The Nagaland Excise Act 1967

NAGALAND ACT 7 OF 1967 
[ THE NAGALAND EXCISE ACT, 1967 ] 
Received the assent of the President on the 8th September, 1967. 
(Published in the Nagaland Gazette-Extraordinary, dated the  
15th September, 1967.) 
  An Act to impose excise duty on alcoholic liquor and  
  intoxicating drugs. 
 Preamble. – WHEREAS the previous sanction of the President of India has been 
obtained under the proviso to Article 304 (b) of the Constitution of India; 
 It is hereby enacted in the Eighteenth Year of Republic of India as follows: - 
 
CHAPTER  I 
PRELIMINARY 
 
 Short title, Commencement and Extent. – 1. (1) This Act may be called the 
Nagaland Excise Act, 1967. 
(2) It shall come into force on such date as the State Government may, by notification, 
appoint in this behalf. 
(3) It extends to the whole of Nagaland. 
Definitions. -2. In this Act, unless there is anything repugnant in the subject or 
context: - 
‘Beer’. – (1) ‘Beer’ includes ale, stout, port, and all other fermented liquor usually 
made from malt; 
‘To bottle’- (2) ‘To bottle’ means to transfer liquor from a cask or other vessel to a 
bottle or other receptacle, whether any process of rectification be employed or not, and 
includes re-bottling; 
Club. – (3) ‘Club’ means a society of persons associated together for social 
intercourse, for the promotion of politics, sports, art, science, literature, or for any purpose 
except the acquisition of gain, and whether the same be registered under the Indian 
Companies Act, 1956, (1 of 1956) the Co-operative Societies Act, 1912, (11 of 1912) the 
Societies Registration Act, 1860, (XXI of 1860) or otherwise incorporated, or not; 
‘Collector’.- (4) ‘Collector’ includes a Deputy Commissioner and in any provision of 
this Act includes also any officer whom the State Government may by notification, declare or 
appoint to be a Collector for the purposes of that provision; 
‘Denaturant’.- (5) ‘Denaturant’ means any substance prescribed by rule made in this 
behalf under this Act for admixture with spirit in order to render the mixture unfit for human 
consumption, whether as a beverage, or internally, as a medicine; 
‘To denature denatured spirit’.- (6) ‘to denature’ means to mix spirit with one or 
more denaturants in such manner as may be prescribed by rule made in this behalf under 
clause (m) of sub-section (2) of section 36; and ‘denatured spirit’ means spirit so mixed; 
Deputy Commissioner. – (7) ‘Deputy Commissioner’ means the Chief Officer-in-
charge of the revenue administration of a District. 
Excisable Articles. – (8) ‘Excisable article’ means: - 
(a) any liquor for human consumption, not being a medical preparation; or 
(b) any intoxicating drug. 
‘Excise duty’.- (9) ‘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; 
‘Excise Commissioner’ .- (10) ‘Excise Commissioner’ means the Officer appointed 
by the State Government under section 7, sub-section (2), clause (a); 
‘Excise Officer’. – (11) ‘Excise Officer’ means a collector or any officer or other 
person appointed or invested with powers under section 7; 
‘Excise Revenue’.- (12) ‘Excise revenue’ means revenue derived or derivable from 
any duty, fee, tax, penalty, payment (other than a fine imposed by a Court of Law) or 
confiscation imposed or ordered under the provisions of this Act, or of any other law for time 
being in force relating to liquor or intoxicating drugs; 
‘Export’.- (13) ‘Export’ means to take out of the territories to which this Act applies, 
otherwise than across a custom frontiers as defined as defined by the Central Government; 
‘Import’.- (14) ‘Import’ (except in the phrase ‘import into India’) means to bring into 
the territories to which this Act applies otherwise than across a customs frontier as defined by 
the Central Government; 
‘Intoxicant’.- (15) ‘Intoxicant’ means any liquor other than the Zu and Rohi or 
intoxicating drug; 
‘Intoxicating drug’.- (16) means – 
(i) the leaves, small stalks and flowering or fruiting tops of the Indian hemp plant 
(cannabis sativa L), including all forms known as bhang, sidhi or ganja; 
(ii) charas, that is the resin obtained from the Indian hemp plant, which has not been 
submitted to any manipulations other than those necessary for packing and 
transport; 
(ii) any mixture, with or without neutral 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, such substance not being opium, 
coca leaf, or a manufactured drug, as defined in section 5 of the Dangerous Drugs 
Act, 1930 (11 of 1930). 
‘Liquor’.- (17) ‘Liquor’ means intoxicating liquor and includes all liquid consisting 
of or containing alcohol but does not include Zu and Rohi, also any substance which the State 
Government may, by notification, declare to be liquor for the purposes of this Act. 
‘Manufacture’.- (18) ‘Manufacture’ includes every process, whether natural or 
artificial, by which any intoxicant is produced or prepared, also re-distillation and every 
process for the rectification, flavouring, blending, or colouring of liquor. 
‘Zu and Rohi’. – (19) ‘Zu and Rohi’ means any rice, millet, or other grain fermented 
naturally form itself or with some foreign or artificial substances, whether mixed with any 
liquid or not and any liquid obtained therefrom, whether diluted, or undiluted, but does not 
include beer. 
‘Place’.- (20) ‘Place’ includes a house, a building, shop, tent, vessel, raft and vehicle. 
‘Sale’.- (21) ‘Sale’ Expressions referring to ‘Sale’ include any transfer otherwise than 
by way of gift. 
‘Spirit’.- (22) Spirit means any liquor containing alcohol, obtained by distillation, 
whether it is denatured or not. 
‘Transport’- (23) ‘Transport’ means to move from one place to another within the 
territories to which this Act applies. 
Power to define “Country Liquor’ and “Foreign Liquor” respectively.-4. The 
State Government may, by notification, declare what, for the purposes of this Act, shall be 
deemed to be “Country Liquor” and “Foreign Liquor” respectively; 
Provided that, where the interests of any other State may be affected, no such 
declaration shall be made without the previous sanction of the Central Government. 
Wholesale and retail sale. -5. The State Government may, by notification, declare, 
with respect either to the whole of the territories to which this Act applies or to any local area 
comprised therein, and as regards purchasers generally or any specified class of purchasers, 
and generally or for any specified occasion, what quantity of any intoxicant shall for the 
purposes of this Act, be the limit of sale by retail and of sale by wholesale, respectively. 
Saving of certain enactments.- 6. Nothing contained in this Act shall affect the 
provisions of the Cantonment Act, 1924 (11 of 1924), Custom Act, 1962 (52 of 1962) or 
Indian tariff Act, 1934 (XXXII of 1934) or any rule or order made under the said Act. 
 
