The andaman and nicobar islands excise regulati0n, 2012

REGISTERED NO. DL--(N)O"/0007/200>-1l omltmVl EXlRAORDINARY ~ ll-"tf"q 1 PART n - Section I ~~~ PUBLISHED BY AUTI-IORlTY -«. 39J ":fl~, 1iH't!'aql<, ~ 19, 20121 ~ 28, 1934 (~) , , No. 39) NEW DELHI, THURSDAY, JULY 19,20121 ASADHA 28, ]934 (SAKA) ~ 'WTilf\R~~~~tf,m)~lf{~~-t~ifUfTOIT~1 Separate paging is given to this Part in order that It ma'y J>e filed as .- seplrate compilltion. . , ''MINISTRYOFLAW AND.nJSTICE --', - (Legislative Department) , NeW Delhi. the I 9th July, 20 I2IAsadha 28, 1934 (Saka) • I .. , ~. THEi\NDAMANAND NICOBAR ISLANDS EXCISEREGULA110N,2012 [No.3 OF 2012] Promulgated by the President in the Sixty-third Year of the Republic of India A Regulation to consolidate the excise laws relating to manufacture, import, export. transport, possession, sale arid purchase of liquor in the Union territory of Andaman and Nicobar Islands and for matters connected therewith-or incidental tbereto. " " I /',/ I' In exercise of the powers conferred by article 240 of the C~ilstittttion, the President is ' pleased to promulgate the following Regulation made by her:- ' • . " 'J: ' «~ " . :i' , ' CHAPTER I .~ PRalMlNARY , , , , 1. (l),This ~~egulati~n may be called the Andaman and Nicobar Islands Excise Short title. Regulation, 20 12: ~, ,~ : extent and :', '. .. , commence (2) It ~xteild~to the whole of the Union territory of Andaman and Nicobar Islands. ment. (3) It shall come intolorcc: on such date as the Admlnistratormay,b y notification in the Official Gazette, appoint " ' .' , .... ~ , ," -:' i,· • , , " ',.,:. 2 THE GAZEITE OF INDIA E~TRAORDINARY .- Definit ic n! . 2. In this Regulation, unless jhe context otherwise requires,- t ~ • •..• • -I, . t _. 4 ,_: ~. : ~ (I) "Administrator" means the Administrator of the Union territory of the Andaman and Nicobar Islands appointed by the President under article 239 of the Constitution; . . l!· .• ,' " '~'.' :. . . .• • .' ~2? ."alcohol"_means ethyl al,c?~~.1 of~sti~niili and purity having the'chemical composition C H OH' ' ... -. J 1'( ,', .... . • ~ . l I ' "" (1) "alcoholic beverage" means 'any beverage containing alcohol inconformity with the' Bureau of Indian Standards specified under the Bureau of Indian Standards Act, 1986 which may be l-nt-ox---i-c-at-in-g- 8I!d is. fit (or human consumption; 63 of 1986. . . (4) "Appellate Authority" means the Appellate Authority referred to in section 76; ,.': . (.5) "authorised officer" meansan officer authorised to exercise any of the powers and to perform any of the duties ~d functions under the provisions ~fthis Regulation and rules framed thereunder; (6) " "beer." means alcoholic bev,-e'I"tr' age pr. epI ared. fro.m mr alt or lg rain 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; I " (7) "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; (8) "blending" means mixing of two or more spirits of different strengths and different qualities; (9) "Board of Experts" means the ~oil!d Qf,Ex~ constituted under section II; ~r is (l0) "brewery" means premises where manufactured and includes every ;t ~ place therein where beer is stored or wh~refi:o~, issu~d;;. ,.... . , (11) "compounding" means the manufacture of alcoholic beverage by addition to spirit ,of a flavouring or colouring matter or both; (12) "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.; (13) "denaturant" means any substance completely miscible in spirit and of 1 -sueh a character that its addition renders the material> or any aqueous dilution of it, , non-potable; \ (!4 ) "denatured spirit" means spirit with an added denaturant to render it \ effectively and permanently unfit for human consumption; I (15) ''Deputy Commissioner" means the Deputy Commissioner appointed under i: section 5; (J 6) "distillery" means premises where spirit is manufactused and includes every place therein where it is stored or wherefrom it is issued; (/7) "District Excise Officer" means the District Excise Officer appointed under section 5; (l8) "e-governance" includes use of information and communication technology to promote efficient and cost-effective services to the public; (/9) "Excise Commissioner" means the officer appointed as Excise Commissioner by the Administrator under section 3; ..... _" ' . - SEC. I] THE GAZETTE OF INDIA EXTRAORDINARY - ~ 3 (20) "Excise Officer" means any officer or person appointed or invested with powers under this Regulation; (2/) "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 unposed by a court of law; (22) "export" means to take out of the Union territory of Andaman and Nicobar Islands to any other State or Union territory within the country; (23) "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; (24) "foreign liquor" means any liquor imported by land, sea or air into India; (25) "Government" means the Administrator of the Andaman and Nicobar Islands; (26) "hop" means ripened cones of female hop plant used for giving flavour to malt liquor; \. . , (27) "Illicit liquor" means any liquor manufactured or stored or distributed or sold, in contravention of the provisions of this Regulation or the rules framed thereunder or liquor on which appropriate duty or fee leviable under this Regulation or the rules framed thereunder, has ~ot been paid and includes foreign liquor on which appropriate duty of customs has not been paid; (28) "import" means to bring into Union territory of Andaman and Nicobar Islands from any other State or Union territory of the country; (29) "import into India" with its grammatical variations and cognate expressions. means bringing into the Union territory of Andaman and Nicobar Islands from any place' outside India; (30) "Indian liquor" means.liquor manufactured in India by process of distillation or using alcohol obtained by distillation such as whisky, brandy, rum, gin, vodka, but does not include country liquor orfermented liquor; (3/) "licence" means a licence granted under this Regulation; ,I I '.,. " • (32) "liquor" means any alcoholic beverageand 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 tJie Administrator may; by notificaticn.vdeclare to be liquor for the purposes of this Regulation; (33) "major offences" means the offences punishable under sections 34, 35, 36, 38,39,43,44 and 45 of this Regulation; (34) "malt" means the germinated barley; (35) "manufactory" means any distillery, brewery, wineryor any establishment distilling, brewing, manufactw:in~; blending or bottling liquor; (36) "manufacture" includes any process- (a) incidental or ancillary to the completion of a manufactured liquor; or " . (b) ~ethe;'-n~1 'or artificial, by which any liquor is produced or prepared and also rc-distilrltion and every process for the rectification, reduction, flavouring.blending orcolouring 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 on it or adoption of any other treatment on the Iiquor:tOr sale'lt6 the consumers. ': ! • '_ -' • 4 THE GAZETTE OF fNDlA EXTRAORDINARY [PAKr 11- ~':,.. : ~ r I Explanation.-For the remova(otdo~bts: it is hereby declared th~t labelling of bottles or unit packages, imported into' ~dia 'Or into the Union territory: to :comply with statutory requirements shall not be construed as manufacture; . (37) "manufacturer" means any person whe manufactures Indian liquor and includes a manufacturer of alcohol subject to exCi~~ duty uftder the Central Excise Act, ..r 1944 ; I . ',j 1 0 f 1944. (38) "minor offences" means the offences other th'an major offences under this Regulation; . ' .. (39) "molasses" means heavy dark coloured viscose liquid produced from residual syrup drained away in the final stage of the manufacture of gur or sugar including khandasari sugar from sugarcane or gur, when liquid as such or in any form or admixture contains sugar which can be fermented; (40) "maximum retail price" means the.m,axinWIll price I!i which the liquor may be sold to the ultimate consumer and shall -include all taxes, freight, transport charges, commission or trade margin payable tQ 4e!l!ers, and all charges towards marketing, delivery, packing, forwarding and thelike, as the case may be; , (41) "notification" means a notification issued under this Regulation or the rules made thereunder and published in the Official Gazette; , (42) "officer-in-charge" means the Excise Officer authorised to supervise and control manufactory or warehouse; . (43) "Official Gazette" means theAndaman and Nicobar Islands Gazette; (44) "pachwai" means fermented rice, millet or other grain, and includes liquid obtained therefrom, whether diluted or undiluted, but does not include beer; (45) "permit" means an authorisation granted under this Regulation and the rules made thereunder; . ,:' " (46) "police station" means the police station having jurisdiction over the place or any otherplace, which the Administrator may, by notification, declare to be a police station for the purposes of this Regulation; (47) "prescribed" means prescribed by rules made by the Administrator under this Regulation; #8) "retail sale" means sale in quantities not exceeding the limit" of sale by retail . \ for any consideration or not; -, (49) "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; (50) "special duty" means a tax on the import of any excisable article being an article on which countervailing duty as is mentioned in entry 51 of List II in the • Seventh Schedule to the Constitution is not imposable on the ground merely that such I, i article is not being manufactured or produced in the territory; (5 J) "spirit" means any liquor containing alcohol obtained by distillation, whether denatured or not; (52) "spurious liquor" means liquor which has been adulterated with an object to bring intoxication easily and is harmful to consumers; (53) "still" means an apparatus for distillation or manufacture of spirits and includes any part thereof; (54) "toddy and tan" means fermented or unfermented juice drawn from a coconut, palmyra, date or any other kind of palm tree; (55) "transport" means to move from one place to another within the Union territory of Andaman and Nicobar Islands; __ - -_. ._-----. ---_._ _-- ---- --_-.._ .