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Disclaimer: This Act/Rule has been provided for information only.

Due to the unavailability of the State Gazette, the Publisher is unable
to confirm if the Act/Rule has been further amended. The Publisher
shall not be liable for any advice given or sought to be given on the
basis of the document provided.

2
Himachal Pradesh Excise Act, 2011
1
[Himachal Pradesh Act 33 of 2012 ]
[19th July, 2012]

CONTENTS

CHAPTER-I

PRELIMINARY AND DEFINITIONS

1. Short title

2. Definitions

3. Country liquor and foreign liquor

4. Power to limit application of notifications, license etc. issued

CHAPTER-II

ESTABLISHMENT AND CONTROL

5. Financial Commissioner and Collector

6. Other classes of Excise Officers and their powers and

jurisdiction

7. Persons appointed under this Act to be public servants

8. Power to enter and inspect

9. Power to investigate

10. Powers of Excise Officer to search, seize etc

11. Powers of Magistrate to issue warrant for search or arrest

12. Powers of Excise Officers to obtain information

13. Police Officers to aid Excise Officers etc. and to take charge
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of articles seized

14. Power to close liquor vends

PART-A

MANUFACTURE

CHAPTER-III

PRODUCTION, MANUFACTURE, POSSESSION, IMPORT, EXPORT,

TRANSPORT, PURCHASE OR SALE

15. Prohibition of manufacture of liquor except under this Act

16. Establishment or licensing of distilleries, breweries winery or

warehouse

17. Prohibition of removal of liquor manufactured or stored in a

distillery, brewery or warehouse etc

PART-B

POSSESSION

18. Prohibition of possession of liquor

19. Possession of unused and printed labels, corks, etc. by

certain person to be punishable

20. Prohibition of possession of liquor un-lawfully manufactured,

imported, transported etc

PART-C

IMPORT, EXPORT AND TRANSPORT

21. Prohibition of import, export or transport of liquor

22. Power of the State Government to prohibit or permit import,

export or transport of liquor

PART-D

SALE etc.

23. Prohibition of sale etc. of liquor

24. Prohibition of sale etc. of adulterate liquor

25. Power of the State Government to declare limit of sale of

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liquor by retail and by whole sale

26. Prohibition of sale to minor or his employment

CHAPTER-IV

LICENSES, PERMITS AND PASSES

27. Grant of leases of manufacture, sale etc

28. Fees and other conditions for grant of licenses, permits and
passes

29. Power to cancel or suspend licenses etc

30. Power to cancel any other license and to recover fee

31. No compensation or refund claimable for cancellation or

suspension of license etc

32. Power to withdraw license etc

33. Technical irregularities in license etc

34. No claim in consequence of refusal to renew a license etc

35. Surrender of license

CHAPTER-V

DUTIES OF EXCISE AND COUNTERVAILING DUTIES

36. Excise duty and countervailing duty

37. Manner in which duty be levied

38. Payment for grant of leases

CHAPTER-VI

OFFENCES AND PENALTIES

39. Penalty for unlawful production, manufacture, possession,

import, export, transport, sale etc

40. Penalty for rendering or attempting to render denatured

spirit fit for human consumption

41. Penalty for mixing noxious substance with liquor

42. Payment of compensation

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43. Penalty for certain acts by licensee or his servant

44. Penalty for fraud by licensed manufacturer or vendor or his

servant

45. Penalty for consumption of liquor in chemist's shop

46. Penalty for consumption of liquor in public places

47. Penalty for offences not otherwise provided for

48. Manufacture, sale or possession by one person on account of

another

49. Enhanced punishment for certain offences after previous

conviction

50. Attempt to commit or abet offences punishable

51. Procedure relating to arrests, searches etc

52. Report by investigating officer for institution of proceedings

53. Offences to be bailable etc

54. Security for appearance in case of arrest without warrant

55. Cognizance of offences

56. Presumption as to commission of offence in certain cases

57. Liability of employer for offence committed by the employee

or agent

58. Relevancy of statements under certain circumstances

59. Penalty for any excise officer making vexatious search,

seizure, detention or arrest

CHAPTER-VII

CONFISCATION

60. Confiscation of article in respect of which offence committed

61. Inspection and seizure of vehicle, conveyance and liquor

liable to confiscation

62. Confiscation of vehicle or conveyance by Excise Officer in

certain cases
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63. Issue of show cause notice before confiscation under section