CHAPTER  II 
ESTABLISHMENTS AND CONTROL 
 
 Appointment of officers, and the conferment, withdrawal and delegation of 
powers.- 7. (1) Within a district the administration of the Excise Department and the 
collection of Excise revenue shall be under the charge of the Deputy Commissioner. 
 (2) The State Government may, by notification applicable to the whole of the 
territories to which this Act applies or to any district or local area comprised therein:- 
(a) appoint an officer who shall, subject to the control of the State Government have 
the control of the administration of the excise Department and of the collection 
of the Excise revenue; 
(b) appoint any person other than the Deputy Commissioner who shall, subject to the 
Control of the Deputy Commissioner, exercise all or any of the powers and 
perform all or any of the duties of a collector under this Act, or any other law for 
the time being in force relating to the Excise revenue; 
(c) appoint officers of the Excise Department of such classes and officer under 
classes and with such designation, powers and duties under this Act as the State 
Government may think fit; 
(d) order that all or any of the powers and duties assigned to any officer under clause 
(c) of this section shall be exercised and performed by any servant of the 
Government or any other person; 
(e) withdraw from any officer or person all or any of his powers or duties under this 
Act; 
(f) delegate to the Excise Commissioner, Collectors, and to any subordinate officer, 
subject to such conditions and restrictions as may be prescribed by any rules 
made under section 36 sub-section (2), clause (a) any powers conferred upon, or 
exercised in respect of the Excise revenue by the State Government, the Excise 
Commissioner, and Collectors, respectively, by or under the provisions of this 
Act or any other law for the time being in force relating to Excise. 
8. (1) Orders passed under this Act or under any rule made hereunder shall be 
appealable as follows in manner prescribed by such rules as the State Government may make 
in this behalf: - 
to the Excise Commissioner, any order passed by the Deputy Commissioner, any 
order passed by the Commissioner or a Collector other than the Deputy 
Commissioner; 
to the State Government, any order passed by the Excise Commissioner; 
(2) In cases not provide for by clauses (a) and (b) or sub-section (1) orders passed 
under this Act or under any rules made thereunder shall be appealable to the State 
Government. 
(3) The State Government, the Excise Commissioner or the Deputy Commissioners 
may call for the proceedings held by any officer or person subordinate to it or him or subject 
to its or his control and pass such orders thereon as it or he may think fit. 
 
