LexThe Tripura Excise Act, 1987
Tripura · state statute
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Agartala, Friday, September 11, 1987 A.D
Bhadra 20, 1909 S. E.
GOVERNMENT OF TRIPURA
LAW DEPARTMENT
No. F- 2(l)-LAW/LEG/87 Dated, Agartala, the 3rd August, 1987.
The following Act of the Tripura Legislative Assembly received assent of the
Governor on 27.6.1987 and is hereby published for general information.
A. B. Paul.
Deputy Secretary, Law.
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Tripura Act No. 12 of 1987.
THE TRIPURA EXCISE ACT, 1987.
AN ACT
to consolidate and amend the Laws relating to duties of excise in Tripura.
Be it enacted by the Tripura Legislative Assembly in the Thirty Eighth year of the
Republic of India as follows :-
CHAPTER— I
Preliminary
1. Short title, Extent and Commencement :-
(1) This Act may be called the Tripura Excise Act, 1987.
(2) It extends to the whole of Tripura.
(3) It shall come into force immediately.
2. Definitions :- (1) In this Act unless there is anything repugnant in the subject or
context,
(a) “beer” includes ale, stout, porter and all other fermented liquor made from malt; and
such other substances as the State Government may specify on this behalf.
(b) “bottle” means to transfer liquor from a cask or other vessel to a bottle or other
receptacle for the purpose of sale, whether any process of rectification be employed
or not; and includes re-bottling.
(c) “Collector” means the Collector of the District and includes any officer appointed
by the State Government to exercise and perform all or any of the powers and
functions of the Collector under this Act ;
(d) “denaturant” means any substance prescribed for admixture with spirit in order to
render the mixture unfit for human consumption;
(e) “denature” means mixing of sprit with one or more denaturants in such manner
as may be prescribed for the purpose of rendering it unfit for human
consumption;
(f) “excisable article” means :-
(a) any alcoholic liquor for human consumption ; or
(b) any intoxicating drug; “but does not include medicinal and toilet preparations
containing alcohol or any intoxicating drug”.
“Explanation” :- In this clause the expressions “medicinal preparations and toilet
preparations” have the same meaning as assigned to it in the “Medicinal and Toilet
Preparations (Excise Duties) Act, 1945.”
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(g) “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,
(h) 1“Excise Commissioner” means the officer appointed under Section 5.
(i) “Excise officer” means the Collector or any officer or other person appointed
or invested with powers under section 5 ;
(j) “Excise Revenue” means revenue derived or derivable from any duty, fee, tax,
payment (other than a fine imposed by a Criminal Court) or confiscation imposed or
ordered under this Act or any other law for the time being in force relating to
liquor or intoxicating drugs ;
(k) “export” means to take out of Tripura otherwise than across a customs frontier as
defined by the Central Government;
(1) “import” (except in the phase “import into India”) means to bring into Tripura
otherwise than across a customs frontier as defined by the Central Government ;
(m) “Intoxicant” means —
(i) any liquor, or
(ii) any substance from which liquor may be distilled and which is declared by the
State Government by notification in the Tripura Gazette to be an intoxicant for
the purpose of this Act or
(iii) any intoxicant drug ;
(n) “intoxicating drug” 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, siddhi 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;
(iii) any mixture, with or without natural materials of any of the above forms or
intoxicating drug, or any drink prepared there from ; and
(iv) any, other intoxicating or narcotic substances or any fermenting agent
which the State Government may specify in this behalf by notification, such
substance or agent not being opium, cocaleaf, or a manufactured drug, as
defined in the Narcotic Drug and Pschycotropic Substances Act,1985.
1. Substituted by Act 4 of 1992 (1 st Amendment Act, 1992) dated. 23 -06-
1992.
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(o) “Liquor” means intoxicating liquor and includes all liquid consisting of or
containing alcohol and any substance which the State Government, by a
notification may declare to be liquor for the purpose of the Act.
(p) “manufactures” includes —
(i) every process whether natural or artificial, by which any intoxicant is produced
or prepared (including the topping of tari producing trees and the drawing of
tari from trees).
(ii) every process for the rectification, flavouring, blending, or colouring of
liquor or for the reduction of liquor for sale ; and
(iii) re-distillation.
(q) “Notification” means notification in the Tripura Gazette.
