LexThe Telangana Excise Act, 1968.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA EXCISE ACT, 1968.
(ACT NO. 17 OF 1968.)
ARRANGEMENT OF SECTIONS
Sections
CHAPTER I.
PRELIMINARY.
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II.
ESTABLISHMENT AND CONTROL.
3. Appointment of Commissioner.
4. General control of Commissioner over Collector.
5. Appointment of certain officers and staff.
6. Omitted.
7. Omitted.
8. Delegation.
CHAPTER III.
IMPORT, EXPORT AND TRANSPORT.
9. Import of intoxicant.
10. Export of intoxicant.
11. Regulation of transport of intoxicants.
12. Permits for transport of intoxicants.
CHAPTER IV.
MANUFACTURE, POSSESSION AND SALE.
13. Manufacture, etc., of excisable article prohibited
except under a licence.
2 [Act No. 17 of 1968]
14. Possession of excisable articles in excess of the
quantity prescribed.
15. Sale or buying of excisable article without licence
prohibited.
16. Establishment of distillers and warehouse.
17. Grant of exclusive privilege of manufacture etc.
18. Duties of licensees with regard to measurement
and testing.
19. Prohibition of employment of children and of
persons suffering from contagious diseases.
20. Closing of shops for preservation of public peace.
CHAPTER V.
EXCISE DUTY AND COUNTERVAILING DUTY.
21. Excise duty or countervailing duty on excisable
articles.
22. Modes of levying duties.
23. Payment for exclusive privilege.
23-A. Omitted.
23-B. Omitted.
24. Owner or other person in possession of excise
trees to give intimation of unwillingness to tap
excise trees, etc.
25. Recovery of duty under this Act from person other
than the licensee in certain cases.
26. Rent to which the owner or person in possession
of excise trees is entitled.
27. Prohibition of cutting down or destroying excise
trees.
[Act No. 17 of 1968] 3
CHAPTER VI.
LICENCES AND PERMITS.
28. Form and conditions of licence, etc.
29. Power to take security and counterpart
agreement.
30. Technical defects, irregularities and omissions.
31. Power to cancel or suspend licence, etc.
32. Power to withdraw licence.
33. Surrender of licence.
CHAPTER VII.
OFFENCES AND PENALTIES.
34. Penalties for illegal import, etc.
35. Penalty for rendering denatured spirit fit for
human consumption.
36. Penalty for misconduct of licensees etc.
37. Penalty for adulteration etc., by licensed vendor or
manufacturers.
37A. Penalty for adulteration resulting in death etc.
37B. Order to pay compensation.
38. Penalty for consumption in the Chemists’ shop.
39. Manufacture, sale or possession by one person
on account of another.
40. Penalty for cutting down or destroying excise
trees.
40A. Penalty for false statement made in declaration or
affidavit.
41. Penalty for offences not otherwise provided for.
4 [Act No. 17 of 1968]
42. Presumption as to commission of offence in
certain cases.
43. Criminal Liability of Licensee for the acts of
servants.
43A. Punishment for allowing premises etc., to be used
for commission of an offence.
44. Enhanced punishment after previous conviction.
45. Liability of certain things to confiscation.
46. Confiscation by Prohibition and Excise Officers in
certain cases.
46A. Issue of show cause notice.
46B. Order of confiscation in the absence of offender.
46C. Appeal.
46D. Order of confiscation not to interfere with other
punishments.
46E. Bar of jurisdiction.
46F. Property confiscated when to vest in Government.
47. Compounding of offences.
47-A. Special powers of the Commissioner in regard to
compounding of offences.
48. Penalty for vexatious delay.
49. Penalty for Prohibition and Excise Officer refusing
to do duty.
50. Penalty for abetment.
50-A. Penalty for assault.
[Act No. 17 of 1968] 5
CHAPTER VIII.
DETECTION, INVESTIGATION AND TRIAL OF
OFFENCES.
51. Landholders, Officers and others to give
Information.
52. Power to enter and inspect places of manufacture
and sale.
53. Powers to arrest without warrant, to seize articles
liable for confiscation and to make searches.
53-A. Obligation of officers to assist each other.
54. Power of Magistrate to issue a warrant.
55. Power to search without warrant.
56. Power of Prohibition and Excise Officer in matters
of investigation.
57. Report by investigating officer.
58. Report by Prohibition and Excise Officer.
59. Arrest, search, etc., how to be made.
60. Security for appearance in case of arrest without
warrant.
60-A. Non-bailable Offences.
61. Procedure for prosecution and credit of fines to
Prohibition and Excise Department.
62. Magistrate’s power to impose enhanced
penalties.
CHAPTER IX.
APPEALS AND REVISION.
63. Appeals.
64. Revision.
6 [Act No. 17 of 1968]
CHAPTER X.
MISCELLANEOUS.
