Chapter II Chapter II

Indian Made Foreign Liquor Import in Bond

Excise Authorities and delegation of powers.—

1. (1) for carrying out the purposes of this Act, the Government shall appoint an Officer to be called the Commissioner of Excise.
2. (2) To assist the Commissioner in the execution of his functions under this Act, the Government shall appoint as many Deputy or Assistant Commissioners or other Officers as may be considered necessary.
3. (3) The Commissioner may, subject to the rules and orders regulating the conditions of service of persons in public services and posts, appoint as many Excise Inspectors, Sub- Inspectors of Excise and such other executive or ministerial staff as may be sanctioned by the Government to assist him in the execution of his functions.
4. (4) The Commissioner and all other Officers and persons appointed under sub-sections
5. (2) and
6. (3) shall exercise such powers as may be conferred and perform such duties as may be required, by or under this Act.
7. (5) The Commissioner and all other Officers and persons appointed under sub-sections
8. (2) and
9. (3) shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (Central Act 45 of 1860).
10. (6) Subject to such restrictions and conditions as may be prescribed, the Government may by order in writing, delegate any of its powers under this Act to the Commissioner.
11. (7) Subject to such restrictions and conditions as may be prescribed, the Commissioner may, by order in writing, delegate any of his powers under this Act to the Deputy or Assistant Commissioner or to such other Officers and persons appointed under sub-sections
12. (2) and (3).

Uniforms.—

1. (1) Such members of the staff appointed to perform duties under the Act shall wear such uniform which shall be supplied to them free of cost and shall be entitled to such allowances as may be prescribed.
2. (2) The members of the staff performing duties by wearing the prescribed uniform shall be imparted requisite training at the police training center in consultation with the Police Department.

Import of excisable articles.—

1. (1) No 37[excisable article] shall be brought into the State from the rest of India or a place outside India except on the authority of a permit issued by the Commissioner indicating that the duty or fee, if any, imposed by or under this Act has been paid or bond has been executed for the payment thereof in the prescribed form and manner.
2. (2) No foreign liquor shall be imported into the State from custom stations situated outside the State except on the authority of a permit or no objection certificate issued by the Commissioner indicating that the fees or cess, if any, imposed or under this Act has been paid.

Export of [excisable articles].— No [excisable articles] shall be exported from the State to any place within India or outside India except on the authority of a permit or no objection certificate, as the case may be, issued by the Commissioner indicating that the fees or cess, if any, imposed by or under this Act has been paid.

Provided that when the excisable articles are to be exported from the State to any place outside India, the exporter or his authorized agent shall present the excisable articles together with duplicate copy of the document issued by the Commissioner to the Customs

Transport of excisable article Transport of [excisable article].— No [excisable article] exceeding such quantity as the Government may, from time to time prescribe by notification either for the whole of the [State] or for any local area thereof, shall be transported within the [State] except on the authority of and in accordance with the conditions, if any, in a permit issued by the Commissioner:

Provided that unless the Government by notification otherwise directs with respect to any local area, no such permit shall be required when foreign liquor is transported for genuine private consumption or for sale at any place at which the sale of such liquor is duly licensed or permitted under the provisions of this Act.

Removal of excisable articles from bonded warehouses of distilleries, etc.— No [excisable article] shall be removed from bonded warehouse of any distillery, brewery, winery, pot still, warehouses of licensed wholesale dealers, warehouse or other place of storage established or licensed under this Act unless the duty, fee, surcharge on duty, cess, if any, payable under this Act has been paid or unless a bond has been executed for the payment thereof in the prescribed form and manner.

Manufacture of liquor.—

1. (1) [No excisable article shall be manufactured or produced, no liquor shall be bottled], no tree shall be tapped for toddy and no juice shall be drawn from any tree or from cashew fruit except under the authority of a licence issued under this Act.
2. (2) No person shall use, keep or have in his possession any material, still, utensil, implement, or apparatus for the purpose of manufacturing any excisable article and no distillery, brewery or pot still shall be constructed or worked, save under the authority of a licence issued under this Act in this behalf.
3. (3) A licence granted under this section shall extend to and include servants and other persons employed by the licensee and acting on his behalf.

