Delhi Excise Act, 2009
Delhi Excise Act, 2009
Sec. 2 - Definitions
Sec. 29 - Recovery of duty and other levies and lien on the property of defaulter
Sec. 33 - Penalty for unlawful import, export, transport, manufacture, possession, sale,
etc.
Sec. 34 - Penalty for rendering denatured spirit fit for human consumption
Sec. 38 - Penalty for possession of liquor unlawfully imported, non duty paid, etc.
Sec. 47 - Penalty for allowing premises, etc., to be used for commission of an offence
Sec. 49 - Penalty on excise officer for making vexatious search, seizure, detention or
arrest
Sec. 60 - Order of confiscate a and destruction not to interfere with other punishment
Sec. 70 - Security for good conduct and abstaining from committing offences
Sec. 71 - Review
Sec. 72 - Appeal
Sec. 78 - Power of Government to regulate molasses, black jaggery, mahua flower, etc.
to prevent misuse
PREAMBLE
An Act to consolidate, amend and update the Excise Laws relating to manufacture, import, export,
transport, possession, purchase, sale, etc., of liquor and other intoxicants, in the National Capital Territory
of Delhi and for matters connected therewith or incidental thereto.
BE it enacted by the Legislative Assembly of the National Capital Territory of Delhi in the Sixtieth
Year of the Republic of India as follows:
(1) This Act may be called the Delhi Excise Act, 2009.
(3) It shall come into force on such date as the Government may, by notification in the official
Gazette, appoint.
Section 2 - Definitions:
(1) "alcohol" means ethyl alcohol of any strength and purity having the chemical
composition C2H5OH;
(2) "alcoholic beverage or potable liquor" means any beverage containing alcohol in
conformity with the BIS standards which may be intoxicating and is fit for human
consumption;
(3) "alcoholic strength by volume (% vol.) of a mixture of water and alcohol" means the
ratio of volume of alcohol, measured at 20C, contained in the mixture to the total volume
of the mixture;
(4) "appellate authority" means the Deputy Commissioner, the Excise Commissioner, or
the Financial Commissioner, as the case may be, for the purposes of this Act;
(5) "authorized officer" means an officer authorized to exercise any power or to perform
any duties and functions conferred on or imposed under this Act;
(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 notified by the Government;
(8) "BIS standards" means standard prescribed by Bureau of Indian Standards or the
standards prescribed by any other Central Government authority, constituted under the
relevant Act;
(9) "black jaggery" means coarse brown sugar made from palm tree or cane juice
ordinarily unfit for human consumption but contains sufficient quantity of fermentable
sugar for manufacture of ethyl alcohol;
(10) "blending" means nixing of two or more spirits which may be of different strengths
and different qualities;
(11) "bonded warehouse" means a licensed private bonded warehouse or part of a public
bonded warehouse, established under this Act for storing liquor on which duty has not
been paid;
(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 for not and includes rebottling;
(13) "bottling plant" means premises where bottling of liquor is done and includes every
place therein where it is stored or wherefrom it is issued;
(14) "brewery" means premises where beer is manufactured and includes every place
therein where been is stored or wherefrom it is issued;
(a) there is any violation of any right under the Trade Marks Act, 1999 ( 47 of
1999) or the Copyright Act, 1957 (14 of 1957) or any other similar Act is force, or
(b) in respect of which an offence under section 481 or section 483 or section
486 of the Indian Penal Code, 1860 (XLV of 1860) has been committed;
(17) "country or traditional liquor" means plain or spiced spirit which has been
manufactured in India from material recognized as base for country or traditional spirit
namely mahua, rice, gur, molasses etc. and notified as such liquor by the Government;
(19) "denaturant" means any substance completely miscible in spirit and of such a
character that is addition renders the material, or any aqueous, dilution of it, non-potable;
(20) "denatured spirit" means spirit with added denaturant to render it effectively and
permanently unfit for human consumption;
(21) "Deputy Commissioner" means the officer appointed by the Government as Deputy
Commissioner of Excise under section 5 of this Act;
(22) "distillery" means premises, where spirit is manufactured and includes every place
therein where it is stored or wherefrom it is issued;
(23) "duty" means the excise duty or the countervailing duty as mentioned in Entry 51 of
List II of Seventh Schedule of the Constitution, or as the case may be special duty;
(24) "excisable article" means any alcoholic liquor for human consumption or any other
similar article which the Government may declare to be an excisable article;
(25) "Excise Commissioner" means the officer appointed by the Government as Excise
Commissioner under section 3 of this Act;
(26) "excise officer" means any officer or person appointed or invested with powers under
this Act;
(27) "excise revenue" means revenue derived or derivable from any payment, duty, fee,
tax, confiscation or line, imposed or ordered under the provisions of this Act, or of any
other law for the time being in force relating to intoxicants but does not include fine
imposed by a court of law;
(28) "excise tree" includes the gul, mahua, coconut, palm, palmyra, date, begani or
doddasal tree or any other tree, the fermented or unfermented juice of which contains
alcohol and from which toddy or any other liquor can be prepared;
(29) "export" means to take out of Delhi to any other State within the country;
(30) "export out of India" with its grammatical variations and cognate expressions means
taking out of Delhi to any place out side India;
(31) "extra neutral alcohol or silent spirit" means spirit as may be specified by the relevant
Central Government Authority;
(32) "fermented liquor" means liquor obtained by the process on fermentation and
includes beer, ale, stout, porter, wine, pachwai, fermented tari and any other similar
liquor;
(33) "Financial Commissioner" means the Financial Commissioner of the National Capital
