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Dadra and Nagar Haveli Excise Regulation, 2012

Dadra and Nagar Haveli Excise Regulation, 2012

1. Short title and extent commencement.
2. Definitions.
3. Appointment of Excise Commissioner.
4. Powers and functions of Excise Commissioner.
5. Appointment of certain officers and staff.
6. Excise Intelligence Bureau.
7. Excise Administration.
8. Delegation and withdrawal of powers.
9. Investing persons with special powers.
10. Reward for exemplary performance.
11. Board of Experts.
12. Prohibition of manufacture, import, export, sale, etc., of intoxicants.
13. Grant of letter of intent, licence or permit.
14. Qualification for grant of license.
15. Power to take security and counterpart agreement.
16. Technical defects in licence and permit.
17. Power to withdraw licence and permit.
18. Power to suspend or cancel licence and permit.
19. Bar to right of renewal and to compensation.
20. Surrender of licence or permit.
21. Transfer of licence or permit.
22. Grant of exclusive privilege of manufacture, etc., of any liquor or other intoxicants.
23. Removal of liquors from manufactory, warehouse, etc., on payment of duty.
24. Prohibition of sale to certain persons.
25. Prohibition of·employment of certain persons.
26. Closing of shops for preservation of public peace.
27. Nature and components of excise revenue.
28. Excise duty and countervailing duty.
29. Valuation of liquor or other intoxicants for the purposes of charging of excise duty.
30. Declaration of ex-factory and maximum retail price.
31. Recovery of duty and levies and lien on the property of defaulter.
32. Interest payable for failure to pay excise revenue.
33. Power to reduce or waive interest in certain cases.
34. Excise revenue to be paid irrespective of pendency of any writ petition, suit, etc.
35. Accounts and returns.
36. Penalties for illegal manufacture, sale, import, etc.
37. Penalty for rendering denatured spirit fit for human consumption.
38. Penalty for mixing noxious substance with liquor.
39. Order to pay compensation.
40. Penalty for selling Indian liquor as foreign liquor.
41. Penalty for possession of liquor unlawfully imported or non-duty paid, etc.
42. Penalty for consumption in chemist’s shop
43. Penalty for consumption of liquor in public places.
44. Penalty for unlawful advertisement.
45. Penalty for abetment and conspiracy.
46. Penalty for employing minors or selling liquor to minors.
47. Penalty for assault and obstruction.
48. Liability of employer for offence committed by the employee or agent.
49. Penalty for manufacture, sale or possession by one person on account of another.
50. Penalty for misconduct of licensee, etc.
51. Penalty for non-payment of excise duty or fee.
52. Penalty for false statement made in declaration or affidavit or periodic returns.
53. Penalty for allowing premises, etc., to be used for commission of an offence.
54. Penalty for attempt to commit an offence under this Regulation.
55. Penalty on Excise Officer making vexatious search, seizure, detention or arrest.
56. Penalty on Excise Officer refusing to do duty.
57. Penalty for offences not otherwise provided for.
58. Presumption as to commission of offence in certain cases.
59. Enhanced punishment after previous conviction.
60. Commission of offence by companies.
61. Procedure for launching prosecution in the case of major offences.
62. Procedure for adjudication in case of minor offences.
63. Compounding of certain offences.
64. General provisions relating to determination of penalty.
65. Certain things liable to confiscation.
66. Confiscation by Deputy Commissioner in certain cases.
67. Order of any confiscation and destruction not to interfere with other punishment.
68. Confiscated articles to be made over to the Deputy Commissioner.
69. Power to obtain information.
70. Landholders, officers and other to give information.
71. Power of arrest, search and seizure.
72. Duty of police to accept seized articles.
73. Offences under this Regulation to be cognizable.
74. Certain offences to be non-bailable.
75. Power of court to try cases summarily.
76. Security for good conduct and abstaining from committing offence.
77. Appeal to the Appellate Authority.
78. Procedure in appeal.
79. Order of Appellate Authority.
80. Power of Excise Commissioner to rectify mistakes apparent from the records.
81. Revision of orders by Excise Commissioner.
82. Deposit of duty or fee demanded or penalty or fine levied pending appeal.
83. Appeal to High Court.
84. Sums due to be paid notwithstanding appeal before High Court or revision before Excise Commissioner.
85. Supply of measures, weights and testing instruments.
86. Powers of the Administrator to declare what shall be deemed to be liquor or intoxicant.
87. Power of the Administrator to regulate drinking and to enforce prohibition.
88. Power of Administrator to regulate molasses black jaggery, mahua flower, etc., to prevent misuse.
89. Power to regulate advertisement.
90. Power of Administrator to declare limit of sale by retail and by wholesale.
91. Bar of certain suits.
92. Power of Administrator to make rules.
93. Laying of rules.
94. Power to remove difficulties.
95. Repeal and savings.
96. Transitory provisions for excise laws for Dadra and Nagar Haveli.
The Dadra and Nagar Haveli Excise Regulation, 2012
(1 of 2012)
1328
25th January, 2012
Promulgated by the President in the Sixty-second Year of the Republic of India.
A Regulation to consolidate the excise laws relating to manufacture import, export, transport, possession, sale and purchase of liquor and other intoxicants in the Union territory of Dadra and Nagar Haveli and for matters connected therewith or incidental thereto. In exercise of the powers conferred by article 240 of the Constitution, the President is pleased to promulgate the following Regulation made by her :-
CHAPTER I