• _-_ .-. ~ ...•. j!~i I : !..iOfJ r;i/ THE GAZETIE OF INDIA EXTRAORDINARY 5 (56) "warehouse" means a place where storage ofliquor is permitted and includes a relevant part of manufactory; (57) "wholesale sale" means sale in quantities exceeding the limit of sale by retail; (58) "wine" means a fermented juice of grapes or other fruits with or without the addition of sugar or jaggery containing self-generated alcdhol and includes fortified wine; (59) "winery" means premises where wine is manufactured and includes every place therein where wine is stored or wherefrom it is issued; (60) "wort" means the liquor obtained by exhaustion of malt or grain or by the solution of saccharine matter in' the process of brewing. CHAPTERU ESTABLISHMENT AND CONTROl. 3. The Administrator may, by notification, appoint an officer as the Excise Commissioner Appointment who shall be the chief controlling authority for administration of this Regulation in the Union of Excise territory of Andaman and Nicobar Islands. Comrnis- sioner. 4. The Excise Commissioner shall exercise and perform the following powers and Powers and functions, namely:- functions of Excise (a) to regulate, control and monitor the manufacture, possession, import, export, Commis- stoner, transport, sale and consumption of liquor; (b).to curb illegal trade in liquor and illicit distillation; (c) to protect excise revenues C!! 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; if) 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, transport, sale, import or export of liquor; - r (l) to submit to the Administrator an annual report on the administration of this ~egulation in such form as be prescribed; . 1DllY (J) to perform such other functions and to exercise such other powers as may from time to time be entrusted or delegated to bim by the Administrator. 5. The Administrator may appoint such number of Deputy Commissioners, District Appointment l~xcise Officers and such ~er ofij.cers arid staff as it may deem fit for the purpose of of certain officers and performing the functions under this,;Regulation. staff. , I .': 6. (I) There shall be' ad'Excis~int~liigence Bureau headed by the Excise Commissioner . Excise and consisting of such number of Excise Officers and staff as may be appointed by the Intelligence Bureau. j!.dministrator or by the Excise Commissioner with the prior approval of the Administrator. (2) The Excise Intelligence Bureau shall- .<! ~_",' (a) collect intelligence, keep s\rr.VeiU~ce and maintain information of excise offences; '\,1. .o1!t 6 THE GAZETTE OF INDIA EXTRAORDINARY (PARr II- . , .... . ~~;.,.. . r .: ... (b) collect and disseminate information regarding prominent excise offenders and history-sheeters; ;::-:-.~ - ;,_ . i'- . (c) monitor detection, investigation and trial of offences under this Regulation; .", . , (d) maintain information network on' maJjllfactui.e, possession, transport, sale, import or. export of liquor, I. ~ .J.' - ElCcise 7~ (I) Subject to the provisions contained in sub-section (1) of section 14, the Adrnjnisu u Administrator may issue licence or permit to, any Government Corporation or Government tion. Company or the Government agency or anyautonomous body, owaed 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 (I), the Deputy Commissioner shall be the licencing authority who shall exercise all powers and functions under this Regulation, subject to the general controJand supervision'of the Excise Commissioner. ",' (3) The Deputy Commissioner shall, within the limits of his jurisdict ion, 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. I 1:·, I. , Delegation 8. (/) The Administrator may, by order, delegate his powers to the Excise Commissioner, and with subject to such limitations and conditions as may be specified in the order of delegation. drawal of ' • .'"'1 • powers. (2) The Excise Commissioner and the 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. ' - . t .~ • I • (3) The Administrator or 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. . ... :: Investing . 9. The Administrator may, by notification, invest the power with any officer of the persons wi til Union territory_~ 9t.being an Excise Officer, to perform all or any of the powers or functions of special any Excise Officer under this Regulation. powers. Reward for 10, The Excise Commissioner may grant such reward to such officers and employees exemplary under this Regulation and also to such informers for such work, subject to such terms" and performan :,'. conditions as may be prescribed. " Board of 11. (/) The Administrator may, constitute the Board of Experts consisting of such Experts. 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 ~ 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 ~~oxi~ing liqu~ or (b) any communication amounts to an advertisement for soliciting use ofliquor or whether it is informative or educative communication for responsible drinking, or (c) whether 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 it by the Administrator. SEC, I] THE GAZETTE OF INDIA EXTRAORDINARY 7 CBAPTERIII LICENCE Ah'D PERMIT FOR MANUFAcnJRE, POSSESSION,S ALE, ETC., OF UQUOR 12. (l) No person shall construct or establish any manufactory or warehouse or Prohibition manufacture, bottle, possess, sell, collect, transport, transit, import, export or purchase any of manufac liquor or use, keep or have in his possession any still, utensil. implement, apparatus, label, lure, sale, imparl, cork, capsule or seal for manufacture of any liquor except under the authority and in accordance export, etc, with the terms and conditions of a letter of intent, licence or permit granted under this of liquor, Regulation or the rules made 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 manufacturelunder the authority from the holder of tile licence to manufacture liquor 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. Every letter of intent, licence or permit under this Regulation shall be ~ted on Grant of letter payment of such fees, for such period, and subject to such terms and conditions and in such of intent, form and shall contain such particulars, as may be prescribed. licence or permit. 14. (I) While considering an application for grant of a licence or permit, the authorised Qualification officer shall ensure that the applicant- for grant of licence or (a) is a citizen of India; permit, (b) is above eighteen years of age; (c) is not a defaulter,o r blackl,i~ted or debarred from holding an excise licence; " (d) submits an affidavit as a proof for the following, namely:- , ' (I) that he possesses-or has an arrangement for taking on rent a suitable premises for conducting the business and the said premises is located more than fifty meters away from anymedical institution, educational institution. religious institution, women hostel, orphanage, hospital, primary health centre or community health centre; , (il) that the premises have not been constructed in violation of any Jaw; (iii) that be possesses a good moral character and has no criminal background nor has been convicted of any offence punishable under this Regulation or any other law, for the time being in force; (iv) that he shall not employ any salesman or worker or representative who has criminal background or suffers from any infectious or contagious diseases or is below eighteen years of age; (v) that he does not owe any public dues or dues to the Administration; (vi) that he is solvent and has the necessary funds or has made arrangements for the necessary funds, for conducting the' business: Provided that the,~qetails of such funds shall be made available to the authorised r o ffi cer I 'f so requI'T ed,' t. • s' (2) Th~ licence ot'permit:shall be liable for cancellation if any statement made in the affidavit or any document produced w!th the application is found to be false or forged. 