62

64. Penalty in lieu of confiscation

65. Disposal of seized liquor during the pendency of trial

CHAPTER-VIII

COMPOSITION

66. Composition of offences by the Collector

67. Composition of certain other offences

CHAPTER-IX

APPEAL AND REVISION

68. Appeal

69. Revision

70. Bar of certain proceedings

CHAPTER-X

RECOVERY OF DUES

71. Power to recover license fee etc

72. Power of Collector to take grants under his management or

resell and recover deficiency

73. Excise revenue to be first charge and recoverable as arrears

of land revenue

CHAPTER-XI

GENERAL PROVISIONS

74. Measures, weights and testing instruments

75. Power to exempt

76. Delegation of powers

77. Power to regulate advertisement

78. Establishment of check posts or barriers

79. Protection of action taken in good faith

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80. Powers of the State Government to make rules

81. Powers of Financial Commissioner to make rules

82. Repeal and savings

———

Himachal Pradesh Excise Act, 2011

[Himachal Pradesh Act 33 of 2012] [19th July,
2012]
An Act to consolidate, amend and update the law relating to
production, manufacture, possession, import, export, transport,
purchase and sale of intoxicating liquors and levy of duties of excise
and countervailing duties on alcoholic liquors.
BE it enacted by the Legislative Assembly of Himachal Pradesh in the
Sixty-second Year of the Republic of India as follows:—
Chapter-I
PRELIMINARY AND DEFINITIONS
1. Short title.—This Act may be called the Himachal Pradesh
Excise Act, 2011.
2. Definitions.—In this Act, unless there is anything repugnant in the
subject or context,—
(a) “beer” means alcoholic beverage prepared from malt or grain
with or without addition of sugar and hops and includes black
beer, ale, stout, porter and such other substance as may be
specified by the State Government;
(b) “to bottle” means transfer of liquor from a cask or other vessel
to a bottle or other approved receptacle and includes
rebottling;
(c) “brewery” means premises where beer is manufactured and
includes every place therein where beer is stored or wherefrom
it is issued;
(d) “Collector” means any officer appointed by the State
Government, under sub- section (2) of section 5 of this Act;
(e) “denatured” means effectually and permanently rendered unfit
for human consumption;
(f) “distillery” means premises where spirit is manufactured and
includes every place therein where it is stored or wherefrom it
is issued;
(g) “excise duty” and “countervailing duty” mean any such excise
duty or countervailing duty, as the case may be, as is
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mentioned in entry 51 of List-II of the Seventh Schedule to the

Constitution;
(h) “Excise Officer” means any officer or person appointed, or
invested with powers, under section 6 of this Act;
(i) “excise revenue” means revenue derived or derivable from any
payment, duty, license fee, or other fee levied or payable, fine
or penalty imposed or confiscation ordered under this Act, or
the rules made thereunder, but does not include a fine imposed
by a court of law;
(j) “export” means to take out of Himachal Pradesh otherwise
than across a custom frontier as defined by the Central
Government;
(k) “Financial Commissioner” means the Excise and Taxation
Commissioner appointed under sub-section (1) of section 5;
(l) “import” (except in the phrase “import into India”) means to
bring into Himachal Pradesh otherwise than across a customs
frontier as defined by the Central Government;
(m) “license” means a license granted under this Act;
(n) “liquor” means intoxicating liquor and includes all liquid
consisting of or containing alcohol, whether obtained by
fermentation or by subsequent distillation, and also includes
any substance which the State Government may, by
notification, declare to be liquor;
(o) “manufacture” includes any process, whether natural or
artificial by which any liquor is produced or prepared, and also
re-distillation, and every process for the rectification, reduction,
flavoring, blending or colouring or bottling of liquor;
(p) “medicinal preparations” and “toilet preparations” shall have
the same meaning as assigned to them under the Medicinal
and Toilet Preparations (Excise Duties) Act, 1955;
(q) “molasses” means heavy dark coloured 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 admixturer containing sugar which
can be fermented;
(r) “notification” means a notification issued under this Act or the
rules made thereunder and published in the Official Gazette;
(s) “pass” means a document which actually authorizes the
removal or transportation of liquor;
(t) “permit” means a no objection statement issued by the
Collector of the district of destination concerned or an officer
authorized in this behalf in the import and transport of liquor
and includes a document authorizing possession of liquor
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exceeding the limit of retail-sale;