65. Recovery of Government dues.
66. Government’s lien on property of defaulter.
67. Recovery of dues by lessee under section 17.
68. Power of Government to exempt, etc.
68-A. Exemption of the Government from taking out
licence or permit for production, manufacture,
etc., of any intoxicants.
68-B. Power of the State Government to notify
exemptions or grant relaxations.
69. Protection of action taken under this Act.
70. Limitation of suits.
71. Offences by Companies etc.
72. Power to make rules.
73. Repeal and savings.
The Schedule (omitted).
THE TELANGANA EXCISE ACT, 1968.1
ACT No.17 OF 1968.
CHAPTER I.
PRELIMINARY
1. (1) This Act may be called the 2Telangana Excise Act,
1968.
3[(2) It extends to the whole of the State of 2Telangana:
Provided that on and from the date of commencement
of the 4Telangana Prohibition Act, 1995 the provisions of this
Act, shall in so far as they are inconsistent with the
provisions of the said Act cease to operate.]
(3) It shall come into force on such date as the
Government may, by notification, appoint.
2. In this Act, unless the context otherwise requires,-
(1) “arrack” includes all liquor produced or
manufactured in India and supplied by the Government,
1. The Andhra Pradesh Excise Act, 1968 received the assent of the
President on the 26 th August, 1968. The said Act in force in the
combined State, as on 02.06.2014, has been adapted to the State of
Telangana, under section 101 of the Andhra Pradesh Reorganisation
Act, 2014 (Central Act 6 o f 2014) vide. the Notification issued in
G.O.Ms.No.162, Revenue (Excise-II) Department, dated 10.09.2015.
2. Substituted by G.O.Ms.No.162, Revenue (Excise -II) Department,
dated 10.09.2015.
3. Substituted by Act No.17 of 1995.
4. Adapted by G.O.Ms.No.6, Revenue (Excise -II) Department, dated
06.01.2016.
Short title, extent
and
commencement.
Definitions.
2 [Act No. 17 of 1968]
other than Foreign Liquor and [Indian Made Foreign
Liquor];
5[(1A) “Bar” means the privilege granted under the Act
to an establishment, where food is served, for sale of
*[Indian Made Foreign Liquor] and Foreign Liquor in loose
for consumption on the licensed premises];
(2) “beer” includes ale, stout, porter and all other
fermented liquors usually made from malt;
5[(2A) “Bonafide purpose” means the privilege granted
under the Act for the sale or use as the case may be , of any
intoxicant, any material or any liquor and does not include
*[Indian Made Foreign Liquor], Foreign Liquor and Toddy];
6[(3) “bottle” means to transfer liquor from one cask to
another cask or from a cask or vessel to a bottle, jar, flask,
pot, closed packet, basket, tin, barrel, case, receptacle, bag,
sack or wrapper or any other receptacle in any form i n
which any intoxicant is packed for the purpose of sale
whether or not any process of manufacture is employed and
includes re-bottling];
(4) “buy or buying” includes any receipt including gift;
(5) “Collector” means the Collector of a district and
includes 6[the Joint Collector] or any person appointed by
the Government to exercise the powers and to perform the
functions of collector under this Act;
(6) “Commissioner” means the officer appointed under
section 3;
. Throughout the Act, for the words “Indian Liquor”, the words “Indian
Made Foreign Liquor” substituted vide. Act No.17 of 2006.
5. Inserted by Act No.35 of 2005.
6. Substituted by Act No.4 of 1994.
[Act No. 17 of 1968] 3
7[(6A) “Corporation” means the 8[Telangana State]
Beverages Corporation Limited, Hyderabad;]
(7) “cultivation” or “cultivating” includes the tending or
protecting of a plant during growth and does not necessarily
imply raising it from seed;
(8) “denatured” means subjected to a process
prescribed for the purpose of rendering unfit for human
consumption;
9[(9) “excisable article ” means any alcohol ic liquor for
human consumption; or any intoxicating drug];
(10) “excise duty ” or “countervailing duty ” means the
duty of excise or countervailing duty, as the case may be,
mentioned in entry 51 in List II of the seventh Schedule to
the Constitution;
7. Inserted by Act No.17 of 2006.
8. Substituted by G.O.Ms.No.162, Revenue (Excise -II) Department,
dated 10.09.2015.
9. Substituted by Act No.20 of 1994.
4 [Act No. 17 of 1968]
(11) #[“Prohibition and Excise Officer ”] means the
Commissioner, the Collector or any officer or other person
lawfully appointed or invested with powers under the
relevant provisions of this Act;
10[(11-A) “District Prohibition and Excise Office r” means
the Prohibition and Excise Superintendent or Assistant
Prohibition and Excise Superintendent or any officer lawfully
appointed or invested with powers under the relevant
provisions of the Act.]