CHAPTER  III 
IMPORT, EXPORT AND TRANSPORT 
 Restrictions on import – 9. (1) No intoxicant shall be imported unless: - 
(a) the duty (if any) payable under Chapter V has been paid or a bond has been 
executed for the payment thereof; and  
(b) such conditions (if any) relating to payment of duty, license or requirement of 
public health, as the State Government may impose have been satisfied. 
(2) Sub-section (1) shall apply to any article which has been imported into India and 
was liable, on such importation, to duty under the Indian Tariff Act 1934 (XXXII of 1934) or 
the Customs Act, 1962 (52 of 1962). 
(3) Clause (b) of sub-section (1) shall not apply to liquor manufactured in India and 
declared under section 4 to be foreign liquor. 
Restrictions on export and transport.- 10. No intoxicant shall be export or 
transported unless: - 
The duty (if any) payable under Chapter V has been paid; 
Provided that the State Government may, subject to such conditions (if any) as it 
thinks fit to impose, exempt any intoxicant from the provisions of this section. 
Prohibition of import of transport. – 11. The State Government may, to enforce a 
policy of prohibitions or for purposes of public health, by notification- 
(a) prohibit the import or export of any intoxicant into or from the territories to 
which this Act applies or any part thereof; or  
(b) prohibit the transport of any intoxicant. 
Passes for import, export or transport. – 12. No intoxicant exceeding such quantity 
as the Stat Government may prescribed by notification either generally for the whole of the 
territories to which this Act applies or for any local area comprised therein, shall be imported, 
exported or transported, except under a pass issued under the provisions of the next following 
section. 
Grant of Passes.- 13. Passes for the import, export or transport of intoxicants may be 
granted by the Collector or by an officer specially authorized by the Excise Commissioner in 
that behalf. 
Such passes may be either general for definite periods and specified kinds of 
intoxicants or specially for specified occasions and particular consignments only. Passes 
under his section or under section 12 may be issued only for the purposes of imposing and 
collecting excise duty or ensuring conformity with license requirements and any other 
requirements under this Act. 
 
CHAPTER  IV 
MANUFACTURE, POSSESSION AND SALE 
 
 Manufacture and preparations for manufacture permitted only under license. – 
14. Except under the authority and in accordance with the terms and conditions of a license 
granted in that behalf by the Collector or by the Excise Commissioner- 
(a) no intoxicant shall be manufactured; 
(b) no hemp plant (Cannabis sativa L.) shall be cultivated or collected; 
(c) no liquor shall be bottled for sale; 
(d) no distillery or brewery shall be constructed or worked; and  
(e) no person shall use, keep or have in his possession any materials, still, utensil, 
implement or apparatus whatsoever for the purpose of manufacturing any 
intoxicant other than Zu and Rohi; 
Provided that nothing in clause (c) shall apply to Zu and Rohi which may lawfully be 
sold. 
Establishment or licensing of distilleries, breweries and warehouses. – 15.  The 
Excise Commissioner, with the sanction of the State Government may- 
(a) establish a distillery in which spirit may be manufactured under a license granted 
under section 14, on such conditions as the State Government thinks fit to impose; 
(b) discontinue any distillery so established; 
(c) license, on such conditions as the State Government thinks fit to impose, the 
construction and working of a distillery or brewery; 
(d) establish or license a warehouse wherein any intoxicant may be deposited and 
kept without payment of duty; and  
(e) discontinue any warehouse so established. 
Limit of possession, with exceptions and prohibitions in special cases. -16. (1) No 
person shall have in his possession any quantity of any intoxicant in excess of such quantity 
as the State Government may, under section 5 declare to be the limit of sale by retail, except 
under the authority and in accordance with the terms and conditions of- 
(i)   a license for the manufacture, sale or supply of such articles; or 
(ii)  in the case of intoxicating drugs, a license for the cultivation or collection of the 
plants from which such drugs were produced; or 
(iii) a permit granted by the Collector in that behalf. 
(2) Nothing in sub-section (1) shall apply to- 
(a) any foreign liquor other than denatured spirit in the possession of any common 
carrier or warehouseman, as such or; 
(b) any foreign liquor lawfully procured by, and in the possession of, any person for 
his own bona fide private consumption and not for sale. 
(3) Notwithstanding anything contained in sub-section (1) and (2), the State 
Government may, by notification, prohibit, the possession by any person or class of persons, 
either throughout the whole of the territories to which this Act applies, or in any local area, 
place or class of places comprised therein, of any intoxicant either absolutely or subject to 
such conditions as it may prescribe. 
Prohibition of sale without license and the exceptions to such prohibition. – 17. 
(1) No intoxicant shall be sold except under he authority and in accordance with the terms 
and conditions of a license granted by the Collector or the Excise Commissioner in that 
behalf. 
Provided as follows: - 
a license for sale in more than one district shall be granted only by the Excise 
Commissioner or by a Collector specially authorized by the Excise Commissioner 
in this behalf, with prior approval of the State Government. 
on such conditions as may be determined by the State Government, a license for sale 
granted under the Excise law in force in another State may be deemed to be a 
license granted under this Act; 
a person licensed to cultivate or collect plant from which an intoxicating drug is 
produced, may sell without a license those portions of the plant from which the 
intoxicating drug is manufactured or produced to any person licensed under his 
Act to deal in the same, or to any officer whom the Excise Commissioner may 
prescribed; 
nothing in this section applied to the sale of any foreign liquor lawfully procured of 
any person for his private use and sold by him or on his behalf or on behalf of his 
representative in interest upon his quitting a station or after his decease; use tari 
for purpose of making bread. 
 