Territory of Delhi;
(34) "foreign liquor" means any liquor imported by land, sea or air into India;
(35) "government" means the Lieutenant Governor of the National Capital Territory of
Delhi appointee by the President under article 239 and designated as such under article
239 AA of the Constitution;
(36) "illicit liquor" mean any liquor manufactured or stored or distributed or sold, in
contravention of the provisions of this Act or the rules framed thereunder or liquor on
which appropriate duty or fee leviable under this Act or the rules framed there under, has
not been paid and includes foreign liquor on which appropriate duty of customs has not
been paid;
(37) "import" means to bring into Delhi from any other state of the country;
(38) "import into India" with its grammatical variations and cognate expressions, means
bringing into Delhi from any place out side India;
(39) "Indian liquor" means liquor manufactured in India by process of distillation or using
alcohol obtained by distillation such as whisky, brandy, rum, gin, vodka, liqueurs, but does
not include country liquor or fermented liquor;
(d) any other article, which the Government may from time to time declare to be
intoxicant, except the substances covered under the Narcotic Drugs and
Psychotropic Substances Act, 1985, for the purpose of this Act;
(a) the dried leaves of the Indian hemp plant known as bhang, siddhi or patti or
cannabis sativa,
(b) any mixture with or without natural materials of bhang, siddhi or patti or
cannabis sativa or any drink prepared therefrom;
(42) "Legislative Assembly" means the Legislative Assembly of the National Capital
Territory of Delhi;
(43) "Licence" means a licence granted under this Act and the rules framed thereunder;
(44) "licensing authority" means an officer who is authorized to grant suspend and cancel
licence, permit and pass under this Act;
(45) "Lieutenant Governor" means the Lieutenant Governor of Delhi appointed by the
President under Article 239 of the Constitution;
(46) "liquor" means any Alcoholic beverage and includes whisky, brandy, beer, wine,
toddy, tari, pachwat, vodka, gin, tequila, country liquor, arrack and intoxicating liquid
consisting of or containing alcohol as may be specified under BIS standard besides any
similar substance which the Government may by notification declare to be liquor for the
purpose of this Act;
(i) adulteration;
(48) "manufactory" mean any distillery, brewery, winery or any establishment distilling,
brewing, manufacturing, blending or bottling liquor;
(50) "manufacturer" mean any person who manufactures intoxicants and includes a
manufacturer of alcohol subject to excise duty under the Central Excise Act, 1944 (1 of
1944);
(51) "molasses" means heavy viscous liquid produced, in the final stage of manufacture
of gur or sugar including khandsari, sugar from sugar cane or gur, when liquid as such or
in any form or ad-mixture containing sugar which can be fermented;
(52) "MRP" means the maximum 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;
(53) "notification' means a notification issued under this Act and the rules framed
thereunder and published in the official Gazette;
(54) "officer-in-charge" means the excise officer authorized to supervise and control
manufactory or warehouse;
(55) "pachwai" means fermented rice, millet or other grain, and includes liquid obtained
therefrom, whether diluted or undiluted, but does not include beer;
(56) "permit" means an authorization granted under this Act and or the rules framed
thereunder;
(57) "place" includes a house, building, shop, booth, tent enclosure, vessel boat, raft and
vehicle;
(58) "police station" means a police station having jurisdiction over the place and any
other place, which the Government may, by notification, declare to be a police station for
the purpose of this Act;
(61) "rectified spirit" means un-denatured alcohol, including absolute alcohol, extra
neutral alcohol and alcohol derived from malt as may be specified by the BIS standard;
(62) "relevant laws" means the Indian Power Alcohol Act, 1948 (22 of 1948), the Motor
Spirit Taxation Act, the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 16 of
1955), the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985) and such
other Acts relevant to excise revenue;
(63) "retail price" means the price fixed by the Excise Commissioner for the sale of
intoxicant at which the licensee is bound to sell the intoxicants;
(64) "retail" sale" mean sale in quantities not exceeding the limits of sale by retail for any
consideration or not;
(65) "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 article is not being
manufactured or produced in the territory to which this Act extends;
(66) "spirit" means any liquid containing alcohol obtained by distillation, whether
denatured or not;
(68) "still" includes any apparatus or part thereof, for distillation or manufacture of spirit;
(69) "sub-standard liquor" means liquor, which does not meet the BIS standards and
includes liquor whose nature, substance or quality is so affected -
(a) by liquor itself or the package thereof which is composed, whether wholly or
in part of poisonous or deleterious substances;
(e) by the presence of any colouring matter preservative other than specified in
respect thereof;
(g) by virtue of its being prepared, packed or kept under insanitary conditions, or
(h) by dilution
(70) "toddy and tari" means fermented or unfermented juice drawn from a coconut,
palmyra, date or any other kind of palm tree;
(71) "transit" means to move from one state to another through Delhi;
(72) "transport" means to move from one place to another within Delhi;
(73) "VAT" means tax on sale or purchase of goods referred to in Entry 54 of the State
List (List - II) of the Seventh Schedule to the Constitution;
(74) "warehouse' means a place where storage of liquor is permitted and includes the
relevan part of manufactory;
(75) "Wholesale sale" means sale in quantities exceeding the limit of sale by retail;
(76) "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;
(77) "winery" means - premises where wine is manufactured and includes every place the
rein where wine is stored or wherefrom it is issued.