Preliminary

1. Short title and extent commencement. – (1) This Regulation may be called the Dadra and Nagar Haveli Excise Regulation, 2012.
(2) It extends to the whole of the Union territory of Dadra and Nagar Haveli.
(3) It shall come into force on such date as the Administrator may, by notification in the Official Gazette, appoint.
2. Definitions. – In this Regulation, unless the context otherwise requires,–
(1) “Administrator” means the Administrator of the Union territory of Dadra and Nagar Haveli appointed by the President under article 239 of the Constitution;
(2) “alcohol” means ethyl alcohol of any strength and purity having the chemical composition C2H5OH;
(3) “alcoholic beverage or potable liquor” means any beverage containing alcohol in conformity with Bureau of Indian Standards, which may be intoxicating and is fit, for human consumption;
(4) “alcoholic strength by volume (% Volume) of mixture of water and alcohol” means the ratio of volume of alcohol, measured at 20°C, contained in the total volume of the mixture;
(5) “Appellate Authority” means the Appellate Authority referred to in section 76;
(6) “authorised officer” means an officer authorised to exercise any of the powers to perform any of the duties and functions under the provisions of this Regulation and rules framed thereunder;
(7) “Beer” means alcoholic beverage prepared from malt or grain with or without addition of sugar and hops and includes black beer,ale, stout, porter and such other substance as may be specified by the Administrator by notification;
(8) “BIS Standards” means standard specified under the Bureau of Indian Standards Act, 1986 and the rules made thereunder or in any other law for the time 63 of 1986. being in force;
(9) “black jaggery” means coarse brown sugar made from palm trees or cane juice ordinarily unfit for human consumption, but contains sufficient quantity of fermentable sugar for manufacture of ethyl alcohol;
(10) “blending” means mixing of two or more spirits of different strengths and different qualities;
(11) “Board of Experts” means the Board of Experts constituted under section 11;
(12) “bottling” means transfer of liquor from a cask or other vessel to a bottle or other approved receptacle for the purpose of sale whether any process of rectification be employed or not and includes rebottling;
(13) “brewery” means premises where beer is manufactured and includes every place therein where beer is stored or wherefrom it is issued;
(14) “compounding” means the manufacture of alcoholic beverage by addition to spirit of a flavouring or colouring matter or both;
(15) “counterfeit liquor” means a liquor in respect of which-
(i) there is any violation of any right under the Trade Marks Act, 1999 or the Copyright Act, 1957 or such other law for the time being in force; or
(ii) in respect of which an offence under section 481 or section 483 or section 486 of the Indian Penal Code has been committed;
(16) “countervailing duty” means any duty of excise imposed under this Regulation on excisable articles manufactured or produced outside the Union territory and imported into the Union territory;
(17) “country liquor or traditional liquor” means plain or spiced spirit which has been manufactured in India from material recognised as base for country or traditional spirit, namely, mahua, rice, gur, molasses, etc.;
(18) “denaturant” means any substance completely miscible in spirit and of such a character that its addition renders the material, or any aqueous dilution of it, non-potable;
(19) “denatured spirit” means spirit with an added denaturants to render it effectively and permanently unfit for human consumption;
(20) “Deputy Commissioner” means the Deputy Commissioner appointed under section 5;
(21) “distillery” means premises where spirit is manufactured and includes every place therein where it is stored or wherefrom it is issued;
(22) “District Excise Officer” means the District Excise Officer appointed under section 5;
(23) “e-governance” includes use of information and communication technology to promote efficient and cost-effective services to the public;
(24) “exisable article” means any alcoholic liquor for human consumption or any other article which the Administrator may declare to be an excisable article;
(25) “excise duty” means such excise duty or countervailing duty, as the case may be, as mentioned in entry 51 of List II of the Seventh Schedule to the Constitution;
(26) “Excise Commissioner” means the officer appointed as Excise Commissioner by the Administrator under section 3;
(27) “Excise Officer” means any officer or person appointed or invested with powers under this Regulation;.
(28) “excise revenue” means revenue derived or derivable from any payment, duty, fee, tax, confiscation or fine imposed or ordered under this Regulation, or of any other law for the time being in force relating to liquor, but does not include fine imposed by a court of law;
(29) “excise tree” includes the gul mahua, coconut, palm, palmyra, date, begani or doddasal tree or any other tree, the fermented or unfermented juke of which contains alcohol and from which toddy or any other liquor can be prepared;
(30) “excise year” means the 1st day of April of a year to the 31st day of March of the next year;
(31) “export fee” means the fee prescribed by the Administrator for export of liquor;
(32) “export” means to take out of the Union territory of Dadra and Nagar Haveli to any other State or Union territory within the country;
(33) “extra neutral alcohol or silent spirit” means spirit as may be specified by the relevant Central Government Authority;
(34) “fermented liquor” means liquor obtained by the process of fermentation and includes beer, ale, stout, porter, wine, pachwai, fermented tari and any other similar liquor;
(35) “foreign liquor” means any liquor imported by land, sea or air into India;
(36) “gauge” means to determine the quantity of spirit contained in, or taken from any cask or other receptacle or to determine the capacity of any cask or receptacle;
(37) “Government” means the Administrator of Dadra and Nagar Haveli;
(38) “hop” means ripened cones of female hop plant used for giving flavour to malt liquor;
(39) “illicit liquor means any liquor manufactured or stored or distributed or sold, in contravention of the provisions of this Regulation or rules framed thereunder or liquor on which appropriate duty or fee leviable under this Regulation or rules framed thereunder, has not been paid and includes foreign liquor on which appropriate duty of custom has not been paid;
(40) “import” means to bring into Union territory of Dadra and Nagar Haveli from any other State or Union territory of the country;
(41) “import fee” means the fee prescribed by the Government for import of liquor;.
(42) “import into India” with its grammatical variations and cognate expressions, means bringing into the Union territory from any place outside India;-
(43) “Indian liquor” means liquor manufactured in India by process of distillation or using alcohol obtained by distillation such as whisky, brandy, rum, gin, vodka, liquors, but does not include country liquor or fermented liquor;
(44) “intoxicant” means any liquor or any substance from which liquor may be manufactured and includes any substance declared as intoxicant by the Administrator;
(45) “licence fee” means the fee prescribed for issue of licence under this Regulation;
(46) “licence” means a licence granted under this Regulation;
(47) “liquor” means any alcoholic beverage and includes whisky, brandy, beer, wine, toddy, tari, pachwai, vodka, gin, tequila, country liquor, arrack and intoxicating liquid consisting of or containing alcohol, besides any similar substance which the Administrator may, by notification, declare to be liquor for the purposes of this Regulation;
(48) “London proof spirit” means a mixture of ethyl alcohol and water which at a temperature of 15.5 degrees centigrade has a specific gravity of91984 and contains 49.24 per cent. weight or 57.06 percent. volume of alcohol;
(49) “major offences” means the offences punishable under sections 36, 37, 38, 40, 41, 45, 46 and 47 of this Regulation;-
(50) “malt” means the germinated barley;
(51) “manufactory” means any distillery, brewery, winery or any establishment distilling, brewing, manufacturing, blending or bottling liquor;
(52) “manufacture” includes any process-
(a) incidental or ancilla..;r to the completion of a manufactured liquor; or
(b) whether natural or artificial, by which any liquor is produced or prepared and also re-distillation and every process for the rectification, reduction, flavouring, blending or colouring of liquor; or
(c) which in relation to liquor involves packing or repacking of such article in a bottle or unit package or labelling or re-labelling of bottles or unit package including the declaration or alteration of Maximum Retail Price (MRP) on it or adoption of any ether treatment on the excisable article for sale to the consumers.
Explanation.–For the removal of doubts, it is hereby declared that labelling of bottles or unit packages, imported into India or into the Union territory to comply with statutory requirements shall not be construed as manufacture;
(53) “manufacturer” means any person who manufactures Indian liquor and other intoxicants and includes a manufacturer of alcohol subject to excise duty under the Central Excise Act, 1944;
(54) “mashtun” means any vessel in which malt or grain exhausted in the course of brewing;
(55) “minor offence” means the offences other than the major offences under this Regulation;
(56) “molasses” means heavy dark coloured viscous liquid produced from residual syrup drained away in the final stage of manufacture of gur or sugar including khandsari sugar from sugarcane or gur, when liquid as such or in any form or ad-mixture contains sugar which can be fermented;
(57) “MRP” means the maximum retail price at which the liquor may be sold to the ultimate consumer and shall include all taxes, freight, transport charges, commission or trade margin payable to dealers and all charges towards marketing, delivery, packing, forwarding and the like, as the case may be;
(58) “notification” means a notification issued under this Regulation or the rules made thereunder and published in the Gazette of Union territory of Dadra and Nagar Haveli;
(59) “officer-in-charge” means the excise officer authorised to supervise and control manufactory or warehouse;
(60) “pachwai” means fermented rice, millet or other grain, and includes liquid obtained therefrom, whether diluted or undiluted, but does not include beer;
(61) “permit” means an authorisation granted under this Regulation and the rules made thereunder;
(62) “police station” means a police station having jurisdiction over the place and any other place which the Administrator may by notification declare to be a police station for the purposes of this Regulation;
(63) “prescribed” means prescribed by rules, made by the Administrator under this Regulation;
(64) “receiver” means a vessel with which the spirit discharges directly from a still;
(65) “rectified spirit” means un-denatured alcohol including absolute alcohol, extra neutral alcohol and alcohol derived from malt as may be specified by the Bureau of Indian Standard;
(66) “retail sale” means sale in quantities not exceeding the limits of sale by retail for any consideration or not;
(67) “sales tax or value added tax” means tax on sale or purchase of goods referred to in Entry 54 of List II of the Seventh Schedule to the Constitution;
(68) “spirit” means any liquor’ containing alcohol obtained by distillation, whether denatured or not;
(69) “spurious liquor” means liquor which has been adulterated with an object to bring intoxication easily and is harmful to consumers;
(70) “still” means an apparatus for distillation or manufacture of spirits and includes any part thereof;
(71) “toddy and tari” means fermented or unfermented juice drawn from a coconut, palmyra, date or any other kind of palm tree;
(72) “transport” means to move from one place to another within the Union territory;
(73) “warehouse” means a place where storage of liquor is permitted and includes a relevant part of manufactory;
(74) “wholesale sale” means sale in quantities exceeding the limit of sale by retail;
(75) “wine” means a fermented juice of grapes or other fruits with or without the addition of sugar or jaggery containing self generated alcohol and includes fortified wine;
(76) “winery” means premises where wine is manufactured and includes every place therein where wine is stored or wherefrom it is issued;
(77) “wort” means the liquor obtained by exhaustion of malt or grain or by the solution of saccharine matter in)he process of brewing.
CHAPTER II