(12) “excise revenue ” means revenue derived or
derivable from any duty, fee, tax, rent, fine, penalty or
confiscation levied, imposed or ordered under the
provisions of the Act or any other law for the time being in
force relating to intoxicating liquors or intoxicating drugs;
#. Throughout the Act
For Substituted
1. Excise Officer - Prohibition and Excise Officer
2. Commissioner of Excise - Commissioner of Prohibition and
Excise
3. Additional Commissioner of
Excise
- Additional Commissioner of
Prohibition and Excise
4. Deputy Commissioner of
Excise
- Deputy Commissioner of
Prohibition and Excise
5. Assistant Commissioner of
Excise
- Assistant Commissioner of
Prohibition and Excise
6. Excise Superintendent - $Prohibition and Excise
Superintendent
7. Assistant Excise
Superintendent
- Assistant Prohibition and Excise
and Superintendent
8. Excise Department - Prohibition and Excise
Department
[vide. Act No.17 of 1995.]
10. Inserted by Act No.32 of 2017.
$ Throughout the Act for “Prohibition and Excise Superintendent”
substituted “District Prohibition and Excise Officer” (Act No.32 of 2017).
[Act No. 17 of 1968] 5
(13) “excise tree” includes the tree of mohwa, coconut,
palm, palmyrah, date, bagani, sago, sendhi or any tree of
the species of palm or palmyrah, from the fermented or
unfermented juice of which toddy or liquor can be prepared;
(14) “export” means:-
(a) to take out of any area of the State to which this
Act extends to any other area of the State to which this Act
does not extend;
(b) to take out of the State otherwise than from a
Customs station as defined in section 2 of the Customs Act,
1962;
(15) “foreign liquor” includes every Liquor imported into
India other than *[Indian Made Foreign Liquor] and arrack;
(16) “Government” means the State Government;
(17) “import” except in the phrase “Import into India ”
means,-
(a) to bring into any area of the State to which this Act
extends from any other area of the State to which this Act
does not extend;
(b) to bring into the State otherwise than from a
customs station, as defined in section 2 of the Customs Act
1962;
11[(18) “Indian Made Foreign Liquor ” means liquor
produced, manufactured or compounded in India after the
manner of Gin, brandy, whisky or rum imported from foreign
11. Substituted by Act No.17 of 2006.
Central Act 52 of 1962.
Central Act 52 of 1962.
6 [Act No. 17 of 1968]
countries and includes Wine, Beer, Milk Punch and other
liquors consisting of or containing any such spirits, but does
not include Foreign Liquor;]
12[(18-A) “in-house” means the privilege granted under
the Act for sale of *[Indian Made Foreign Liquor] and
Foreign Liquor by club, Guest House of 13[Telangana State]
Tourism Development Corporation, Military Canteen, Airport
Transit lounge for International Air passengers;]
(19) “intoxicant” means any liquor as defined in clause
(21) or any intoxicating drug as defined in clause (20) and
includes gulmohwa (that is, mohwa flower);
(20) “intoxicating drug” means,-
(a) the leaves, small stalks and flowering or fruiting
tops of the Indian hemp plant including all forms known as
bhang, siddi or ganja;
(b) charas, that is, the resin obtained from the Indian
hemp plant which has not been submitted to any
manipulations other than those neces sary for packing and
transport;
(c) any mixture with or without neutral materials of
any of the above forms of intoxicating d rug or any drink
prepared therefrom; and
(d) any other intoxicating or narcotic substance which
the Government may, by notification, declared to be an
intoxicating drug, such substance not being opium, cocoa
leaf or manufactured drug as defined in section 2 of the
14[Narcotic Drugs and Psychotropic Substances Act, 1985;]
12. Inserted by Act No.35 of 2005.
13. Substituted by G.O.Ms.No.162, Revenue (Excise -II) Department,
dated 10.09.2015.
14. Substituted by Act No.20 of 1994.
Central Act 61 of 1985.
[Act No. 17 of 1968] 7
(21) “liquor” includes,-
(a) Spirits of wine, denatured spirits, methylated
spirits, rectified spirits, wine, beer, toddy and every liquid
consisting of or containing alcohol; and
(b) Any other intoxicating substance which the
Government may by notification, declare to be liquor for the
purposes of this Act;
(22) “manufacture” includes every process, whether
natural or artificial, by which any fermented, spirituous or
intoxicating liquor or intoxicating drug is produced,
prepared or blended and also re -distillation and every
process for the rectification of liquor;
15[(22-A) “material” includes molasses , wash and such
other substances as the State Government may, by
notification, specify;
(22-B) “molasses” means the heavy, dark coloured
residual syrup drained away in the final stage of the
manufacture of jaggery or sugar or khandasari sugar cane
or gur containing solution or suspension, sugars which can
be fermented and includes any product formed by the
addition to such syrup of any ingredient which does not
substantially alter the character of such syrup but does not
include any article which the State Government may, by
notification, declare not to be molass es, for the purpose of
this Act;]
(23) “notification” means a notification published in the
16Telangana Gazette, and the term „notified‟ shall be
construed accordingly;