(u) “place” includes a building, shop, tent, enclosure, booth,
vehicle, vessel, boat and raft;
(v) “prescribed” means prescribed by rules made under this Act;
(w) “sale” includes any transfer otherwise than by way of gift;
(x) “State” means the State of Himachal Pradesh;
(y) “State Government” means the Government of Himachal
Pradesh;
(z) “spirit” means any liquor containing alcohol obtained by
distillation, whether denatured or not;
(za) “transport” means to move from one place to another
place within the State;
(zb) “vehicle” means wheeled conveyance of any description,
which is capable of being used for movement and includes
aircraft, boat, vessel, raft, motor vehicle, a cart and any
carriage by cattle;
(zc) “warehouse” means a place where storage of liquor is
permitted and includes a relevant part of manufactory; and
(zd) “winery” means premises where wine is manufactured and
includes every place therein where wine is stored or
wherefrom it is issued.
3. Country liquor and foreign liquor.—The State Government may by
notification declare what, for the purpose of this Act, shall be deemed
to be country liquor and foreign liquor.
4. Power to limit application of notifications, license etc. issued.—
Where under this Act, any notification is issued, any appointment
made, any power conferred, or any license, permit or pass granted, it
shall be lawful for the State Government to direct that—
(a) it shall apply to the whole of the State or to any specified local
area or areas;
(b) it shall apply to all or any class of persons, officers or
functions and powers of such officers;
(c) it shall apply to all or any specified liquor(s) or classes
thereof; and
(d) it shall be in force only for some special period or occasion.
Chapter-II
ESTABLISHMENT AND CONTROL
5. Financial Commissioner and Collector.—(1) The State Government
may, by notification, appoint an Excise and Taxation Commissioner who
shall exercise all the powers of Financial Commissioner, and subject to
the control of the State Government, the general superintendence and
administration of all matters relating to excise shall vest in him.
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(2) The State Government may, by notification, appoint as many

Collectors as it may deem fit, to discharge in any specified area the
functions of the Collector under this Act and the Collector shall, subject
to the control of the Financial Commissioner, control all other Excise
Officers within his jurisdiction.
(3) The jurisdiction of the Financial Commissioner shall extend to the
whole State and the jurisdiction of Collectors shall extend to the areas
of the State in which they are for the time being employed.
6. Other classes of Excise Officers and their powers and jurisdiction.
—(1) There shall be such other classes of Excise Officers as the State
Government may, by notification, declare and it may appoint as many
persons as it deems fit to be the Excise Officers of these classes.
(2) The State Government may, by notification, invest in any person,
not being an Excise Officer, with powers to perform all or any of the
functions of an Excise Officer, under this Act, and such person shall in
the exercise of these functions be deemed to be an Excise Officer.
(3) The State Government shall, by notification, declare the powers
to be exercised under this Act by the Excise Officer of each class.
(4) The jurisdiction of the Excise Officers shall, unless the State
Government otherwise directs, extend to the districts in which they are
for the time being employed.
7. Persons appointed under this Act to be public servants.—All
persons appointed under this Act shall be deemed to be public servants
within the meaning of section 21 of the Indian Penal Code, 1860.
8. Power to enter and inspect.—Any Excise Officer, not below such
rank as the State Government may, by notification specify,—
7. (a) enter and inspect, at any time by day or by night, any place
in which any licensed manufacturer carries on the manufacture
of or stores any liquor;
(b) enter and inspect, at any time, any place in which any liquor
is kept for sale by any person holding a license under this Act;
(c) examine any accounts and registers, test, measure or weigh
any materials, stills, utensils, implements, apparatus or testing
instruments or liquor found in that place;
(d) seize any accounts, register, measure, weights or testing
instruments which he has reason to believe to be false or
incorrect; and
(e) seize any liquor which he has reasons to believe to be
unaccounted for in the accounts and registers maintained by
the licensee.
9. Power to investigate.—(1) The State Government may, by
notification, invest any Excise Officer, with power to investigate any
offence punishable under this Act, committed within the limits of the
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area in which the officer exercises jurisdiction.