(2) Any Club which has transaction with its members in respect of foreign liquor, 
shall be deemed to be conducting retail sales and shall be required to take out a license under 
this Act on payment of such fees and subject to such restrictions and on such conditions as 
the State Government may prescribe. 
Exclusive privilege of manufacture and supply. – 18. The State Government may 
grant to any person on such conditions and for such period as it may think fit, the exclusive 
privilege of manufacturing or of supplying to licensed vendors or of manufacturing and 
supplying to the licensed vendors any country liquor or intoxicating drug within any specified 
local areas. 
No grantee of any exclusive privilege under his section shall exercise the same until 
he has received a license in that behalf from the Excise Commissioner. 
Manufacture and sale in cantonments.- 19. Within the limits of any military 
cantonment, no license for manufacture or sale of liquor shall be granted, except with the 
previous consent of the Commanding Officer. 
 
CHPATER  V 
DUTIES AND FEES 
 
 Duty on excisable articles. – 20. An excise duty or a countervailing duty, as the case 
may be, at such rate or rates as the State Government may direct, may be imposed, either 
generally or for any specified local area, on any excisable article- 
imported; or 
exported; or 
transported; or 
manufactured, cultivated or collected under any license granted under section 14; or  
manufactured in any brewery or distillery licensed or established under section 15; 
Provided as follows: - 
(1) Duty shall not be so imposed on any article which has been imported in to India 
and liable on such importation to the payment of duty under the Indian Tariff Act, 1934 
(XXXII of 1934) or the Custom Act, 1952 (52 of 1962). 
Explanation: - Duty may be imposed under his section at different rates according to 
the places to which any excisable article is to be removed for consumption, or according to 
the varying strength and quality of such article. 
Method of levy of duty.- 21. Subject to such rules regulating the time, place and 
manner, as the State Government may prescribe, any duty imposed under section 20 may be 
levied as follows: - 
(a) in the case of excisable articles imported- 
(i) either in the territories to which this Act applies or in the State or territory from 
which the article is imported; or  
(ii) upon issue for sale from a warehouse established or licensed under section 15, 
clause (d); 
(b) in the case of excisable articles exported, in the territories to which this Act 
applies or in the State or territory to which the article is exported; 
(c) in the case of excisable articles transported- 
(i) in the district from which the excisable article is transported; or 
(ii) upon issue for sale from a warehouse established under section 15, clause (b); 
(d) in the case of intoxicating drugs – 
(i) as a rate assessed on the area covered by a license granted under the provisions 
of section 14, clause (b), or on the quantity or outturn of the crop cultivated or 
collected under such license; or  
(ii) as a rate charged upon the quantity produced or manufactured under a license 
granted under the provisions of section 14, clause (a), or issued from 
warehouse established or licensed under section 15, clause (d); 
(e) in the case of spirit or beer manufactured in any distillery or brewery established 
or licensed under section 15- 
(i) as a rate charged upon the quantity produced in or issued from the distillery or 
brewery as the cased may be, or issued from a warehouse established or 
licensed under section 15, clause (d), or 
(ii) as a rate charged in accordance with such scale or equivalents calculated on 
the quantity of materials used or by the degree of attenuation of the wash of 
wort, as the case may be, as the State Government may prescribed: 
Provided that, where payment is made upon issue of an excisable article for sale 
from a warehouse established or licensed under section 15, clause (d), it shall be at the rate of 
duty in force in respect of such article on the date of issue from such warehouse: 
Payment for grant of exclusive privilege.- 22. Instead of or in addition to any 
duty leviable under this Chapter, the State Government may accept payment of a sum in 
consideration of the grant of any exclusive privilege under section 18. 
24. (1) Until provision to contrary is made by the Parliament the State 
Government may levy duty – 
(a) on intoxicants or medicinal or toilet preparations containing alcohol which are 
not excisable article within the meaning of this Act; 
(b) on an excisable article produced outside India and imported into the territories 
to which this Act applies whether across a custom frontier as defined by the 
Central Government or not. 
(3) Nothing in this section shall authorize the levy by the State Government of any 
duty which, as between goods manufactured 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 manufactured or produced, outside the State discriminates between goods 
manufactured or produced in another locality. 
 