The Government may, by notification, appoint an Officer as Excise Commissioner who, subject to
the control and orders of the Government in this behalf, shall be the chief controlling authority in
all matters connected with the administration of this Act.
(a) to regulate, control and monitor manufacture, possession, import, export, transport,
sale and consumption of liquor and other intoxicants;
(d) to submit return and information as required by this Act or the rules framed
thereunder, to the Government upon all matters concerning excise;
(g) to submit to the Government an annual report on the administration of this Act in the
format prescribed;
(h) to perform such other functions and to exercise such other powers as may, from time
to time, be entrusted or delegated to him.
(1) There shall be an Excise Intelligence Bureau, headed by the Excise Commissioner, consisting
of such number of excise officers and staff as may be appointed by the Government and such
other officers and staff as may be appointed by the Excise Commissioner with the prior approval
of the Government.
(a) collect intelligence, keep surveillance and maintain information of excise offences;
(b) collect and disseminate information regarding prominent excise offenders and history
sheeters;
(c) detect, monitor detection, investigation and trial of offences under this Act.
(1) The Deputy Commissioner shall be the licensing authority who shall exercise all powers and
functions under this Act, subject to the control and supervision of the Excise Commissioner.
(2) 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 Act subject
to such control as the Government may from time to time direct.
(3) The Assistant Commissioner and other subordinate officers shall assist the Deputy
Commissioner in exercising his functions.
(1) The Government may delegate its powers to the Excise Commissioner subject to such
limitations and conditions as may be specified in the order of delegation.
(2) The Excise Commissioner and the Deputy Commissioner may, by order, delegate their powers
under this Act to any subordinate officer subject to such limitations and conditions as may be
specified in the order of delegation.
(3) 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.
The Government may, by notification, invest in any Government functionary not being an excise
officer, with powers to perform all or any of the functions of any excise officer under this Act, and
such person shall, in the exercise of these functions be deemed to be an excise officer.
Section 10 - Reward for seizure of intoxicants and vehicles, etc. :
The Excise Commissioner may grant reward to excise officers out of the sum collected from the
sale of intoxicants, apparatus and vehicles carrying such intoxicants, or otherwise and also to
such informers for such work subject to such terms and conditions as may be prescribed.
(1) No person shall construct or establish any manufactory or warehouse, bottle, import, export,
transport, transit, manufacture/collect, possess, sell or purchase any intoxicant or use, keep or
have in his possession any material whatsoever, still, utensil, implement, apparatus, label, cork,
capsule or seal for manufacture of any intoxicant except under the authority and in accordance
with the terms and conditions of a licence or letter of intent or permit granted under this Act and
the rules framed thereunder.
(2) The possession of labels, corks or capsules by its printer or manufacturer, as the case may
be, will not amount to illegal possession and offence under this section if printed or manufactured
under the authority from the holder of licence to manufacture intoxicant, issued under this Act.
Every letter of intent, licence or permit under this Act shall be granted on payment of such fees,
for such period and subject to such, restrictions, conditions and in such form and contain such
particulars, as may be prescribed.
(1) While considering, an application for grant of licence or permit, the licensing authority shall
have regard that the applicant -
(c) possesses good moral character and has no criminal background or has not been
convicted of any offence punishable under this or other relevant Acts:
Provided that in case he is selected as licensee, he shall furnish within thirty days
of the grant of licence a certificate issued by the Superintendent of Police of the
district or the Commissioner of Police, as the case may be, of which place he is
the resident, showing that he possesses good moral character and has no
criminal background or criminal record;
(e) is solvent and has the necessary funds or has made arrangements for it, for
conducting the business:
Provided that the details of such funds shall be made available to the licensing
authority, if required;
(f) possesses or has an arrangement for taking on rent suitable premises for the licence
and such premises have not been constructed in violation of any law;
(g) shall not employ any salesman or representative who has criminal background or
suffers from any infectious and contagious disease or is below twenty one years of age;
(2) The licence shall be liable for cancellation, if any document produced with the application is
found to be false or forged.
Subject to such rules as may be prescribed, any authority granting a licence under this Act, may
require the licensee-
(a) to give security for the observance of the terms of his licence; and
(b) to execute a counterpart agreement in conformity with the tenor of his licence.
