Certain offence under the Act to be non -bailable
60. Omitted
61. Limitation of p rosecutions
61 -A. Tender of pardon to accused person turning approver
CHAPTER VII1 -A
SPECIAL PROVISIONS FOR SCHEDULED AREAS
61 -B. Definitions
61 -C. Scope and extent
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61 -D. Exemption of members of the Scheduled Tribes from certain
provisions of the Act
61 -E Power of Gram Sabha to regulate and prohibit manufacture sale
etc. of intoxicants
61 -F. Enforcement of the decisions of Gram Sabha
CHAPTER IX
MISCELLANEOUS
62. Power to make rules
63. Publication of rules and notifications
64 . Recovery of Gover nment dues
65. Government lien on property of defaulters
66. Power of State Government to exempt persons or intoxicants from
the provisions of the Act
67. Protection to persons acting under this Act
68. Limitation of suits
69. Repeal of enactments
SCHEDULE
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THE MADHYA PRADESH EXCISE ACT, 1915
[Act No. II of 1915]
AMENDING ACTS
(1) M.P. Act No. 23 of 1958; (2) MP . Act No. 4 of 1961;
(3) M.P. Act No. 19 of 1964; (4) MP . Act No. 27 of 1965;
(5) M.P. Act No. 11 of 1970; (6) MP . Act No. 23 of 1978;
(7) MP . Act No. 23 of 1979; (8) M.P. Act No. 39 of 1982;
(9) M.P. Act No. 5 of 1986; (10) M.P . Act No, 14 of 1987;
(11) M.P. Act No. 15 of 1983; (12) M.P. Act No. 13 of 1992;
(13) M.P. Act No. 6 of 1995; (14) M.P. Act No. 2 of 1998;
(15) M.P. Act No. 22 of 2000; (16) M.P. Act No. 24 of 2000;
(17) Chhattisgarh Act No. ii of 2002;
An Act to consolidate and amend the Excise Law in Madhya Pradesh.
Preamble. — Whereas it is expedient to consolidate and amend the law in
Madhya P radesh relating to the import, export, transport, manufacture, sale and
possession of intoxicating liquor and of intoxicating drugs, and whereas the
previous sanction of the Governor -General, required under Section 5 of the
Indian Councils Act, 1892 (55 an d 56, Vict. C. 14), has been obtained to the
passing of this Act ;
It is hereby enacted as follows :
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CHAPTER I
PRELIMINARY
1. Short title, extent and commencement. — (1) This Act may be called
the Madhya Pradesh Excise Act, 1915.
(2) II extends to an d shall be in force in whole of the Madhya Pra desh .
2. Definitions. — In this Act, unless there is anything repugnant in the
subject or context, —
(1) “beer ” includes ale, stout, porter and all other fermented liquors
usually made from malt;
(2) “ bottle ” means to transfer liquor from a cask or other vessel to a
bottle, jar, flask or other similar receptacle for the purpose of sale,
arid bottling includes re -bottling;
(3) “ Chief Reven ue Authority ” means the authority declared by the State
Government to be the Chief Revenue Authority for the purposes of
this Act;
(4) “ common drinking -house ” means a place where drinking of liquor is
allowed for the profit or gain of the person owning, occupying,
using, keeping or having the care or management or control of s uch
place, whether by way of charge for the use of the place, or for
drinking facilities provided, or otherwise howsoever;
(5) “ denatured ” means rendered unfit for human consumption in such
manner as may be prescribed by the Government in this behalf;
(6 ) “excisable article” means —
(a) any alcoholic liquor for human consumption; or
(b) any intoxicating drug; or
(c) opium as defined in clause (xv) and poppy straw as defined in
clause (xviii) of Section 2 of the Narcotic Drugs and
Psychotropic Substa nces Act, 1985 (No. 61 of 1985) ;
(6 -a) “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;
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(7) “ Excise Officer‟ means a Collector or any officer or other person
appointed or invested with powers under Section 7;
(8) “ excise revenue” means reve nue derived or derivable from any d uty,
fee, tax, penalty, payment (other than a fine imposed by a Court of
Law) or confisca tion imposed or ordered or agreed to under the
provisions of this Act, or of any law for the time being in force
relating t o liquor or intoxicating drugs;
(9) “ export ” means to take out of the State otherwise than across a
Customs frontier as defined by t he Central Government;
(10) Omitted.