CHAPTER  VI 
LICENSES, PERMITS AND PASSES 
 
 Existing licenses, etc.- 24. Every license, permit or pass granted under any section of 
the Eastern Bengal and Assam Act of 1910 (1 of 1910) and in force at the commencement of 
this Act, shall be deemed to have been granted under the corresponding section of this Act, 
and shall (unless previously cancelled, suspended or surrender under this Chapter) remain in 
force for the period for which it was granted. 
 Form and conditions of licenses, etc.- 25. Every license, permit or pass granted 
under this Act – 
(a) shall be granted – 
(i) on payment of such fees, if any, 
(ii) for such period, and  
(iii) subject to such restrictions and on such conditions and – 
(b) shall be in such form and contain such particulars, as the Excise Commissioner 
subject to any rules made under section 36, sub-section (2) clause (g), may direct 
either generally or in any particular instance in this behalf; 
Provided that no fee shall be charged for any permit granted under section 16 for the 
possession of an intoxicant for bonafide private consumption or use. 
Counter agreement and security. – 26. Every person taking out a license under this 
Act may be required to execute a counterpart agreement in conformity with the tenor of his 
license, and to give such security, by way of deposit or otherwise, for the performance of his 
agreement as the authority granting the license may require. 
Technical defects, irregularities and omissions.- 27. (1) No license granted under 
this Act shall be deemed to be valid by reason merely of any technical defect, irregularity or 
omission in the license, or any proceedings taken prior to the grant thereof. 
(2) The decision of the Excise Commissioner what it is a technical defect, irregularity 
or omission shall be final. 
Ascertainment of local opinion. – 28. Before licenses are granted in any year of the 
retail sale of any intoxicant the Collector shall take such measures, in accordance with rules 
to be made by the State Government in this behalf, as may best enable him to ascertain local 
public opinion in regard to the licensing and location of shops. 
Cancellation, suspension of licenses, etc. in certain cases.- 29. (1) Subject to such 
restrictions as the Stat Government may prescribe, the authority who granted any license, 
permit or pass under this Act may cancel or suspend the same: - 
(a) if any duty or fee payable by the holder thereof be not duly paid; or  
(b) in the event of any breach by the holder thereof 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 
(c) if the holder thereof is convicted of any offence punishable under this Act or any 
other law for the time being in force relating to revenue, or of any cognizable and 
non-bailable offence, or of any offence punishable under the Dangerous Drugs 
Act, 1930 (II of 1930) or under section 482 to 489 of the Indian Penal Code; or  
(d) if the holder thereof is punished for any offence referred to in clause 8 of section 
167 of the Customs Act, 1962; or 
(e) at will, if the conditions of the license, permit or pass provided for such 
cancellation or suspension. 
(2) When a license, permit or pass held by any person is cancelled under clauses (a), 
(b), (c) or d of sub-section (1), the authority aforesaid if subordinate to, or subject to the 
control of , the Deputy Commissioner,  may, with the sanction of the Deputy Commissioner, 
or, if himself the Deputy Commissioner, with the sanction of the  Excise Commissioner, 
cancel any other license, permit or pass granted to such person within the same district under 
this Act or under any other law for the time being in force relating to Excise revenue or under 
the Opium Act,1878, and the Excise Commissioner may cancel any such license, permit or 
pass granted to such person in any district top which this Act applies. 
(3) The holder of a license, permit or pass shall not be entitle to any compensation for 
the cancellation nor suspension of his license, permit or pass under this Section or to the 
refund of any fee paid or deposit made in respect thereof; 
Provided that in case of hardship the Excise Commissioner may grant such payment 
of compensation or refund of fee or deposit as he may think fit. 
(4)Any person affected by any order under this section shall have a right of appeal [to 
the State Government or any officer prescribed in this behalf by rule made under this Act. 
Cancellation of licenses in other cases. -30. (1) Whenever the authority stated in 
section 29 considers that a license should be cancelled otherwise than under the provisions of 
that section, he shall remit a sum equal to the amount of the fees payable in respect thereof 
for fifteen days and may cancel the license either- 
(a) on the expiration of fifteen days’ notice in writing of intention to do so; or 
(b) forthwith without notice. 
(2) If any license be cancelled under clause (b) of sub-section (1), the aforesaid 
authority shall, in addition to remitting such sum as aforesaid, pay to the license such further 
sum by way of compensation a as the Excise Commissioner may direct. 
(3) When a license is cancelled under this section, any fee paid in advance or deposit 
made by the license in respect thereof shall be refunded to him, less the amount, if any, due to 
Government. 
Surrender of license.-31. Any holder of a license granted under the Act to sell an 
intoxicant may surrender his license on the expiration of one month’s notice in writing given 
by him to the Collector of his intention to surrender the same and on payment of the fee 
payable for the license for the whole period for which it would have been current but for such 
surrender; 
Provided that if the Excise Commissioner is satisfied that there is sufficient reason for 
surrendering a license, he may remit to the holder thereof the sum so payable on surrender 
and any fee paid in advance or any portion of such sum or fee; 
Provided also that nothing in this section shall apply in the case of a license held by 
the grantee of an exclusive privilege under section 18. 
Explanation:-  In this section and in section 34, the w3ords “holder of a license” 
include a person whose bid, tender,  or application for a license has been accepted by the 
Excise Officer empowered to grant such license, although such person may not in fact have 
received the license. 
No right to renewal.-32. No person to whom a license has been granted under this 
Act shall have any claim to the renewal of such license, or, save as is provided in section 30, 
any claim to compensation on the determination thereof. 
 