(1) No licence or permit granted under this Act shall be deemed to be invalid by reason merely of
any technical defect, irregularity or omission in the licence or permit, or in any proceedings
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.
Whenever the authority which granted a licence or permit under this Act, considers that such
licence or permit should be withdrawn for any reason it may do so on expiry of fifteen days' notice
of its intention to do so or forthwith for reasons to be recorded.
If any licence or permit is withdrawn, the licensee or the permit holder shall be funded any fee
paid in advance or deposit made by the licensee or the permit; holder in respect thereof after
deducting the amount recoverable by the Government.
(1) Subject to such restrictions as the Government may prescribe, the authority granting any
licence or permit under this Act may suspend or cancel it is the following circumstances after
giving reasonable opportunity of being heard -
(a) if the licence or pemit is transferred or sublet by the holder thereof without the
permission of the licensing authority;
(b) if any excise revenue payable by the holder thereof is not duly paid;
(c) in the event of any breach by the holder of such licence or permit or by his servant, or
by any one acting on his behalf, with his express or implied permission, of any of the
terms and conditions of such licence or permit;
(d) if the holder of licence or permit or his agent or employee is convicted of an offence
punishable under this Act or any other law for the time being in force, relevant and
connected with excise matters relating to excise revenue or of any cognizable and non-
bailable offence under any other relevant law;
(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 mis-representation or fraud.
(2) When a licence or permit is cancelled under sub section (1), the aforesaid authority may
cancel any other licence or permit granted to such person under this Act or under any other law
relating to excise revenue.
(3) In the case of cancellation or suspension of licence under sub-section (1), the fee payable for
the balance of tie period for which any licence would 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 neither be entitled to any compensation for the
cancellation or suspension thereof nor to refund of any fee paid or deposit made in respect
thereof.
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 refusal to renew a
licence or permit on the expiry of the period for which the same remains in force.
No holder of a licence granted under this Act shall surrender his licence except on the expiration
of one month's notice in writing given by him to the licensing authority of his intent on 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 licensing authority is satisfied that there are sufficient reasons for
surrendering the licence, he may remit to the holder thereof the sum so payable, or any
portion thereof, on surrender.
The licence or permit granted under this Act is not transferable except with the prior approval of
the licensing authority subject to such terms and conditions as may be prescribed.
No liquor shall be removed from any manufactory, warehouse or other place of storage
established under this Act without a relevant pass and unless duty and fee payable has been paid
or a bond as may be prescribed, has been executed for the payment thereof.
No person or licensed vendor or his employee or agent shall sell or deliver any liquor to any
person apparently under the age of twenty five years, whether for consumption by self or others.
No licensee shall employ or permit to be employed in his premises any person under the age of
twenty one years, or suffering from contagious disease.
The Deputy Commissioner or any other officer authorized by him may, by notice in writing to the
licensee, require that any shop in which any liquor is sold shall be closed at such time or for such
period as he may think necessary for preservation of public peace:
Provided that the total closure days in the licensing year shall not exceed fifteens days in
all or more than three days continuously at any one time:
Provided further that if the Excise Commissioner is of the opinion that any particular shop
or all shop , in any particular area shall be closed for a period exceeding fifteen days in a
year or more than three days Continuously at any one time, he may do so for reasons to
be recorded.
Excise revenue shall be levied and recovered under the following heads, namely;-
(a) duty;
(2) There shall be levied and collected fees for terms, conditions and form of, and duration of,
licence, permi and pass.
(3) In computing the retail price, notwithstanding anything contained in sub-section (1) of section
27, the duty shall 1 e so increased and computed that the retail price is rounded off up to the next
higher multiple often rupees, as notified by the Government and such increased duty shall be
collected by the Government in the manner prescribed.
(1) Where, in respect of any intoxicant, the Government is satisfied hat the duty leviable thereon
under section 27 of this Act should be increased or decreased and that circumstances exist which
render it necessary to take immediate action the Government may, by notification in the official
Gazette, direct an amendment of the Schedule to be made so as to substitute for the rate of duty
specified in the Schedule n respect of such intoxicant.
(2) Every notification under sub-section (1) shall be laid before the Legislative Assembly, if it is
sitting, as soon as may be after the issue of the notification, and, if it is not sitting, within seven
days of its re-assembly, and the Government shall seek the approval of the Legislative Assembly
to the notification by a resolution moved within a period of fifteen days beginning with the day on
which the notification is so laid before the Legislative Assembly. If the Legislative Assembly
makes any modification in the notification or directs that the notification should cease to have
effect, the notification, shall thereafter have effect only in such modified form or be of no effect, as
the case may be, but without prejudice to the validity of anything previously done thereunder.
Section 29 - Recovery of duty and other levies and lien on the property of defaulter:
(1) All excise revenue, payable to the Government under this Act, may be recovered from the
person liable to pay the same or his legal successors or from his Surety or his agent as if they
were the arrears of land revenue.