15. Inserted by Act No.12 of 2005.
8 [Act No. 17 of 1968]
(24) “place” includes a house, building, booth, shed,
enclosure, shop, tent, vessel, raft and vehicle;
(25) “police s tation” includes any place which the
Government may, by notification, declared to be a police
station for the purposes of this Act;
(26) “prescribed” means prescribed by rules made
under this Act;
(27) “rectification” includes every process whereby
spirits are purified or are coloured or flavoured by mixing
any material therewith;
(28) “sale” or “selling” includes any transfer otherwise
than by way of gift;
17[(28-A) “Shop” means the privilege granted under the
Act for the exclusive sale of *[Indian Made Foreign Liquor]
and Foreign Liquor in sealed or capsuled bottles or
packages or tins to an individual in quantities not exceeding
the limits as prescribed without permitting consumption on
the licensed premises;]
(29) “spirit” means any liquor containing alcohol and
obtained by distillation, whether it is denatured or not;
(30) “toddy” means fermented or unfermented juice
drawn from an excise tree and containing alcohol;
(31) “transport” means to move from one place to
another within the State, whether or not the intervening area
16. Substituted by G.O.Ms.No.162, Revenue (Excise-II) Department,
dated 10.09.2015.
17. Inserted by Act No.35 of 2005.
[Act No. 17 of 1968] 9
lies wholly within the State, 18[and includes, to move from a
place outside the State to any other place outside it through
the intervening area lying within the State;]
19[(32) “Wash” includes fermented wort or a dilute
solution of sugar from which spirit is distilled.]
CHAPTER II.
ESTABLISHMENT AND CONTROL.
3. (1) The Government may, by notification, appoint an
officer as the #[Commissioner of Prohibition and Excise] for
the State, who subject to the general or special orders of the
Government in this behalf, shall be the chief controlling
authority in all matte rs connected with the administration of
this Act.
(2) The Commissioner shall be competent to exercise all
the powers of the Collector under this Act and shall have the
control of the administration of the #[Prohibition and Excise
Department].
4. The Collector shall exercise the powers and perform the
functions assigned by or under this Act, subject to the
general control of the Commissioner.
20[5. (1) The Government may appoint such number of
Additional Commissioner s, Joint Commissioners, Deputy
Commissioners and Assistant Commissioners of Prohibition
and Excise and District Prohibition and Excise Officers and
such other officers as they think fit for the purpose of
performing the functions respectively conferred on th em by
or under this Act.
18. Added by Act No.10 of 1989.
19. Inserted by Act No.12 of 2005.
20. Section 5 along with marginal heading substituted by Act No.10 of
1989 and sub-section (1) further substituted by Act No.17 of 1995.
Appointment of
Commissioner.
General control of
Commissioner
over Collector.
Appointment of
certain officers
and staff.
10 [Act No. 17 of 1968]
(2) The Government may sanction the appointment of
as many $[District Prohibition and Excise Officer s],
#[Assistant Prohibition and Excise Superintendents ] and
other subordinate staff as they think fi t for the purpose of
performing the functions respectively conferred on them by
or under this Act.
(3) The appointment of the posts sanctioned in sub -
section (2), shall be made by such authority as may be
prescribed.
(4) All such officers shall perform the said functions
within such area or areas or in the whole of the State as the
Government or the Commissioner may assign to them;]
21[6. [xxx]]
22[7. [xxx]]
8. The Commissioner, the Collector or the $[District
Prohibition and Excise Officer ] may, by order delegate to
any officer subordinate to him any of the powers conferred
on or functions entrusted to the Commissioner, the
Collector, or the $[District Prohibition and Excise Officer ] by
or under this Act, subject to such restrictions and control as
may be prescribed, and subject also to such limitations and
conditions, if any as be specified in the order of delegation.
$. Throughout the Act, for the words “Prohibition and Excise
Superintendent” the words “District Prohibition and Excise Officer ”
substituted vide. Act No.32 of 2017.
21. Section 6 omitted by Act No.10 of 1989.
22. Section 7 omitted by Act No.10 of 1989.
Delegation.
[Act No. 17 of 1968] 11
CHAPTER III.
IMPORT, EXPORT AND TRANSPORT.
9. (1) No intoxicant shall be imported except under a
permit issued by such officer, not below the rank of an
$[District Prohibition and Excise Officer ], and on such terms
as may be prescribed, and on payment of such excise duty
or countervailing duty and fees, a s may be levied under this
Act:
Provided that the said officer may subject to such
restrictions and conditions as may be prescribed to ensure
the collection of the excise duty or countervailing duty,
permit the import of an intoxicant without the payment of the
excise duty or countervailing duty:
Provided further that no countervailing duty shall be
payable on the intoxicant which, being liable to the payment
of duty under the Indian Tariff Act, 1934, or any other law for
the time being in force relating to the duties of customs on
goods imported into India, has been de alt with according to
such law.