CHAPTER VII 
GENERAL PROVISIONS  
 
Measure, weights and instruments. -33. Every person who manufactures or sells 
any intoxicant under a license granted under this Act- 
(a) shall supply himself with such measures, weights and instruments as the State 
government may prescribed, and shall keep the same in good condition; and 
(b) on the requisition of any Excise Officer duly empowered in that behalf, shall at 
any time measure, weight or test any intoxicant in his possession in such manner 
as such officer may require. 
Departmental management and resale. 35. If  any person to whom an exclusive 
privilege has been granted under section 18, or any holder of a license granted under this Act 
makes default in payment of any sum payable in respect of such privilege or license or in 
complying with any other condition thereof, the  collector may take such privilege or the 
grant expressed in such license under management, or may re-sell such privilege or grant at 
the risk and loss of the defaulter. 
Recovery of dues. -35. All Excise revenue, including any loss that may when, in 
consequence of default, a privilege or grant has been taken under management or re-sold by 
the Collector under section 34, and all amounts due  to the State Government by any person 
on account of any contract relating to the Excise revenue, may be recovered from the person 
primarily liable to pay the same or from his surety (if any) by distress and sale of his movable 
property, or in the manner provided for the recovery of public demands by any for the time 
being in force. 
Power of state-Government to make rules.-36. (1) The State government may make 
rules for the purpose of carrying out the provisions of this Act or any law for time being in 
force relating to the Excise revenue. 
(2) In particular and without prejudice to the generality of the foregoing revisions, the 
State Government may make rules- 
(a) Prescribing the powers, duties, subordination and control of officers of the Excise 
Department; 
(b) Regulating appeals and revisions and in particular- 
(i) declaring the casers in which appeals shall lie under sub-section (3) of section 
8; 
(ii) prescribing the time and manner for presenting appeals, and the procedure for 
dealing with appeals under sub-section (2) and under sub-section (3) of section 
8; and 
(iii) declaring, in case not provided for by the Act, the Excise officers or classes of 
officers who shall for the purposes of sub-section (3) of section 8, be 
subordinate to, or subject to the control ;of, the several authorities specified in 
that sub-section; 
(c) Regulating the import, export, transport or possession of any intoxicant; 
(d) Regulating the manufacture, supply, storage or sale of any intoxicant; and in 
particular regulating- 
(i) the erection, inspection, supervision, management and control of any place for 
the manufacture, supply, storage, or sale of any such article; and the fittings, 
implements and apparatus to be maintained therein; 
(ii) the cultivation of the hemp plant (Connabis sativa L.), the collection of the 
spontaneous growth of such plant, and the preparation of any intoxicating drug 
from such growth; 
(iii) the bottling of liquor for sale; 
(e) Regulating the deposit of intoxicant in ware-houses and the removal of such 
articles from ware-house, distilleries or breweries; 
(f) Regulating the periods which and the persons to whom licenses for the sale of any 
intoxicant may be granted and providing for the selection of sites at which shops 
may be opened; 
(g) Prescribing the procedure to be followed and the matters to be ascertained before 
any license for such sale is granted in any local area; 
(h) Prescribing in the case of any intoxicant the manner in which the duty on such 
article shall be levied; 
(i) Prescribing the scale of fees or the manner fixing the fees payable in respect of any 
privilege, of license, permit or pass or in respect of the storing of any intoxicant; 
(j) Prescribing the time, place and manner of payment of any duty or fee; 
(k) Prescribing the restriction under and the conditions on which any license, permit 
or pass may be granted, and in particular providing for- 
(i) the prohibition of the admixture with any intoxicant of any foreign substance; 
(ii) the regulation or prohibition of the reduction of liquor by a license 
manufacturer or licensed vendor from a higher to a lower strength; 
(iii) the fixing of the strength, price or quality in excess of  or below which any 
intoxicant shall not be supplied, sold, or kept or exposed for sale, the fixing [of 
the quantity in excess of which denatured spirit shall not be possessed, and the 
fixing of a standard of quality for any intoxicant; 
(iv) the regulation or prohibition of the employment by the license-holder of any 
person or class of persons in or upon his business premises during business 
hours or [to assist him in his business in any capacity whatsoever; 
(v) the specification of the persons or classes of persons to whom any intoxicant 
may or may not be sold; 
(vi) the prohibition of sale except for cash; 
(vii)the prevention of drunkenness, intoxication, gambling or disorderly conduct 
in or near the business premises of the license-holder and of the meeting or 
remaining of persons of bad character in such premises; 
(viii)the fixing of the days and hours during which such premises may or may not 
be kept open, and the closure of persons of bad character in such premises; 
(ix) the specification of the nature of the premises in which any intoxicant may be 
sold and the notices to be exposed at such premises; 
(x) The accounts to be maintained and the returns to be submitted by license-
holders; and 
(xi)Regulating or prohibiting the transfer of licenses; 
(l) (i) Declaring the process by which spirit manufactured in India shall be denatured; 
(ii) for causing such spirit to be denatured through the agency or under the 
supervision of its own officers; 
(iii) for ascertaining whether such spirit has been denatured; 
(a)  Providing for the destruction or disposal of any intoxicant deemed to be unfit for 
use; 
(b) Regulating the disposal of confiscated articles; 
(c)  Providing for the grant of expenses to witnesses; 
(d)  Regulating the power of Excise Officer to summon witness from a distance under 
the provisions of section 43; and  
(e)  Providing for the grant of compensation to persons improperly arrested and 
subsequently released by any7 Excise Officer under section 43; and persons 
charged before a Magistrate with offences under this Act and acquitted. 
Explanation- Fees may be prescribed under sub-clause (j) at different rates for 
different classes of exclusive privileges, licenses, permits, passes or storage, and for different 
areas. 
(3) Every rules made under this section shall be laid, as soon as may be after it is 
made, before the Nagaland Legislative Assembly while it is in ,session [for a total period of 
seven days, which may be comprised in one session or in two successive sessions, and if, 
before the expiry of the sessions in which it is so laid or the sessions immediately following, 
the Nagaland Legislative Assembly agree in making any modification in the rule or the 
Nagaland Legislative Assembly agree that the rule should not be made, the rules shall 
thereafter have effect only in such modified form or be of no effects as the case, may be, so 
however, that any such modification or annulment shall be without prejudice to the validity 
or anything previously done under that rule. 
 