(2) In the event of default in payment of excise revenue or otherwise, by any person licensed
under this Act, his manufactory, warehouse, shop or premises and all fittings, apparatus, stocks of
liquor or material for the manufacture of the same, held therein shall be liable to be attached
towards any claim for excise revenue or in respect of any loss incurred by the Government
through such default and be sold to satisfy such claim which shall be the first charge upon the
proceeds of such sale.
(3) Where duty due is not levied or not paid or short-levied or short paid or erroneously
refunded.,-
(a) the Assistant Commissioner may, within four years from the relevant date, serve
notice on the person chargeable with the duty 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 - I: 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 four years;
Explanation - II: For the purposes of this clause "relevant date" means -
(i) in the case of intoxicants on which duty has not been levied or paid or
has been short-levied or short-paid, the date on which the duty is to be
paid under this Act or the rules made thereunder;
(ii) in a case where duty is provisionally assessed under this Act or the
rules made thereunder, the date of adjustment of duty after the final
assessment thereof;
(b) the Assistant Commissioner shall, after considering the representation, if any, made
by the person on whom notice is served under clause (a), determine the amount of duty
due from such person (not being in excess of the amount specified in the notice) and
thereupon such person shall pay the amount so determined.
If the excise revenue payable by a person under this Act of the rules made there under is not paid
within time, he shall be liable to pay on the sum due, a simple interest at the rate of twelve
percent per annum from the date next following he day on which such payment became due.
Notwithstanding anything contained in this Act, the Excise Commissioner may, on the application
made in this behalf by a person, with the approval of the Government and after recording his
reason for so doing, reduce or waive the amount of any interest payable by him under this Act 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 his co-operated in any proceeding for the recovery of any amount due
from him.
Every licensee shall maintain such accounts and submit to the authorized officers such returns in
such forms containing such particulars relating to stock, apparatus, duty, fee payable and paid to
the Government and such other information at such interval as may be prescribed.
Section 33 - Penalty for unlawful import, export, transport, manufacture, possession, sale, etc. :
Whoever, in contravention of provision of this Act or of any rule or order made or notification
issued or of any licence, permit or pass, granted under this Act-
(d) uses, keeps or has in his possession any material, still, utensil, implement or
apparatus, whatsoever, for the purpose of manufacturing any intoxicant other than today
or tan;
(e) possesses any material or film either with or without the Government logo or logo of
any State 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;
(f) sells any intoxicant, collects, possesses or buys any intoxicant beyond the prescribed
quantity, shall be punishable with imprisonment for a term which shall not be less than six
months but which may extend to three years and with fine which shall not be less than
fifty thousand rupees but which may extend to one lakh rupees.
Section 34 - Penalty for rendering denatured spirit fit for human consumption:
Whoever renders or attempts to ender 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 such attempt has been made, shall be punishable with imprisonment for a term which
shall not be less than two years but which may extend to five years, and with fine which may
extend to two lakh rupees.
Whoever mixes or permits to be mixed with any liquer 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, 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 of grievous hurt is caused, with imprisonment for
a term which shall not be less than six 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 fine which may extend to
two lakh fifty thousand rupees;
(d) if as a result of such an act, no injury is caused, with imprisonment which may extend
to six months and fine which may extend to one lakh rupees.
Explanation: For the purpose of this section the expression "grievous hurt"
shall have the same meaning as in section 320 of the Indian Penal Code, 1860
(XLV of 1860).
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) the
court, when passing an order under this Act may, if it is satisfied that death or injury has been
caused to any person due to consumption of liquor sold in any place, order the manufacturer and
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 hurt has been caused, or twenty thousand rupees to the person
for any other consequent all 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 (1) may, within thirty days from the date
of the order, prefer an appeal to the High Court:
Provided that no appeal can 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 appeal after expiry of the said period
of ninety days if it is satisfied that the appellant was prevented by sufficient cause from
preferring the appeal in time.
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 punishable with imprisonment which may extend to six months
and fine which may extend to one lakh rupees.
Section 38 - Penalty for possession of liquor unlawfully imported, non duty paid, etc. :
Whoever has in his possession any liquor knowing the same to have been unlawfully imported,
transported or manufactured or knowing the prescribed duty hot to have been paid thereon, shall
be punishable with imprisonment for a term which may extend to six months and fine which may
extend to one lakh rupees.
(1) If a chemist, druggist, apothecary or keeper of a dispensary, allows any liquor which has not
been bonafidely medicated for medicinal purposes to be consumed on his business premises by
any person, he shall be punishable, with fine which may extend to five thousand rupees.
(2) If a person consumes any such liquor on such premises, he shall be punishable with fine
which may extend to two thousand rupees.
Section 40 - Penalty for consumption of liquor in public place:
Whoever, in contravention of this Act or the rules, notification or order made thereunder -
1) in case of an offence falling under clause (a) with fine which may extend to five
thousand rupees,
2) in case of an offence falling under clause (b), with imprisonment for a term
which may extend to three months and fine which may extend to ten thousand
rupees,
3) in case of an offence falling under clause (c), with imprisonment for a term
which may extend to six months and fine up to fifty thousand rupees.