(2) The officers referred to under sub -section (1) may by
an order, cancel a ny permit issued under that sub -section
for breach of any of the terms subject to which it was issued
or for any other reason to be recorded in writing therein.
10. (1) No intoxicant shall be exported except under a
permit issued by such officer, not below the rank of an
$[District Prohibition and Excise Officer ], and on such terms,
as may be prescribed and on payment of such fee a s may
be levied under this Act:
Provided that no intoxicant produced or manufactured in
India shall be permitted to be exported unless the excise
Import of
intoxicant.
Central Act 32 of 1934.
Export of
intoxicant.
12 [Act No. 17 of 1968]
duty or countervailing duty to which such intox icant is liable,
has been paid.
(2) The officer referred to under sub -section (1) may, by
an order, cancel any permit issued under that sub -section
for breach of any of the terms subject to which it was issued
or for any other reason to be recorded in writing therein.
11. 23[(1) The Government may, by notification, prohibit or
regulate the transport of an intoxicant or any kind of
intoxicants from any area into any other area within the State
or from any place outside the State to any other place
outside it through the interv ening area lying within the State
except under a permit issued under section 12.]
(2) No intoxicant exceeding such quantity as may be
prescribed either generally or for any particular area, shall
be transported, except under a permit issued under section
12.
12. 23[(1) Any officer not below the rank of an #[Assistant
Prohibition and Excise Superintendent ] authorized by the
Commissioner may issue a permit for the transport of
intoxicants.]
(2) A permit under sub-section (1) may be either a
general for definite periods and kinds of intoxicant or
special, for specified occasions and particular consignments
only:
Provided that a general permit, shall be issued only to
persons licenc ed under this Act and may spe cify the
maximum quantity of intoxicant that may be transported at
any one time.
23. Substituted by Act No.10 of 1989.
Regulation of
transport of
intoxicants.
Permits for
transport of
intoxicants.
[Act No. 17 of 1968] 13
(3) Every permit under this section shall specify-
(a) the name of the person autho rized to transport
intoxicants;
(b) the period for and the route through w hich the
permit shall be valid;
(c) the quantity, strength and description of
intoxicants for which it is issued; and
(d) any other particulars and conditions which may
be prescribed.
Explanation:- The expression „person authorised‟ in this
sub-section shall include his servants and other persons
employed by him and acting on his behalf.
CHAPTER IV.
MANUFACTURE, POSSESSION AND SALE.
13. (1) No person shall –
(a) manufacture or collect an intoxicant;
(b) cultivate hemp plant;
(c) tap an excise tree or draw toddy from any such
tree;
(d) construct or work distillery or brewery;
(e) bottle liquor for sale; or
(f) use, keep or have in his possession, any materials,
stills, utensils, implements or apparatus, whatsoever for the
purpose of manufacturing any intoxicant other than toddy,
Manufacture, etc.,
of excisable article
prohibited except
under a licence.
14 [Act No. 17 of 1968]
except under the authority and subject to the terms
and conditions of a licence granted by such officer, not
below the rank of an $[District Prohibition and Excise
Officer], as may be prescribed:
24[Provided that the provisions of this sub -section, in
so far as they relate to establishing, continuing or licensing a
distillery shall apply only to those distilleries which
manufacture spirits for potable purpose and regulatory
provisions relating to regulation and supervision, shall be
applicable to all distilleries.]
(2) A licence granted under this section shall extend to
and cover servants and other persons employed by the
licensee and acting on his behalf.
(3) Notwithstanding anything in sub -section (1) the
Government may, by notification direct t hat in such area as
may be specified therein, it shall not be necessary to take
out a licence for the manufacture of liquor for bonafied
home consumption of the manufacturer.
14. (1) The Government may, by notification, specify the
maximum quantity of any intoxicant which a person may
have in his possession:
Provided that the different maxima may be specified for
different descriptions or kinds of intoxicants.
(2) No person shall have in his possession any
intoxicant in excess of the quantity specified under sub -
section (1), except under the authority and in accordance
with the terms and conditions of –
24. Added by Act No.11 of 2000.
Possession of
excisable articles
in excess of the
quantity
prescribed.
[Act No. 17 of 1968] 15
(a) a licence for the manufacture, cultivation, sale,
buying or supply of such article, or
(b) a permit;
granted by such officer, not below the rank of an
$[District Prohibition and Excise Officer ], as may be
prescribed.
15. (1) No person shall sell or buy any intoxicant except
under the authority and in accordance with the terms and
conditions of a licence granted in this behalf:
Provided that a person having a licence to draw toddy
from an excise tree, may sell such toddy to a person
licensed to buy toddy under this Act without obtaining a
licence for such sale but subject to such restrictions and
conditions as the Commissioner may, by general or special
order, specify.
