Chapter IV MANUFACTURE, POSSESSION AND SALE

(1) No person shall, --- (a) manufacture or collect an intoxicant; or (b) cultivate hemp plant; (c) tap a toddy producing tree or draw toddy from any tree; or (d) construct or work in a distillery or brewery; or (e) bottle liquor for sale; or (f) use, keep, or have in possession, any materials, still, utensil, implement or apparatus, whatsoever for the purpose of manufacturing any intoxicant other than toddy, except under the authority and subject to the terms and conditions of a licence granted by the Excise Commissioner in that behalf or under the provisions of section 17. (2) A licence granted under this section shall extend to and include servants and other persons employed by the licensee and acting on his behalf.

(1) The Government may, by notification prescribe a limit of quantity for the possession of any intoxicant: Provided that different limits may be prescribed for different qualities of the same article. (2) No person shall have in his possession any quantity of any intoxicant in excess of the limit prescribed under sub-section (1), except under the authority and in accordance with the terms and conditions of --- (a) a licence for the manufacture, cultivation, collection, sale or supply of such article, or (b) a permit granted by the Deputy Commissioner in that behalf.

(1) No intoxicant shall be sold except under the authority and subject to the terms and conditions of a licence granted in that behalf: Provided that, subject to such restrictions and conditions as the Excise Commissioner may by general or special order specify: --- (a) a person having the right to the toddy drawn from any tree may sell such toddy without a licence to a person licensed to manufacture or sell toddy under this Act; (b) a cultivator or owner of any plant from which an intoxicating drug is produced may sell without a licence those portions of the plant from which the intoxicating drug is manufactured or produced, to any person licensed under this Act to sell, manufacture or export the intoxicating drug or to any officer, whom the Excise Commissioner may generally or specially authorise. (2) A licence for sale under sub-section (1), shall be granted --- (a) by the Deputy Commissioner, if the sale is in an area within his jurisdiction, or (b) by the Excise commissioner, if the sale is in an area within the jurisdiction, of more than one Deputy Commissioner: Provided that subject to such conditions as may be determined by the Excise Commissioner, a licence for sale granted under the Excise law in force in any other part of India may be deemed to be a licence granted under this Act.

15. (1) The Excise Commissioner may, with the previous sanction of the Government --- (a) establish a distillery, in which spirit may be manufactured under licence granted under section 12 on such conditions as the Government may impose; (b) discontinue any distillery so established; (c) license, on such conditions as the Government deems fit to impose, the construction and working of a distillery or brewery; (d) license a private bonded warehouse; (e) establish or licence a warehouse wherein intoxicants may be deposited and kept without payment of duty; and (f) discontinue any warehouse so established. (2) A warehouse established under sub-section (1), shall be for general accommodation to warehouse intoxicant subject to duty pending removal for local consumption or for export. (3) Without the sanction of the Government, no intoxicant shall be removed from any distillery, brewery, warehouse or other place or storage established or licensed under this Act, unless the duty, if any, imposed under this Act has been paid or a bond has been executed for the payment thereof.

16. (1) The Government may lease to any person, on such conditions and for such period as it may think fit, the exclusive or other right --- (a) of manufacturing or supplying by wholesale or of both, or, (b) of selling by wholesale or by retail, or (c) of manufacturing or supplying by wholesale or of both, and of selling by retail, any Indian liquor or intoxicating drug within any specified area. (2) The licensing authority may grant to a lessee under sub-section (1), a licence in the terms of his lease; and when there is no condition in the lease, which prohibits sub-letting may, on the application of the lessee, grant licence to any sub-lessee approved by such authority.

17. Where a right to manufacture toddy has been leased under section 16, the Government may declare that the written permission of the lessee to draw toddy shall have the same force and effect as a licence under section 12 from the Excise Commissioner for that purpose.

18. Every person, who manufactures or sells any intoxicant under a licence granted under this Act, shall be bound --- (a) to provide himself with such measures, weights and instruments as the Excise Commissioner may specify and to keep the same in good condition and on the licensed premises, and (b) on the requisition of the Excise Officer duly empowered in that behalf, at any time to measure, weigh or test any intoxicant in his possession in such manner as the said Excise Officer may require.

19. (1) No person, who is licensed to sell any intoxicant for consumption on his premises shall, during the hours in which such premises are kept open for persons, employ or permit to be employed either with or without remuneration, any children under such age as the Government may prescribe in this behalf, in any part of such premises in which such excisable article is consumed by the public. (2) No person who is licensed to sell any intoxicant for consumption at his premises shall, without the previous permission in writing of the Excise Commissioner or the Deputy Commissioner, during the hours in which such premises are kept open for persons, employ or permit to be employed either with or without remuneration, any woman in any part of such premises in which such excisable article is consumed by the public. (3) Every permission granted under sub-section (2) shall be endorsed on the licence and may be modified and withdrawn.

20. (1) The District Magistrate (Independent) may, by notice in writing to the licensee, require that any shops in which any intoxicant is sold shall be closed at such times and for such period as he may think necessary for the preservation of the public peace. (2) If any riot or any unlawful assembly is apprehended or occurs in the vicinity of any such shop, any Magistrate or any Police Officer not below the rank of a Sub-Inspector, who is present, may require such shop to be kept closed for such period as he may think necessary: Provided that where a riot or unlawful assembly so occurs, the licensee shall, in the absence of such Magistrate or Officer, close the shop without any order and keep it closed during the continuance of such riot or unlawful assembly: Provided further that the licensee shall not be entitled to any compensation for the closure of the shops ordered under this section.