15. Subject to such conditions as may be prescribed, the authority granting a licence Power to tak~ security under this Regulation may require the licensee to- and counter (a) give security for the observan';:~fthe\ermosf his licence; and part agreement . . ' L \ • ~ I ,:~(:r ' . r,·,t _ 8 THE GAZE1TE OF JNDIA EXTRAORDINARY (PART [1-- .::r--"" ~ ~; (b) execute' a counterpart agi'eement in conformity with the tenor of his licence. Technical 16. (/) No licence or permit granted under this Regulation shall be deemed to be invalid defects in by reason merely of any technical defect, irregularity or omission in the licence or permit, or licence and in any proceeding conducted prior to grant thereof; >'., ' , permit. " t, • . (2) The decision of the licensing authority.as to w6at is a t~chnical defect, irregularity or omission shall be final and binding. " " .: ",'~ Power 10 17. (1) Whenever the authority which granted a licence or permit under this Regulation withdraw' considers that such licence or permit should be withdrawn for any reason, it may do so, on icence and expiry of a period of twenty-one days notice ants intention to do so forthwith, assigning iermit. , reasons therefor in writing. . ) .'ft'. (2) Ifany licence or permit is withdrawn, the licensee or the permit holder shall be paid such sum, by way of compensation as the authority whogranted licence or permit, may direct and refund any fee paid in advance or deposit madeby the licensee in respect thereof after deducting the amount recoverable by the Government, I'ower 10 18. (1) Subject to such restrictions as may be prescribed, the authority who granted i uspend or licence or permit under this Regulation may; after giving reasonable opportunity of being , cancel licence heard, suspend or cancel the Iice~ce or permit, iI1 the following circumstances, narnely:- I nd permit, ' (0) ifth~ licence or permit is transf~fl.kd or sublet by the holder thereof without the permission lof the said authority; ,o,t ..: (b) if any excise revenue payable by the holder thereof is not duly paid; , i~' (c) in the event of any breach of theterms and conditions of such licence or permit by the holder or by his employee, or agent; (d) if the holder of the licence or permit or the agent or employee of such holder is convicted of an offence punishable undedhis Regulation or under any other law for the time being in force, relevant to and conbected with excise matters or relating to or excise revenue of any cognizable and U()~lbailable offence; . ' " I I • ~ > 1 " l1u I ' ; .. (e) if the purpose for which the licence ,or permit was granted ceases to exist; (j) if the licence or permit has been obtained through misrepresentatiori or fraud. (2) When a licence or permit held by such person is cancelled under sub-section (1), Ijle 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 (I), the fee payable for the balance of the period for which any licence or permit shall have been I: irrent 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 if any, in respect thereof. Ba to the 19. No person to whom a licence or permit has been granted, shall be entitled to claim r rig 11 of any renewal thereof, and no claim shall lie for damages or otherwise in consequence of any ren ewal and to refusal to renew a licence or permit on the expiry of the period for which the same remains in COl openserion. force. SUI render of 20. No holder of a licence or permit granted under this Regulation shall surrender his lice nee or licence or permit except on the expiration of one month's notice in writing given by him to the • permit. CI'~pUty Commissioner of his intention to surrender the same on payment of the fee payable for the licence for the whole period for which it shall have been current but for the surrender: -, --'-_ - - -" .. -""-------.-~~& . .•. -_....... •. . ... - •..•.. ..... .,.__ ..•. _ .... ...:"_" ~_.;!';L..-""" •• _~' ·- ••••• ---- •.••• - ••• . // SEC. I] TIlE GAZElTE OF INDIA EXTRAORDINARY 9 fl Provided that if the Deputy Commissioner is satisfied that there arc sufficient reasons for surrendering the licence or permit, he may remit to the holder thereof the sum so payable on surrender or any portion thereof. . 21. The licence or permit granted under this Regulation shall not be transferable except Transfer of with the prior approval of the Excise Commissioner or any officer authorised by him in this licence or behalf, subject to such terms and conditions as may be prescribed. permit. 22. Subject to the provisions of this Regulation and subject to such terms and Grant of conditions as may be prescribed, the Excise Commissioner may grant to any person a licence exclusive or lease or both, either jointly or severally, for the exclusive privilege or manufacturing, or of privilege of manufacture, supplying by wholesale or sale by retail, or both. any liquor within any local area. etc., of any liquor. 23. No liquor shall be removed from any manufactory, warehouse or other place of Removal of storage established under this Regulation unless duty and fee payable has been paid or a liquor from bond as may be prescribed, ~ been executed for the payment thereof. manufactory, warehouse. etc., on payment of duty. 24. No person or licensed vendor or his employee or agent shall sell or deliver any Prohibition liquor to any person under the age of eighteen years whether for consumption by self or of sale to others. certain persons. 25. No licensee shall employ or permit to be employed in his premises any person Prohibition under the age of eighteen years or suffering from contagious disease. of employ ment of certain person. 26. The District Magistrate or any other officer authorised by him may, by a notice in Closure of writing to the licensee, require that any sliop in which any liquor is sold shall be closed at shops for preservation such times or for suc~ period as he may think necessary, for preservation of public peace: of public peace. Provided that the closure days in. the licensing year shall not exceed seven days in all or more than three days continuously at anyone time: Provided further that if the Excise Commissioner or an officer authorised by him in this behalf is of the opinion that any particular shop or all shops in any particular 'area shall be closed for a period exceeding seven days in a licensing year, or more than three days continuously at anyone time, he may with prior sanction of the Administrator, permit to do so. CHAPTERI V ExCISE REVENUE 27. The excise revenue shall ~ levied and recovered under the following heads, Nature and namelyt=- components of excise (a) duty; revenue. (b) licence fee; (c) label registra.}~nf ee; ~d (d) import or export fee·l. 28. (l) There shall be I~vied a,pd collected in the manner provided by this Regulation Excise duty. and the rules thereunder and at such 'rites, not exceeding the rates set forth in the Schedule, a~: the Administrator may, by notification in the Official Gazette, specify, a duty of excise or a countervailing duty or a special duty:,as the case may be, on all liquor of the descriptions . .. srecified in the Schedule, being liquor manufactur~d;_()r·produced in;: ~r brought in~o, the ..' , tl:rritory and such duty shaH be payable by. th~ ._person manufacturing or producmg or _ . importing such liquor: .. ' ..... -- .; .• .1 '''I.~ •.. 10 THE GAZETTE OF INDlA EXTRAORDINARY Provided that no. su2h du; ~~11 be levied' on toddy when used for the manufacture Qf jaggery, vinegar, yeast, neera or when drunk as such. , r . '" Explanation-r-Ver the removal of doubts, it is hereby declared that in any notiflcation issued under this section, it shall nat be necessary to. specify separately the rate Df countervailing duty Dr special duty a~~, 'iuiles~'Dlhernllse provided in such notification As expressly, any rate specified in such notification the .rw: of excise duty in respect of any description of liquor shall be deemed tobe also. the rate'of countervailing duty, or a special duty, as the case may be, in respect of sHc,h desc~iption of liquor. . (2) There shall be levied and collected fee for issue of licence or penn it subject to. such tenus and conditions as may be prescribed. . (3) There shall be levied and collected the import, export Dr transport duties assessed in such manner as may be prescribed." ~ , . .' , Recovery of 29. (/) All duties, f~s, taxes, fines payable to the Union territory Administration under dut I lind levies this Regulation may be recovered from the perso~ liable to. pay the same or from his surety I"': on or his agent as if they were arrears of landrevenue. pro ),: Tty of deft ultcr, (2) In the event of default by any person to whom a license has been granted under this Regulation, his manufactory, warehouse, shop Dr premises and all fittings, apparatus, stocks ofliquor or materials for tl1e manufacture of the same, held therein shall be liable to be attached towards any claim for excise revenue or in respect of any )DSS incurred by the Union territory Administration through such defaJlt 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 le~ed or not paid or short levied or short paid Dr erroneously refunded,- (a) the District Excise Officer may, within' three years from the relevant date, serve notice on the person chargeal>l~ with ~e 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. i \ explanation I.