Whoever prints, publishes or gives an advertisement directly or indirectly in any media soliciting
the use of any liquor, shall be punishable 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 and price list and advertisement
generally or specially approved by the Excise Commissioner for display or the points of
sale for consumer information and education.
(1) If any license holder or any person acting on his behalf, sells or delivers any liquor to any
person apparently under the age of twenty five years, he shall be punishable with fine which may
extend to ten thousand rupees.
(2) If a licence holder employs any person under the age of twenty one years, he shall be
punishable with imprisonment for a term which may extend to three months, or with fine which
may extend to fifty thousand rupees, or with both.
Notwithstanding anything contained in the Indian Penal Code, 1860 (XLV of 1860) 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 punishable with imprisonment for a term which may extend
to one year and with fine which may extend to one lakh rupees.
Section 45 - Penalty for manufacture, sale or possession by one person on account of another:
(1) Where any intoxicant 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, the intoxicant shall, for the
purposes of this Act, be deemed to have been manufactured or sold by 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 in
possession any intoxicant on account of another person, from liability to any punishment under
this Act for unlawful manufacture, sale or possession of such intoxicant.
If any person fails to pay any duty or fee, which under this Act he if liable to pay, he shall be
punishable with imprisonment for a term which may extend to one /ear and also with fins which
may extend to one lakh rupees.
Section 47 - Penalty for allowing premises, etc., to be used for commission of an offence:
Whoever, being a licensee under this Act and having the control or use of any house, room,
enclosure, space, anima, or conveyance, knowingly permits it to be used for commission by any
other person of an offence punishable under any provision of this Act, shall be punishable in the
same manner as if he had himself committed the said offence.
Whoever attempts, to commit an offence punishable under this Act, shall be liable for half the
punishment provided for the offence under this Act.
Section 49 - Penalty on excise officer for 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 c r causes to be entered or searched any closed place under
colour of exercising any power conferred by this Act;
(b) seizes the moveable property of any person on the pretext of seizing or searching for
any article liable to confiscation under this Act;
Any excise officer who, without lawful excuse, refuses to perform or withdraws himself from the
duties of his office, unless expressly allowed to do so in writing by the Excise Commissioner, or
unless he shall have given to his official superior officer two months' notice in writing, of his
intention to do so, or who shall be guilty of cowardice shall be punishable with imprisonment
which may extend to three months, or with fine which may extend to ten thousand rupees, or with
both.
Whoever does any act in contravention of any of the provisions of this Act or any rule or order
made thereunder end punishment for which has not been otherwise provided for such
contravention, shall be punishable with imprisonment for a term which may extend to six months
or with fine which may extend to ten thousand rupees, or with both.
(1) In possession under section 33, 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
intoxicant, 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 an offence under
this Act, 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.
If any person, after having been previously convicted of an offence punishable under this Act,
subsequently commits and is convicted of an offence under this Act, he shall be liable to twice the
punishment, provided for the first conviction.
Where at any time during the trial of any offence under this Act alleged to have been committed
by any person, not being the manufacturer, distributor or dealer of any intoxicant, the court is
satisfied, on the evidence adduced before it, that such manufacturer, distributor or dealer is also
concerned with that offence, then, the court may, notwithstanding anything contained in sub-
section (3) of section 319 of the Code of Criminal Procedure, 1973 (2 of 1974), proceed against
him under any section of this Chapter.
Section 55 - Magistrate's power to impose enhanced penalties:
(1) If the person committing an offence under this Act is a company, the company as well as every
person in charge of and responsible to, the company or 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 further that nothing in this sub-section shall render any such person liable to
any punishment is 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 Act 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 or
the part of any director, 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.
"company" means any body corporate and includes a firm or other association of
individuals; and "director", in relation to firm, means a partner in the firm.
(2) Any person who is reasonably suspected of having committed a minor offence under this Act,
may apply to the Assistant Commissioner for compounding of the offence, before he is convicted.
(3) On receipt of such application, the Assistant commissioner, having regard to the
circumstances of the case may in 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 on such terms an
conditions as he deems fit.
(4) 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 sun of money fixed as compounding fee or compensation by the
Assistant Commissioner under this section shall not be less than five times and not be
more than ten times he duty involved or value of intoxicant, apparatus, vehicle and other
material, whichever is higher:
Provided further that where intoxicant, 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.
Whenever an offence has been committed, which is punishable under this Act, following things
shall be liable to confiscation, namely-
(a) any intoxicant, material, still, utensil, implement, apparatus in respect of or by means
of which such offence has been committed;
(b) any intoxicant unlawfully imported, transported, manufactured, sold or brought along
with or in addition to, any intoxicant, 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;
(d) any animal, vehicle, vessel, or other conveyance used for carrying the same.
(1) Notwithstanding anything contained in this Act or any other law for the time being in force,
where anything liable for confiscation under section 58, is seized or detained under the provisions
of this Act, the officer seizing and detaining such property shall, without any unreasonable delay,
produce the said seized property before the Deputy Commissioner.