Possession of and transactions in liquor.—

1. (1) No person not being a [licensed manufacturer or dealer of any excisable article] shall have in his possession any [quantity of such article] in excess of such quantity as the Government may, by notification, prescribe, except under the authority of a permit issued by the Commissioner and in accordance with the conditions, if any, therein.
2. (2) Every dealer or [vendor of any excisable article or foreign liquor] shall maintain a full account of his [transactions in such article or foreign liquor] in the prescribed form.

Sale of excisable article or foreign liquor.— No [excisable article or foreign liquor] shall be sold except under the authority of a licence issued under this Act;

Provided that the Government may, by notification, direct that a licence for sale granted under any other law for the time being in force in the [State] may, subject to such conditions as may be specified in the notification be deemed to be a licence granted under this Act.

Prohibition or restriction of import, export, transport, possession, manufacture or sale of excisable articles.— Notwithstanding anything contained in this Act, the Government may, if it considers necessary in the public interest so to do, by notification, prohibit or restrict the import, export, transport, possession, manufacture or sale of any or all excisable articles within [the State] or any part thereof.

Prohibition of publication of advertisements relating to liquor.—

1. (1) No person shall advertise in any manner or form, whatsoever, or distribute any advertisement or other matter relating to liquor.—
   • (a) which solicits the use of or offers any liquor; or
   • (b) which is calculated to or is likely to encourage or incite any individual or class of individuals or the public generally to commit an offence under this Act or to commit a breach of or to evade the provision of any rule, regulation or order made thereunder or the conditions of any licence, permit, pass or authorization granted thereunder.
2. (2) Nothing in this section shall apply to:—
   • (a) catalogues or price lists which may be generally or specially approved by the Commissioner in this behalf;
   • (b) any other advertisement or matter which the Government, by notification in the Official Gazette, generally or specially exempt from the operation of this section:

Establishment of distilleries and warehouses Establishment of distilleries and warehouses.— The Commissioner may with the previous approval of the Government—

1. (a) establish a public distillery, or authorize the establishment of one or more private distilleries, in which liquor may be manufactured under a licence granted under this Act;
2. (b) establish a public warehouse, or authorize the establishment of one or more private warehouses, wherein [excisable articles] may be deposited and kept without payment of duty; and
3. (c) discontinue any public or private distillery or warehouse so established.

Levy of Duty.— There shall be levied and collected, at such rates as may be fixed by the Government, from time to time, by notification published in the Official Gazette, a duty of excise on all excisable articles manufactured in, or brought into the State:

Mode of levy Mode of levy.— The duty on any excisable article leviable under this Act may be levied in one or more of the following ways, namely:—

1. (a) by way of a duty on the quantity of such excisable article manufactured in or passed out of any place of manufacture or storage including a distillery, brewery or warehouse licensed or established under this Act; and
2. (b) by way of a duty on the quantity of such excisable article imported into the State.

Payment of fees for grant of licence or permit, etc.— Instead of or in addition to any excise duty leviable under section 12, the Government may, levy such fee as may be prescribed, in consideration of grant of any licence or permit or both by or under this Act, and not covered by section 15.

Recovery of tree tax.—

1. (1) There shall be levied on each tree from which toddy is drawn a tax [at such rates as may be fixed by the Government, from time to time, by notification published in the Official Gazette, and in the manner prescribed].
2. (2) When any tax is levied on a tree under sub-section
3. (1) the licence under section 7 shall be granted to a person other than the owner of such tree only on production of the written consent of such owner to the grant of the licence.
4. (3) When any tax is due in respect of any tree, it shall be recoverable from the tapper or in default by him, where the tree is tapped without a licence under this Act, from the owner or occupier of the land, unless he proves that the trees were tapped without his consent.