Establishment And Control

3. Appointment of Excise Commissioner. – The Administrator may, by notification, appoint an officer as the Excise Commissioner who shall be the chief controlling authority for administration of this Regulation in the Union territory of Dadra and Nagar Haveli.
4. Powers and functions of Excise Commissioner. – The Excise Commissioner shall exercise and perform the following powers and functions, namely :-
(a) to regulate, control and monitor manufacture, possession, import, export, transport, sale and consumption of liquor and other intoxicants;
(b) to curb illegal trade in liquor and illicit distillation;
(c) to protect excise revenues of the Union territory and ensure prompt recovery;
(d) to submit returns and information as required by this Regulation or the rules framed thereunder, upon all matters concerning excise;
(e) to ensure social well-being through education for responsible drinking;
(j) to take adequate steps for imparting training to the excise staff in preventive and detective work;
(g) to coordinate in the matters covered by this Regulation with other authorities;
(h) to introduce e-governance in various aspects of excise administration and to maintain on the national network information on manufacture, possession, import, export, transport, sale of liquor and other intoxicants;
(i) to submit to the Administrator an annual report on the administration of this Regulation in such form as may be prescribed;
(j) to perform such other functions and to exercise such other powers as may from time to time be entrusted or delegated to him by the Administrator.
5. Appointment of certain officers and staff. – The Administrator may appoint such number of Deputy Commissioners, District Excise Officers and such other officers and staff as it may deem fit for the purpose of performing the functions under this Regulation.
6. Excise Intelligence Bureau. – (1) There shall be an Excise Intelligence Bureau headed by the Excise Commissioner and consisting of such number of Excise Officers and staff as may be appointed by the Administrator or by the Excise Commissioner with the prior approval of the Administrator.
(2) The Excise Intelligence Bureau shall,-
(a) collect intelligence, keep surveillance and maintain information of excise offences;
(b) collect and disseminate information regarding prominent excise offenders and history sheeters;
(c) monitor detection, investigation and trial of offences under this Regulation; and
(d) maintain information network on manufacture, possession, transport, sale, import or export of liquor or other intoxicants.
7. Excise Administration. – (1) Subject to the provisions contained in sub-section (1) of section 14, the Administrator may issue licence or permit to any Government Corporation or Government Company or a Government Agency or an autonomous body, owned or controlled by the Government for the purposes of import and retail vending of liquor in the Union territory.
(2) Save as otherwise provided in sub-section (1), the Deputy Commissioner shall be the licensing authority who shall exercise all powers and functions under this Regulation, subject to the general control and supervision of the Excise Commissioner.
(3) The Deputy Commissioner shall, within the limits of his jurisdiction, exercise such powers and perform such duties and functions as are assigned by or under the provisions of this Regulation subject to such control as the Administrator or the Excise Commissioner may from time to time direct.
(4) The District Excise Officer and other subordinate officers shall assist the Deputy Commissioner in exercising his functions.
8. Delegation and withdrawal of powers. – (1) The Administrator may, by order, delegate his powers to the Excise Commissioner subject to such limitations and c9nditions as may be specified in the order of delegation.
(2) The Excise Commissioner and Deputy Commissioner may, by order, delegate their powers under this Regulation to any subordinate officer, subject to such limitations and conditions as may be specified in the order of delegation.
(3) The Administrator or the Excise Commissioner or the Deputy Commissioner, as the case may be, may by an order, also withdraw from any officer or person any or all the powers so delegated.
9. Investing persons with special powers. – The Administrator may, by notification, invest the power with any officer of the Union territory not being an Excise Officer, to perform all or any of the powers or functions of any Excise Officer under this Regulation.
10. Reward for exemplary performance. – The Excise Commissioner may grant such reward to such officers and employees under this Regulation and also to such informers for such work, subject to such terms and conditions as may be prescribed.
11. Board of Experts. – (1) The Administrator may constitute the Board of Experts consisting of such number of members, with such qualifications and for such period as may be prescribed, for the purposes of advising the Administrator on the technical or legal issues relating to advertisement of liquor, use of denaturants and such other legal or technical aspects as may be considered necessary.
(2) Without prejudice to sub-section (1), the general functions of the Board of Experts shall be to determine as to whether-
(a) any flavouring extract, essence or syrup containing alcohol is an article fit for use as intoxicating liquor; or
(b) any communication amounts to an advertisement for soliciting use of liquor or whether it is informative or educative communication for responsible drinking; or
(c) any denaturant can be used as effective denaturant and whether it suits or harms manufacture of any chemicals; or
(d) any other matter as may be referred to by the Administrator.
CHAPTER III

Licence And Permit For Manufacture, Possession, Sale, Etc., Of Intoxicants

12. Prohibition of manufacture, import, export, sale, etc., of intoxicants. – (1) No person shall construct or establish any manufactory or warehouse or manufacture, bottle, import, export, transport, transit, collect; possess, sell, 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 and other intoxicants except under the authority and in accordance with the terms and conditions of a licence or letter of intent or permit granted under this Regulation and rules framed thereunder:
Provided that possession of labels, corks or capsules by its printer or manufacturer, as the case may be, will 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 licence to manufacture liquor and other intoxicants under this Regulation.
(2) No person shall engage in manufacture of alcohol exclusively for industrial use unless he is registered with the Excise Commissioner in such manner as may be prescribed.
13. Grant of letter of intent, licence or permit. – 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.
14. Qualification for grant of license. – (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 twenty-one years of age;
(c) is not a defaulter or blacklisted or debarred from holding an excise licence;
(d) submits an affidavit as 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 metres 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 or rules;
(iii) that he possesses 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 twenty-one years of age;
(v) that he does not owe any public dues or dues to the Administrator;
(vi) that he is solvent and has the necessary funds or has made arrangements for the necessary funds for conducting the business :
Provided that the details of such funds shall be made available to the authorised officer, if so required.
(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.
15. Power to take security and counterpart agreement. – Subject to such conditions as may be prescribed, the authority granting a licence under this Regulation may require the licensee to-
(a) give security for the observance of the terms of his licence; and
(b) execute a counterpart agreement in conformity with the tenor of his licence.
16. Technical defects in licence and permit. – (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) The decision of the licensing authority, as to what is a technical defect, irregularity or omission shall be final and binding.
17. Power to withdraw licence and permit. – (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 twenty-one days notice of its intention to do so forthwith, assigning reasons . therefor in writing.
(2) If any licence or permit is withdrawn, the licensee or the permit holder permit 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.
18. Power to suspend or cancel licence and permit. – (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 sub-let by the holder thereof without the permission of the said authority;
(b) if any excise revenue payable by the holder thereof is not duly paid;
(c) in the event of any breach in terms and· conditions of such licence or permit by the holder or by his employee, or agent;
(d) if the holder of licence or permit or his agent or employee of such holder is convicted of an offence punishable under this Regulation or 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;
(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 misrepresentation or fraud.
(2) When a licence or permit held by such person is cancelled under sub-section (1), the aforesaid authority may cancel any other licence or permit granted to such person under this Regulation or under any other law relating to excise revenue.
(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 shaH 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 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 in respect thereof.
19. Bar to right of renewal and to compensation. – 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 to refusal to renew a licence or permit on the expiry of the period for which the same remains in force.
20. Surrender of licence or permit. – No holder of a licence granted under this Regulation shall surrender his licence except on the expiration of one month’s notice in writing given by him to the Deputy Commissioner 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 Deputy Commissioner is satisfied that there are sufficient reasons for surrendering the licence, he may remit to the holder thereof the sum so payable on surrender or any portion thereof.
21. Transfer of licence or permit. – Licence or permit granted under this Regulation shall not be transferable except with the prior approval of the Excise Commissioner or of any officer authorised by him subject to such terms and conditions as may be prescribed.
22. Grant of exclusive privilege of manufacture, etc., of any liquor or other intoxicants. – 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 of manufacturing or of supplying by wholesale or sale by retail, any liquor or other intoxicants within any local area.
23. Removal of liquors from manufactory, warehouse, etc., on payment of duty. – No liquor or other intoxicants shall be removed from any manufactory, warehouse or other place of storage established under this Regulation unless duty payable has been paid or a bond, as may be prescribed has been executed for the payment thereof.
24. Prohibition of sale to certain persons. – No person or licensed vendor or his employees or agent shall sell or deliver any liquor to any person apparently under the age of twenty-one years whether for consumption by self or others.
25. Prohibition of·employment of certain persons. – No licencee shall employ or permit to be employed in his premises any person under ihe age of twenty-one years or suffering from contagious disease.
26. Closing of shops for preservation of public peace. The District Magistrate or any other officer authorised by him may, by notice in writing to the licensee, require that any shop in which any liquor or other intoxicants is sold shall be closed at such times or for such period,as he may think necessary for public peace:
Provided that the closure days in a licensing year shall not exceed seven days in all or more than three days continuously at anyone time:
Provided further that if the Excise Commissioner or any 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 anyone time, he may with prior sanction of the Administrator, permit to do so.
CHAPTER IV