(2) Every officer so empowered may within those limits exercise the
same powers in respect of such investigation as an officer-in-charge of
a police station may exercise in a cognizable case under the provisions
of Chapter XII of the Code of Criminal Procedure, 1973.
10. Powers of Excise Officer to search, seize etc.—(1) Whenever any
Excise Officer not below such rank as the State Government may, by
notification, specify has reason to believe that an offence punishable
under this Act, has been, is being, or is likely to be, committed by any
person, in any place, and that a search warrant can not be obtained
without affording the offender an opportunity of escape or of concealing
evidence of the offence, he may, at any time, by day or night, enter
and search such place.
(2) Any Excise Officer specified in sub-section (1) may seize
anything found in such place which he has reason to believe to be liable
to confiscation under this Act, and may detain and search and, if he
thinks proper, arrest any person found in such place whom he has
reason to believe to be guilty of such offence as aforesaid.
11. Powers of Magistrate to issue warrant for search or arrest.—A
Magistrate having reason to believe that an offence under this Act has
been, is being, or is likely to be, committed may—
(a) issue a warrant for the search of any place in which he has
reason to believe that any liquor, still, utensil, implement,
apparatus or materials, in respect of which such offence has
been, is being, or is likely to be, committed are kept or
concealed; and
(b) issue a warrant for the arrest of any person whom he has
reason to believe to have been, to be, or to be likely to be,
engaged in the commission of any such offence.
12. Powers of Excise Officers to obtain information.—(1) Any Excise
Officer, not below such rank as the State Government may, by
notification specify, may by order require any person to furnish to any
specified authority or person any such information in his possession
concerning any unlawful import, export, transport, manufacture, sale,
purchase or possession of any liquor, or any material, still, utensil,
implement or apparatus whatsoever, for the purpose of manufacturing
any liquor, as may be specified in the order.
(2) Any person upon whom an order is served under sub-section (1)
shall be bound, in the absence of reasonable excuse, to furnish correct
information.
13. Police Officers to aid Excise Officers etc. and to take charge of
articles seized.—(1) All Police Officers shall aid the Excise Officers and
other authorities in carrying out the purposes of this Act.
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(2) Every officer-in-charge of a police station shall take charge of,

and keep in safe custody, pending the orders of a Judicial Magistrate or
Collector concerned or an officer empowered under section 9 of this Act,
to investigate the case, all articles seized under this Act which may be
delivered to him, and shall allow any Excise Officer who may
accompany such articles to the police station, or may be deputed for
the purpose by his superior officer to affix his seal to the articles and
take samples of and from them and all samples so taken shall also be
sealed with the seal of the officer-in-charge of the police station.
14. Power to close liquor vends.—The Financial Commissioner shall
prescribe the day(s) on which any liquor vend shall remain closed for
observance of the dry days approved by the State Government or the
Election Commission of India or the State Election Commission:
Provided that if the District Magistrate receives an information
that a riot or unlawful assembly has occurred or is likely to occur in
the vicinity of a liquor vend, he may, subject to the reasons to be
recorded in writing, by order, require the licensee of such a liquor
vend to keep the vend closed at such time as may be specified in
such order:
Provided further that the order passed under the preceding
proviso shall, at one time, remain in force for not more than twenty-
four hours from the time, when it is made:
Provided further that the District Magistrate shall inform the
Financial Commissioner and the Collector concerned of the order
passed by him as soon as such order is made.
Part-A
MANUFACTURE
Chapter-III
PRODUCTION, MANUFACTURE, POSSESSION, IMPORT, EXPORT,
TRANSPORT, PURCHASE OR SALE
15. Prohibition of manufacture of liquor except under this Act.—(1)
No person shall—
(a) manufacture or produce any liquor, or
(b) construct or work a distillery, brewery, winery or a warehouse
(wherein any liquor may be deposited and kept without
payment of excise duty or countervailing duty), or
(c) bottle any liquor, or
(d) use, keep or have in his possession, any materials, still,
utensils, implement or apparatus whatsoever for the purpose of
manufacturing or producing any liquor,
except under the authority, and subject to the terms and
conditions as may be prescribed, in this behalf, by the Financial
Commissioner.
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(2) The State Government may, by notification, prohibit the use of