(r) “Pachwai” means fermented rice, millet or other grain, whether mixed with any
liquid, or not and any liquid obtained therefrom, whether diluted or undiluted, but
does not include beer ;
(s) “Place” includes building, house, shop, booth, vessel, raft, vehicle and tent;
(t) “Prescribed” means prescribed by rules made under this Act ;
(u) “sale” includes any transfer otherwise than by way of gift ;
Explanation :- The supply of liquor by a club, mess, institute, society, lodge or other
similar organisation by whatever name called to its member or their guest whether on
payment of price or of any fee or subscription or not shall be deemed to be a sale within the
meaning of this clause ;
(v) “State Government” means the State Government of Tripura.
(w) “Spirit” means any liquor containing alcohol obtained by distillation, whether it is
denatured or not;
(x) “tari” means fermented or unfermented juice drawn from any coconut, palmyra;
date or other kind of palm tree; and
(y) “transport” means to remove from one place to another within the State of Tripura.
3. Power to declare “country liquor” and “foreign liquor” : - The State Government
may, by notification, declare what, for the purpose of this Act or any portion thereof,
shall be deemed to be “country liquor” and “foreign liquor” respectively.
4. Definition of retail and wholesale :- (1) The State Government may, by notification,
declare with respect either to whole of Tripura or to any specified local area, and as
regards purchasers generally or any specified class of purchasers and either generally or
for any specified occasion, what quantity of any intoxicant shall, for the purpose of this
Act, be the limit of a retail sale.
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(2) The sale of any intoxicant in any quantity in excess of the quantity declared in respect
thereof under sub-section (1) shall be deemed to be a sale by wholesale.
CHAPTER— II
Establishment, Control, Appeal and Revision.
5. Establishments, delegation and withdrawal of powers :-
(1) The administration of the Excise Department and the collection of the excise revenue
within a district shall ordinarily be under the charge of the Collector.
(2) The State Government may, for the whole of Tripura or any specified local area,
(a) appoint an officer of the Government to be the Excise Commissioner who
shall, subject to such control as the State Government may direct from time
to time be in charge of the administration of the provisions of this Act and
rules made thereunder including collection of excise revenue;
(b) appoint any other person 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 Act, either concurrently with, or in subordination to, or to the exclusion of,
the Collector and subject to such control as the State Government may direct;
(c) appoint any other officers of the Excise Department, to perform such
powers and duties of the excise officer as the State Government may think
fit ;
(d) appoint officer of the designation ‘Public Analyst’ to be in-charge of scientific
analysis of samples and materials in relation to administration of this Act ;
(e) order that all or any of the powers and duties assigned by or under this Act to
any officer appointed under clause (c) of this sub-section shall be exercised and
performed by any servant of the Government or any other person ;
(f) delegate to the Excise Commissioner, all or any of the powers conferred upon the
State Government by or under this Act, except the powers to make rules;
(g) withdraw from any officer or person all or any of the powers or duties
conferred or imposed upon him by or under this Act; and
(h) permit the delegation by the Excise Commissioner or the Collector, to any
person or classes of persons specified in such notification, of any powers
conferred or duties imposed upon him by or under this Act.
6. Control, Appeal and Revision :-
(1) The Collector shall in respect of all proceeding under this Act, be subject to the
control of the Excise Commissioner.
(2) Orders passed under this Act or under any rule made hereunder shall be appealable
in such cases, to such authorities and under such procedures as may be prescribed.
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(3) The State Government may revise any order passed by the Collector or the
Excise Commissioner or by any officer exercising the powers of an appellate
authority under any rule made under this Act.
CHAPTER—III
Import, Export and Transport.
7. Restriction on Import :-
(1) No intoxicant shall be imported unless —
(a) the State Government has given permission, either general or special, for its
import;
(b) such conditions (if any) as the State Government may impose have been
satisfied ; and
(c) the duly (if any) payable under Chapter V has been paid or a bond has been
executed for the payment thereof;
Provided that the State Government may subject to such conditions (if any) as it thinks
fit to impose, exempt any intoxicant from provisions of this sub-section.
8. Restriction on Export or Transport :- No intoxicant shall be exported or
transported or transported unless —
(a) the duty (if any) payable under Chapter V has been paid or a bond has been
executed for the payment thereof;
(b) such conditions, if any, as the State Government may impose, have been satisfied;
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.