Excise Revenue

27. Nature and components of excise revenue. – The excise revenue shall be levied and recovered under the following heads, namely:-
(a) duty;
(b) licence fee;
(c) label registration fee; and
(d) import or export fee.
28. Excise duty and countervailing duty. – (1) There shall be levied and collected at such rates and in such manner as may be prescribed, duties of excise on all liquor and other intoxicants which are produced or manufactured in the Union territory not exceeding the rate as set forth in the Schedule.
(2) There shall be levied and collected in such manner as may be prescribed, countervailing duties of excise, on all liquor and other intoxicants for human consumption manufactured or produced elsewhere in India and imported into the Union territory equal to excise duty for the time being leviable on the liquor and other intoxicants if produced or manufactured in the Union territory :
Provided that if a like item is not so produced or manufactured, the countervailing duty shall be equal to the duty which would be leviable on the class or description of items to which the imported liquor belong.
(3) There shall be levied and collected fee for issue of licence or permit subject to such terms and conditions as may be prescribed.
(4) The excise duty or the countervailing duty may be levied in one or more of the following manners, namely:-
(a) excise duty to be charged in the case of liquor and other intoxicants either on the quantity produced in, or passed out of a manufactory or warehouse licensed or established under this Regulation, or in accordance with such scale of equivalents, calculated on the quantity of materials used or by the degree of attenuation of the wash or wort, as may be prescribed;
(b) the import, export or transport duties assessed in such manner as the Administrator may direct.
29. Valuation of liquor or other intoxicants for the purposes of charging of excise duty. – (1) Where under this Regulation, the duty of excise is chargeable on any liquor or other intoxicants with reference to value, then, such value shall be deemed to be the maximum retail price declared on such article less amount of abatement, if any, from such maximum retail price.
(2) Notwithstanding anything contained in sub-section (1), where duty of excise is chargeable on any liquor or other intoxicants with reference to value, the Administrator may, by notification, declare that such value shall be the ex-factory price :
Provided that where ex-factory price is not ascertainable for some reason, the nearest ascertainable equivalent thereof may be determined in such manner as may be prescribed.
(3) The Administrator may, for the purpose of allowing any abatement under sub-section (1), take into account the amount of duty of excise, post-manufacturing expenses, sales tax and other taxes, if any, payable on such goods.
(4) The manufacturer shall declare ex-factory price or maximum retail price, as the case may be, of liquor or other intoxicants in such manner as may be prescribed.
Explanation.-For the purposes of this section, “ex-factory price” means the cash I price actually paid or payable for the liquor or other intoxicants at which liquor or other intoxicants are ordinarily sold by the manufacturer to a wholesaler for delivery at the place of manufacture, where buyer and seller are so associated that there is no mutuality of interest and the price is the sole consideration for sale but excludes excise duty, sales tax and other taxes or fees payable thereon.
30. Declaration of ex-factory and maximum retail price. – The ex-factory price and maximum retail price shall be declared by the manufacturer or the licensee along with the application for registration of brand and label to the Excise Commissioner :
Provided that maximum retail price shall be determined based on declared ex-factory price, applicable duties or fees, margins to wholesalers or retailers and any other declared basis as may be prescribed.
31. Recovery of duty and levies and lien on the property of defaulter. – (1) All duties, fees, taxes, fine payable to the Union territory Administration 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) In the event of default by any person to whom licence has been granted under this Regulation, his manufactory, warehouse, shop or premises and all fittings; apparatus, stocks of liquor and other intoxicants 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 Union territory Administration through such default and be sold to satisfy such claim which shall be a first charge upon the proceeds of such sale.
(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 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.
Explanation (1).- For the purposes of this clause, where the service of the notice is stayed by an order of the court, the period of such stay shall be excluded in computing the aforesaid period of three years.
Explanation (2).- For the purposes of this clause “relevant date” means,–
(i) in a case 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;
(iii) in a case where duty of excise has been erroneously refunded, the date of such refund;
(b) the District Excise Officer shalL idler considering the representation, if any, made by the person on whom notice is served under sub-section (1), 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.
32. Interest payable for failure to pay excise revenue. – 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.
Explanation.-For the purposes of this section, where the duty determined to be payab1e is reduced or increased by the Appellate Authority or the court, the interest shall be payable on such reduced Of increased amount of duty, as the case may be.
33. Power to reduce or waive interest in certain cases. – 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 –
(a) to do otherwise would cause genuine hardship to the person having regard to the circumstances of the case; and
(b) the person has co-operated in any proceeding for the recovery of any amount due from him.
34. Excise revenue to be paid irrespective of pendency of any writ petition, suit, etc. – 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 tiled before any Tribunal or before the Excise Commissioner, or a revision has been filed before the Administrator, any sum due to the Union territory Administration 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 the competent authority.
35. Accounts and returns. – Every licensee shall maintain such accounts and submit to the concerned officers Accounts and such returns in such forms, containing such particulars relating to stock, apparatus, excise returns. duty or fee payable or paid and such other information at such interval as may be prescribed.
CHAPTER V