(2) A licence for sale or buying under sub -section (1),
shall be granted–
(a) by the $[District Prohibition and Excise Officer ], if
the sale or buying is within a district;
(b) by the Deputy Commissioner, if the sale or buying
is in more than one district within his jurisdiction; and
(c) by the Commissioner, if the sale or buying is in an
area within the jurisdiction of more than one Deputy
Commissioner:
Provided that subject to such conditions as may be
determined by the Commissioner, a licence for sale or
buying granted under the excise law in force in any other
Sale or buying of
excisable article
without licence
prohibited.
16 [Act No. 17 of 1968]
part of India may be deemed to be a licence granted under
this Act.
(3) Nothing in this section shall apply to the sale of any
liquor lawfully procured by any person for his private use
and sold by him or on his behalf of his representatives in
interest upon his quitting a station or after his decease.
(4) Notwithstanding anything in sub-sections (1) and (2),
no club or a hotel shall supply liquor to its members or
customers on payment of a price or any fee or subscription
except under the authority and in accordance with the terms
and conditions of a licence granted in that behalf by the
Commissioner on payment of such fees as may be fixed by
him according to scale of fees prescribed therefor.
16. (1) The Commissioner, with the previo us sanction of the
Government,-
(a) establish or continue a distillery in which spir it
may be manufactured 25[xxx] on such conditions as the
Government may impose;
(b) discontinue any distillery so established or
continued;
(c) licence, on such conditions as the Government
may impose, the construction and working of a distillery or
brewery;
(d) establish, continue or licence a warehouse
wherein intoxicants may be deposited and kept;
(e) discontinue any warehou se so established or
continued.
25. Omitted by Act No.23 of 1971.
Establishment of
distillers and
warehouses.
[Act No. 17 of 1968] 17
(2) A warehouse established under sub-section (1), shall
be for general accommodation of intoxicants subject to
duty, pending removal for local consumption or for export.
(3) Without the sanction of the Government, no person
shall remove any intoxicant from any distillery, brewery,
warehouse or other place of storage established, continued
or licensed under this Act, unless the duty, if any, impose d
under this Act has been paid:
26[Provided that the provisions of this section in so far as
they relate to establishing, continuing or licensing a distillery
shall apply only to those distilleries which manufacture
spirits for potable purpose and other regulatory provisions
relating to regulation and supervision, shall be a pplicable to
all distilleries.]
27[17. (1) Subject to the provisions of section 28 and any
rules made in this behalf, the Government may, subject to
such conditions as they may deem fit to impose, grant for a
fixed period to any person either jointly or severally, at any
place within any such area in the state as may be specified,
a lease or licence or both for the exclusive privilege,-
(i) of tapping, drawing toddy from any excise tree or
selling or of both; or
(ii) of manufacturing; or
(iii) of supplying or selling by wholesale or of both; or
(iv) of manufacturing, of supplyi ng and selling by
wholesale; or
26. Added by Act No.11 of 2000.
27. Section 17 with marginal heading substituted by Act No.10 of 1984
and subsequently by Act No.35 of 2005.
Grant of exclusive
privilege of
manufacture etc.
18 [Act No. 17 of 1968]
(v) of selling by shop; or
(vi) of selling by Bar; or
(vii) of selling by in-house; or
(viii) of selling or using for bonafide purpose as may
be specified
any liquor or other intoxicant or material as may be
specified in the said order.
(2) It shall be lawful for the Government to prescribe
from time to time different methods of selection for grant of
exclusive privilege for different purposes under sub -section
(1).
(3) Notwithstanding anything contained in sub -section
(1), a lease or licence or both in re spect of „Shop‟ may be
granted 28[for a period not exceeding two years at a time].
(4) No grantee of any privilege under sub -section (1) or
sub-section (3) shall exercise the same unless the
Commissioner of Prohibition and Excise, or any officer
authorized in this behalf issues a licence.
(5) The Government may confer on any officer all or any
of the powers mentioned in sub-sections (1) and (3).
(6) The Commissioner of Prohibition and Excise, may
after due enquiry as he may deem fit, permit a licence
holder in respect of manufacture of any liquor or intoxicant
to sub-let such a privilege and grant a licence to the person
who holds the sub -lease, on collection of such fee as may
be prescribed.]
28. Substituted by Act No.39 of 2006.
[Act No. 17 of 1968] 19
18. Every person, who manufactures or sell s any intoxicant
under a licence granted under this Act shall be bound,-
(a) to keep such measures, weights and instruments as
the Commissioner may specify on the licensed premises
and to maintain them in good condition; and
(b) on the requisition of the #[Prohibition and Excise
Officer] duly empowered in that behalf, at any time to
measure, weigh or test any intoxicant in his possession in
such manner as that officer may require.
19. (1) No person , who is licensed to sell any intoxicant for
human consumption on his premises shall, during the hours
in which such premises are kept open for such purpose,
employ or permit to be employed, either with or without
remuneration, any children under such age a s may be
prescribed, in any part of the premises where the intoxicant
is consumed by the public.