CHAPTER  VIII 
PREVENTION, DETECTION AND INVESTIGATION 
OF OFFENCES 
 
 Inspection of places of manufacture and sale. – 37. The Excise Commissioner or a 
Collector or any Excise or Police Officer, not below such rank a the State Government may 
by notification prescribe, may 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 intoxicant and 
any place in which any intoxicant is kept for sale by any licensed person and may examine 
accounts and registers, and examine, test, measure or weigh any measures, weights, testing 
instruments, materials, stills, utensils, implements, apparatus or intoxicant found in such 
place. 
Arrest, seizure and search without warrant. – 38. Subject to such restrictions as the 
State Government may prescribe, any of the following persons, namely – 
(1) any officer employed in Excise, Police, Salt, or Customs Departments not below 
such rank as the State Government may prescribe, 
(2) within such area as the State Government may, by notification, direct, such 
officers as may be specified in such notification. 
(3) any other person duly empowered, and  
(4) in any public place, any Excise or Police officer, may – 
(a) arrest without warrant any person found committing an offence punishable 
under section 53 or section 54; 
(b) seize, detain and carry away any excisable or other article which he has reason 
to believe to be liable to confiscation under this Act, or any other law for the 
time being in force relating to the excise revenue, and any document or to the 
article which he has reason to believe may furnish evidence of the commission 
of an offence punishable under this Act or under the Indian Opium Act, 1878, 
(1 of 1878) or under the Dangerous Drugs Act, 1930, (11 of 1930), and  
(c) detain and search any person upon whom and any vessel, raft, vehicle, animal, 
package, receptacle, or covering in or upon which he may have reasonable 
cause to suspect any such article to be. 
Issue of warrants.- 39. A Collector or Magistrate having reason to believe that an 
offence publishable under section 53, 54, 55, 56, 57 or 61 has been or is likely to be 
committed may – 
(a) issue his warrant for the search of any place in which he has reason to believe that 
any intoxicant, still, utensil, implement, apparatus or materials, in respect of which 
such offence has been or is likely to be committed, are kept or concealed, and  
(b) issue his warrant for the arrest of any person whom he has reason to believe to 
have been or to be likely to be engaged in the commission of any such offence. 
Search and arrest in presence of Collector or Magistrate. – 40. (1) A Collector or 
Magistrate may at any time search or direct a search to be made in his presence of any place 
for the search of which he is competent to issue a search warrant under section 39. 
(2) A Collector or Magistrate may at any time arrest or direct the arrest in his presence 
of any person for whose arrest he is competent at the time and in the circumstances to issue a 
warrant under section 39. 
Search, seizure and arrest following upon entry without warrant, in emergent 
cases.- 41. Any Excise or Police officer, not below such rank as the State Government may, 
by notification, prescribe, having reason to believe and having recorded the grounds of his 
belief that an offence under section 53, 54,55,56, 57 or 61 has been, is being, or is likely to be 
committed in any place, and that a search warrant cannot be obtained without affording the 
offender an opportunity of escaping or of concealing evidence of the offence, may at any time 
by day or night – 
enter into and search such place; 
seize and carry away any thing found therein which he has reason to believe to be 
liable to confiscation under this Act and any document or other article which he 
had reason to believe may furnish evidence of the commission of an offence 
punishable under this Act or under the Indian Opium Act, 1878 (1 of 1878) or 
under the Dangerous Drugs Act, 1930 (11 of 1930); and  
detain and search and, if he thinks proper, arrest any person found in such a place 
whom he has reason to believe to have committed any such offence as aforesaid. 
Power to investigate.- 42. (1) A Collector, may, without the order of a Magistrate, 
investigate any offence punishable under this Act which a Court having jurisdiction over the 
local area within the limits of such Collector’s jurisdiction would have power to inquire into 