(11) “ import ” (except in the phrase “import into india”) means to bring
in the State otherwise than across a customs frontier as defined by
the Central Government;
(11 -a) „ intoxicant‟ means any lic1uor or intoxicatin g drug;
(12) “intoxicating drug” means —
(i) the leaves, small stalks and flowering or fruiting tops of the
Indian hemp plant (Cannabis sative), including all forms known
as “bhang,” “sindhi” or “ganja”;
(ii) [x x x]
(iii) any mixture, with or without n eutral materials, of any of the
above forms of intoxicating drug, or any drink prepared
therefrom; and
(iv) any other intoxicating or narcotic substance which the State
Government may, by notification, declare to be an intoxicating
drug not being narcotic drug as defined in the Narcotic Drugs
and Psychotropic Substanc es Act, 1985 (No. 61 of 1985);
(13) “liquor ” means intoxicating liquor, and includes spirits of wine,
spirit, wine, tan, beer, all liquid consisting of or containing
alcohol, and any substance which the State Government may, by
notification, declare to be liquor for the purposes of this Act;
(14) “ manufacture ” includes every process, whether natural or artificial,
by which any intoxicant is produced or prepared and also
redistillation and ever y process for the r ectification, flavoring,
blendin g or colouring of liquor;
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(15) “place” includes house, building, shop, booth, tent, enclosure,
space, vessel, raft and vehicle;
(1 6) expressions referring to “ sal e” includes any transfer otherwise than
by way of gift;
(17) “ spirit ” means any liquor containing alcohol obtained by distillation
whether it is denatured or not;
(18) “tari ” means fermented or unfermented juice drawn from any kind
of palm tree; and
(19) “ transport ” means to move from on e plac e to another within the
State .
3. [Omitted]
4. Power to declare what shall be deemed to be “country liquor” and
“foreign liquor”, respectively. — The State Government may by notification,
declare what, for the purposes of this Act, or any portion thereof, shall be
deemed to be “country liquor” and “foreign liquor”, respectively.
5. Definition of retail and wholesale sale. — (1) The State Government
may, by notification, declare with respect either to the whole 4[State] or to any
specified local area, and a s regards purchasers generally or arty specified class
of purchasers, and either generally or for any specified occasion, what quantity
of any intoxicant shall, for the purposes of this Act be the limit of a 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 he deemed to be a sale
by wholesale.
6. Saving of enactm ent. — Nothing contained in this Act shall affect the
provisions of the Sea Customs Act, 1878 (VIII of 18 78) or the Indian Tariff
Act, 1894 (VIII of 1894), (except Section 6 thereof) or the Cantonment Act,
1910 (XV of 1910), or any rule or order made thereun der.
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CHAPTER II
ESTABLISHMENT AND CONTROL
7. Establishment and powers thereof —The State Government may, by
notification, for the whole or for any specified part of the State —
(a) appoint an officer, hereinafter referred to as the Excise
Commissioner who, subject to such control (if any) as the State
Government may direct, shall superintend the admini stration of
Excise Department and the collection of the excise revenue;
(b) appoint any person other than the Collector 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 A ct, either concurrently
with, or in subordination to, or in exclusion of, the Collector
subject to such control as the State Government may direct;
(c) appoint officers of the Excise Department of such classes and with
such designations, powers and du ties as the State Government may
think fit;
(d) order that all or any of the powers and duties assigned by or under
this Act to any officer appointed under clause (c) shall be
exercised and performed by any servant of the Government , or any
other pers on;
(e) delegate to the Chief Revenue Authority or the Excise
Commissioner all or any of its powers under this Act except the
power conferred by Section 62 to make rules;
(f) withdraw from any officer or person all or any of his powers under
this A ct, and
(g) permit the delegation by the Chief Revenue Authority, the Excise
Commissioner or the Collector to any person or class of persons
specified in such notification, of any powers conferred or duties
imposed upon it or him by or tinder this Act, or exercised or
discharged by it or him in respect of the excise -revenue under any
other Act for the time being in force.