distilled liquor of any description in the manufacture of any kind or
class of liquor.
16. Establishment or licensing of distilleries, breweries winery or
warehouse.—The Financial Commissioner, subject to such restrictions or
conditions as the State Government may impose, may—
(a) establish a distillery in which spirit may be manufactured
under a license granted under section 15;
(b) discontinue any distillery so established;
(c) license the construction and working of a distillery or brewery
or a winery;
(d) establish and license a warehouse wherein any liquor may be
deposited and kept without payment of duty;
(e) discontinue any warehouse so established; and
(f) make rules regarding—
(1) grant of licenses for distilleries, stills, breweries or wineries;
(2) the security to be deposited by the licensee of a distillery,
brewery or winery;
(3) the period for which the license shall be granted;
(4) the inspection and examination of such distillery, brewery or
winery and the warehouses connected therewith and of the spirit or
fermented liquor made and stored therein;
(5) the management and working of the distillery, brewery or
winery;
(6) the form of accounts to be maintained and the returns to be
submitted by the licensee;
(7) the upkeep of buildings and plant;
(8) the size and description of stills, and other plant;
(9) the manufacturing, storing and passing out of spirit or fermented
liquor and the contents of passes;
(10) the prices to be charged by the licensee; and
(11) any other matters connected with the working of distilleries,
breweries or wineries.
17. Prohibition of removal of liquor manufactured or stored in a
distillery, brewery or warehouse etc.—No liquor manufactured or stored
in any distillery, brewery, winery or warehouse or any other place of
storage established or licensed under this Act shall be removed
therefrom unless the excise duty or, as the case may be, the
countervailing duty, if any, levied and payable under section 36 has
been paid or a bond, as prescribed, has been executed for payment
thereof.
Part-B
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POSSESSION
18. Prohibition of possession of liquor.—(1) No person shall have in
his possession any quantity of liquor in excess of such quantity as the
State Government has under section 25, declared to be the limit of
retail sale, except under the authority and in accordance with the terms
and conditions of—
(a) a license for the manufacture, storage, sale or supply of such
article, or
(b) a permit or a pass granted by the Collector in that behalf:
Provided that nothing contained in this sub-section shall apply to
any liquor in the possession of a common carrier or an Excise Officer
or a Police Officer or other official or person who has its lawful
custody under this Act.
(2) A licensed vendor shall not have in his possession at any place,
other than that authorized by his license, any quantity of any liquor in
excess of such quantity as the State Government has, under section 25,
declared to be the limit of sale by retail, except under a permit granted
by the Collector in that behalf.
(3) Notwithstanding anything contained in sub-sections (1) and (2),
the State Government may, by notification, prohibit the possession of
any liquor or restrict such possession by such conditions as it may
impose.
19. Possession of unused and printed labels, corks, etc. by certain
person to be punishable.—No person shall have in his possession any
unused and printed label, cork, capsule or seal duly approved by any
authority under this Act or under any rule or order made thereunder for
use by a person licensed to establish or work a distillery or brewery,
winery or warehouse or to bottle liquor, or any other label, cork capsule,
or seal which is an imitation of such unused and printed label, cork,
capsule, or seal, as the case may be:
Provided that nothing therein shall apply to—
(a) a person licensed to establish or work a distillery, brewery,
winery or warehouse or to bottle liquor; or
(b) a person who, in execution or an order received from a person
specified in clause (a), manufactures or prints any such label,
cork, capsule or seal.
20. Prohibition of possession of liquor un-lawfully manufactured,
imported, transported etc.—No person shall have in his possession any
quantity of any liquor, knowing the same to have been unlawfully
manufactured, imported, transported, or knowing that the prescribed
excise duty, countervailing duty or other fee not to have been paid
thereon.
Part-C
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IMPORT, EXPORT AND TRANSPORT