or try under the provisions of Chapter XV of the Code of Criminal Procedure, 1898 (V of 
1898) relating to the place of inquiry or trial. 
(2) Any other Excise officer when specially empowered in this behalf by the State 
Government in respect of all or any specified class of offences punishable under this Act, 
may, without the order of a Magistrate, investigate any such offence which the Court having 
jurisdiction over the local area to which such officer is appointed would be power to inquire 
into or try under the aforesaid provisions. 
Powers of investigating officer.- 43. (1) Any Collector or other officer empowered 
under the provisions of section 42, sub-section (2), having recorded in writing his reason for 
suspecting the commission of an offence which he is empowered to investigate, may exercise 
the powers conferred upon a police officer making an investigation or upon an officer-in-
charge of police station by sections 160 to 170 of the Code of Criminal Procedure, 1898, (V 
of 1898) and as regards offences punishable under sections 53,54,55,56,57 and 61 of this Act, 
the powers conferred upon such Police officers, in respect of cognizable offences by the first 
clause of sub-section (1) of section 54 and by section 56 of the said Code. 
(2) Subject to such restrictions as the State Government may prescribe, a Collector or, 
with the previous permission of the Collector but not otherwise, any other officer specially 
empowered under section 42 may, without reference to a Magistrate and for reasons to be 
recorded by him in writing, stop further proceedings against any person concerned or 
supposed to be concerned in any offence which he has investigated. 
(3) For the purpose of the provisions of section 166 of the Code of Criminal 
Procedure, 1898, (V of 1898) the area to which an officer specially empowered under section 
52, sub-section (2) is appointed shall be deemed to be a police station, and such officer the 
officer-in-charge of such station. 
(4) As soon as an investigation under section 42 has been completed, if it appears that 
there is sufficient evidence to justify the forwarding of the accused to a Magistrate, the 
investigating officer, when he does not proceed under sub-section (2) or under section 70, 
shall submit a report, which for the purposes of Section 190 of the Code of Criminal 
Procedure, 1898, (V of 1898) shall be deemed to be a police report, in such form as the State 
Government my prescribe to be a Magistrate having jurisdiction to inquire into or try the case 
and empowered to take cognizance of offences on police report. 
Production of persons arrested or articles seized.- 44. (1) Articles seized and, 
unless security for their appearance before the Collector be taken, persons arrested under the 
warrant of a Collector shall be produced before such Collector. 
(2) Articles seized under the provisions of sections 38 and 41, and persons arrested 
under the said provisions by persons or officers not empowered to accept bail shall be 
produced before or forwarded to – 
(a) the Collector or other officer empowered under section 42 to investigate the case; 
or 
(b) an Excise officer empowered under section 49 to accept bail; or 
(c) an officer-in-charge of the nearest police station, whoever is nearest. 
(3) When a person arrested is produced before an Excise office empowered under 
section 49 to accept bail, or before an officer-in-charge of a police station, such officer shall 
forward such person to, or take security for his appearance before the Collector or other 
officer empowered under section 42 to investigate the case. 
(4) When articles seized can not be conveniently conveyed before the officer specified 
in sub-sections (1) and (2), the person making the seizure shall disposed of them in some 
place of safety and forthwith report the seizure to such officer. 
Police custody of article seized.- 45 (1) All officers in-charge of police stations shall 
take charge of and keep in safe custody, pending the orders of a Collector or other officer 
empowered under section 42 to investigate the case, all articles seized under this Act which 
may be delivered to them; and shall allow any Excise officer who may accompany such 
article to the police station or may be deputed for the purpose by an official superior to affix 
his seal to such articles and to take samples of and from them. 
(2) All samples so 

Excerpt shown. Open the full act in Lexace.

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