(2) No such person as is referred to in sub -section (1)
shall employ or permit to be employed either with or without
remuneration, any person who is suffering from leprosy or
any other contagious disease.
20. (1) The District Magistrate may, by notice in writing to
the 29[licensee/lease holder] require that any 29[shop/bar] 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.
Explanation:- For the purposes of this section, the
expression „District Magistrate ‟ includes the Additional
District Magistrate or any other person empowered to
exercise the powers of District Magistrate.
29. Substituted by Act No.1 of 2010.
Duties of
licensees with
regard to
measurement and
testing.
Prohibition of
employment of
children and of
persons suffering
from contagious
diseases.
Closing of shops
for preservation of
public peace.
20 [Act No. 17 of 1968]
(2) If any riot or any unlawful assembly is apprehended
or occu rs in the vicinity of any such 30[shop/bar] any
Magistrate of the first or second class may, for reasons to be
recorded in writing, require such 30[shop/bar] to be kept
closed for such reasonable period as he may think
necessary.
30[(3) The licensee/lease holder shall not, on account of
closure of the shop/bar under this section, be entitled to any
compensation or refund of licence fee or lease amount.]
CHAPTER V.
EXCISE DUTY AND COUNTERVAILING DUTY.
21. (1) The Government may, by notification, levy an excise
duty on any excisable article manufactured or produced in
the State 31[xxx] at such rate, 32[xxx] as may be specified in
the notification.
33[(2) (1) The Government may, by notification, levy a
countervailing duty on any excisable article manufactured or
produced elsewhere in India and imported into the State at
such rates as may be specified in the notification, which
may not exceed the rates of excise duty on similar excisable
articles levied under sub-section (1).
(2) The Government may, by notification levy
assessment fee or both on any excisable article
manufactured or produced in any plac e outside India and
imported into the State at such rates as may be specified in
the notification.]
30. Substituted by Act No.1 of 2010.
31. Omitted by Act No.23 of 1971.
32. Omitted by G.O.Ms.No.162, Revenue (Excise -II) Department, dated
10.09.2015.
33. Substituted by G.O.Ms.No.162, R evenue (Excise -II) Department,
dated 10.09.2015.
Excise duty or
countervailing
duty on excisable
articles.
[Act No. 17 of 1968] 21
(3) Different rates may be specified under sub -section
(1) and (2) for different kinds of excisable articles and for
different modes of levying duties under section 22.
34[(4) Notwithstanding anything contained in this Act, it
shall be open to the Government, by notification to levy
such other taxes, or duties or cess or any other fee or
registration fee or penalties or discounts, at any stage, in
respect of excisable articles or on any person connected
with the trade of excisable articles as may be specified in the
notification.]
22. The excise and countervailing duty under section 21
shall be levied in one or more of the following modes:-
(a) rateably, 35[on the quantity or advalorem of any
excisable article] produced or manufactured in or issued
from a distillery, brewery or manufactory or wareho use or
imported into the State;
(b) In the case of spirits or other liquors produced in
36[any dist illery, brewery or manufactory], in accordance
with its quality or strength or in accordance with such scale
of equivalents calculated on the quantity of materials used,
or by the degree or atten tion of the w ash or wort, as the
case may be, as be prescribed;
(c) In the case of toddy, in the form of a tax on each
variety of excise tree from which toddy is drawn having due
regard to the period during which such tre e is capable of
yielding toddy;
34. Added by Act No.32 of 2017.
35. Substituted by Act No.39 of 2006.
36. Substituted by Act No.23 of 1971.
Modes of levying
duties.
22 [Act No. 17 of 1968]
37[(d) By different rates of fees on licenses issued for
different purposes mentioned in sub -section (1) of sec tion
17, as may be prescribed.]
38[23. (1) Instead of or in addition to any excise duty or fees
leviable under section 21 and 22, the Commissioner or any
other officer authori sed may accept payment of a sum in
consideration of the grant of lease or licence or both for the
exclusive privilege in respect of liquor or any other intoxicant
under section 17.
(2) It shall be lawful for the Government to prescribe
different rates of exclusive privilege fee for different
purposes mentioned in sub-section (1) of section 17.]
39[23-A. [xxx]
23-B. [xxx]]
24. (1) Where in any area, a duty under section 21 is levied,
the owner or other person in possession of the excise trees
in that area, who is unwilling to have his excise trees tapped
or to allow the draw al of toddy there from, shall, before the
date notified in this regard by the authority empowered to
grant a licence under sec tion 13, intimate his unwillingness
in writing to the said authority. 40[Every such intimation
received before the date so notified may be approved by the
Commissioner subject to such rules as may be made in this
behalf and shall take effect only on and fro m the date on
which it is so approved; and the intimation so approved
37. Substituted by Act No.35 of 2005.
38. Section 23 with marginal heading substituted by Act No.10 of 1 984.
Renumbered by Act No.35 of 2005 as sub -section (1) with amendments
and sub-section (2) added.