9. Power to prohibit Import, Export or Transport :- The State Government may by
notification.
(a) prohibit the import or export of any intoxicant into or from the State of Tripura or
any part thereof, or
(b) prohibit the transport of any intoxicant, either absolutely or in such circumstances
as it may by notification specify.
10. Pass for import, export or transport :-
(1) No intoxicant exceeding such quantity as the State Government may prescribe by
notification either generally or for any specified local area, shall be imposed
exported or transport, except under a pass ;
(2) The pass required by Sub-section (1) may be granted by the Collector ;
(3) Such pass may be either general for definite period and particular kind of
intoxicants, or special for specified occasion and particular consignments only.
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CHAPTER—IV
Manufacture, Possession and Sale
11. Licence required for manufacture :-
(a) No intoxicant shall be manufactured,
(b) no hemp plant (Cannabis Sativa) shall be cultivated.
(c) no portion of the hemp plant (Cannabis Sativa) from which an intoxicating drug
can be manufactured or produced shall be collected,
(d) no liquor shall be bottled for sale,
(e) no distillery or brewery shall be worked, and
(f) no person shall use, keep or have in his possession any materials, still, untensil,
implement or apparatus whatsoever for the purpose of manufacturing any
intoxicant other than tari except under the authority and subject to the terms and
conditions of a license granted in that behalf by the Collector :
Provided that any tari producing tree may be tapped and tari may be drawn from
any tree, without a license under this section by the person in possession of the tree, for
the purpose of being used solely in the manufacture of gur or molasses, or for the
purpose of being used for the preparation of food for domestic consumption not
exceeding a limit of four litres.
12. Drawing of tari in notified area :-
Notwithstanding anything contained in the proviso to section 11;
(a) no tari producing tree shall be tapped or
(b) no tari shall be drawn from any tree, in any local area specified in this behalf by
the State Government by notification, except under the authority and subject to the
terms and condition of a license granted in that behalf by the Collector :
Provided that, when any exclusive privilege of manufacturing tari has been
granted under section 20, the State Government may declare that the written
permission given by the grantee to draw tari shall have the same force and effect as a
license granted by the Collector under this section:
Provided also that in any local area specified by notification under this section, the
State Government may by notification, declare that this section shall not apply to tress
tapped or tari drawn under such special conditions as the Excise Commissioner may
prescribe.
13. Establishment of distilleries, breweries or warehouse :-
(1) The Excise Commissioner may,
(a) subject to any restrictions imposed by the State Government establish, or
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authorise the establishment of distilleries or breweries in which liquor any be
manufactured under a license granted under section 11;
(b) discontinue or other for discontinuation of any such distillery or brewery;
(c) establishment or authorise the establishment of warehouse wherein any
intoxicant may be deposited and kept without payment of duty;
(d) discontinue or order for discontinuation of any such warehouse,
(2) No distillery, brewery or warehouse, as a foresaid, shall be established except by , or
under the authority of the Excise Commissioner.
14. License required for depositing or keeping intoxicant in warehouse or other place of
storage : - No person shall, except under the authority and subject to the terms and
conditions of a license granted in that behalf by the Collector, deposit or keep any
intoxicant in any warehouse or other place of storage established, authorised or
continued under this Act.
15. Payment of duty on removal from distillery, brewery, warehouse or other place of
storage :- No intoxicant shall be removed from any distillery, brewery, warehouse or
other place of storage licensed, established, authorised or continued under this Act,
unless the duty (if any) payable under Chapter V has been paid or a bond has been
executed for the payment thereof.
16. Subject to the provision of the Act :-
No person shall have in his possession any toxicant,
(i) in excess of the quantity declared under section 4 to be the limit of retail sale;
and
(ii) not obtained from a licensed vender except under a permit granted by the
Collector:
Provided that the restriction of this section shall not apply to a person possessing
tree and drawing tari therefrom not exceeding four litres for domestic consumption.
17. (1) A licensed vendor shall not have his possession at any place other than that
authorised by his license any intoxicant in excess of such quantity as the State
Government may under section 4 declare to be the limit of retail sale except under
a permit granted by the Collector in that behalf.