7-A. Establishment of flying squads .— (1) The State Government may,
by notification, establish flying squads for investigating into any case of
alleged or suspected evasion of excise revenue or any case of alleged or
suspected contravention of any of the provisions of this Act or the rules made
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thereunder and shall specify therein the area over which the flying squad shall
exercise jur isdiction.
(2) A flying squad established under sub -section (1) shall consist of
excise officers and other persons as the State Government may, from time to
time, appoint thereto.
(3) The Excise Officers or other person appointed to the flying squad
shal l exercise the powers and perform the duties as may be confer red or
imposed under Section 7.
CHAPTER III
IMPORT, EXPORT AND TRANSPORT
8. Power to prohibit import, export or transport. — The State
Government may, by notification —
(a) prohibit throughout the State or in any specified area thereof, the
im port or export of any intoxicant ;
(b) prohibit the transport of any intoxicant;
(c) make suitable provisions for the effective control of Mahua (Bassia
Latifiolia and Bassia Longifolia) or any other base which is or which
can be utilised for the manufacture of liquor.
9. Restriction on import, export or transport. — Without the sanction
of the State Government no intoxicant shall be imported, exported or
transported, except —
(a) after payment of any duty t o which it may be liable under this Act, or
execution of a bond for such payment; and
(b) on compliance with such conditions as the State Government may
impose.
10. Requirement of pass for import, export or transport — No
intoxicant exceeding such quantit y as the State Government may, by
notification, prescribe, either generally or for any specified area, shall be
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imported, exported or transported except under a pass issued, or deemed to he
issued, under the provisions of this Act.
11. Passes for import, export or transport. — (l) Passes for the import,
export or transport of intoxicants may be granted by the Collector :
Provided that passes for the import and export of such intoxicants as the
Excise Commissioner may, from time to time determine, shall be g ranted only
by the Excise Commissioner.
(2) Such passes may be either general for definite periods and kinds of
intoxicants, or special or for specified occasions and particular consignments
only.
12. Passes issued by other authorities may be deemed pass es granted
under this Act. — The Excise Commissioner may, by general or special order,
direct subject to such conditions (if any) as he may impose, that a pass granted
by any authority in India shall be deemed to be a pass for any purpose under
this Act.
CHAPTER IV
MANUFACTURE, POSSESSION AND SALE
13. Licence required for manufacture, etc. of intoxicants. — (a) No
intoxicant shall he manufactured or collected;
(b) no hemp plant, shall be cultivated;
(c) no tan -producing tree shall be tapped and no Tan sh all be drawn from
any tree;
(d) no liquor shall he bottled for sale;
(e) no distillery or brewery shall be constructed for worked; and
(f) no person shall use, keep or hav e in his possession any material s,
still, utensil, implement or apparatus whosoeve r for the purpose of
manufacturing any intoxicant other than tan; except under the authority and
subject of the terms and conditions of a licence granted in that behalf :
Provided that the State Government may, by notification, declare that the
provisions of this section shall not apply in any area specified in this behalf, to
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the tapping of tan -producing trees, or to the drawing of tan subject to such
conditions as it may prescribe :
Provided further that the State Government may, by notification, declare
that the provisions of this section shall, not apply in such areas as may be
specified in this behalf to th e manufacture of liquor for hom e consumption,
subject to such condition as it may prescribe.
14. Establishment or licensing of distilleries and ware houses. —The
Excise Commissioner may —
(a) establish a distillery in which spirit may be manufactured under a
licence granted under Section 13 on such conditions as the State
Government may impose;
(b) discontinue any such distillery;
(c) licence, on such conditions as the State Government may impose, the
construction and working of a distillery or brewery;
(d) establish or licence a warehouse, wherein any intoxicant may be
deposited and kept without payment of duty, but subject to payment
of such fee as the State Government may direct; and
(e) discontinue any such warehouse.