Licences and permits Licences and permits.—

1. (1) Every licence or permit under this Act shall be granted,—
   • (i) by such officer,
   • (ii) for such period,
   • (iii) subject to such conditions or restrictions, and
   • (iv) in such form and containing such particulars, as may be prescribed: [ Provided that the Government may, if it considers necessary in the public interest so to do, by order, published in the Official Gazette, direct that no licence shall be granted for manufacture or sale of any or all excisable articles and foreign liquors within [the State] or any part thereof.] [(2) No licence or permit under this Act shall be granted or no licence shall be transferred from one licensed premises to another or from one licensee to another person or no label shall be recorded/renewed except on payment of feesat such rates as may be fixed by the Government, from time to time, by notification published in the Official Gazette. Provided that if any person seeks transfer of licence in his name and subsequently intends to transfer the same to some other licensed premises under the provisions of the Act and rules made thereunder or vice-versa, the transfer fees will be applicable in such case as one transaction only.]

Power to cancel licences.—

1. (1) A licence or permit granted under this Act may be cancelled by the Commissioner for good and sufficient reasons to be recorded in writing, after giving an opportunity to the person concerned for making any representation and after considering such representation.
2. (2) In particular and without prejudice to the generality of sub-section (1), the Commissioner may cancel or suspend any licence or permit granted under this Act,—
   • (a) if any fee or duty payable by the holder thereof be not duly paid; or
   • (b) if there is any breach by the holder of such licence or permit, or by his servants, or by any one acting with his express or implied consent on his behalf, of any of the terms or conditions of such licence or permit or of the terms of any agreement executed under section 17; or
   • (c) if the holder thereof is punished for any offence against this Act, or of any cognizable or non-bailable offence; or
   • (d) if the conditions of the licence or permit provide for such cancellation or suspension.
3. (3) The holder of a licence or permit shall not be entitled to any compensation for the cancellation or suspension thereof under this section nor to a refund of any fee paid or deposit made in respect thereof.

Agreement.—

1. (1) Every person taking out a licence under this Act may be required to execute an agreement in conformity with the tenor of his licence and in the form prescribed, and to give such security, if any, for the performance of his agreement as may be prescribed.

Measures, weights and testing instruments.—

1. (1) Every person who [manufactures or sells any excisable article or sells any foreign liquor] is bound—
   • (a) to equip himself with such measures, weights and instruments as the Commissioner may require and to keep the same in good condition; and
   • (b) on the requisition of any Excise Officer duly empowered in that behalf, at any time to measure, weigh or test any [excisable article or foreign liquor] in his possession in such manner as such Officer may require.
2. (2) The manufacturer of excisable articles licensed under this Act shall not use or make use of vessels, tanks, receptacles, vats, or any other equipment in the process of manufacture/blending or for storage of raw materials, blends, alcohol or any permissible ingredient without obtaining proper calibration from the competent authority.

Prohibition of sale etc., to certain persons.— No licensed vendor or a manufacturer and no person in the employ of a vendor or a manufacturer and acting on his behalf shall sell or deliver any excisable article or foreign liquor—

1. (a) to any person apparently under the age of 21 years, or
2. (b) to any person of unsound mind.

Recovery of sums due to Government.— In respect of any duty and other sums of any kind payable to the Government under any of the provisions of this Act or of the rules made thereunder, the officer empowered to levy such duty or require the payment of such sums may deduct the amount so payable from any money owing to the person from whom such sums may be recoverable or due which may be in his hands or under his disposal or control, or may recover the amount by attachment and sale of excisable articles or foreign liquor belonging to such person; and if the amount payable is not so recovered he may prepare a certificate signed by him specifying the amount due from the person liable to pay the same and send it to the appropriate officer for the time being authorized by law to recover arrears of revenue and having jurisdiction over the place in which such person resides or conducts his business and the said officer, on receipt of such certificate, shall proceed to recover from the said person the amount specified therein as if it were an arrear of land revenue. Explanation:— For the purposes of this section, “excisable articles or foreign liquor” includes the container thereof.