Offences And Penalties

36. Penalties for illegal manufacture, sale, import, etc. – (1) Whoever, in contravention of this Regulation or of any rule, notification or order made, or condition of licence or permit granted or issued thereunder,-
(a) manufactures, imports, exports, transports or removes any liquor and other intoxicants;
(b) constructs or works any manufactory or warehouse;
(c) bottles any liquor for purposes of sale;
(d) uses, keeps or possesses any materials, stills, utensils, implements or apparatus whatsoever for the purpose of manufacturing any liquor other than toddy or tari;
(e) possesses any material or film either with or without Union territory logo or wrapper or any other thing in which liquor can be packed, or any apparatus or implement or machine for the purpose of packing any liquor; or
(f) sells, transports, possesses or buys any liquor beyond prescribed quantity, shall be punished-
(A) in the case of an offence falling under clause (a),-
(i) where the liquor or other intoxicants involved in the offence is less than the prescribed value, with imprisonment for a term which shall not be less than one year but which may extend to five years and shall also be liable to fine which shall not be less than fifty thousand rupees or five times of the value of liquor or other intoxicants whichever is higher;
(ii) where the liquor or other intoxicants involved in the offence exceeds the prescribed value, with imprisonment for a term which may extend to seven years and with fine which may extend to one lakh rupees or five times of the value of liquor;
(B) in the case of an offence falling under clause (b), with imprisonment for a term which may extend to three years and also with fine which may extend to fifty thousand rupees;
(C) in the case of an offence falling under clause (c), with imprisonment which may extend to one year and also with fine which may extend to one lakh rupees or five times of the value of liquor or other intoxicants, whichever is higher;
(D) in the case of an offence falling under clause (d), with imprisonment which may extend to six months and also with fine which may extend to twenty thousand rupees;
(E) in the case of an offence falling under clause (e), with imprisonment which may extend to three months and also with fine which may extend to fifty thousand rupees;
(F) in the case of an offence falling under clause (j), with imprisonment which may extend to three months and also with fine which may extend to one lakh rupees or five times of the value of liquor or other intoxicants, whichever is higher.
(2) If any offence is punishable under sub-section (1) is committed by a person not holding a valid licence of permit it under this Regulation, he shall be liable to twice the penalty prescribed for the said offence.
37. Penalty for rendering denatured spirit fit for human consumption. – Whoever, renders or attempts to render fit for human consumption any spirit which has been denatured, or has in his possession any spirit in respect of which he knows or has reason to believe that any such attempt has been made, shall be punished with imprisonment for a term which shall not be less than two years, but which may extend to three years, and also with fine, which may extend to two lakh rupees or five times of the value of liquor or other intoxicants, whichever is higher.
38. Penalty for mixing noxious substance with liquor. – Whoever, mixes or permits to be mixed with any liquor or other intoxicants sold or manufactured or possessed by him any noxious drug or any foreign ingredient likely to cause disability or grievous hurt or death to human beings, shall be punishable,-
(a) if as a result of such an act, death is caused to any person, with death or imprisonment for life and shall also be liable to fine which may extend to ten lakh rupees;
(b) if as a result of such an act, disability or grievous hurt is caused to any person, with imprisonment for a term which shall not be less than seven years, but which may extend to imprisonment for life, and with fine which may extend to five lakh rupees;
(c) if as a result of such an act, any other consequential injury is caused to any person, with imprisonment for a term which may extend to one year and shall also be liable to fine which may extend to two lakh fifty thousand rupees;
(d) if as a result of such an act, no injury is caused to any person, with imprisonment which may extend to six months and with fine which may extend to one lakh rupees or five times the value of liquor or other intoxicants, whichever is higher.
Explanation.- For the purpose of this section the expression “grievous hurt” shall have the same meaning as assigned to it in section 320 of the Indian Penal Code.
39. Order to pay compensation. – (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the court, when passing an order under this Regulation may, if it is satisfied that death or sold in any place, order the manufacturer or the seller, whether or not he is convicted of an offence, to pay, by way of compensation, an amount not less than three lakh rupees to the legal representatives of the each deceased or two lakh rupees to the person to whom grievous injury has been caused, or twenty thousand rupees to the person for any other consequential injury:
Provided that where the liquor Or other intoxicants is sold in a licensed shop, the liability to pay the compensation under this section shall be on the licensee.
(2) Any person aggrieved by an order under sub-section (1) may, within a period of thirty days from the date of the order, prefer an appeal to the High Court :
Provided that no appeal shall be filed by the accused unless the amount ordered to be paid under sub-section (1) is deposited by him in the Court :
Provided further that the High Court may entertain an appeal after the expiry of the said period of thirty days if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.
40. Penalty for selling Indian liquor as foreign liquor. – Whoever, sells or keeps or exposes for sale as foreign liquor which he knows or has reason to believe to be Indian liquor shall be punished with imprisonment for a term which may extend to six months and shall also be liable to fine which may extend to one lakh rupees or five times the value of liquor, whichever is higher.
41. Penalty for possession of liquor unlawfully imported or non-duty paid, etc. – Whoever, has in his possession any liquor knowing the same to have been unlawfully imported, transported or manufactured or knowingly avoids payment of prescribed duty, shall be punished with imprisonment for a term which may extend to six months and shall also be liable to fine which may extend to one lakh rupees or five times of the value of liquor whichever is higher.
42. Penalty for consumption in chemist’s shop – (1) If a chemist, druggist, apothecary or keeper of a dispensary, allows any liquor which has not been bona fidely medicated for medicinal purposes to be consumed on his business premises by any person, he shall be punished with fine which may extend to five thousand rupees.
(2) If a person consumes any such liquor on such premises, he shall be punished with fine which may extend to two thousand rupees.
43. Penalty for consumption of liquor in public places. – Whoever, in contravention of any provision of this Regulation or of any rule, notification or order made thereunder,-
(a) consumes liquor in public places; or
(b) consumes liquor in public places and creates nuisance; or
(c) permits drunkenness or allowing assembly of unsocial elements on the premises of liquor establishments, shall be punished-
(i) in the case of an offence falling under clause (a), with fine which may extend to five thousand rupees;
(ii) in case of an offence falling under clause (b), with imprisonment for a term which may extend to three months and shall also be liable to fine which may extend to ten thousands rupees;
(iii) in the case of an offence falling under clause (c), with imprisonment for a term which may extend to six months and shall also be liable to fine which may extend to fifty thousands rupees.
44. Penalty for unlawful advertisement. – Whoever, prints, publishes or gives an advertisement in any media soliciting use of any liquor, shall be punished with imprisonment for a term which may extend to six months or with fine which may extend to ten lakh rupees, or with both:
Provided that this section shall not apply to catalogue or price list or advertisement generally or specially approved by the excise officer for the purpose of display at the points of sale for consumer information and education.
45. Penalty for abetment and conspiracy. – Any person who unlawfully releases or abets escape of any person arrested under this Regulation or abets commission of any offence against this Regulation, or engages himself in a criminal conspiracy for contravening the provisions of this Regulation shall be punished with imprisonment for a term which may extend to one year and shall also be liable to fine which may extend to fifty thousand rupees.
46. Penalty for employing minors or selling liquor to minors. – If any licence holder or any person acting in his behalf, sells or delivers any liquor to any person apparently under the age of twenty-one years or employs any person under the age of twenty-one years, he shall be punished with imprisonment for a term which may extend to three months or with fine which may extend to fifty thousand rupees, or with both.
47. Penalty for assault and obstruction. – Notwithstanding anything contained in the f!1dian Penal Code, any person who assaults or threatens to assault or obstructs or attempts to obstruct any Excise Officer in the discharge of his official duties shall be punished with imprisonment for a term which may extend to two years and shall also be liable to fine which may extend to one lakh rupees.
48. Liability of employer for offence committed by the employee or agent. – The holder of a licence or permit granted or issued·under this Regulation, as well as the actual offender, shall be liable for any off~nce committed by his employee or his agent unless he proves that due and reasonable precautions were exercised by him to prevent commission of such offence.
49. Penalty for manufacture, sale or possession by one person on account of another. – (1) Where any liquor has been manufactured or sold or is possessed by any person on account of any other person and such other person knows or has reason to believe that such manufacture or sale was or that such possession is, on his account such liquor shall, for the purposes of this Regulation, be deemed to have been manufactured, sold or to be in the possession of such other person.
(2) Nothing in sub-section (1) shall absolve any person who manufactures, sells or has possession of any liquor on account of another person from liability to any punishment under this Regulation for unlawful manufacture, sale or possession of such liquor.
50. Penalty for misconduct of licensee, etc. – Whoever, being the holder of a licence or permit granted or issued under this Regulation or being the employer of such holder and acting on his behalf,-
(a) fails to produce such licence or permit on demand by any Excise Officer or any other officer duly empowered to make such demand; or
(b) wilfully does or omits to do anything in breach of any of the conditions of his licence or permit otherwise than provided in this Regulation; or
(c) fails to submit returns; or
(d) fails to print maximum retail price on the label or tampers with it, shall be punished,–;-
(i) in the case of an offence falling under clause (a), with fine which may extend to fifty thousand rupees;
(ii) in the case of an offence falling under clauses (b) and (d), with imprisonment for a term which may extend to six months and shall also be liable to fine which may extend to one lakh rupees;
(iii) in the case of an offence falling under clause (c), with fine which may extend to one lakh rupees, and ten thousand rupees per day for subsequent delay.
51. Penalty for non-payment of excise duty or fee. – (1) If any person fails to pay any duty or fee under this Regulation, he shall be punished with imprisonment for a term which may extend to one year and shall also be liable to fine which may extend to one lakh rupees.
(2) Without prejudice to sub-section (1), that person shall also be liable for interest on delayed payment and damages at such rates as may be imposed.
52. Penalty for false statement made in declaration or affidavit or periodic returns. – Whosoever, in any declaration or affidavit or periodic return made to an Excise Officer makes any statement which is false or found to be false after due verification or which he believes to be false or does not believe it to be true, touching any point material to the object for which the statement is made or used shall be punished with imprisonment for a term which may extend to one year and shall also be liable to fine which may extend to fifty thousand rupees.
53. Penalty for allowing premises, etc., to be used for commission of an offence. – Whoever, being a licensee under this Regulation and having the control or use of any house, room, enclosure, space, animal or conveyance, knowingly permits it to be used for commission by any other person of an offence punishable under any provision of this Regulation, shall be punished in the same manner as if he had himself committed the said offence.