15. Payment of duty on removal from distillery, brewery or place of
storage — Without the sanction of the State Government no intoxicant shall be
removed from any distillery, brewery , warehouse, or other place of storage
established or licensed under this Act unless the duty (it any) payable under
Chapter V, has been paid or a bond has been executed for the payment thereof.
16. Possession of intoxicants generally — (1) The State Gover nment
may, by notification, prescribe a limit of quantity for the possession of any
intoxicant :
Provided that different limits may be prescribed for different qualities of
the same article.
(2) No person shall have in his possession any quantity of any i ntoxicant
in excess of the limit prescribed under sub -section (1), except under the
authority and in accordance with the terms and conditions of —
(a) a licence for the m anufacture, cultivation, collection, sale, or supply
of such intoxicant; or
15
(b) a pas s for the import, export or transport of such intoxicant; or
(c) a permit granted under this Act,
(3) Sub -section (2) shall not apply to any foreign liquor —
(a) which is in the possession of any common carrier or warehouse man
as such
(b) [x x xl
(4) No twithstanding anything contained in the foregoing sub -sections,
the State Government may, by notification, prohibit the possession by any‟
person or c lass of persons, either in the State or in any specified area, of my
intoxicant, either absolutely, or sub ject to such conditions as it may prescribe.
17. Licence required for sale of intoxicant. — (1) No intoxicant shall
be sold except under the authority and subject to the terms and conditions of
licence granted in that behalf :
Provided that —
(a) a person having the right to the tan drawn from any tree may sell
such tan without a licence to a person licensed to manufacture or sell
tan under this Act.
(b) a person under Section 13 to cultivate the hemp plant may sell
without a licence those portions of the plant from which the
intoxicating drug is manufactured or produced to any person licensed
under this Act to deal in the same, or to any officer whom the Excise
Commissioner may prescribe; and
(c) nothing in this section shall apply to the sale of any fore ign liquor
lawfully procured by any person for his private use and sold by him
or on his behalf or on behalf of his representatives interest upon his
quitting a station or after his decease.
(2) On such conditions as the Excise Commissioner may determine, a
licence for sale under the Excise Law for the time being in force in other States
or Union territories may be deemed to be licence granted in that behalf under
this Act.
18. Power to grant lease of right to manufacture, etc .— (1) The State
Government m ay lease to any person, on such conditions and for such period as
it may think fit, the right —
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(a) of manufa cturing, or of supplying by whol esale or of both; or
(b) of selling by wholesale or by retail; or
(c) of manufacturing or of supplying by wholesa le, or of both, and
selling by retail;
and liquor or intoxicating within any specified area.
(2) The licensing authority may grant to a lessee under sub -section (1) a
licence in the terms of his lease; and when there is no condition in the lease
which pr ohibits sub -letting, may, on the application of the lessee, grant a
licence to any sub -lessee approved by such authority.
19. Lessee’s permission to draw tari. — Where a right of manufacturing
tan has been leased under Section 18, the State Government may declare that
the written permission of the lessee to draw tan shall have the same force and
effect as a licence from the Collector for that purpose.
20. Manufacture and sale of liquor in Military Cantonments. —
Within the limits of any Military Cantonment, and within such distance from
those limits as the Central Government in any case may prescribe, on licence
for the retail sale of liquor shall be granted except with the knowledge and
consent of the Commanding Officer.
21. Duties of licensees with regard to measurement and testing —
Every person who manufactures or sells any intoxicant under a licence granted
under this Act shall be bound —
(a) to supply himself with such measures, weights and instruments as the
Excise Commissioner may prescribe and to kee p the same in good
condition on the licensed premises; and
(b) on the requisition of any Excise Officer duly empowered in that
behalf at any time to measure, weight or test any intoxicants in his
possession in such manner as the sai d Excise Officer may re quire.
22. Prohibition of employment of male persons under the age of
twenty one years and of women — No person who is licensed to sell
intoxicants for consumption on his premises shall, during the hours in which
such premises are kept open for business, e mpty, or permit to be employed
either with or without remuneration, any male person under the age of twenty
one years of any woman in any part of such premises in which such intoxican t
is consumed by the public.