-For the purposes of this Clause, where the service of the' notice is stayed by an order of the court, the pbod 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 cases in which duty of excise has not been paid or has been short levied or short-paid, the date on which the duty is to be paid under this Regulation or the rules made thereunder; '. (if) 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, after 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 IUDOunt SO determined. Interest 30. If the duty of excise payable by a person under this Regulation Dr the rules made payable fc r thereunder is not paid within time, he shall be liable to pay on the sum due, a simple interest failure tc pay at the rate of twelve per cent. per annum from the day next following the day on which such excise payment became due.' revenue. Explanation.-For the purposes of this section, where the duty determined to be payable is reduced or increased by the Appellate Authority or the court,the interest shall be payable on such reduced Dr increased amount of duty, as the case may be. -,--~." ..~ ,.". _ .. ..,_ ...._ _ ~. "_~#" ~'4. - ••• --- •• >~ ---- _ ••••• _-- I SEC. I) THEGAZETIEOF lNDlAEXTRAORDINARY II 3 I: Notwithstanding anything contained in this Regulation, the Excise Commissioner Power 10 may, on an application made in this behalf by a person, with the approval. of the Administrator reduce or and after recording his reason for so doing, reduce or Waive the amount of any interest waive interest payable by him under this Regulation, ifhe is satisfied that _ in certain cases, (a) to do otherwise would cause genuine hardship to the person having regard to the circumstances of the case; and (b) the person has cooperated in any proceeding for the recovery of any amount due from him, 32. Notwithstanding that a writ petition has been preferred or a suit or other proceeding Excise has been instituted in any court, or any appeal has been filed before any Tribunal or before revenue to be ,,1:~ the Excise Commissioner, or a revision has been filed before ,the Administrator, any sum due paid irrespec tive of 'Ii to the Union territory Administration under this Regulation as' a result of demand or order pendencey of :Ij made or passed by any officer or authority empowered in this behalfby or under this any writ I;, Regulation, shall be payable in accordance with such demand or order unless and until such petition, suit, I payment has been stayed by the competent authority. etc. :1 I 33. Every licensee sha,l l maintain such accounts and submit to the concemed 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, CHAPTERV oFl'Elb:..s AND PENALTIES 34. (1) Whoever, in contravention of this Regulation or of any rule.rnotification or Penalty for order made, or condition of licence or permit granted or issued thereunder,- illegal manufacture, (a) manufactures, imports, exports, transports or removes any liquor; sale, import, ~ (b) constructs or works any manufactory or warehouse; etc, " I ·;1 .: (c) bottles any liquor for purposes of sale; ,j (d) Uses, keeps or possesses any materials, still, utensils, implements or apparatus ': of whatsoever for the purposes manufacturing any liquor other than toddy or tari; or (e) possesses any material 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, sball be punishable _' (A) in the case of an offence (ailing under clause (a),- .l ", '.:. (I) where the liquor involved in the offence is less than 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, whichever is higher; (il) where the liquor 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, whichever is higher; (8) in the case of an offence falling under clause (b), with imprisonment for a term which may exterM to thre~ yeat~ and also with fine which may extend to fifty thousand rupees; <' (C) in the case of ali, offencefalling under clause (c), with imprisonment for a term which may extend to one year and also with fine which may extend to one lakh rupees or five times of'the value ofliquor, whichever is higher; . , CD) in the case of an offence falling under clause (d), with imprisonment for a term which may extend to six months aba-also ~ith fine wbich may extend to twenty thousand r.lJje"s; , 12 THE GAZElTE OF IND~I ~A . EXTRAORDINARY (E) in the case ofan offe~ce falling under clause (e), with imprisonment fora term which may extend to three months arid alsd with fine which may extend to fifty thousand rupees; I, : ,_!l. '.~' 'l ~_, , ' . . ~ I. '.';"'" (I') in the case of an offence falling under clause (/), with imprisonment for a term which may extend to three months and ~\so with1ine which may extend to one lakh rupees or five times of the value of liquor, whichever is hlither, (2) If any offence punishable under subiscction (1) is committed by a person not holding valid licence or penn it under this Regulation, he shall be liable to twice the penalty prescribed for the said offence. ' ': \ - ~'1:. • Penalty for 35. Whoever renders or attempts to renderfit for human consumption any spirit which rendering has been denatured, or has in his possession any spirit in respect of which he knows or has denatured reason to believe that any such attempt has been'mlide: shall, be' punishable with imprisonment spirit fit COl for a term which shall not be less than two years,' but which may extend to three years, and human consumption. also with fine, which may extend to two lakh lJlpees or_ five Itimes of the value of liquor, whichever is higher. I,:, Penalty Cor 36. Whoever mixes or permits to be niixed with any liquor sold or manufactured or mixing possessed by him any noxious drug or any foreign ingredient likely to cause disability or noxious grievous hurt or death to human being, shall be punishable,':_ substance wit h , ~I . ". liquor, (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; .. t, (b) if as a result of such an act, disabllity or grievous burt is caused to any " person, with imprisonment for a term wbic~,shall no~ ~"e less than six yel'jfS but which may extend to imprisonment for life, and also with fine which may extend to five lakh rupees; , • .. '"C'." . ,f . i i K • I (c) if as a result of such an act, any other consequential injury is caused to any person, with imprisonment for a term whicllJmay extend to one year and shall also be liable to fine which may extend to two Iakh '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 ofliquor, whichever is higher. '£Xplanation_-For the purposes of this section, the expression "grievous hurt" shall Lave the same meaning as assigned to it in section 320 of the 'ind'ian Penal Code. 4S of 1860, Order to pay 37. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, 2 of 1914. cc mpensa the court, when passing an order under this Regulation may, if it is satisfied that death or tu-n. injury bas been caused to any person due to consumption of liquor sold in any place, order the manufacturer or 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 each deceased or two lakh rupees to the person to whom grievous injury has been caused, or rupees twenty thousand to the person for any other consequential injury: Provided that where the liquor 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 (I) may, within a period of thirty days fromthe 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 r'~j,d under sub-section (J)is deposited by nun in the Court: Provided further thatthe 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 frcrn preferring the appeal in time. SEC. I) THE GAZETTE OF INOlA EXTRAORDINARY 13 38. Whoever sel Is or keeps or exposes for sale as foreign liquor which he knows or has Penalty for ~ reason to believe to be Indian liquor, shall be punishable with imprisonment which may selling Indian extend to six months and shall also be liable to fine which may extend to one lakh rupees, or liquor as five times the value of liquor, whichever is higher. foreign liquor. 39. Whoever has in his possession any -liquor knowing the same to have been Penalty for unlawfully imported, transported or manufactured or knowingly avoids payment of prescribed possession of duty shall be punishable with imprisonment for a term which may extend to six months and liquor ' unlawfully with fine which may extend to one lakh rupees, or five times the value ofliquor, whichever is imported or higher. non-payment of duty, etc. 40. (J) If a chemist, druggist, apothecary or keeper of a dispensary, allows any liquor Penalty for which has not been bona fidely medicated for medicinal purposes to be.consumed on his consomption business premises by any person, he shall be punishable with fine which may extend to five of liquor in chemist's thousand rupees. ' shop. (2) If a person consumes any such liquor on such premises, he shall be punishable with fine which may extend to two thousand rupees. ' 41. Whoever, in contravention of the provisions of this Regulation or of any rule, Penalty for notification or order made thereunder,- consumption of liquor in (0) consumes liquor in a public' place; public places. (b) consumes liquor in public place and creates nuisance; or . (c) Permits drunkenness or allows assembly of antisocial eiements on the premises of liquor establishments, shall be punishable,- - (i) in case of an offence falling under clause (a), with fine which may extend to five thousand rupees; (il) 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 thousand rupees; (iii) in case of an offence falling under clause (c), with imprisonment for a term which may extend six months and shall also be liable to fine which may extend to fifty thousand rupees. 