Chapter IV MANUFACTURE, POSSESSION AND SALE

(1) No person shall-

1. (a) manufacture or collect an intoxicant;
2. (b) cultivate hemp plant;
3. (c) tap an excise tree or draw toddy from any such trees;
4. (d) construct or work a distillery or brewery;
5. (e) bottle liquor for sale; or
6. (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;except under the authority and subject to the terms and conditions of a licence granted by such officer, not below the rank of an Excise Superintendent, as may be prescribed. 2[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.]

1. (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. . Substituted by the Act No. 10 of 1989, S.6 . Clause (f) of sub-section (1) added by the Act No.11 of 2000, S.2
2. (3) Notwithstanding anything in sub-section (1), the Government may, by notification, direct that in such area as may be specified therein it shall not be necessary to take out a licence for the manufacture of liquor for bona fide home consumption of the manufacturer.

1. (1) The Government may, by notification, specify the maximum quantity of any intoxicant which a person may have in his possession: Provided that different maxima may be specified for different descriptions or kinds of intoxicants.
2. (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-
   • (a) a licence for the manufacture, cultivation, collection, sale, buying or supply of such article, or
   • (b) a permit;

granted by such officer, not below the rank of Excise

Sale or buying of excisable article without licence prohibited - (1) No person shall sell or buy any intoxicant except under the authority and in accordance with the terms and conditions of a license 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 licenced 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.

1. (2) A license for sale or buying under sub-section (1), shall be granted-
   • (a) by the Excise Superintendent, 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 part of India may be deemed to be a licence granted under this Act.
2. (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 or on behalf of his representative in interest upon his quitting a station or after his decease.
3. (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.

(1) The Commissioner may, with the previous sanction of the Government,- (a) establish or continue a distillery in which spirit may be manufactured 1[XXXX] 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 warehouse so established or continued. (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, imposed under this Act has been paid. 2[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 applicable to all distilleries.]

1. (a) establish or continue a distillery in which spirit may be manufactured 1[XXXX] on such conditions as the Government may impose;
2. (b) discontinue any distillery so established or continued;
3. (c) licence, on such conditions as the Government may impose, the construction and working of a distillery or brewery;
4. (d) establish, continue or licence a warehouse wherein intoxicants may be deposited and kept;
5. (e) discontinue any warehouse so established or continued.

1. (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.
2. (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, imposed under this Act has been paid. 2[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 applicable to all distilleries.]

(1) Subject to the provisions of section 28 and may 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 license 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 supplying and selling by wholesale; or (v) of selling by shop; or (vi) of selling 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.] (By Bare Act of 1968 of 17 Section) (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 respect of 'Shop' may be granted 4[for a period not exceeding two years at a time]. (4) No grantee of any privilege under subsection (1) or sub-section (3) shall exercise the same unless the Commissioner of Prohibition & Excise or any other officer authorised in this behalf issues a licence. .Omitted by the Act No.23 of 1971, S.2 . Added by the Act No.11 of 2000, S.3 . New section substituted by the Act No. 10 of 1984, S.2, and substituted by the Act No. 35 of . Substituted by the Act No.39 of 2006, S.2 (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.]

1. (i) of tapping, drawing toddy from any excise tree or selling or of both; or
2. (ii) of manufacturing; or
3. (iii) of supplying or selling by wholesale or of both; or
4. (iv) of manufacturing, of supplying and selling by wholesale; or
5. (v) of selling by shop; or
6. (vi) of selling Bar; or
7. (vii) of selling by In-house; or
8. (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.] (By Bare Act of 1968 of 17 Section)

1. (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).
2. (3) Notwithstanding anything contained in sub-section (1), a lease or licence or both in respect of 'Shop' may be granted 4[for a period not exceeding two years at a time].
3. (4) No grantee of any privilege under subsection (1) or sub-section (3) shall exercise the same unless the Commissioner of Prohibition & Excise or any other officer authorised in this behalf issues a licence. .Omitted by the Act No.23 of 1971, S.2 . Added by the Act No.11 of 2000, S.3 . New section substituted by the Act No. 10 of 1984, S.2, and substituted by the Act No. 35 of . Substituted by the Act No.39 of 2006, S.2
4. (5) The Government may confer on any officer all or any of the powers mentioned in sub-sections (1) and (3).
5. (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.]

Every person, who manufactures or sells 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 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.

1. (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
2. (b) on the requisition of the 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.

(1) No person, who is licenced 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 as may be prescribed, in any part of the premises where the intoxicant is consumed by the public.

1. (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.

Magistrate may, by notice in writing to the

2[shop/bar] in which any intoxicant is sold shall be closed at such times or for such period as he may think necessary for 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.

1. (2) If any riot or any unlawful assembly is apprehended or occurs in the vicinity of any such 2[shop/bar] any Magistrate of the first or second class may, for reasons to be recorded in writing, require such 2[shop/bar] to be kept closed for such reasonable period as he may think necessary. 3[(3) The 1[licensee/license holder] shall not, on account of closure of the