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23. Prohibition of sale of liquor intoxicati ng drug to persons under
the age of twenty one years — No person who is licensed to sell intoxicants
shall sell or deliver any liquor or intoxicating drug to any person apparently
under the age of twenty one years whether of consumption by such person or by
another person or whether for consumption on or off the premises of such
vendor.
23 -A. Prohibition of Advertisements relating to liquor — (1) In this
section, “advertisement‟ includes —
(a) any notice, circular, label, wrapper or other documents;
(b) any announcement made orally or by any means of producing or
transmitting light, sound or smoke;
(c) any exhibition by means of slide or film exhibited on the screen in a
cinema licensed under the Madhya Pradesh Cinemas (Regulation) Act,
1952 (No. 17 of 1952) or at any other place of entertainment.
(2) Whoever prints or publishes or causes to be printed or published in
any newspaper, book, leaflet, booklet, or any other single or periodical
publication or otherwise displays or distributes or causes or permits to be
displayed or distributed any advertisement or other matter commending
soliciting the use of, or offering or purporting to commending, soliciting the
use of, or commending any liquor shall be punished for every such offence
1%‟ith imprisonment which may extend to six months or with fine which may
extend to two thousand rupees or with both.
(3) Exc ept as otherwise provided in sub -section (4), nothing in sub -
section (2) shall apply to —
(a) catalogues or price -lists to be displayed on liquor vends in M adhya
Pradesh in accordance with the provisions of this Act or the rules
made thereunder;
(b ) any advertisement or other matter contained in any newspaper, book,
leaf -let booklet or other publication printed and published outside
Madhya Pradesh;
(c) any advertisements or other matter contained in any newspaper
printed and published in Madhya Pradesh before such date as the
State Government may, be notification, specify; and
(d) any other advertisement or matter which the State Government may
by notificat ion, generally or specially exempt from the operation of
this section.
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(4) Notwithstanding anything contained in sub -section (3), the State
Government may, by notification, prohibit within the State the circulation,
distribution or sale of any newspaper, book, leaflet, booklet or other
publication printed and published outside the State which contains any
advertisement or matter commending soliciting the use of, or offering or
purporting to commending, soliciting the use of or offering any liquor and
whoev er circulates, distributes or sells such newspaper, book, leaflet, booklet
or other publication, in contravention of such notification, shall be punished for
every offence with imprisonment which may extend to six months or with fine
which may extend to tw o thousand rupees, or with both.
(5) When any newspaper, book, leaflet, booklet or other publication
wherever printed or published appears to the State Government to contain any
advertisement or matter commending, soliciting the use of, or offering any
li quor, the State Government may, by notification, declare every copy of the
issue of the newspaper and every copy of such book, leaflet, booklet or other
publication to be forfeited to Government, and thereupon any Excise Officer,
any officer of the police or revenue department and any other person authorised
in that behalf by the State Government may seize the same wherever found in
Madhya Pradesh and any Collector or Judicial Magistrate of the first class or
second class or other officer authorised by the State Government may by
warrant authorise any police officer not below the rank of sub -inspector to
enter upon and search for the same in any premises where any copy of such
issue or any such book, leaflet, booklet or other publication may be or may be
rea sonably suspected to be.
24. Closing of shops for the sake of public peace. — (l) The District
Magistrate, by notice in writing to the licensee, may require, that any shops in
which any intoxicant is sold shall be closed at such times or for such period as
he may think necessary for the preservation of the public peace.
(2) If a riot of unlawful assembly is apprehended or occurs in the
vicinity of any shop, a Magistrate of any class, who is present, may require
such shop to be kept closed for such period a s the may think necessary :
Provided that, when any such riot or unlawful assembly occurs, a
licensee shall, in the absence of the Magistrate, close his shop without any
order.
(3) When any Magistrate issues an order under sub -section (2), the shall
forthw ith inform the Collector of his action and his reasons thereof.