42. Whoever prints, publishes or gives an advertisement in any media soliciting use of Penalty for my liquor, shall be punishable with imprisonment for a term which may extend to six months unlawful advertise, or with fine which may extend to ten lakh rupees, or with both: ment. Provided that this section shall not ~pply to catalogue or price list or advertisement generally or specially approved by the Excise Officer for the purposes of display at the points of sale for consumer information and education. 43. Any person who unlawfully releases or abets escape of any person arrested under Penalty for this Regulation. or abets commission of any offence against this Regulation, or engages abetment and conspiracy . . imself in a criminal conspit_acyf or contravention of the provisions of this Regulation shall l: e punishable with imprisonment fOl a term which may extend to one year and shall be liable fine which may ex tenet to fifty ~usand rupees. \I) 44. If any licence hol~~r or ~~ ~~n acting in his behalf, sells or delivers any liquor Penalty for any person apparently under the age of eighteen years or employs any person under the employing III minors or a.~e of eighteen years, he shall be punishable with imprisonment for a term which may extend selling liquor to three months and with fine which may extendto fifty thousand rupees or with both. to minors . . ~ ,.!...~ "" - ~,. ~. , 14 THE GAZETTE OF INDIA EXTRAORDINARY [Pxsr lJ-- '.' Penalty for 45. Notwithstandlng an .•• ythin cE gJ c,:..0 !l , t ai ' i I l. ! 1~d in ~ . e I Indian Penal Code, any ,person who 45 of 1860. assault and assaults or threatens to assault or obstructs o,r attempts to obstruct any Excise Officer in the obstru :tion. discharge of his official duties shall be p'uitishable with imprisorunent for a term which may extend to two years and also with fine which may extend to one lakh rupees. Liabil ill' of 46. The holder of a licence or permit granted 'or:i~sued ~der this Regulation, as well as empl(I) I!r for the actual offender, shall be liable for any offence c6mmitteQ.-·by his employee or his agent offence unless he proves that due and reasonable precautions were exercised by him to prevent committed by commission of such offence. the er iployee or "gent .1\, I, Penalty for 47. (1) Where any liquor has been.manufactured or sold or is possessed by any manufacture, person on account of any other person and such other person knows or has reason to sale or believe that such manufacture or sale was. q~J that suc~._possession is, on his accolll_lt, such posses.ricn by liquor shall, for the purposes ~fthis Regulation, be deemed to have been manufactured, sold one person on account »f or to be in the possession of such other- person. . another. , .:). . (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. -_ . Penalty for 48. Whoever, being the holder of a licence or permit granted or issued under this misconduct of Regulation or being in the' employment of such holder and acting on his behalf,- licensee, etc, _; .- ~ (a) fails to produce such licence or permit on demand by any Excise Officer or ~.. any other officer duly empowered to mhl(e such demand; or • . : . (b) wilfully does or omits to do an~i!lg in breachof 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 the maximum retail price on the label or tampers with it, shall be punishable,- (i) inthe case of an offence falling tinder clause: (a), with fine which may extend to fifty th~usand rupees; . . (il) i!1 the case of an offence falling under clause (b) or clause (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 ofan offence falling under clause (c), with fine which may extend . !o one lakh rupees, and ten thousand rupees per day-for any subsequent delay. Penally (.)1" 49 •. (1) If any person fails to pay any duty or fee under this Regulation, he shall be non-payment punishable' with imprisonment for a term which may extend to one year and also with fine of excise rlu y which may extend to one lakh rupees. or fee. (2) Without prejudice to sub-section (1), that person shall also be liable for interest Ion delayed payment and damages at such rates as may be imposed. Penalty f( r SO. Whosoever, in any declaration or affidavit or periodic return made to an Excise false state Officer makes any statement which is false or found to be false after due verification or whjch men! made;

i i he believes to be false or does not believe it to be true, touching any point material to the declaratior c r object for which the statement is made or used, shall be punishable with imprisonment for a affidavit 0 r periodic term which may extend to one year and shall also he liable to fine which may extend to fifty returns .. thousand rupees. Penalty fo: 51. Whoever, being a licensee under this Regulation and having the control or use of allowing any house, room, enclosure, space, animal or conveyance, knowingly permits it to be used premises, etc., for commission by any other person of an offence punishable under any provision of this 10 be used lor commission c f Regulation, shall be punishable in the same manner as ifhe had himself committed the said an offence. offence. ~ - --- _ . .., _. - - - SEC. I] THE GAZETTE OF fNDIAEXTRAORDINARY 15 52. Whoever, attempts to commit any offence punishable under this Regulation, shall Penalty for be liable for half the punishment provided for the offence under this Regulation. attempt to commit an offence under this Regulation. 53. Any Excise Officer or other person who vexatiously and without reasonable ground Penalty for for suspicion - . making vexatious (a) enters or searches or causes to be entered or searched any closed place search. under the colour of exercising any power conferred by this Regulation; or r seizure, detention or (b) seizes the moveable property of any person on the pretext of seizing or arrest. 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 punishable with fine'which may extend to ten thousand rupees, 54. Any Excise Officer who. without lawful excuse refuses to perform, or withdraws Penalty for himself from the duties of his office, unless expressly allowed to do so in writing by the refusing to Excise Commissioner, or unless he has given to his superior officer two months notice in perform or withdraw writing of'his intention to do so, orwho shall be guilty of cowardice, shall be punishable with from duty. imprisonment for a tenn which may extend to three months, or with fine wbich may extend to ten thousand rupees, or with both. 55. Whoever, does any act in contravention of any of the provisions of this Regulation, Penalty for or any rule or order made thereunder and punishment for which has not been otherwise offence! not provided for such contravention, shall be punishable with imprisonment for a tenn which otherwise provided for. may extend 'to six months and shall also be liable to tine which may extend to ten thousand rupees or five times the value of the jiquor, whichever is higher. 56. (1) In prosecution under section 34, it shall be presumed, until the contrary is Presumption proved, that the accused person has committed the offence punisbable under that section in as to commission respect of any liquor, still, utensil, implement or apparatus, for the possession of which he is of offence in unable to account satisfactorily, certain cases. (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 be satisfies the court that he bad exercised due care in the prevention of the commission of such an offence. " . 57. If any person, after having been previously cenvicted of an offence punishable Enhanced under this Regulation, subsequently commits and is convicted, of an offence under this punishment after previous Regulation, he shall be liable to twice the punishment provided for the .first conviction 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. 58. Where at any time during the trial of any offence under this Regulation alleged to Power of have been committed by any person, not being the manufacturer, distributor or dealer of any court to implead liquor, the court is sati~, on the evidence adduced before it, that such manufacturer, manufacturer. distributor or dealer is alSo concerned with that offence, then, the court may, notwithstanding etc. 2 of 1974. anything contained in sUb::section (3) ofsecti~n 319 of the Code of Criminal Procedure, 1973 proceed against him under any section of this Chapter .. 59. (1) If the person committing an offence under this Regulation is a company, the Commission company as well as every person who at the time the offence is committed was in charge of, of offence by companies. and responsible to, the company for the conduc~o!)ts business at the time of the commission of the offence, shall be deemed to be guilty of an offence, and shall be liable to be proceeded against and punished accordingly: . ,. ' .. .: ~ .. 16 THE GAZETTE OF INDIA EXTRAORDINARY [PARTfi- I" ' 0.