(2) Notwithstanding anything contained in the foregoing provision if the State
Government thinks fit so to do on the ground of health, morality or public order, it
may, by notification, prohibit either absolutely or subject to such conditions as it
may prescribe the possession of any intoxicant by all persons generally or by any
specified class or classes of persons.
18. License required for sale : - No intoxicant and no portion of a hemp plant (Cannabis
Sativa) from which an intoxicating drug can be manufactured or produced, shall be sold
except under the authority and subject to the terms and conditions of a license granted in
that behalf by the Collector in conformity with general instructions issued by the State
Government in respect of settlement of any class or class of vend Licenses :
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Provided that —
(1) a license for such sale in more than one district shall be granted only by the
Excise Commissioner or by a Collector specially authorised in that behalf by
the Excise Commissioner ;
(2) a cultivator or ow ner of any hemp plant (Cannabis Sativa) may sell without a
license, those portions of the plant, from which an intoxicating drug can be
manufactured or produced, to any person licensed for the purpose under this Act,
to any officer whom the Excise Commissioner may authorise to purchase or receive
the same.
(3) no license shall be required for any of the following sales, namely :-
(a) the sale of foreign liquor lawfully procured by any person for his private use,
within the permissible limit when such sale is made by such person himself or
on his behalf upon his quitting a station, or on behalf of his representatives
in interest after his decease.
(b) the sale of tari lawfully possessed, and intended to be used in the manufacture
of gur or molasses; or
(c) the sale of tari lawfully possessed and intended to be used in the Manufacture
of bread to a person holding a permit to use tari for the purpose of making
bread ; or
(d) the sale of tari lawfully possessed and intended to be used, solely for the
preparation of food for domestic consumption and not
(i) as an intoxicating article, or
(ii) for the preparation of any intoxicating article, or
(iii) for the preparation of any article for sale.
19. Manufacture and sale of liquor in or near cantonments :- Within the limits of any
military cantonment and within such distance from those the as, the Central
Government may in any case prescribe, no license for manufacture or sale of liquor
shall be granted except with previous consent of Commanding Officer.
20. Grant of exclusive privilege for manufacture and sale of country liquor or
intoxicating drugs :-
(1) The State Government may grant to any person, on such condition and for such
period as it may think fit the exclusive privilege for one or more of the following
purposes, namely :-
(a) manufacturing;
(b) supplying by wholesale ;
(c) supplying by retail sale any country liquor or intoxicating drugs within any
specific local area ;
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Provided that public notice shall be given of the intention to grant any such
exclusive privilege and that any objection made by any person residing within the
area affected shall be considered before an exclusive privilege is granted.
(2) No grantee of any privilege under sub -section (1) shall exercise the some
unless on until he has received a license in that behalf from the Collector or the
Excise Commissioner.
21. Transfer of Exclusive privilege :
(1) A grantee of an exclusive privilege under section 20 shall not let or assign the
same or any portion thereof unless he is expressly authorised, by a condition made
under that section to do so.
(2) Such letting or assignment shall be made only to a person approved by the Collector
or if the letting or assignment extends to more than one district by the Excise
Commissioner.
(3) The lessee or assignee shall not exercise any rights as such unless and until the
Collector or the Excise Commissioner or as the case may be, has upon his
application, granted him a license to do so.
22. Maintenance and use of measures, weights and instruments by licensed
manufactures and vendors :- Every person who manufactures or sells any
intoxicant under a license granted under this Act —
(a) Shall supply himself with such standard weights and instruments duly stamped
and verified by the competent authority as the Excise Commissioner may
prescribe and shall keep the same in good condition ; and
(b) When such measures, weights or instruments have been so prescribed, shall, on
the requisition of any Excise Officer duly empowered by the Collector in this,
behalf, measure, weight or test any intoxicant in his possession, at such time and in
such manner as such officer may require,
23. Employment of young persons or woman by licensed vendors :-
(1) No person who is licensed to sell foreign liquor or country spirit for consumption
on his premises shall, during the hours in which such premises are kept open for
business, employ or permit to be employed, either with or without remuneration,
any person under the age of twenty one years, in any part of such premises in which
such liquor or spirit is consumed by the public.
(2) No person who is licensed to sell foreign liquor or country spirit for consumption on his
premises shall, without the previous written permission of the Excise Commissioner;
during the hours in which such premises are kept open for business, employ or permit to
be employed, either with or without remuneration, any woman, in any part of such
premises in which such liquor is consumed by the public.
