Chapter VIII Excise Duties.

1[(1)] An excise duty or countervailing duty, as the case may be, at such rate or rates as the 2[State] Government shall direct may be imposed either generally or for any specified local area on-

1. (a) any alcoholic liquor for human consumption,
2. (b) any intoxicating drug 3]or hemp]: 4[(c) opium,]
3. (d) any other excisable article, when imported, exported, transported, possessed, manufactured or sold 5[in or from the 6[State], as the case may be]: Provided that duty shall not be so imposed on any article which has been imported into 7[the territory of India] and was liable on such importation to duty under the Indian Tariff Act, 1934, or the Sea Customs Act, 18788* 9[or on any medicinal or toilet preparation containing alcohol, opium, hemp or other narcotic drugs or narcotics.] 10[Explanation.- Duty may be imposed under this section at different rates,-
   • (i) according to the places to which an excisable article is to be removed for consumption; or
   • (ii) according to the varying strength or quality of such article; or
   • (iii) according to the manufacturing cost of the excisable article, declared in writing, by the manufacturer or the exporter to the State, to the prescribed authority and authenticated by that authority.] 11* * * * *

Subject to any regulations to regulate the time, place and manner of payment made by the 1[Commissioner] in this behalf, the duties referred to in section 105 may be levied in one or more of the following ways:-

1. (a) in the case of an excisable article imported-
   • (i) by payment either in the 2[State] at the time of its import or in the 3[State] or territory of export at the time of its export, or
   • (ii) by payment upon issue for sale from a warehouse established or licensed under the provisions of this Act;
2. (b) in the case of an excisable article exported by payment in the 4[State] at the time of its export, or in the 5[State] or territory of import;
3. (c) in the case of excisable articles transported-
   • (i) by payment in the district from which they are transported, or
   • (ii) by payment upon issue for sale from a warehouse established or licensed under the provisions of this Act;
4. (d) in the case of spirit or beer manufactured in any distillery established or any distillery or brewery licensed under this Act-
   • (i) by a rate charged upon the quantity produced in or issued from the distillery or brewery, as the case may be, or issued from a warehouse established or licensed under this Act, or
   • (ii) by rate charged in accordance with such, 6[scale of equivalents] calculated on the quantity of materials used or by the degree or attenuation of the wash or wort, as the case may be, as the 7[State] Government may prescribe;
5. (e) in the case of intoxicating drugs manufactured 8[in the 9[State]] by payment upon the quantity produced or manufactured or issued from a warehouse established or licensed under this Act : Provided that where payment is made upon issue for sale from a warehouse established or licensed under this Act, such payment shall be at the rate of the duty in force at the date of issue from the warehouse : Provided further that where one and the same person is permitted-
   • (i) to manufacture or import and to sell, or
   • (ii) to manufacture and export, country liquor or any intoxicant, such duty may be levied in consideration of the joint privileges granted, as the Collector deems fit.

[Power to exempt, remit or refund excise duty]. Deleted by Bom. 22 of 1960, s. 69.

1[107A. Declaration of stock of articles mentioned in section 24A; maintenance of accounts and submission of returns.- Every person who imports or manufactures any of the articles mentioned in section 24A shall-

1. (a) submit to the Collector within such period and in such form, as may be prescribed, a declaration of the quantity of such article in his possession on the importation or manufacture of the said article, as the case may be;
2. (b) maintain accounts of the articles in such form and submit such returns as may be prescribed.