- _ Provided that where a company has ~ifJ~~.ent establishments or branch, the concerned Chief Executive and the person in-charge of such establishment, branch or unit nominated by the company as responsible for the conduct of business shall be liable for contravention in respect of such establishment, branch or unit: ). Provided further that nothing in this su~~ecdon ~atI ren~er any such person liable to any punishment if he proves that the offence was corrutitted W-»ttout his knowledge or that he exercised all due diligence to prevent the commission of su'th otfeoc;e. . , .... "-;,- , " (2) Notwithstanding anything contained in sub-section (/), where an offence under this Regulation has been corrunitted by a company and it is proved that the offence has been corrunitted with the consent or connivance ot~I'or that the commission of the' offence is attributable to any neglect on the part of any diTect~r, manager, secretary, or other officer of the. company, such director, manager, secretary or other officer shall be liable to be proceeded against and punished accordingly. i' . Exp/analion.-For the purposes of this section,- (a) "company" means any body corporate and includes a finn or other association of individuals; and .. (b) "director", inrelation to a firm, means a partner in the fum. . " .-~~ .;_ '", , Procedure fc r 60. (1) The authorised Excise Officer sh?!_l ~ investigation of any offence committed launching under this Regulatio~ send his report 'to th.e Deputy Commissioner. prosecution n the case of (2) The Deputy Commissioner after scrutiny 'ofthe investigation report shall decide as major to whether alleged offence is major or minor and In the case of major offences, he shall decide offences. within such period as may be prescribed. es 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 exceedingthree-years where such special cqtirt is established, and in case no special court IS-established, such cases shall be triea 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. . 'roccdurc for '61 .. (I) All minor offences shall be adjudicated by an Acijl!J(licating Officer under this idjudication Regulation. . :n case of . (1) The Administrator shall, by notification, appoint an officer not below the rank of an offences. Additional District Magistrate of tho district 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 contravened the 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 j,udicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code; 45 of 1860. (b) shall be deemed to be a court for the purposes of sections 345 and 346 of the Code of Criminal Procedure, 1973. 2 of 1974. (5) While adjudicating the quantum of penalty under this Chapter, the Adjudicating Officer shall have due regard to the guidelines specified in section 63. . -' .. ,.~'" ~- - l -: r " '/ , / :)EC. I] THE GAZETTE OF IND.lA EXTRAORDINARY 17 2 of 1974. 62. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, Compounding the offences punishable under section 40, clause (0) of section 41, Clauses (0) and (c) of of certain section 48 and section 53 may either before or after the institution of any proceeding, be offences. compoundable under this Regulation. (2) Any person who is reasonably suspected of having committed an offence specified under sub-section (1) may apply to the District Excise Officer for compounding of the offence. (3) 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 fthe offence on payment of such sum of money by way of compounding fee or compensation IJ ;br the offence, in accordance with the guidelines as may be prescribed. (4) On payment by the person such sum of money, 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 tlk value of liquor, apparatus, vehicle and other material, 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. (5) Where the composition of any offence is made after the institution of any ~ rosecution, such composition shall be brought by the District Excise Officer in writing, to ':'le notice of the Court in which the prosecution is pending and on such riotice of the composition of the offence being given, the person in relation to whom the offence is so l:offi(>Ounded shall be discharged. " . 63. While adjudging the quantum of penalty under this Chapter, Court or the General J.djudicating Officer, as the case may be, shall have due regard to the following, namely:- provisions relating to (a) the amount of gain or unfair, advantage, wherever quantifiable, made as a determina result of the contravention; tion of pcnalty. (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. 64. Whenever an offence has been committed, which is punishable UDder this Ccrtain Regulation, following things shall be liable. to confiscation, namely:- things liable to confisca (0) any liquor, material, still, ~~nsil, implement apparatus in respect of or by tion. means of which such offence has been committed; (b) any liquor unlawfully imported, transported, manufactured, sold or brought along with, or in addition to any liquor, 'liable to confiscation under clause (0); (c) any receptacle, package, or covering in which anything liable to confiscation under clause (a) or clause (b) is found, and the other contents, ifany, of such receptacle package or covering~d, . . . s ' (d) any animal,,.vehicle;'ivessel, or other conveyance used for carrying liquor.' ", ,_'. < • 65. (J) Notwithstanding anything con~ined in this Regulation or any other law for the Confiscation Lime being in force, where anything liable for confiscation under section 64 is seized or by Deputy Commis detained under the provisions of this Regulation, the officer seizing and detaining such sioner in Jroperty shall, without any unreasonable delay, pf2d~ee ~e said seized property before the certain cases. Deputy Commissioner. .. '.P •. 18 THEGAZEITEOFINPlAEXTRAORDINARY [PART II- (2) On production of the said teized property under sub-section (1), the Deputy Commissioner if satisfied that an offence has been committed under this Regulation, he may, whether or not a prosecution is instituted for the commission of such offence, order for confiscation of such property, or otherwise hemay or~~r for its return to the rightful owner. (3) While making an order of conffscation ander iiIb-section '(2), the Deputy Commissioner may also order that such of the'prppert'fes to }V-wch the order of confiscation relates, which, in his opinion, cannot be preserved or are not fit for human consumption, be destroyed. li:_ (4) Whenever any confiscated article ~ to be destroyed under this section, it shall be destroyed in the presence of the Excise Officer' ordering the confiscation or forfeiture, as the case may be, or in the presence of an Excise Officer not below the rank of an Inspector. (5) 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 tI?, be sold by public auction or dispose it of otherwise. , :' (6) The Deputy Commissioner shall submit a report of all particulars of confiscation to the Excise Commissioner withinone month of'such confiscation. (7) Any liquor, mahua flowers or molasses and any other property if confiscated in a case compounded under section 62 '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. Order of 66. (I) The order of any confiscation und~r section 65 shall not prevent imposition of is confiscation any other punishment to which the person affected thereby liable under this Regulation. and destruc ~ ,. , , tion not to, (2) Notwithstanding anything contained in' any other law for the time being in force, interfere with the non-production of confiscated property t>rfpre the. trial court due to dispOsal of such other punishment. prope . rty, shall not affect the co '. n viction for ano ~ f fence under this Regulation: . Provided tha] the samples of liquor and the photographs of the confiscated property may be preserved to meet the evidentiary requirements. ' Confiscated 67. (J) Subject to the provisions of this Regulation, when any article, animal or thing is articles to duly confiscated either by order of court or otherwise, such article, animal or thing shall be vest in the made over to the Deputy Commissioner for disposal in such manner and on payment of such Administra fees as may be prescribed. tor. , (2) When an order for confiscation of any property lIas 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 TRw. DETECTION, INVESTIGATION AND OF OFFENcEs Power 10 68. The Excise Commissioner or any authorised Excise Officer may by order, require obtain any person or any establishment deemed reasonably connected with any unlawful handling information. of any liquor to furnish to him such information as may be specified in that order. Landholders, 69. (J) Whenever any liquor is manufactured, exported •. imported or transported, officers anil collected, possessed or sold, in contravention of any provisions of this Regulation, the others 10 give owner or occupier of the land or building or his agent, and every officer of police and land information. revenue department, local bodies and block development office shall, in the absence of reasonable excuse, be bound to give notice of the fact to 8 Magistrate or to an officer of the Excise Department as soon as the fact comes to their knowledge. '_-ii.-_ _ _ _ .. ••• SiIIlflill· J .,' ( I / J .' r . I (. SF.c. I) THE GAZETIE OF INDIA EXTRAORDfNARY 19 (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. 