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CHAPTER V
DUTIES AND FEES
25 . Duty on excisable articles. — An excise duty or a countervailing
duty, a the case may be, shall, if the State Government so directs, be levied on
all excisable articles other than medicinal and toilet preparations specified for
the time being in the Schedule to the Medical and Toilet Preparation (Excise
Duties) Act, 1955 (No. 16 of 1955) :-
(a) imported; or
(b) exported; or
(c) transported; or
(d) manufactured , cultivated or collected under any licence granted
under Section 13; or
(e) manufactured any distillery established, or any distillery or brewery
licensed, under this Act
Provided that it shall be lawful for the State Government to exempt any
excisable article from any duty to which the same may be liable und er this Act.
(2) Duty may be imposed under sub -section (1) at different rates
according to —
(i) the place to which any excisable article is to be removed; or
(ii) the strength and quality of excisa ble article; or
(iii) the use of excisable article for d ifferent purposes; or
(iv) The value of excisable articles based on principles as may be
prescribed .
(3) Notwithstanding anything contained in sub -section (1), —
(i) duty shall not he imposed there under on any article which has been
imported into India and was liable, on such importation, to duty
under the Sea Customs Act, 1878 (VIII of 1878). or the Indian Tariff
Act 1894 (VIII of 1894) ;
(ii) [Omitted]
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(4) Nothing contained in this section shall be construed to preclude the
State Government from enhancing or reducing the rates of duty during the
course of a financial year and the power to enhance or reduce the rate of duty
shall include power to give retrospective effect to such enhancement or
red uction from a date not earlier than the commence ment of the financial year
26. Ways of levying such duty. — Subject to such rules regulating the
time, place and manner as the State Government may prescribe, such duty shall
he levied ratably on the quantit y of excisable article imported, exported,
transported, collected or manufactured in or issued from a distillery, brewery or
warehouse :
Provided that —
(1) duty may be levied —
(a) on intoxication drugs by an acreage rate levied on the cultivation of
the hemp plant or by a rate charged on the quantity collected;
(b) on spirit or beer manufactured in any distillery established or any
distillery or brewery licensed under this Act —
(i) in accordance with such scale or equivalents calculated on the
quantity of materials used, or by the degree of attenuation of the
wash or wort, as the case may be, as the State Government may
prescribe, or;
(ii) by a rate charged directly on the materials used;
(c) on tan, by a tax on each tree from which the tan is drawn.
(2) Where payment is made upon the issue of an excisable article for sale
from a warehouse, it shall be at the rate of duty in force on the date of issue of
suc h article from the warehouse,
(3) Where the rate of duty is enhanced or reduced after payment o f duty
on issue of excisable article from warehouse and the excisable article is in
stock with a holder of a licence, the excisable article in stock shall be subject
to the levy of duty at the rate so enhanced or reduced and the difference in duty
shall be payable or refundable, as the case may he, by or to the holder of a
licence, with whom such duty paint excisable article is in stock at the material
time.
27. Payment for grant of leases. — (1) Instead of or in addition to any
duty leviable under this Chap ter, the State Government may accept payment of
a sum in consideration of the grant of any lease under Section 18.
21
(2) Nothing contained in sub -section (1) shall be construed to preclude
the State Government from enhancing or reducing the sum received in
consideration of a grant of any lease under Section 18 during the course of a
financial year or during the currency of a licence and the power to enhance or
reduce the sum shall include power to give retrospective effect to such
enhancement or reduction fr om a date not earlier than the commencement o f the
financial year.
27 -A. Savings for duties being levied at commencement of the
Constitution — (1) Until provision to the contrary is made by Parliament, the
State Government may continue to levy any duty of w hich this section applies
which it was lawfully levying immediately before the commencement of the
Constitution under this Chapter as then in force.
(2) The duties to which this section applies are —
(a) any duty on intoxicants which are not excisable art icles within the
meaning of this Act;
(b) any duty on an excisable article produced outsid e India and imported
into the State whether across a customs frontier as defined by t he
Central Government or not;
Omitted
(3) Nothing in this section shall author ise the levy by the State
Government of any duty which, as between goods ma nufactured or produced in
the State , and similar goods not so manufactured or produced discriminates in
favour of the former, or which, in the case of goods manufac tured or produced
outside the State , discriminates between goods manufactured or produced in
one locality and similar goods manufactured or produced in another locality.