(3) Every permission granted under sub-section (2) shall be endorsed on the license and
may be modified or withdrawn.
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24. Power to close shops temporarily :-
(1) The District Magistrate or a Sub-Divisional Magistrate, m ay by notice in to the license
require that any shop in which any intoxicant is said shall be closed at such time or for
such period as such Magistrate may think necessary for the preservation of the public
peaces and maintenance of law and order.
(2) If any riot or unlawful assembly is apprehended or occurs in the vicinity of any shop in
which any intoxicant is sold, any Magistrate or any Police Officer of or above the rank
of Sub-Inspector present, may require such shop to be kept closed for such period
as he may think necessary.
(3) When any Magistrate or Police Officer makes a direction under sub-section (1) or sub-
section (2) he shall forthwith inform the Collector of his action and the reason
therefor.
CHAPTER— V
DUTY
25. Power to impose duty on import, export, transport and manufacture :-
(1) An excise duty or a countervailing duty, as the case may be, at such rate or rates as the
State Government may direct from time to time, may be imposed either generally or
for any specified local area, on —
(a) any excisable article imported, or .
(b) any excisable article exported, or
(c) any excisable article transported, or
(d) any excisable article (other than tari) manufactured under any license granted in respect
of clause (a) of section 12, or
(e) any hemp plant (Cannabis Sativa) cultivated, or any portion of such plant
collected, under any license granted in respect of clause (b) or clause (c) of section
12, or
(f) any excisable articles manufactured in any distillery or brewery licensed,
established, authorised or continued under this Act.
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1 “Explanation :- Duty under this Sub-Section may be imposed time to time, by the
Excise Commissioner, by Notification, with prior approval of the Government, on any
article, prescribing different rates according to the varying strength, quality of such article
and/or Ad-valorem levy, either on Ex-bond Price or on Maximum Retail Price (MRP),
fixing feasible abatement factor and multiplication factor”.
(2) 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 tari drawn under any license granted under sub- section (1) of
section 12.
26. Ways of levying such duty :- Subject to any rules made under section 88 any duty
imposed under section 25 may be levied in any of the following ways :-
(a) on an excisable article imported :-
(i) by payment, upon or before importation, in the state of Tripura.
(ii) by payment upon issue for sale from a warehouse established, authorised or
continued under this Act,
(b) on an excisable article exported — by payment in the State of Tripura or
(c) on an excisable article transported —
(i) by payment in the district from which the article is sent, or
(ii) by payment upon issue for sale from a warehouse established, authorised or
continued under this Act.
(d) on intoxicating drugs manufactured, cultivated or collected,
(i) by rate changed upon the quantity manufactured under a license granted in respect of
the provisions of section 11, clause (a) issued for sale from a warehouse established,
authorised or continued under this Act, or
(ii) by a rate assessed on the area covered by, or on the quantity or outturn of, the
crop cultivated or collected, under, a license granted inn respect of the provisions
of section 11 clause (b) or clause (c),
(e) on spirit or beer manufactured in any distillery or brewery licensed, established,
authorised or continued under this Act,
(i) by a rate charged upon the quantity produced in or issued from the distillery or
brewery, as the case may be, or issued for sale from a warehouse established,
authorised or continued under this Act,
(ii) in accordance with such scale of equivalents calculated on the quantity of
materials used, or by the degree or attenuation of the wash or wort, as the case
may be, as the State Government may prescribe ; and
1. Substituted by Act 10 of 2018 (3rd Amendment Act, 2018) dated 17-12-2018.
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(f) on tari drawn under a license granted under sub-section (1) of section 12 :- by a tax on
each tree from which the drawing of tari is permitted : Provided that, 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 such article from such warehouse ;
Provided also that no tax shall be levied in respect of any tree from which tari is
drawn only for the manufacture of gur or molasses and under such special conditions
as the Excise Commissioner may prescribe.
27. Payment for Grant of Exclusive Privilege.
Instead of, or in addition to any duty leviable under this Act, the State Government may
direct payment of a sum to be fixed by it in consideration of the grant of any exclusive
privilege under section 20.