70. (1) Any authorised Excise Officer may search any place" seize any article, arrest or Power of detain any person if there is a reasonable doubt that such place, article or person is involved arrest. search ill commission of any offence under this Regulation: and seizure. Provided that no search shall be deemed to be irregular by reason only of the fact that witness fo~ 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 2 )f 1974. Code of Crimina] Procedure, 1973 relating to search, seizure, arrest, detention, summons and investigation shall apply, as far as may be, to all action taken under this Regulation. 71. Every officer-in-charge of a police station shall take charge of and keep in safe Duty of cistody, pending the orders of a Magistrate or of the Deputy Commissioner, all articles police 10 seized under this Regulation which. may be delivered to him and shall allow any officer of the accept seized articles. Srcise Department who may accompany such articles, to affix his seal to such articles and to ial.e samples of and from them and all samples so taken shall also be sealed with the seal of lhc: officer-in-charge of the police station. n. All major offences under this Regulation shall be cognizable and the provisions of Offences 20' 1974. the Code of Criminal Procedure, 1973, shall apply to them. . under this Regulation to be cognizable. 73. All offences punishable under this Regulation with imprisonment of two years and Certain 2 of 1974. more, shall be non-bailable and the provisions of the Code of Criminal Procedure, 1973, with offences to be res rect to non-bailable offences, shall apply to those offences. non-bailable. 2 of 1974. 74. Notwithstanding anything containedin the Code of Criminal Procedure, 1973, the Power of Magistrate shall have power to try summarily in accordance with the provisions contained in court to try secions 262 to 265 of that Code, all or any of the offences which are punishable under this cases summarily. Regulation with imprisonment for a term not ex~eeding six months with fine, or with both. Oli 75. (1) Whenever any person is convicted of an offence punishable under this Security for of Rejulation and the court convieting him is opinion that such person habitually commits or good conduct atte mpts to commit, or abets the commission of any such offence and that it is necessary to and abstain· ing from require such person to execute a bond for. abstaining from the commission of any such committing offence, the court may, at the time of passing sentence on such person, order him to execute offence. a bond for a sum proportionate to his means, with or without sureties, for abstaining from the mmission of such offence during such period, not exceeding three years, as it thinks fit to fix. C( (2) The bond shall be in the prescribed form in terms of the provisions of the Code of 2 of 1974. Criminal Procedure; ) 973 and shall in so far as they are applicable, apply to all matters connectedwith 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 becc me void. (4) An order under this section may also be made by an Appellate Court or by the High Cc lJ1 when exercising its powp of revision. , ~ ,I"~ ~CHAPTERvn APPEAL AND REVISION 76. (I) Any person aggrieved by any decision or order passed under this Regulation Appeals to Appellate by 2Jl Excise Officer subordinate to the Deputy Co~~sion!,r may appeal to the Deputy Authority. Commissioner. - , . 20 THE GAZETrE OFINDIA EXTRAORDINARY [PARTll- . - (2) Any person aggrieved by any d~~isio~ or order of the Deputy Commissioner may appeal to the Excise Commissioner. (3) An appeal under this section shallbe fileiWithin thirty days from the date of communication of such decision or order together with self attested copy thereof Provided that a furtherperiod of thirty da~s may allo~~ 'ifthe appell~nt es~blisbes that sufficient cause prevented him from presenting the appeai..within thc aforesaid period of . thirty days. .. '! II ,: • Procedure if 77. (I) At the hearing of an appeal, an appellant may be allowed to go into any ground appeal. not specified in the grounds of appeal or tak~ additional evidence if necessary, if it is established that such omission was not wilfui'~r unreasonable. (2) The Appellate authority may after~~g such further inquiry as may be ne~ssary, pass such order, as he thinks !it, just and proper, conflrmlng, modifying or apnulling the decision or order, as the ca~ may be. -;~' . . . (3) 'The appeal shall be heard and decidedwithin a period of six months from the date on which such appeal is filed: . Provided that if an appeal is not decided-within the period specified, the reJiefprayed for in the appeal shall be deemed to have beengranted: Order of t 14: 78. (1) The order of the A ppellate Authority disposing of the appeal shall be in writing Appellate and shall state the points for determination, the decision thereon and the reasons for the Authority. decision. (2) The Appellate Authority shall communicate the order passed by him to the appellant and the Excise Officer whose order formed the"S'tibject matter of appeal. " Power of 79. The Excise Commissioner may, at any time within six months from-the date of the Excise order with a view to rectifying any mistake apparent from the record, amend any order passed Commission :r by him and shall make such amendments if the mistake is brought to his notice by any. of the to rectify parties to the appeal: " " mistakes ,I" :". apparent. an Provided that amendment which haS the effect of enhancing an assessment or frorn the be reducing a refund or otherwise increasing the liability of the other party, shall not made record. 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. Revision (·f 80 •. (J) The Excise Commissioner may, on his own motion, call for the record of any orders by proceeding in which an officer subordinate to him has taken any decision or passed an order Excise under.this Regulation, including those related to the grant, issue or refusal to grant a licence, Commissioner. 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 of provisions this Chapter, pass such order thereon as he thinks fit. . (2) No order, which is 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 person and the Excise Officer whose order formed the subject matter of revision. (4) No order under this section shall be passed by thc 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. Deposit of 81. (l) Where in ~y appeal under this Chapter, the decision or order appealed against duty or fee relates to any duty or fee demanded or any penalty or fine levied under this Regulation, the demanded .)1 person desirous of appealing against such decision or order shall, pending the appeal, penalty or Ii lie levied, pen iing deposit with the Excise Officer the duty or fee is demanded or the penalty or fine levied, if appeal. such amount exceeds one lalch rupees. ·-'=;;'~ ...•• ;"' •••;i .:: •. ..•.. " ... .- r f. ~EC. I] THE GAZETTE OF INDIA EXTRAORDINARY 21 (2) Where in any particular case, the Appellate Authority is of opinion that the appellant lias 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 safeguard the interest of revenue. 10 (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 rossible to do so, decide such application within thirty days from the date of its filing. (4) Notwithstanding anything contained in sub-section (I), no recovery action shall be initiated against the appellant until the application under sub-section (3) has been decided by the Appellant Authority. 82. (I) Any company referred to in sub-section (1) of section 7 and aggrieved by the Appeal to order of the Administrator may file an appeal to the High Court. . 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 ~~ . (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 often per cent of the amount involved or two lihousand 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 fotmulate 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) h~ been wrongly determined by the Excise Commissioner, by reason of a decision of such<4uestion of law as is referred to in sub-section (1) . . ~. ' (8) An Appeal'shall be h,(ard 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 oCthe majority, if any, of such judges. . (9) Where there is no such majority, thejudges shall state the point oflaw upon which they differ and the case shalt, then, be heard upon that point only by one or more of the other judges of High Court and such point sha\fht decided according to the opinion of the majority of the judges who have heard the cases including those who first heard it. •• j, I" 22 THE GAZETIE OF INDIA EXTRAORDINARY [PARr II- (10) Save as otherwise pro~i;e~ in tfi'is sectio~, 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 5 of 1908, cases of appeal under this section. Sums due to 83. Notwithstanding that an appeal had been p~~ferred.