1. (1) The Collector or any officer empowered by the State Government in this behalf may, subject to such conditions as may be prescribed,-
   • (a) by order require any person liable to pay any excise duty or fee under this Chapter to furnish him with any information or to produce before him any accounts or other documents concerning any excisable article as may be necessary, for the purposes of this Chapter;
   • (b) inspect at all reasonable hours the accounts or other documents relating to the stocks of any excisable article imported or manufactured or stored in respect of which such duty or fee has been paid or is payable and any place where such article is manufactured or stored;
   • (c) for reasons to be recorded in writing, enter any such place where he knows or has reason to believe that any excisable article in respect of which such duty or fee has not been paid is being imported or manufactured or stored and search for the same and seize any stocks of such article found therein and detain the same until such time as proof of payment of such duty or fee is produced or such further time as may be necessary for taking action under sections 98, 99 or 100 or for prosecuting for an offence under section 108.
2. (2) Whoever-
   • (a) fails to furnish any information or produce any accounts or other documents in compliance with an order made under clause (a) of sub-section (1) or 1[furnishes false information or produces false accounts or documents, or]
   • (b) obstructs any officer making an inspection, entry, a search or a seizure under clause (b) or clause (c) of sub-section (1), shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees or with both.]

1[108. Penalty for import, export, etc. of intoxicant etc. without payment of duty.-Whoever, holding a licence, permit, pass or authorization under this Act, imports, exports, transports, possesses, sells or manufactures any intoxicant without payment of duty or fee provided for under this Act shall, on conviction, in addition to the duty or fee required to be paid by him under this Act, be punished,- (a) for the first offence, with imprisonment for a term which may extend to one year and with fine which shall not be less than three times of the amount of the duty or fee evaded by him;

1. (b) for the second offence, with imprisonment for a term which may extend to eighteen months and with fine which shall not be less than four times of the amount of the duty or fee evaded by him;
2. (c) for the third or subsequent offence, with imprisonment for a term which may extend to two years and with fine which shall not be less than five times of the amount of the duty or fee evaded by him].

1. (1) For every toddy producing tree 1[which is tapped or licensed to be tapped or in respect of which a licence for drawing toddy therefrom is granted] there shall, if the 2[State] Government so directs, be levied for any period during which such tree is tapped or licensed to be tapped, such duty as the 3[State] Government may from time to time direct.
2. (2) Every licence 4[for the tapping of, and drawing toddy from, toddy producing trees] granted under this Act shall specify in addition to any other particulars prescribed under the provisions of this Act or rules and regulations-
   • (a) the number, description and situation of the trees to be tapped,
   • (b) the amount of duty to be levied in respect of each tree,
   • (c) the instalments, if any, in which and the period at which the said duty shall be leviable.

The duty on toddy producing trees shall be leviable primarily from the person holding the licence 1[to tap them and to draw toddy therefrom] and in default by him or if the trees are tapped without licence, from the owner of the trees.

When the duty on toddy producing trees, is levied from the owner of, the trees, he shall be entitled to assistance in recovering the same, from the holder of the licence under the provisions of the law for the time being in force relating to the recovery by superior holders of their dues from their tenants.

The privilege of drawing toddy from trees the right to which vests in the 1[State] Government may be disposed of 2* by auction or otherwise on such terms as the Collector deems fit.

[Rules for levy of duty on opium, etc.] Deleted by Bom. 22 of 1960, s. 74.

1[114. Recovery of duties, etc.-(1) All duties, taxes, fines (except fines imposed by a Court) and fees leviable under any of the provisions of this Act or in respect of any licence, permit, pass or authorisation granted under it and the cost of the supervising staff appointed under section 58A 2[if not paid within the due date or the prescribed period, shall be recovered from any person liable to pay the same or from his surety, if any, with simple interest at the rate of 2 per cent. per month, from the date it has become due, as if they were arrears of land revenue].

1. (2) When any person, in compliance with any rule, regulation or order made under this Act, gives a bond (other than a bond under section 91 or 93) for the performance of an act, or for his abstention, from any act, such performance or abstention shall be deemed to be a public duty within the meaning of section 74 of the Indian Contract Act, 1872; and upon breach of the conditions of such bond by him, the whole sum named therein as the amount to be paid in case of such breach may be recovered from him or from his surety (if any) as if it were an arrear of land revenue.]