54. Penalty for attempt to commit an offence under this Regulation. – Whoever, attempts to commit any offence punishable under this Regulation, he shall be liable for half of the punishment provided for the offence under the Regulation.
55. Penalty on Excise Officer making vexatious search, seizure, detention or arrest. – Any Excise Officer or other person who vexatiously and without reasonable ground for suspicion,-
(a) enters or searches or causes to be entered or searched any closed place under colour of exercising any power conferred by this Regulation; or
(b) seizes the movable property of any person on the pretext of seizing or searching for any article liable to confiscation under this Regulation; or
(c) searches, detains or arrests any person; or
(d) in any other way exceeds his lawful powers under this Regulation, shall be punished with fine which may extend to ten thousand rupees.
56. Penalty on Excise Officer refusing to do duty. – Any Excise Officer who, without lawful excuse refuses to perform or withdraw himself from the duties of his office, unless expressly allowed to do so in writing by the Excise Commissioner, or unless he has given to his superior officer two months notice in writing of his intention to do so, or who shall be guilty of cowardice, shall be punished with imprisonment for a term which may extend to three months, or with fine which may extend to ten thousand rupees, or with both.
57. Penalty for offences not otherwise provided for. – Whoever, does any act in contravention of any of the provisions of this Regulation, or any rule or order made thereunder and punishment for which has not been otherwise provided for such contravention, shall be punished with imprisonment for a term which may extend to six months and shall also be liable to fine which may extend to ten thousand rupees or five times the value of liquor, whichever is higher.
58. Presumption as to commission of offence in certain cases. – (1) In prosecution under section 36, it shall be presumed, until the contrary is proved, that the accused person has committed the offence punishable under that section in respect of any liquor, still, utensil, implement or apparatus, for the possession of which he is unable to account satisfactorily.
(2) Where any animal, vessel, cart or other vehicle is used in the commission of any offence under this Regulation, and is liable to confiscation, the owner thereof shall be deemed to be guilty of such offence and such owner shall be liable to be proceeded against and punished accordingly unless he satisfies the court that he had exercised due care in the prevention of the commission of such an offence.
59. Enhanced punishment after previous conviction. – If any person, after having been previously convicted of an offence punishable under this Regulation, subsequently commits and is convicted of offence under this Regulation, he shall be liable to twice the punishment provided for the first conviction subject to the maximum punishment provided for the same offence and with fine twice the amount provided under the first conviction or with both.
60. Commission of offence by companies. – (1) If any person committing an offence under this Regulation is a company, the company as well as every person who at the time the offence was committed, was in-charge of and was responsible to, the company for the conduct of its business at the time of the commission of the offence, shall be deemed to be guilty of offence and shall be liable to be proceeded against and punished accordingly :
Provided that where a company has different establishments or branches or different units in any establishment or branch, the concerned Chief Executive Officer and the person in-charge of such establishment, branch, unit nominated by the company as responsible for food safety shall be liable for contravention in respect of such establishment, branch or unit :
Provided further that nothing in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Regulation has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of the offences and shall be liable to be proceeded against and punished accordingly.
Explanation.-For the purposes of this section,-
(a) “company” means any body corporate and includes a firm or other association of individuals; and
(b) “director”, in relation to fIrm, means a partner in the firm.
61. Procedure for launching prosecution in the case of major offences. – (1) The authorised Excise Officer shall after investigation of any offence committed under this Regulation, send his report to the Deputy Commissioner.
(2) The Deputy Commissioner after scrutiny of the investigation report shall decide as to whether alleged offence is major or minor and in the case of major offences, he shall decide within such period as may be prescribed, as per the gravity of offence, whether the matter be referred to-
(a) a court of ordinary jurisdiction in case of offences punishable with imprisonment for a term which may extend to three years; or
(b) a Special Court in case of offences punishable with imprisonment for a term exceeding three years where such Special Court is established, and in case no Special Court is established, such cases shall be tried by a court of ordinary jurisdiction.
(3) The Deputy Commissioner shall communicate his decision to concerned Excise Officer, who shall launch prosecution before courts of ordinary jurisdiction or Special Court, as the case may be.
62. Procedure for adjudication in case of minor offences. – (1) All minor offences shall be adjudicated by the Adjudicating Officer under this adjudication Regulation.
(2) The Administrator shall, by notification, appoint an officer not below the rank of offences. Additional District Magistrate of the direct where the alleged offence is committed, to be the Adjudicating Officer for adjudication in the manner as may be prescribed.
(3) The Adjudicating Officer shall, after giving the person a reasonable opportunity for making representation in the matter, and if, on such inquiry, he is satisfied that the person has committed the contravention of provisions of this Regulation or the rules made thereunder, impose such penalty as he thinks fIt in accordance with the provisions relating to that offence.
(4) The Adjudicating Officer shall have the powers of a civil court and –
(a) all proceedings before him shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code;
(b) he shall be deemed to be a court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973;
(5) While adjudicating the quantum of penalty under this Chapter, the Adjudicating Officer shall have due regard to the guidelines specified in section 64.
63. Compounding of certain offences. – (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the offences punishable under section 42, clause (a) of section 43, clauses (a) and (c) of section 50 and section 55, may either before or after the institution of any proceedings, be compounded by the District Excise Officer under this Regulation.
(2) On receipt of an application under sub-section (2), the District Excise Officer, having regard to the circumstances of the case, may at his discretion order for compounding of the offence on payment of a sum of money by way of compounding fee or compensation for the offence in accordance with the guidelines, as may be prescribed.
(3) On payment by the person such sum of money, such person, if in custody, shall be set at liberty and no proceeding shall be instituted or continued against such person in any criminal court :
Provided that the sum of money fixed as compounding fee or compensation by the District Excise Officer under this section shall not be less than five times but not more than ten times the duty involved or value of liquor and apparatus, whichever is higher: Provided further that where liquor, apparatus, vehicle or other material is seized, the same shall not be released but shall be disposed of in such manner as may be prescribed.
(4) Where the composition of any offence is made after the institution of any prosecution, such composition shall be brought by the District Excise Officer in writing, to the notice of the Court in which the prosecution is pending and on such notice of the composition of the offence being given, the person in relation to whom the offence is so compounded shall be discharged.
64. General provisions relating to determination of penalty. – While adjudging the quantum of penalty under this Chapter, Court or the Adjudicating Officer, as the case may be, shall have due regard to the following, namely :-
(a) the amount of gain or unfair advantage, wherever quantifiable, made as a result of the contravention;
(b) the amount of loss caused or likely to cause to the Union territory Administration or any person as a result of the contravention;
(c) the repetitive nature of the contravention;
(d) whether the contravention is without his knowledge; and
(e) any other relevant factor.
65. Certain things liable to confiscation. – Whenever an offence has been committed, which is punishable under this Regulation, following things shall be liable to confiscation, namely:-
(a) any liquor, material, still, utensil, implement and apparatus in respect of or by means of which such offence has been committed;
(b) any liquor unlawfully imported, transported, manufactured, sold or brought alongwith or in addition to any liquor, liable to confiscation under clause (a);
(c) any receptacle, package or covering in which anything liable to confiscation under clause (a) or clause (b), is found, and the other contents, if any, of such receptacle package or covering; and
(d) any animal, vehicle, vessel, or other conveyance used for carrying the same.
66. Confiscation by Deputy Commissioner in certain cases. – (1) Notwithstanding anything contained in this Regulation or any other law for the time being in force, where anything liable for confiscation under section 65 is seized or detained under the provisions of this Regulation, the officer seizing and detaining such property shall, without any unreasonable delay produce the said seized property before the Deputy Commissioner who has jurisdiction over the area.
(2) On production of the said seized property under sub-section (d), the Deputy Commissioner if satisfied that an offence h~ been committed under this Regulation, he may, whether or not a prosecution is instituted for the commission of such offence, order confiscation of such property or otherwise he may order for its return to the rightful owner.
(3) While making an order of confiscation under sub-section (2), the Deputy Commissioner may also order that such of the properties to which the order of confiscation relates, which in his opinion cannot be preserved or are not fit for human consumption, be destroyed. Whenever any confiscated articles has to be destroyed in conformity with these provision, it shall be destroyed in the presence of Excise Officer ordering the confiscation or forfeiture, as the case may be, or in the presence of the officer not below the rank of an Inspector.
(4) Where the Deputy Commissioner after passing an order of confiscation under sub-section (2) is of the opinion that it is expedient in the public interest so to do, he may . order the confiscated property or any part thereof to be sold by public auction or dispose of it otherwise departmentally or the Deputy Commissioner, shall submit a full report of all particulars of confiscation to the Commissioner of Excise within one month of such confiscation.
(5) Any liquor, mahua flowers or molasses and any other property if confiscated in a case compounded under section 63 of the Regulation or in respect of which an offence has been committed and the offender is not known or cannot be found, shall be disposed of in such manner as may be prescribed.
67. Order of any confiscation and destruction not to interfere with other punishment. – (1) The order of any confiscation under section 65 shall not prevent imposition of any other punishment to which the person affected thereby is liable under this Regulation.
(2) Notwithstanding anything contained in any other law for the time being in force the disposal of confiscated goods in the manner, thereby non-production of case property before the trial court, shall not affect the conviction for an offence under this Regulation: Provided that the samples of the liquor and the photograph of the confiscated property may be preserved to meet the evidentiary requirement.
68. Confiscated articles to be made over to the Deputy Commissioner. – (1) Subject to the provisions of this Regulation, when any article, animal or thing is duly confiscated either by the order of court or otherwise, such article, animal or thing shall be made over to the Deputy Commissioner for disposal or be disposed of in such manner and on payment of such fees including auction fee, as may be prescribed.
(2) When an order for confiscation of any property has been passed under section 65 and such order has become final in respect of the whole or any portion of such property, such property or portion thereof, as the case may be, shall vest in Administrator free from all encumbrances.
CHAPTER VI