39. Sections 23 -A & 23 -B inserted by Act No.17 of 2006. Subsequently
omitted by Act No.5 of 2012.
40. Substituted by Act No.6 of 1974.
Payment for
exclusive
privilege.
Owner or other
person in
possession of
excise trees to
give intimation of
unwillingness to
tap excise trees,
etc.
[Act No. 17 of 1968] 23
shall not be revoked during the period of seventeen mon ths
from the date so notified.]
(2) Where no such intimation is received by the said
authority before the date so notified, the licence applied for
under section 13 may be granted to the person applying
therefor.
41[(3) [xxx]]
25. Where the excise trees are tapped or toddy is drawn
therefrom without any licence under section 13 , the duty
payable 42[under this Act] shall be recoverable primarily
from the person who has tapped the excise trees or caused
them to be tapped and in default of payment by, or on
failure of recovery from such person, th e duty shall be
recoverable from the occupier, if any, of the land in which
the said excise trees are standing, or if the excise trees do
not belong to the occupier of such land or if the land is not
occupied by any person, from the owner or other person i n
possession of the excise trees, unless such owner or other
person proves that the excise trees were tapped or toddy
was drawn there from without his knowledge.
26. Where a licence is granted, the owner or other person in
possession of excise trees shall be entitled to receive as rent
for each excise tree from which toddy is tapped or drawn ,
43[such sum as may be prescribed , 44[xxx] and the said rent
shall be paid, by the person from whom the duty under this
Act is payable, directly to the owner or other person who is
entitled to it.]
41. Sub-section (3) omitted by Act No.10 of 1989.
42. Substituted including in the marginal heading by Act No.4 of 1979.
43. Substituted by Act No.4 of 1979.
44. Omitted by Act No.10 of 1989.
Recovery of duty
under this Act
from person other
than the licensee
in certain cases.
Rent to which the
owner or person
in possession of
excise trees is
entitled.
24 [Act No. 17 of 1968]
27. No person shall without the permission of the Collector
or such officer as may be empowered by the Government in
this behalf, cut down or destroy any excise tree 45[xxx] such
permission may be given subject to such conditions and on
payment of such fee as may be prescribed.
CHAPTER VI.
LICENCES AND PERMITS.
28. (1) Every permit 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 shall contain such particulars, as
may be prescribed.
(2) The conditions prescribed under sub-section (1) may
include provision of accommodation by the licensee to
#[Prohibition and Excise officers ] at the licensed premises
on payment of rent or other charges for such
accommodation at or near the licensed premises and the
payment of the costs, charges and expenses (including the
salaries and allowances of the #[Prohibition and Excise
officers] which the Government may incur in connection with
the supervision to ensure compliance with the provisions of
this Act, the rules made thereunder and the licence.
46[(3) In addition to the fee prescribed under sub -
sections (1) and (2) above, the Commissioner or an
Authorized Officer may levy and collect any of the following
from the manufacturers or retailers or bar owners or in
house or other persons selling or excisable article as
permitted under sub-section (1) of section 17:-
45. The words “belonging to the Government ” in section and
“Government” in marginal heading omitted by Act No.10 of 1989.
46. Added by Act No.32 of 2017.
Prohibition of
cutting down or
destroying [xxx]
excise trees.
Form and
conditions of
licence, etc.
[Act No. 17 of 1968] 25
(a) Distillery Excise Tax
(b) Brewery Excise Tax
(c) Winery Excise Tax
(d) Micro Brewery Excise Tax
(e) Retail Shop Excise Tax
(f) Elite Shop Excise Tax
(g) Bar Excise Tax
(h) Bonafide use of Excisable articles Excise Tax.
(4) In addition to the fee prescribed in sub-sections (1),
(2) and (3) above, the Commissioner or an Authorised
Officer may levy and collect any of the following from the
vendors or suppliers of excisable articles:-
(a) Early payment discount
(b) Trading fee
(c) Bulk stock delivery discount
(d) Registration fee
(e) Brand Registration fee
(f) Penalty for wrong dispatch
(g) Penalty for slow/non-moving stock
(h) Exemplary penalties in case of abnormal
breakages.
26 [Act No. 17 of 1968]
Explanation:- For the removal of doubts, it is clarified
that any fees or charges by whatsoever name called,
collected in pursuance of this section or clause (d) of
section 22 or any other section of this Act or any rules made
under this Act, from time to time, for granting any lease,
license or exclusive privil ege for different purposes
mentioned in sub-section (1) of section 17, shall irrespective
of the time, mode and manner of such collection, be
deemed to be and always deemed to have been Excise duty
or Countervailing duty on excisable articles levied a nd
collected under section 21.]
29. Subject to such rules as may be prescribed, any
authority granting licence under this Act may require the
licensee –
(a) to give security for the observance of the terms of Excerpt shown. Open the full act in Lexace.