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CHAPTER VI
LICENCES, PERMITS AND PASSES
28. Form and conditions of licence etc .— (i) Every per mit or pass
issued or licence granted under this Act shall be issued or granted on payment
of such fees, for such period, subject to such restrictions and conditions and
shall be in such form and contain such particulars as may be prescribed.
(2) The cond itions prescribed under sub -section (1) may require, inter
alia, the licensee to lift for sale, the minimum quantity of country spirit or
Indian -made liquor, fixed for his shop and to pay the penalty at the prescribed
rate on the quantity of liquor short l ifted.
(3) Penalty at the prescribed rate on infraction or infringement of any
conditions laid down in sub -section (1) of specifically enumerated in sub -
section (2) shall be leviable on and recoverable from the licensee.
28 -A. Payment of supervision charg es .— The State Government may by
general or special order in writing direct the manufacture, import, export,
tra nsport, storage, sale, purchase, use, collection or cultivation of any
intoxicant, denatured spirituous preparations or hemp shall be under the
supervision of such Excise staff as the Excise Commissioner may deem proper
to appoint in this behalf and that the person manufacturing, importing,
exporting, transporting, storing, selling, purchasing, using, collecting or
cultivating the intoxicant or de natured spirituous preparations shall pay to the
State Government towards supervision charges as levy as may be imposed by
the State Government in this behalf :
Provided that the State Government may exempt any class of person or
any institution from payin g the who le or any part of such levy.
29. Power to take security from licensee. — Any authority granting a
licence under this ct may require the licensee to execute a counterpart
agreement in conformity with the tenure of his licence and to give such securi ty
for the performance of such agreement, or to make such deposit or to provide
both as such authority may think fit.
30. Technical de fects, irregularities and omissi ons — (1) No licence
granted under this Act shall be deemed to be invalid by reasons merely on any
technical defect, irregularity or omission in the licence or in any proceedings
taken prior to the grant1 thereof.
(2) The decision of the Excise Commissioner as to what is a technical
defect, irregularity or omission shall be final.
23
31. Power to canncel or suspend licence, etc. — (l) Subject to such
restrictions as the State Government may prescribe, the authority granting any
licence, permit or pass under this Act may canncel or suspend it —
(a) if any duty or fee payable by the holder thereof he not duty paid; or
(b) in the event of any breach by the holder thereof or by an‟ of his
servants, or by any one action on his behalf with his express or
implied permission, of any of the terms or conditions thereof; or
(c) if the holder thereof, or any of his servants, or any one action on his
behalf with his express or impli ed permission, is convicted of any
offence under t his Act or any other law for the time being in force
rel ating to revenue, or of any offence (under the Dangerous Drugs
Act, 1930 (11 of 1930, or under the Indian Merchandise Marks Act,
1889 (1V of 1889), or under any section which has been introduced
into the Indian Penal Code (XLV of 1860), Section 3 of that Act; or
(d) if the holder thereof is convicted of any cognizable and non -bai lable
offence; or
(e) if the holder thereof is punished fur any‟ offence referred to in clause
(8) of Section 167 of the Sea Customs Act, 1878 (Viii of 1878); or
(f) where a licence, permit or pass been granted on the application of the
holder of any lea se granted under Section 18, on the requisition in
writing of such lessee; or
(g) if the conditions of the licence, permit or pass provide for such
cancel lation or suspension at will.
(1 -A) Before making an order cancel ling or suspending a licence permit
or pass under sub -section (1), the authority aforesaid shall record in writing the
reasons for the proposed action, furnish to the holder thereof a brief statement
of the same and afford him a reasona ble opportunity of being heard.
(2) Where a licence, p ermit or pass held by any person is cancelled under
clause (a), clause (b), clause (c) or clause (e) of sub -section (1), the authority
aforesaid may cancel any other licence, permit or pass granted to such person
under this Act or under any other law for t he time being in force relating to
excise revenue, or under the Opium Act, 1878 (1 of 1878).
(3) The holder of a licence, permit or pass shall not be entitled to any
compensation for its cancellation or suspension nor to the refund of any fee
paid or depo sit made in respect thereof.