Detection, Investigation And Trial Of Offences

69. Power to obtain information. – The Excise Commissioner or any authorised Excise Officer may by order require any person or any establishment deemed reasonably connected with any unlawful handling of any intoxicants to furnish to him such information as may be specified in the order.
70. Landholders, officers and other to give information. – (1) Whenever any intoxicant is manufactured, exported, imported or transported, collected or possessed or sold, in contravention of any provision of this Regulation, the owner or occupier of such land or building or his agent, and every officer of police and land revenue department, local bodies and block development officer shall, in the absence of reasonable excuse, be bound to give notice of the fact to a Magistrate or to an officer of the excise department as soon as the fact comes to his knowledge.
(2) Every Excise Officer shall be bound to give immediate information to his immediate superior of all breaches of any of the provisions of this Regulation, which may come to his knowledge under sub-section (1) or otherwise.
71. Power of arrest, search and seizure. – (1) Any authorised Excise Officer may search any place, seize any article, arrest or detain any person if there is a reasonable doubt that such place, article or person is involved in commission of any offence under this Regulation :
Provided that no search shall be deemed to be irregular by reason only of the fact that witness for the search is not inhabitant of the locality in which the place searched is situated.
(2) Save as otherwise expressly provided in this Regulation, the provisions of the Code of Criminal Procedure,. 1973 relating to search, seizure, arrest, detention, summon and investigation shall apply, as far as may be, to all actions taken under this Regulation.
72. Duty of police to accept seized articles. – Every officer-in-charge of a police station shall take charge of and keep in safe custody, pending the orders of a Magistrate or of the Deputy Commissioner, all articles seized under this Regulation which may be delivered to him and shall allow any officer of the Excise Department who may accompany such articles, to affix his seal to such articles and to take samples of and from them. All samples so taken shall also be sealed with the seal of the officer-in-charge of the police station.
73. Offences under this Regulation to be cognizable. – All major offences under this Regulation shall be cognizable and the provisions of the Code of Criminal Procedure, 1973 shall apply to them.
74. Certain offences to be non-bailable. – All offences punishable under this Regulation with imprisonment of two years and more shall be non-bailable and the provisions of the Code of Criminal Procedure, 1973, with respect to non-bailable offences shall apply to those offences.
75. Power of court to try cases summarily. – Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the Magistrate shall have power to try summarily in accordance with the provisions contained in sections 262 to 265 of that Code, all or any of the offences which are punishable under this Regulation with imprisonment for a term not exceeding six months or with fine, or with both.
76. Security for good conduct and abstaining from committing offence. -(1) Whenever any person is convicted of an offence punishable under this Regulation and the court convicting him is of opinion that such person habitually commits or attempts to commit, or abets the commission of any such offence and that it is necessary . to require such person to execute a bond for abstaining from the commission of any such offence, the court may, at the time of passing sentence on such person, order him to execute a bond for a sum proportionate to his means, with or without sureties, for abstaining from the commission of such offence during such period, not exceeding three years, as it thinks fit to fix.
(2) The bond shall be in the prescribed form in terms of the provisions of the Code of Criminal Procedure, 1973 and shall in so far as they are applicable, apply to all matters connected with such bond as if it were a bond to keep the peace ordered to be executed under section 106 of that Code.
(3) If the conviction is set aside on appeal or otherwise, the bond so executed shall become void.
(4) An order under this section may also be made by an Appellate Court or by the· High Court when exercising its power of revision.
CHAPTER VII

Appeal And Revision

77. Appeal to the Appellate Authority. – (1) Any person aggrieved by any decision or order passed under this Regulation by an Excise Officer, subordinate to the Deputy Commissioner, may appeal to the Deputy Commissioner.
(2) Any person aggrieved by any decision or order of the Deputy Commissioner may appeal to the Excise Commissioner.
(3) Such appeal shall be filled within thirty days from the date of communication of such decision or order together with self-attested copy thereof :
Provided that a further period of thirty days may be allowed if the appellant establishes that sufficient cause prevented him from presenting the appeal within the aforesaid period of thirty days.
78. Procedure in appeal. – (1) At the hearing of an appeal, an appellant may be allowed to go into any ground not specified in the grounds of appeal or take additional evidence if necessary, if it is established that such omission was not wilful or unreasonable.
(2) The Appellate authority after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the decision or order, as the case may be.
(3) The appeal shall be heard and decided within a period of six months from the date on which such appeal is filed :
Provided that if an appeal is not decided within the time period specified in sub-section (3), the relief prayed for in the appeal shall be deemed to be granted.
79. Order of Appellate Authority. – (1) The order of the Appellate Authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision.
(2) The Appellate Authority shall communicate the order passed by him to the appellant and the Excise Officer whose order formed the subject matter of appeal.
80. Power of Excise Commissioner to rectify mistakes apparent from the records. – The Excise Commissioner may, at any time within six months from the date of the order with a view of rectifying any mistake apparent from the record, amend any order passed by him and shall make such amendments if the mistake is brought to his notice by any of the parties to the appeal :
Provided that an amendment which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the other party, shall not be made under this section, unless the Excise Commissioner has given notice to the appellant of his intention to do so and has granted him an opportunity of being heard.
81. Revision of orders by Excise Commissioner. – (1) The Excise Commissioner may, of his own motion, call for the record of any proceeding in which an officer subordinate to him has taken any decision or passed an order under this Regulation, including those related to the grant, issue or refusal to grant a licence, for the purpose of satisfying himself as to the legality or propriety of any such decision or order and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Chapter, pass such order thereon as he thinks fit.
(2) No order, which prejudicial to any person shall be passed under this section unless the person has been given an opportunity of being heard.
(3) The Excise Commissioner shall communicate the order passed by him under sub-section (1) to such persons and the excise officer whose order formed the subject matter of revision.
(4) No order under this section shall be passed by the Excise Commissioner in respect of any issue if an appeal against such issue is pending before the Deputy Commissioner.
(5) No order under this section shall be passed after the expiry of a period of six months from the date on which the order sought to be revised has been passed.
82. Deposit of duty or fee demanded or penalty or fine levied pending appeal. – (1) Where in any appeal under this Chapter, the decision or order appealed against relates to any duty or fee demanded or any penalty or fine levied under is Regulation, the person desirous of appealing against such decision or order shall, pending the appeal, deposit with the excise officer the duty or fee demanded or the penalty or fine levied, if such amount exceeds one lakh rupees.
(2) Where in any particular case, the Appellate Authority is of opinion that the appellant has a prima facie case in his favour and deposit of duty” demanded or penalty levied would cause undue hardship to such person, the Appellate Authority may dispense with such deposit and stay its recovery subject to such conditions as he may deem fit to impose so as to safeguard the interest of revenue.
(3) Where an application is filed for dispensing with the deposit of duty or fee demanded or penalty or fine levied under sub-section (2), the Appellate Authority shall, where it is possible to do so, decide such application within thirty days from the date of its filing.
(4) Notwithstanding anything contained in sub-section (1), no recovery action shall be initiated against the appellant until the application under sub-section (2) has been decided by the Appellate Authority.
83. Appeal to High Court. – (1) Any company referred to in sub-section (1) of section 7 and aggrieved by the order of the Administrator may file an appeal to the High Court.
(2) An appeal shall lie to the High Court from an order passed in appeal by the Excise Commissioner if the High Court is satisfied that the case involves a substantial question of law.
(3) The Union territory administration or the other party aggrieved. by any order passed by the Excise Commissioner may file an appeal to the High Court and such appeal under this sub-section shall be–
(a) filed within sixty days from the date on which the order appealed against is received by the Union territory administration or the other party;
(b) accompanied by a fee of ten per cent. of the amount involved or two thousand rupees whichever is higher where such appeal is filed by the other party;
(c) in the form of a memorandum of appeal precisely stating therein the substantial question of law involved.
(4) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.
(5) The appeal shall be heard only on the question so formulated, and the respondent shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question: Provided that nothing in this sub-section shall be deemed to take away or abridge the power of Court to hear, for reasons to be recorded in writing, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question of law.
(6) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which decision is founded and may award such cost as it deems fit.
(7) The High Court may determine any issue which-
(a) has not been determined by the Excise Commissioner;
(b) has been wrongly determined by the Excise Commissioner, by reason of a decision of such question of law as is referred to in sub-section (1).
(8) An Appeal shall be heard by a bench of not less than two judges of the High Court, and shall be decided in accordance with the opinion of such judges or of the majority, if any, of such judges.
(9) Where there is no such majority, the judges shall state the point of law upon which they differ and the case shall, then, be heard upon that point only by one or more of the other judges of High Court and such point shall be decided according to the opinion of the majority of the judges who have heard the cases including those who first heard it.
(10) Save as otherwise provided in this section, the provisions of the Code of Civil Procedure, 1908, relating to the appeals to the High Court shall as far as may be, apply in cases of appeals under this section.
84. Sums due to be paid notwithstanding appeal before High Court or revision before Excise Commissioner. – Notwithstanding that an appeal had been preferred to the High Court, sums due to the Union territory Administration as a result of an order passed by Excise Commissioner shall be payable in accordance with the order so passed :
Provided that nothing contained in this section or Chapter shall affect the inherent powers of the High Court for granting stay on the recovery of such amount.
CHAPTER VIII