CHAPTER—VI
Licenses, Permits and Passess
28. Preparation of list of places for which it is proposed to grant license for the retail
sale of spirit :-
Before the expiry of every period for which existing licenses for the retail sale of spirit
are in force the Collector shall prepare a list in a form prescribed by the Excise
Commissioner showing what licensees it is proposed to grant for the retail sale of spirit,
for consumption on the vendors’ premises, for the next period of settlement.
29. Publication of such list —
(1) The Collector shall —
(a) cause to be conspicuously affixed upon the site of each shop referred to in said
list a notice to the effect that it is proposed to grant a license for the retail sale of
spirit thereat, or in the vicinity for the next period of settlement;
(b) if any site referred to in the said list is not at the time used for the retail sale of
spirit, cause a notice to the effect that it is a proposed to grant a license for retail
sale of spirit thereat, or in the vicinity for the next period of settlement, to be
proclaimed in the locality by beat of drum;
(c) send to the Chairman or Administrator of each Municipality an extract
reproducing so much of the said list as relates to shops in the Municipality;
and
(d) cause the said list, or any portion thereof, to be published in such other
method (if any) as may be prescribed.
(2) When an extract is sent to the Chairman or Administrator of any Municipality
under clause (c) of sub-section (1), he shall :-
(i) Cause a copy of the extract to be conspicuously affixed at the central office
of the Municipality concerned ; and
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(ii) Send to each member of each ward committee (if any) a copy of so much of
the extract as relates to shop situated in his ward-
30. Time for preparation and publication of such list :-
The list mentioned in Section 28 shall be prepared and shall be published under Section
29, at such timed as may be prescribed in this behalf.
31. Submission of objections and opinions to Collector :-
(1) Objections to any proposal contained in any list prepared under Section 28 may
be received, at any time prior to the date prescribed in this behalf from :-
(a) Persons paying municipal rents and residing in any municipality to which
such proposal relates or, if any such Municipality is divided into wards, in the
ward to which such proposal relates or in any ward ad joining such ward; or
(b) in the case of shops not situated in any Municipality) persons owning or
occupying land or residing in the vicinity of the shop to which such proposal
relates; or
(c) the District Magistrate.
(2) Such objections must be submitted to the Collector :-
Provided that in any Municipality they may, at the option of the objection, be submitted
to the Chairman or Administrator of the Municipality.
(3) Every Chairman or Administrator of a Municipality to whom an extract has been sent
under Section 29, shall send to the Collector, by a date prescribed by rule made in
this behalf.
(i) objections (if any) : to the proposals contained in the extract which, may be
received by the Chairman, or the Administrator from persons paying
municipal rates, before that date and
(ii) any opinion which the Chairman or the Administrator may wish to record on the
said proposals.
32. Grant of licenses by Collector and submission of list with objections and opinions
to Excise Commissioner.
(1) After the date prescribed for the receipt of objections and opinions submitted under
Section 31 the Collector shall consider the same, - and shall, if necessary, revise
the said list, and shall decide for what places licenses for the retail sale of spirit
shall be granted, and may, in his discretion, grant licenses accordingly.
(2) The Collector shall then forthwith submit the said list, as so revised and the said
objections and opinions and his own opinion to the Excise Commissioner.
33. Finality of decisions of Excise Commissioner :-
The Excise Commissioner shall consider the list of objection and opinion sent to him -
and may modify or annual any order passed or license granted by the Collector, and
not withstanding anything contained in section 6, his orders shall be final.
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34. Application of sections 28 to 33 to licenses for retail sale of intoxicants other
than spirit :-
The provisions of sections 28 to 33 as to licenses for the retail sale of spirit shall apply also in
respect of license for the retail sale, in any local area specified in any order made by the
State Government in this behalf, of any other intoxicant specified in such order.
35. Exemption of certain licenses from sections 28 to 34 :-
Section 28 to 34 shall not apply in the case of any license which it is proposed to grant
a) to any person, for the retail sale of any intoxicant, during any period not exceeding one
month; or
(b) to any person, for the sale of any denatured spirit; or
(c) to any person, for the retail sale of any intoxicant in substitution for a license which
has been cancelled or withdrawn or surrendered before the expiration of the period for
which it was granted ; or which has lapsed on the death’ of the person to whom it
was granted ; or
(d) to any medical practitioner, chemist, druggist, apothecary or keeper of a
dispensary, for the retail sale of any intoxicant for medical purposes.
