Chapter IV EXCISE REVENUE

The excise revenue shall be levied and recovered under the following heads, namely:

1. (a) duty;
2. (b) licence fee;
3. (c) label registration fee; and
4. (d) import or export fee. ---

1. (1) There shall be levied and collected in the manner provided by this Regulation and the rules made thereunder, at such rates, not exceeding the rates set forth in the Schedule, as the Administrator may, by notification, specify, a duty of excise or a countervailing duty or a special duty, as the case may be, on all liquor of the descriptions notified by the Administrator from time to time, being manufactured or produced in, or imported into, the Union territory, from the person so manufacturing or producing or importing: Provided that no such duty shall be levied on toddy when used for the manufacture of jaggery, vinegar, yeast or neera, or when drunk as such. Explanation.For the purposes of this section, it is hereby declared that in any notification issued under this section, it shall not be necessary to specify separately the rate of countervailing duty or special duty and, unless otherwise provided in such notification expressly, any rate specified in such notification as the rate of excise duty in respect of any description of liquor shall be deemed to be also the rate of countervailing duty or a special duty, as the case may be, in respect of such description of liquor.
2. (2) There shall be levied and collected a fee for issue of licence or permit subject to such terms and conditions, as may be prescribed.
3. (3) There shall be levied and collected the import, export or transport duties assessed in such manner as may be prescribed. ---

1. (1) All duties, fees, taxes, fines payable to the Government under this Regulation may be recovered from the persons liable to pay the same, or from his surety, or his agent, as if they were arrears of land revenue.
2. (2) In the event of default by any person to whom a licence or permit has been granted under this Regulation, his manufactory, warehouse, shop or premises and all fittings, apparatus, stocks of liquor or materials for the manufacture of the same, held therein, shall be liable to be attached towards any claim for excise revenue or in respect of any loss incurred by the Government through such default and be sold to satisfy such claim, which shall be a first charge upon the proceeds of such sale.
3. (3) Where the duty due is not levied or not paid or short-levied or short-paid or erroneously refunded,
   • (a) the District Excise Officer may, within a period of three years from the relevant date, serve notice on the person chargeable with the duty of excise, which has not been levied or paid, or which has been short-levied or short-paid, or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice: Provided that where the service of the notice is stayed by an order of a Court, the period of such stay shall be excluded in computing such period of three years. Explanation.
     • (i) in cases in which duty of excise has not been paid or has been short-levied or short-paid, the date on which the duty is to be paid under this Regulation or the rules made thereunder;
     • (ii) in a case where duty of excise is provisionally assessed under this Regulation or the rules made thereunder, the date of adjustment of duty after the final assessment thereof; and
     • (iii) in a case where the duty of excise has been erroneously refunded, the date of such refund; and
   • (b) the District Excise Officer shall, after considering the representation, if any, made by the person on whom notice is served under clause (a), determine the amount of duty of excise due from such person (not being in excess of the amount specified in the notice) and thereupon such person shall pay the amount so determined. ---

If the duty of excise payable by a person under this Regulation or the rules made thereunder is not paid within time, he shall be liable to pay on the sum due, a simple interest at the rate of twelve per cent. per annum from the day next following the day on which such payment became due: Provided that where the duty determined to be payable is reduced or increased by the Appellate Authority or the Court, the interest shall be payable on such reduced or increased amount of duty, as the case may be.

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Notwithstanding anything contained in this Regulation, the Excise Commissioner may, on an application made in this behalf by a person, with the approval of the Administrator and after recording his reason for so doing, reduce or waive the amount of any interest payable by him under this Regulation, if he is satisfied that

1. (a) to do otherwise would cause genuine hardship to the person having regard to the circumstances of the case; and
2. (b) the person has cooperated in any proceeding for the recovery of any amount due from him. ---

Notwithstanding that a writ petition has been preferred or a suit or other proceeding has been instituted in any Court, or any appeal has been filed before any Court or Tribunal or before the Excise Commissioner, or a revision has been filed before the Administrator, any sum due to the Government under this Regulation as a result of demand or order made or passed by any officer or authority empowered in this behalf by or under this Regulation, shall be payable in accordance with such demand or order unless and until such payment has been stayed by such Court or Tribunal or Excise Commissioner or Administrator.

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Every licensee shall maintain such accounts and submit to the concerned officers such returns in such forms, containing such particulars relating to stock, apparatus, excise duty or fee payable or paid, and such other information at such interval, as may be prescribed.