Chapter III LICENCE AND PERMIT FOR MANUFACTURE, POSSESSION,

(1) No person shall construct or establish any manufactory or warehouse, bottle, import, export, transport, transit, manufacture, collect, possess, sell or purchase any intoxicant or use, keep or have in his possession any material whatsoever, still, utensil, implement, apparatus, label, cork, capsule or seal for manufacture of any intoxicant except under the authority and in accordance with the terms and conditions of a licence or letter of intent or permit granted under this Act and the rules framed thereunder. (2) The possession of labels, corks or capsules by its printer or manufacturer, as the case may be, will not amount to illegal possession and offence under this section if printed or manufactured under the authority from the holder of licence to manufacture intoxicant, issued under this Act.

Every letter of intent, licence or permit under this Act shall be granted on payment of such fees, for such period and subject to such restrictions, conditions and in such form and contain such particulars, as may be prescribed.

(1) While considering an application for grant of licence or permit, the licensing authority shall have regard that the applicant— (a) is a citizen of India; (b) is not a defaulter, or black-listed or debarred from holding an excise licence; (c) possesses good moral character and has no criminal background or has not been convicted of any offence punishable under this or other relevant Acts: PROVIDED that in case he is selected as licensee, he shall furnish within thirty days of the grant of licence a certificate issued by the Superintendent of Police of the district or the Commissioner of Police, as the case may be, of which place he is the resident, showing that he possesses good moral character and has no criminal background or criminal record; (d) is not in arrears of any Government or public dues; and (e) is solvent and has the necessary funds or has made arrangements for it, for conducting the business: PROVIDED that the details of such funds shall be made available to the licensing authority, if required; (f) possesses or has an arrangement for taking on rent suitable premises for the licence and such premises have not been constructed in violation of any law;

Subject to such rules as may be prescribed, any authority granting a licence under this Act, may require the licensee— (a) to give security for the observance of the terms of his licence; and (b) to execute a counterpart agreement in conformity with the tenor of his licence.

(1) No licence or permit granted under this Act shall be deemed to be invalid by reason merely of any technical defect, irregularity or omission in the licence or permit, or in any proceedings conducted prior to grant thereof. (2) The decision of the licensing authority, as to what is a technical defect, irregularity or omission shall be final and binding.

(1) Whenever the authority which granted a licence or permit under this Act, considers that such licence or permit should be withdrawn for any reason, it may do so on expiry of fifteen days' notice of its intention to do so or forthwith for reasons to be recorded. (2) If any licence or permit is withdrawn, the licensee or the permit holder shall be refunded any fee paid in advance or deposit made by the licensee or the permit holder in respect thereof after deducting the amount recoverable by the Government.

(1) Subject to such restrictions as the Government may prescribe, the authority granting any licence or permit under this Act may suspend or cancel it in the following circumstances after giving reasonable opportunity of being heard— (a) if the licence or permit is transferred or sublet by the holder thereof without the permission of the licensing authority; (b) if any excise revenue payable by the holder thereof is not duly paid; (c) in the event of any breach by the holder of such licence or permit or by his servant, or by any one acting on his behalf, with his express or implied permission, of any of the terms and conditions of such licence or permit; (d) if the holder of licence or permit or his agent or employee is convicted of an offence punishable under this Act or any other law for the time being in force, relevant and connected with excise matters relating to excise revenue or of any cognizable and non-bailable offence under any other relevant law; (e) if the purpose for which the licence or permit was granted ceases to exist; (f) if the licence or permit has been obtained through mis-representation or fraud. (2) When a licence or permit is cancelled under sub-section (1), the aforesaid authority may cancel any other licence or permit granted to such person under this Act or under any other law relating to excise revenue. (3) In the case of cancellation or suspension of licence under sub-section (1), the fee payable for the balance of the period for which any licence would have been current but for such cancellation or suspension, may be recovered from the ex-licensee as excise revenue. (4) The holder of a licence or permit shall neither be entitled to any compensation for the cancellation or suspension thereof nor to refund of any fee paid or deposit made in respect thereof.

No person to whom a licence or permit has been granted, shall be entitled to claim any renewal thereof, and no claim shall lie for damages or otherwise in consequence of any refusal to renew a licence or permit on the expiry of the period for which the same remains in force.

No holder of a licence granted under this Act shall surrender his licence except on the expiration of one month's notice in writing given by him to the licensing authority of his intention to surrender the same on payment of the fee payable for the licence for the whole period for which it would have been current but for the surrender: PROVIDED that if the licensing authority is satisfied that there are sufficient reasons for surrendering the licence, he may remit to the holder thereof the sum so payable, or any portion thereof, on surrender.

The licence or permit granted under this Act is not transferable except with the prior approval of the licensing authority subject to such terms and conditions as may be prescribed.

Subject to the provisions of this Act and the terms and conditions as may be prescribed, the Government may grant to any person a licence either jointly or severally, for the exclusive privilege of manufacturing, supplying by wholesale and sale by retail within any local area.

No liquor shall be removed from any manufactory, warehouse or other place of storage established under this Act without a relevant pass and unless duty and fee payable has been paid or a bond as maybe prescribed, has been executed for the payment thereof.

No person or licensed vendor or his employee or agent shall sell or deliver any liquor to any person apparently under the age of twenty-five years, whether for consumption by self or others.

No licensee shall employ or permit to be employed in his premises any person under the age of twenty-one years, or suffering from contagious disease.

The Deputy Commissioner or any other officer authorized by him may, by notice in writing to the licensee, require that any shop in which any liquor is sold shall be closed at such time or for such period as he may think necessary for preservation of public peace: PROVIDED that the total closure days in the licensing year shall not exceed fifteen days in all or more than three days continuously at any one time: PROVIDED FURTHER that if the Excise Commissioner is of the opinion that any particular shop or all shops in any particular area shall be dosed for a period exceeding fifteen days in a year or more than three days continuously at any one time, he may do so for reasons to be recorded.