36. Fees for terms, conditions, and form of, and duration of licenses, permits and
passes—Every license, permit or passed under this Act —
(a) shall be granted—
(i ) on payment of such fees (if any), and
(ii) subject to such restrictions and on such conditions and
(b) shall be in such form and contain such particulars as the State Government may
direct.
37. Grant of license, permit etc. :-
Every license, permit or pass under this Act shall be granted for such period as may be
prescribed.
38. Counterpart agreement by license, and security or deposit :-
Any authority granting a license under this Act may require the grantee to execute a
counterpart agreement in conformity with the tenor of his license, and to give such
security for the performance of such agreement, or to make such deposit in lieu of
security, as such authority may think fit.
39. Technical defects, irregularities and omissions :-
(1) No license granted under this Act shall be deemed to the invalid by reason merely
of any technical defecty, irregularity or omission in the license or in any
proceedings taken to the grant thereof.
(2) The decision of the Excise Commissioner as to what is a technical defect,
irregularity or omission, shall be final.
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40. Power to cancel or suspend license, permit or pass :-
(1) Subject to such restrictions as the State Government may prescribe, the authority
who granted any license, permit or pass under this Act may cancel or suspend it —
(a) If it is transferred or sublet by the holder thereof without the permission of
the said authority; or
(b) if any duty or fee payable by the holder thereof be not duly paid ; or
(c) in the event of any breach by the holder thereof, or by any of his servants, or
by any one acting on his behalf with his express or implied permission, of the
terms or conditions thereof or
(d) 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 any offence punishable under the
Narcotic Drug and Pschycotropic Substances Act, 1985 or under the Trade
and Merchandise Marks Act, 1958 (43 of 1958), or under any section which
has been introduced into the In dian Penal Code by section 3 of that Act (Act
XLV of 1860); or under the Medical and Toilet Preparations (Excise duties)
Act, 1945 ; or
(e) if the holder thereof is punished for any offence under the Customs Act, 1962
or
(f) Where a license, permit or pass has been granted on the application of the
holder of any exclusive privilege granted under section 20 on the requisition
in writing of such holder ; or
(g) if the conditions of the license, permit or pass provided for such
cancellation or suspension at will.
(2) When a license, permit or pass held by any person is cancelled under clause (a),
clause (b), clause (c), clause (d), or clause (e) of sub -section (1) the authority
aforesaid may cancel any other license, permit or pass granted to such person by, or
by the authority of, the State Government under this Act, or under the Narcotic
Drugs and Pschycotropic Substances Act, 1985.
(3) The holder of a license, permit or pass shall not be entitled to any compensation
for its cancellation or suspension under this section, or to the refund of any fee
paid or deposit made in respect thereof.
41. Power to withdraw license :-
(1) Whenever the authority who granted any license under this Act considers that the
license should be withdrawn for any cause other than those specified in section 40,
it may withdraw the license either :—
(a) on the expiration of fifteen days notice in writing of its intention to do so, or
(b) forthwith, without notice.
(2) If any license be withdrawn under sub-section (1), the said authority shall, pay to
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the licensee such sum (if any), by way of compensation, as the Excise Commissioner
may direct.
(3) When a license is withdrawn under sub-section (1), any fee paid in advance, deposit
made by the licensee in respect thereof shall be refunded to him after deducting
the amount (if any) due to the Government.
42. Surrender of license :-
(1) Any holder of a license granted under this Act to sell an intoxicant may, unless
his license is liable to cancellation or suspension under section 40 surrender the
same on —
(i) the expiration of one month’s notice in writing given by him to the
Collector of his intention to surrender it, and
(ii) payment of the fees 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 direct the licensing authority to remit to
the holder thereof the sum so payable on surrender, and any fees paid in advance,
or any portion of such sum or fees.
(2) Sub-section (1) shall not apply in the case of a license for the sale of any country
liquor or intoxicating drug in the exercise of an exclusive privilege granted under
section 20.
Explanation :- The word “holder of license” as used in this section, include a person
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 provided in section 41 any claim to compensation
on the determination thereof. whose tender or bid for a license has been accepted,
although he may not actually have received the license.
43. Bar to right of renewal and to compensation :-
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 provided in section 41 any claim to compensation
on the determination thereof.