(2) On production of the said seized property under subsection (1) the Deputy Commissioner if
satisfied that an offence under this Act has been committed may, whether or not prosecution is
instituted for the commission of such an offence, order confiscation of such property, otherwise he
may order 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 destro etc. Whenever any
confiscated article has to be destroyed in conformity with these provisions, it shall be destroyed in
the presence of the excise 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 it of otherwise.
(5) When an order for confiscation of any property has been passed under section 59 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 the Government free from all encumbrances.
(6) The Deputy Commissioner shall submit a report of all particulars of confiscation to the Excise
Commissioner within one month of such confiscation.
(7) Any intoxicant, mahua a flowers or molasses and any other property if confiscated in a case
compounded under section 57 of the Act 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 the manner as
prescribed.
Section 60 - Order of confiscate a and destruction not to interfere with other punishment:
(1) The order of confiscation under section 58 shall not prevent imposition of any other
punishment to which a person is liable under this Act.
(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 Act.
Provided that the samples of the intoxicants and the photographs of the confiscated
property may be reserved to meet the evidentiary requirements.
Whenever any intoxicant, material, still, utensil, implement, apparatus or any receptacle,
package, vessel, animal, cart, or other conveyance used in committing any offence, is seized or
detained under this Act, no court shall, notwithstanding anything to the contrary contained in any
other law for the time being in force, have jurisdiction to make any order with regard to such
property.
(1) A statement made and signed by a person before any gazetted excise officer, dining the
course of an inquiry or proceeding under this Act shall be relevant for the purpose of proving, in
any prosecution for an offence under this Act, the truth of the fact which it contains,
(a) when the person who made the statement is dead or cannot be found or is incapable
of giving vidence, or is kept out of the way by the adverse party, or whose presence
cannot be obtained without an amount of delay or expense which under the
circumstances of the case, the Court considers unreasonable; or
(b) when the person who made the statement is examined as a witness in the case
before the court and the court is of opinion that having regard to the circumstances of the
case, the statement should be admitted in evidence in the interest of justice.
(2) The provisions of sub-section (1) shall so far as may be, apply in relation to any proceeding
under this Act, other than proceeding before a court, as they apply in relation to a proceeding
before a court.
The Excise Commissioner or any authorized excise officer may by order, require any person or
any establishment deemed reasonably connected with any unlawful handling of any intoxicant to
furnish to him such information as may be specified in the order.
Section 64 - Landholders, officers and others to give information:
(1) Whenever any liquor is manufactured, imported, exported, transported, collected, possessed
or sold in contravention of this Act, the owner or occupier of the land or building or his agent, and
every officer of police land revenue department, local bodies and block development office shall,
in the absence of reasonable excuse, be bound to give notice of the fact to an officer of the
excise department as soon as the fact comes to his knowledge.
(2) Every person referred to in sub-section (1) shall be bound to assist the, excise officers in
carrying out the provisions of this Act.
(3) Every excise officer shall be bound to give immediate information to the Deputy
Commissioner, of all breaches of any of the provisions of this Act, which may come to his
knowledge under sub-section (1) or otherwise.
(1) Any excise officer may search any place seize any article and arrest or detain any person if
there is a reasonable doubt about them being involved in the commission of an offence under this
Act;
Provided that to 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 Act, the provisions of the Code of Criminal
Procedure, 1973 (2 of 1974) relating to search, seizure, arrest, detention, summons and
investigation shall apply, as far as may be, to all actions taken in these respects under this Act.
Every officer-in-charge of a police station shall take charge of and keep in safe custody, pending
the order of the Magistrate or the Deputy Commissioner all articles seized under this Act which
may be delivered to him and shall allow the excise officer who may accompany such articles, to
affix his seal such articles and to take samples of and from them.
All major offences under this Act shall be cognizable and the provisions of the Code of Criminal
Procedure, 1973 (2 of 1974) shall apply to them.
All offences punishable under this Act with imprisonment of two years and more, shall be non-
bailable and the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) with respect to
non-bailable offences, shall apply to those offence;
Section 69 - Power of court to try cases summarily:
Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), all
offences under this Act punishable with fine or with imprisonment for a term not exceeding three
years shall be tried in a summary way by a Metropolitan Magistrate and the provisions of sections
262 to 265 (both inclusive) of the said Code shall as far as may be, apply to such trial:
Provided that in the case of any conviction in a summary trial under this section, it shall
be lawful for the Metropolitan Magistrate to pass a sentence of imprisonment for a term
not exceeding one year:
Provided further that when at the commencement of, or in the course of a summary trial
under this section, it appears to the Metropolitan Magistrate that the nature of the case is
such that a sentence of imprisonment for a term exceeding one year may have to be
passed or that it is, for any other reason, undesirable to try the case summarily, the
Metropolitan Magistrate shall, after hearing the parties, record an order to that effect and
thereafter recall my witness who may have been examined and proceed to hear or rehear
the: case in the manner provided by the said Code.