24
(4) Where a licence is cancelled or suspended under clause (a), clause
(b), clause (c) or clause (e) of sub -section (1), —
(a) the fee payable for the balance of the period for which such licence
would have been current but fo r such cancellation or suspension, may
be recovered from the ex -licensee as excise -revenue;
(b) the Collector may take the gran t under management or resell it at the
risk and loss of the ex -licensee, but an‟ profit realised by such
management or resale wh ich is not is excess of the amount recovered
under clause (a) for such period shall be paid to the ex -licensee.
32. Power to withdraw licences. — Whenever the au thority which
granted any licence under this Act considers that such licence should be
withdrawn for any cause other than those specified in Section 31, if shall remit
a sum equal to the amount of the fees payable in respect thereof for fifteen
days, and may withdraw the licence either —
(a) on the expiration of fifteen days‟ notice in writing of its intention so
to do; or
(b) forthwith without notice.
(2) If any licence be withdrawn under clause (h) of sub -section (1), the
aforesaid, authority shall, in addition to remitting such sum as a aforesaid, pay
to the licensee such further sum (if any) by way of compensation as the Excise
Commissioner may direct.
(3) When a licence is withdrawn under sub -section (1), any fee paid in
advance to deposit made by the licensee in respect thereof shall be refunded to
him, after deducting the amount (if any) due to the Government.
33. Surrender of licences. — (i) Any holder of a licence granted under
this Act to sell an intoxicant may surrender his licence on the expiration of one
month‟s notice in writing given by him to the Collector of his intention to
surrende r the same, and on payment of the fee payable for the licence for the
remainder of the period for which it would have been current put for such
surrender :
Provided that if the Excise Commissioner is satisfied that there is
sufficient reason for surrenderi ng a licence he may remit to the holder thereof
the sum so payable on surrender or any portion thereof.
(2) Sub -section (1) shall not apply in the case of any licence granted
under Section 18.
25
Explanation. — The words “holders of 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.
33 -A. Omitted.
CHAPTER VII
OFFENCES AND PENALTY
34 Penalty for unlawful manufacture, transport, possession, sale
etc. — (i) Whoever, in contravention of any provision of this Act, or of any
rule, notification or order made or issued thereunder, or of any condition of a
licence, permit or pass granted under this Act, —
(a) manufactures, transports, imports, exports. colle cts of possesses any
intoxicant;
(b) save in the cases provided for in Section 38, sell any intoxicant; of
(c) cultivates bhang; or
(d) taps any toddy production tree/or draws toddy therefrom; or
(e) constructs, or works any distillery brewery or vintn ery; or
(f) 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
(g) removes any intoxicant from any distillery, brewery, vintnery or
war ehouse licensed, established or contained, under this Act;
(h) Bottles any liquor;
shall subject to the provisions of sub -section (2), be punishable for every such
offence with imprisonment for a term which may extend to one year and fine
which shall not be less than five hundred rupees but which may extend to five
thousand rupees:
Provided that when any person is convicted under this Section of any
offence for a second or subsequent time he shall be punishable for every such
offence with imprisonment for a term which shall not be less than two months
26
but which may extend to twenty four months and fine which shall not be less
than two thousand rupees but which may extend to ten thousand rupees.
(2) Notwithstanding anything contained in sub -section (1), if a person is
convicted for an offence covered by clause (a) or clause (b) of sub -section (1)
and the quantit1 of the intoxicant being liquor found at the time or in the
course of detection of the offence exceeds fifty bulk liter, he shall be
punishable wit h imprisonment for a term which shall not be less than one year
hut which may extend to three years and with fine which shall not be less than
twenty five thousand rupees but may extend to one lac rupees :
Provided that when any person is convicted under t his section for an
offence for second or subsequent time, he shall be punishable for every such
offence with imprisonment for a term which shall not be less than two years but
which may extend to five years and with fine which shall not be less than fifty
thousand rupees but may extend to two lac rupees.
(3) When an offence covered by clause (a) or clause (b) of sub -section
(1) if committed and the quantity of liquor found at the time or in the course of
detection of such offence exceeds fifty bulk litres, all intoxicants, articles
implements, utensils, materials, conveyance etc.Excerpt shown. Open the full act in Lexace.