Miscellaneous Provisions

85. Supply of measures, weights and testing instruments. – Every person who manufactures or sells any intoxicant under a licence granted under this Regulation, shall be bound –
(a) to supply himself with such measures, weights and instruments as the Excise Commissioner may prescribe, and to keep the same in good condition; and
(b) on the requisition of any excise officer, at any time to measure, weigh or test any intoxicant in his possession in such manner as the said Excise Officer may require.
86. Powers of the Administrator to declare what shall be deemed to be liquor or intoxicant. – The Administrator may, by notification, declare as to what shall be deemed to be liquor or intoxicant for the purposes of this Regulation or the rules framed thereunder.
87. Power of the Administrator to regulate drinking and to enforce prohibition. – The Administrator may issue such order and take such measures as may be deemed appropriate to regulate drinking or to enforce prohibition in whole or any part of the Union territory.
88. Power of Administrator to regulate molasses black jaggery, mahua flower, etc., to prevent misuse. – The Administrator may frame rules to regulate, movement, possession and sale of molasses, blackjaggery, mahua flower, etc., indicating terms and conditions as are necessary and expedient to prevent their misuse for illicit distillation.
89. Power to regulate advertisement. – No advertisement, direct or surrogate, shall be made for promoting consumption of liquor :
Provided that the Excise Commissioner may, at his discretion, allow such advertisement which is educative and promotes responsible drinking.
90. Power of Administrator to declare limit of sale by retail and by wholesale. – The Administrator may, by notification, declare, in respect to the whole of the Union territory of Dadra and Nagar Haveli or to any local area comprised therein and as regards purchasers generally or any specified class of purchasers and generally or for any specified occasion the maximum or the minimum quantity or both or any intoxicant which for the purpose of this Regulation may be sold by retail and by wholesale.
91. Bar of certain suits. – No suit for damages shall lie in any civil court against the Administrator or any officer or person for damages for any act in good faith done, or ordered to be done in pursuance of this Regulation or of any other law for the time being in force relating to excise revenue. The officials engaged in enforcement of this Regulation shall be deemed to be public servants.
92. Power of Administrator to make rules. – (1) The Administrator may, by notification, make rules not inconsistent with the provisions of this Regulation, for carrying out purposes of this Regulation.
(2) In particular and without prejudice to the generalitY of the foregoing power, such rules may provide for all or any of the following matters, namely :-
(a) the form in which an annual report shall be submitted by the Excise Commissioner under clause (i) of section 4;
(b) the grant of award to the officers and employees, and informers for the work, and the terms and conditions thereof, under section 10;
(c) the number of members of the Board of Experts, their qualification and term under sub-section (1) of section 11;
(d) the manner of registration for the purpose of manufacture of alcohol exclusively for industrial use under sub-section (2) of section 12;
(e) the fees, the period for, the terms and conditions and the form, for grant of licence or permit under section 13;
(j) the conditions for security and counterpart agreement under section 15;
(g) the restrictions on power of the licensing authority to suspend or cancel licence and permit under section 18;
(h) the terms and conditions subject to which transfer of licence or permit may be made under section 21;
(i) the terms and conditions for granting of licence or lease under section 22;
(j) the bond to be executed for removal of liquor from manufactory, warehouse, etc., under section 23;
(k) manner of collection of duties of excise under sub-section 0), terms and conditions for collection of fee under sub-section (3), and the calculation of the duty on the quantity of material used or by degree of attenuation of the wash or wort, under clause (a) of sub-section (4), of section 28;
(l) manner of determination of ex-factory price under sub-section (2), and the manner of declaration of the ex-factory price or maximum retail price under sub-section (4), of section 29;
(m) any other declared basis for determination of maximum retail price under section 30;
(n) the returns, forms and the particulars and such other information to be submitted by the licensee under section 35;
(o) the quantity of the liquor to be sold, transported, possessed or bought by the manufacturer and the value thereof under clause (f) of sub-section (1) of section 36;
(p) the period within which any·major offence may be referred by the Deputy Commissioner under sub-section (2) of section 61;
(q) the manner of adjudication by an Adjudicating Officer under sub-section (2) of section 62;
(r) the guidelines for compounding under sub-section (3) and the manner in which the liquor, apparatus, vehicle or other material seized shall be disposed of under sub-section(4) of section 63;
(s) the manner in which any liquor, mahua flowers or molasses and any other confiscated property shall be disposed of under sub-section (5) of section 66;
(t) the regulation of movement, possession and sale of molasses, black jaggery, mahua flower, etc., under section 88;
(u) any other matter which is to be, or may be prescribed under this Regulation.
93. Laying of rules. – Every rule made under this Regulation shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case· may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
94. Power to remove difficulties. – (1) If any difficulty arises in giving effect to the provisions of this Regulation, the Administrator may, by order published in Official Gazette, make such provisions, not inconsistent with the provisions of this Regulation, as may appear to be necessary, for removing the difficulty :
Provided that no order shall be made under this section after the expiry of a period of two years from the date of commencement of this Regulation.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
95. Repeal and savings. – On the commencement of this Regulation, the Dadra and Nagar Haveli Excise Regulation, 1969 shall stand repealed :
Provided that the repeal shall not affect –
(a) the previous operations of the Regulation under repeal;
(b) any penalty, forfeiture or punishment incurred in respect of any offences committed under the Regulation under repeal;
(c) any investigation or remedy in respect of any such penalty, forfeiture or punishment;
(d) any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed, as if this Regulation had not been passed;
(e) any duty, or fee levied, assessed or collected or purported to have been levied, assessed or collected under the Regulation under repeal before the commencement of this Regulation shall be deemed to have been validly levied, assessed or collected in accordance with law :
Provided further that subject to the preceding proviso anything done or any action taken under this Regulation under repeal shall be deemed to have been done or taken under the corresponding provisions of this Regulation and shall continue in force accordingly unless and until superseded by anything done or by any action taken under this Regulation.
96. Transitory provisions for excise laws for Dadra and Nagar Haveli. – Notwithstanding the repeal of the Dadra and Nagar Haveli Excise Regulation, 1969, all rules made and notifications issued thereunder shall continue to be in force and operate, till new rules and notifications are made or issued under this Regulation :
Provided that anything done or any action taken under this Regulation under repeal shall be deemed to have been done or taken under the corresponding provisions of this Regulation and shall continue in force accordingly unless and until superseded by anything done or by any action taken under this Regulation.
THE SCHEDULE
(See section 28)
SI. No.
Description of Liquors
Rate
1.
Indian Liquor and Foreign Liquor
400 per cent. of the wholesale price.
2.
Wine and Liquor (Indian and Foreign)
80 per cent. of the wholesale price.
3.
Beer and Cider (Indian and Foreign)
200 per cent: of the wholesale price.
4.
Country Liquor
250 per cent. of the wholesale price.
5.
Spirituous preparations, including essence, but other than medicinal and toilet preparation, as defined in the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (l6 of l955)
20 per cent. of the wholesale price.
6.
Bhang
Rs.5.00 per kilogram.

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