Section 70 - Security for good conduct and abstaining from committing offences:
(1) Whenever any person is convicted of an offence punishable under this Act 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 ( 2 of 1974) and shall in so far as they are applicable, apply to all matters
connected with such bone to as if it were a bond to keep the peace ordered to be executed under
section 106 of the 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.
Section 71 - Review:
Any excise officer m; king an order under this Act may, within sixty days on his own motion or on
an application, review his order, if the order contains some error or omission apparent in such
order:
Provided that order shall not be reviewed except after giving a reasonable opportunity of
being heard to the person affected by that order.
Section 72 - Appeal:
(1) Any person aggrieved by any decision or order passed under this Act by an excise officer,
subordinate to the Deputy Commissioner, may appeal to the Deputy Commissioner.
(2) Any person aggrieved by any decision or order passed under this Act by the Deputy
Commissioner may appeal to the Excise Commissioner.
(3) Any person aggrieved by any decision or order passed under this Act by the Excise
Commissioner may appeal to the Fir racial Commissioner.
(4) Such appeal shall be filed within thirty days from the date of communication of such decision
or order together with self a tested 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.
(5) 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.
(6) 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 nay be.
(7) The appeal shall be heard and decided within one year from the date on which such appeal is
filed:
Provided that if an appeal is not decided within one year the relief prayed for in the
appeal shall be deemed to have been granted.
(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 reason; 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.
(1) Where the decision or order appealed, against under this chapter relates to any duty, fee or
penalty levied under this Act, the person desirous of appealing against such decision or order
shall produce satisfactory proof the payment of the Excise revenue before filing the appeal.
(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, fee or penalty levied would cause undue
hardship to such person, the appellate authority, on an application from the appellant may
dispense with such deposit and stay its recovery subject to furnishing to such security and to
such conditions as he may deem fit to impose, so as to safeguard the interest of revenue:
(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.
(1) The Excise Commissioner may, on 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 Act,
including those related to the grants 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 provision of this chapter, pass such
order thereon as he thinks fit.
(2) No order, which is prejudical 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 he 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 six months from the date on
which the order sough to be revised has been passed.
The Government may, by notification, declare as to what shall be deemed to be liquor for the
purpose of this Act or the rules framed thereunder.
The Government may issue such order and take such measures as may be deemed appropriate
to regulate drinking or to enforce prohibition in whole or in any part of Delhi.
Section 78 - Power of Government to regulate molasses, black jaggery, mahua flower, etc. to
prevent misuse:
The Government may frame rules to regulate movement, possession and sale of molasses, black
jaggery, mahua flower, etc., indicating terms and conditions as are necessary and expedient to
prevent their misuse for illicit distillation.
No suit for damages shall lie in any civil court against the Government or any officer or person for
any act done in good faith, in pursuance of this Act or of any other law for the time being in force
relating to the excise revenue.
(1) The Government may by makes rules not inconsistent with the provisions of this Act to carry
out the purposes of this Act.
(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) prescribing he powers and duties of excise officers and delegation of power,
(b) prescribing the time and manner of presenting appeals and the procedure for
prosecuting and dealing with review, appeal and revision;
(d) regulating the sale and possession of toddy, neera or tari and tapping of trees for
drawing toddy or tari;
(g) regulating the time, place, rate and manner of payment of duty or fee and the taking
of security for its due payment;
(h) prescribing the authority by which, the form and the manner in which, and the terms
and conditions, subject to which any licence, permit or pass shall be granted;
(i) providing for the destruction or other disposal of any liquor deemed to be unfit for use;
(k) providing for the rant of reward to excise officers and informers;
(n) curbing activities of boot-leggers who distill, manufacture, store, transport, import,
export, se or distribute any intoxicant in contravention of any provision of this Act or the
rules made thereunder;
(o) any other matter which is required to be, or may be prescribed under this Act.
(3) Without prejudice to any provision made in this behalf; say rule made under this Act may be
made so as to be retrospective to any date not earlier than the date of commencement of this Act:
Provided that no rule shall be given effect retrospectively if it would have the effect of
prejudicially affecting the interest of a person.
(4) Every rule made under this Act shall be laid, as soon as may be after it is made, before the
Legislative Assembly 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 the Legislative
Assembly agrees in making any modification in the rule or the Legislative Assembly agrees that
the rule should not be made, the rules shall 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 or omitted to be done under that rule.
(1) If any difficulty arises in giving effect to the provisions of this Act, the Government may, by
order published in the official Gazette, make such provisions, not inconsistent with the provisions
of this Act, as may appear to be for removing the difficulty:
Provided that no order shall be made under this section after the expiry of two years from
the date of commencement of this Act.
(2) Every order made under this section shall be laid as soon as may be after it is made before
the Legislative Assembly
Immediately with effect from the date on which this Act comes into force, the Punjab Excise Act
1914 (1 of 1914) as in force in the National Capital Territory of Delhi shall stand repealed,
provided that the repeal shall not affect-
(b) any penalty, for feature or punishment incurred in respect of any offence committed
under the Act under repeal;
(c) any investigation or remedy in respect of any such penalty, forfeiture on 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 Act
had not been passed: