Chapter III LICENCE AND PERMIT FOR MANUFACTURE, POSSESSION, SALE, ETC., OF LIQUOR

1. (1) No person shall construct or establish any manufactory or warehouse or bottle, or possess, sell, collect, transport, transit, import, export or purchase any liquor, or use, keep or have in his possession any still, utensil, implement, apparatus, label, cork, capsule or seal, for manufacture of any liquor except under the authority and in accordance with the terms and conditions of a letter of intent, licence or permit granted under this Regulation or the rules made thereunder: Provided that possession of labels, corks or capsules by its printer or manufacturer, as the case may be, shall not amount to illegal possession constituting an offence if the label, cork or capsule is printed or manufactured under the authority from the holder of the licence to manufacture liquor under this Regulation.
2. (2) No person shall engage in the manufacture of alcohol exclusively for industrial use unless he is registered with the Excise Commissioner in such manner as may be prescribed.

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

1. (1) While considering an application for grant of a licence or permit, the authorised officer shall ensure that the applicant
   • (a) is a citizen of India;
   • (b) is above eighteen years of age;
   • (c) is not a defaulter, or blacklisted, or debarred from holding an excise licence;
   • (d) submits an affidavit as a proof for the following, namely:
     • (i) that he possesses or has an arrangement for taking on rent a suitable premises for conducting the business and the said premises is located more than fifty meters away from any medical institution, educational institution, religious institution, women hostel, orphanage, hospital, primary health centre or community health centre;
     • (ii) that the premises have not been constructed in violation of any law for the time being in force;
     • (iii) that he possesses a good moral character and has no criminal background nor has been convicted of any offence punishable under this Regulation or any other law for the time being in force;
     • (iv) that he shall not employ any salesman or worker or representative who has criminal background or suffers from any infectious or contagious diseases or is below eighteen years of age;
     • (v) that he does not owe any public dues or dues to the Administration;
     • (vi) that he is solvent and has the necessary funds or has made arrangements for the necessary funds, for conducting the business; and
     • (vii) that the details of funds for conducting the business shall be made available to the authorised officer, if so required.
2. (2) The licence or permit shall be liable for cancellation if any statement made in the affidavit or any document produced with the application is found to be false or forged.

Subject to such conditions as may be prescribed, the authority granting a licence under this Regulation may require the licensee to

1. (a) give security for the observance of the terms of his licence; and
2. (b) execute a counterpart agreement in conformity with the tenure of his licence.

1. (1) No licence or permit granted under this Regulation shall be deemed to be invalid by reason merely of any technical defect, irregularity or omission in the licence or permit, or in any proceeding conducted prior to grant thereof.
2. (2) The decision of the licensing authority, on the technical defect, irregularity or omission shall be conclusive and binding.

1. (1) Whenever the authority which granted a licence or permit under this Regulation considers that such licence or permit should be withdrawn for any reason, it may do so, on expiry of a period of twenty- to do so forthwith, after giving a reasonable opportunity of being heard and assigning the reasons therefor in writing.
2. (2) If any licence or permit is withdrawn, the licensee or the permit holder shall be paid such sum, by way of compensation, as the authority who granted licence or permit may direct and refund any fee paid in advance or deposit made by the licensee in respect thereof, after deducting the amount recoverable by the Government.

1. (1) Subject to such restrictions, as may be prescribed, the authority who granted licence or permit under this Regulation may, after giving reasonable opportunity of being heard, suspend or cancel the licence or permit, in the following circumstances, namely:
   • (a) if the licence or permit is transferred or sublet by the holder thereof without the permission of the said authority; or
   • (b) if any excise revenue payable by the holder thereof is not duly paid; or
   • (c) in the event of any breach of the terms and conditions of such licence or permit by the holder or by his employee or agent; or
   • (d) if the holder of the licence or permit, or the agent or employee of such holder, is convicted of an offence punishable under this Regulation or under any other law for the time being in force, relevant to and connected with excise matters or relating to excise revenue or of any cognizable and non-bailable offence; or
   • (e) if the purpose for which the licence or permit was granted ceases to exist; or
   • (f) if the licence or permit has been obtained through misrepresentation or fraud.
2. (2) When a licence or permit held by such person is cancelled under sub-section (1), the authority referred to therein may cancel any other licence or permit granted to such person under this Regulation or under any other law relating to excise revenue.
3. (3) In the case of cancellation or suspension of licence or permit under sub-section (1), the fee payable for the balance of the period for which any licence or permit shall have been valid but for such cancellation or suspension, may be recovered from the licensee who held the licence before such cancellation or suspension as excise revenue.
4. (4) The holder of a licence or permit shall not be entitled to any compensation for the cancellation or suspension thereof nor shall be entitled to refund of any fee paid or deposit made, if any, in respect thereof.

No person, to whom a licence or permit has been granted, shall be entitled to claim right of 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 or permit granted under this Regulation shall surrender his licence writing, given by him to the Deputy Commissioner, of his intention to surrender the same on payment of the fee payable for such licence or permit for the whole period for which it shall have been valid but for the surrender: Provided that if the Deputy Commissioner is satisfied that there are sufficient reasons for surrendering the licence or permit, he may remit to the holder thereof the sum so payable or any portion thereof, on surrender.

The licence or permit granted under this Regulation shall not be transferable except with the prior approval of the Excise Commissioner or any officer authorised by him in this behalf, subject to such terms and conditions, as may be prescribed.

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Subject to the provisions of this Regulation and subject to such terms and conditions, as may be prescribed, the Excise Commissioner may grant to any person, a licence or lease, or both, either jointly or severally, for the exclusive privilege or for manufacture, supplying by wholesale or sale by retail, or both, any liquor within any local area.

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No liquor shall be removed from any manufactory, warehouse or other place of storage established under this Regulation, unless duty and fee payable have been paid or a bond, as may be prescribed, has been executed for the payment thereof.

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

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No licensee shall employ or permit to be employed in his premises any person under the age of eighteen years or who is suffering from any contagious disease.

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The District Magistrate or any other officer authorised by him may, by a notice in writing to the licensee, require that any shop in which any liquor is sold shall be closed at such times or for such period as he may think necessary, for preservation of public peace: Provided that the closure days in the licensing year shall not exceed seven days in all or more than three days continuously at any given time: Provided further that if the Excise Commissioner or an officer authorised by him in this behalf is of the opinion that any particular shop or all shops in any particular area shall be closed for a period exceeding seven days in a licensing year, or more than three days continuously at any given time, he may, with the prior sanction of the Administrator, permit to do so.

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