(o the High Court, sums due to be paid the Union territory Administration as a result of an or~tr passed by the Excise Commissioner notwiths t.md shall be payable in accordance with the order so passed: . J' ing appeal ." before lilt: Provided that nothing contained in this section or Chapter shall affect the inherent High Cou- or revision powers of the High Court for granting stay 01) the recovery of such amount. before the: .Excise Cornmis- stoner. CHAPTER Vlll Mlscai.ANF.Ous PROVISIONS Measure 5, 84. Every person who manufactures or sells any liquor under a licence granted under weights &ld this Regulation, shall be bound:- . testing instrurnr.r IS. (a) to supply himself with such measures, weights and instruments as the Excise Commissioner may specify in this behalf, and to keep the same in good condition; and ! Ir~I' .' ,_ (b) on the requisition of any Excis~ Officer, at any time to measure, weight or test any liquor in his possession in such manner as. the said Excise Officer may require. . .~; Power of 85. The Administrator may, by notification; declare as to what shall be deemed to be Adminisu utor liquor for the purposes of this Regulation or the rules framed thereunder. __ to declare . .; ~~ I ' ' what shall be deemed 10 be liquor. Power of the .. §Ji. The Administrator may issue such order and'take such measures as may be deemed Adminisu "to~ appropriate to regulate drinking or to enforce prohibition in whole or any part of the Union ,to regull.~: . territory. . drinking ar ,d to enfor :e prohibit 011. Power of -. 87. The Administrator may frame rules to regulate.movement, possession and sale of Administrutor molasses, black [aggery, mahua flower, etc., indicating terms and conditions as are necessary to regulate and expedient to prevent their misuse for illicit distillation. molasses. black j3j:l! !:ry, mahua f ower, etc., to prevent misuse. Power t.) 88. No advertisement, direct or surrogate, shall be made for promoting consumption of regulate liquor: ' advertise rnc n t . Provided that me Excise Commissioner may, at his discretion, allow such advertisement which is educative and promotes responsible drinking. Power of 89. The Administrator may, by notification; declare in respect of the whole of the Admini: tr itor Union territory of Andaman and Nicobar Islands or to any local area comprised therein as to decta.e regards purchasers generally or any specified class of purchasers and generally or for any limit of sale specified occasion, the maximum or minimum quantity or both of any liquor which for the by retail Ie id 'by whol :!::tle. purposes of this Regulation may be sold by retail and by wholesale. . - I' --.-----:- . ,~.-~.--- .... ,. . ----~---- • ....--- .• -~,-------- ••. - ", ••. ~ •..- -:;;:;- ..:-..=.:...."._..-,-,._. '/ ;. I ~r' SEC, I) THE GAZETIE OF INDIA EXTRAORDINARY 23 90. No suits for damages shall lie in any civil court against the Administrator or any Bar of certain officer or person for any act done in good faith, or ordered to be done in pursuance of this suits. 1 Regulation or of any other law for the time being in force relating to excise revenue. 9i. (1) The Administrator may by notification, make rules not inconsistent with the flower of provisions of this Regulation, for carrying out purposes of this Regulation, . Administrator to make rules. (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 v Commissioner under clause (I) of section 4; (b) the grant of reward 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 (I) of section II; ~ \ (d) the manner of registration for the purpose of manufactureo f 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 penn it under section 13; (f) the conditions for security and counterpart agreement unde~ .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; . (1) the terms and conditions for granting of licence or lease under section 22; • --~- I : (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 (l), the terms and conditions for collection offee for iss~e of licence or permit under sub-section (2) and the manner of assessment of import, export and transport duties under sub-section (3) of section 28; , (f) the returns, forms and the particulars and such other information to be submitted by the licensee under section 33; , (m) 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 34; (n) the period within which any major offence may be referred by the Deputy Commissioner under sub-section (2) of section 60; (0) the manner of adjudication by an Adjudicating Officer under sub-section (2) of section 61 ; ., (P) the guideliftes for 9,ompOUJ_1dingu nder sub-section (3) and the manner in which tpe liquor, apP¥atus, ~~hicl.e or other material seized shall be disposed of under sub-section (4) of seetion 61; (q) the manner in which any liquor, mahua flowers or molasses and any other confiscated property shall be disposed of under sub-section (7) of section 65; (r) the manner and fees for disposal of'confiscated property under sub-section (I) of sec don 67; ;,". J" . .11':' 1!1' 24 TIlE GAZETIE OF1NDIA EXTRAORDINARY [PART II- (s) the regulation of movement, possession and sale of molasses, blackjaggery, mahua flower, etc" under se'f'ii<in8 7:'" , - , - (t) any other matter which is to be, or may be prescribed under this Regulation, •• t , Laying ( f 92. Every rule made under this Regulation shall be laid, .as soon as may be after it is rules, made, before each House of Parliament, 'wh'lle it-is in:;essio~ for a total period of thirty days which may be comprised in one session q• r 1 W'\ l - t wo or ~ • o .., re succe • ssive ~ session ,I s , and if, before , the expiry of the session immediately following the ses~1;n or the successive sessions aforesaid, both Houses agree in making any modification in the rule or bo'th 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, ';: ' , " I ' Power to 93. (I) Ifany difflculty arises in giving effect to the provisions of this Regulation, the remove Administrator may, by order published in\ Official Gazette, make such provisions, not difficultie i. inconsistent with the provisions of this RegUiation, as may appear to it to be necessary, for removi . ng th e d J i ff I CU I ty: 'Ill, Provided that no order shall be made under this section after the expiry .of the period of two years from the date o~ commenc'eme~~ of this ~e~lation, , , ' , ' (2) Every order made under this section shall be laid.as soon as may be after it is made, before each House of Parliament. Repeal. 94. Immediately with effect from the 'date of commencement of this Regulation, section 31 (a), (b) and section 3lA and theSchedule of the Andaman and Nicobar Islands Reg, Regulation, 1876 shall stand repealed, ' III of 1876, Val idation, 95. Notwithstanding any judgment, decree or order of any court or, other authority, anything or any action done or taken or purported to have been done or taken 'Wider the provisions under repeal referred to in section 94, and the rules made thereunder, before the be date of promulgation of this Regulation shall 'and shall be deemed always to have been', as valid and effective as. if sl,Ich thing or action had been done or taken under this Regulation, and acc~9ingly~' (a) any duty or fee levied, assessed or collected or purporting.to have been levied, assessed or collected under the provisions under repeal, and the rules made thereunder, before the date of commencement of this Regulation shall be deemed to have been validly levied, assessed or collected in accordance with law; -, '. (b) no suit or other proceeding shall be maintained or continued in any court or 'before any authority for the refund, and no enforcement shall be made by any court or other authority of any decree or order directing the refund, of any such dutyor fee which has been so collected: Provided that nothing in this clause shall apply to" or in relation to, any case in which, under the order of the High Court, refund had been made before the date of promulgation of this Regulation of any duty collected under the provisions under repeal and the rrnes made thereunder, Explanation.-For the removal of doubts, it is hereby declared that no act or omission on the part of any person before the date of promulgation of this Regulation as shall be punishable an offence which would not have been so punishable if this Regulation had not been promulgated, Transitory 96. Notwithstanding the repeal of section 31 (a), (b) and section 3lA of the Andaman provisions f(,r and Nicobar Islands Regulation, 1876, all rules, notifications and orders made or issued Reg, excise laws III of 1876, thereunder shall continue to be in force and operate till new rules, orders and notifications for Andaman are made or issued under this Regulation: . and Nicobar Islands, - . --- _. -- - --- - _-. -.,~ . " . -------------- :-1--- SEC. 1] TI-IE GAZETIE OF INDlA EXTRAORDINARY 25 Provided that anything done or any action taken under the provisions 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. 11ffi SCHEDUlE· (See section 28) ·S.No. Description of Liquor Rate . 2 3 I. Indian made foreign liquor (IMFL) 300% of the last selling price. and Foreign Liquor (FL) 2 Wine 50% of the last selling price. 3. Beer 100% of the last selling price. PRATIBHA DEVISINGH PATIL, President. V. K. BHASIN, Secy. to the Govt. of India . . ~, . PRlNTED BY DIRECTORATE OF PlUNTTNG AT GOVERl-IME1iI' OF INDIA PRESS. MINTO ROAD. NEW DEU!! AND PUilUSHED BY 11iE CONTROua.OF I'\)BUCATlONS. DELHI, 2012. MGIPMRND-1768GI(S3}-20-07 -2012. .....---~-