CHAPTER—VII
Departmental Management or Transfer.
44. Power of Collector to take grants under management or to transfer them :-
If any holder of a license granted under this Act, or any person to whom an exclusive
privilege has been granted under section 20, contravenes any provision of this Act, or any
made hereunder, or makes default in complying with any condition imposed upon him by
such license or privilege, or
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if any holder of a license granted under this Act surrenders the same under Section 42,
the collector may (in the case of a license, after the cancellation or surrender thereof
and, in the case of an exclusive privilege, at any time) —
(a) take the grant under management, at the risk and loss of the person to whom it was
made, or
(b) transfer the unexpired portion of the grant, at the risk and loss of the said person, to
any other person.
CHAPTER — VIII
Offences and Penalties
45. Penalty for unlawful import, export, transport, manufacture, possession, sale etc :-
If any person, in contravention of this Act, or of any rule, notification or order made,
issued or given, or license, permit or pass granted, under this Act.
(a) imports, exports, transports, manufactures, possesses or sells any intoxicant,
or
(b) cultivates, any hemp. plant (Cannabis Sativa), or
(c) collects or sells any portion of the hemp plant (Cannabis Sativa) from which-an
intoxicating drug can be manufactured or produced ; or
(d) bottles, any liquor for purposes of sale; or
(e) works any distillery or brewery ; or
(f) uses, keeps or has in his possession any materials, still, untensil, implement or
apparatus, whatsoever for the purpose of manufacturing any intoxicant other than tari,
or
(g) establishes any distillery, brewery or warehouse, or
(h) removes any intoxicant from any distillery, brewery, warehouse or other place of
storage licensed, established, authorised or continued under this Act,
he shall be liable to imprisonment for a term which may extend to two years or 1 to
fine of not less than ten thousand rupees which may extend to fifty thousand rupees,
or to both.
1. Substituted by Act 8 of 2017 (2nd Amendment Act, 2017) dated 03-06-2017 and by
Act 6 of 2021 (4th Amendment Act, 2021) dated 11-06-2021.
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46. Offence by Companies :-
(1) where an offence under this Act has been committed by a Company, every person,
at the time the offence was committed was in charge of and was responsible to the
Company for the conduct of the business of the Company, as well as the
company, shall be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render such person liable
to any punishment provided in this Act, if he proves that the offence was
committed without his knowledge or that he exercised all due diligence to prevent
the Commission of such offence.
(2) Notwithstanding anything contained in sub -section (l), where an offence under
this Act has been committed by a company and it is proved that the offence has
been committed with the consent or connivence of, or is attributable to, any
neglect on the part of any Director, Manager, Secretary or other Officer shall
also be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.
Explanation :—For the purpose of this section.
(a) Company means any body corporate and includes a firm or other
association of individual, and
(b) ‘Director in relation to a firm means a partner in the firm.
47. Presumption as to offence where possession is not satisfactorily accounted for :-
In prosecutions under section 45 it may be presumed unless and until the contrary is
proved, that the accused person has committed an offence punishable under that section
in respect of :-
(a) any intoxicant; or
(b) any steel utensil, implement or apparatus whatsoever for the manufacture of any
intoxicant other than tari; or
(c) any materials which have undergone any process towards the manufacture of an
intoxicant or from which an intoxicant has been manufactured, for the possession
of which he fails to account for satisfactorily.
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48. Penalty for altering or attempting to alter any denatured spirit :-
If any person alters or attempts to alter any denatured spirit, whether manufactured in India
or not, with the intention that such spirit may be used for human consumptionwether
as a beverage, or internally as a medicine, or in any other way whatsoever , by any
method whatsoever, or has in his possession any spirit in respect of which he knows or
has reason to believe that any such alteration or attempt has been made, he shall be
liable to imprisonment for a term which may extend to two years or 1 to fine of not less
than ten thousand rupees which may extend to fifty thousand rupees, or to both.
49. Presumption as to offence under section 48 in certain cases :
In prosecutions under section 48 when the accused person is proved to have been in
possession of any spirit which is, or contain or has been derived from denatured spirit and
in respect of which may such alteration or attempt as is referred to in section 48 has
been made, it may, from the mere fact of such possession, be presumed unless and
entil the contrary is proved, that Excerpt shown. Open the full act in Lexace.