21. Prohibition of import, export or transport of liquor.—No liquor
shall be imported, exported or transported except,—
(a) after payment of any excise duty or fee or countervailing duty,
if any, to which it may be liable under this Act, or on execution
of a bond, as prescribed, for such payment, and
(b) in accordance with such conditions as the State Government
may impose.
22. Power of the State Government to prohibit or permit import,
export or transport of liquor.—(1) The State Government may, by
notification, prohibit,—
(a) the import or export of any liquor into or from the State or any
part thereof, or
(b) the transport of any liquor.
(2) Save as otherwise provided by any rule made under this Act, no
liquor exceeding such quantity, as the State Government may
prescribe, shall be imported, exported or transported except under the
authority of a pass granted by the Collector:
Provided that on such conditions as the Financial Commissioner,
may prescribe, a pass granted under the excise law in force in
another State may be deemed to be a pass granted under this Act.
Part-D
SALE etc.
23. Prohibition of sale etc. of liquor.—(1) No liquor shall be sold
except under the authority and subject to the terms and conditions of a
license granted, in this behalf, by the Financial Commissioner or
Collector, as the case may be.
(2) No liquor shall be sold from a place other than the place specified
in the license granted under sub-section (1).
(3) No person shall allow consumption of liquor at any public place,
except under the authority of a license granted under sub-section (1).
(4) Nothing in this section applies to the sale of any foreign liquor
lawfully procured by any person for his private use and sold by him or
on his behalf or on behalf of his representatives in interest upon his
quitting a station or after his demise.
24. Prohibition of sale etc. of adulterate liquor.—No licensed vendor
and no person in the employ of such vendor or acting on his behalf
shall adulterate any liquor, which the vendor is licensed to sell, by
adding any substance in such a manner as to vary the prescribed
strength or the quality of such liquor and no such vendor or person
shall possess, store, sell or expose for sale, any such adulterated liquor.
25. Power of the State Government to declare limit of sale of liquor
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by retail and by whole sale.—The State Government may, by

notification, declare with respect either to whole of State or to any local
area comprised therein, and as regards purchasers generally or any
specified class of purchasers, and generally or for any specified
occasion, the maximum or minimum quantity or both of any liquor,
which for the purpose of this Act may be sold by retail sale and by
whole sale.
26. Prohibition of sale to minor or his employment.—(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 18 years, he shall be
punishable with fine which may extend to ten thousand rupees but
shall not be less than two thousand rupees.
(2) If a license holder or any person acting on his behalf employs, in
a liquor Vend or Bar or any other place where liquor or other intoxicants
are sold or stored or served, any person under the age of 18 years, he
shall be punishable with imprisonment for a term which may extend to
three months and with fine which may extend to fifty thousand rupees
or with both.
Chapter-IV
LICENSES, PERMITS AND PASSES
27. Grant of leases of manufacture, sale etc.—(1) The State
Government may lease to any person, competent to contract, on
payment of such sum in addition to excise duty or countervailing duty,
on such conditions and for such period, as it may deem fit, the right—
(a) of manufacturing or of supplying by wholesale, or of both, or
(b) of selling by wholesale or by retail, or
(c) of storing for manufacture or sale,
any country liquor, foreign liquor, beer, wine spirit within
any specified area.
(2) The State Government may lease to any person, competent to
contract, on payment of such fee and on such conditions as the
Financial Commissioner may direct under section 28, the right of
manufacturing and possessing for home consumption—
(a) country liquor by distillation from specified fruits or grains in
tribal areas, or
(b) country fermented liquor from grains in any specified area.
Explanation.- For the purpose of this sub-section ‘tribal area’ or
‘specified area’ shall mean such area which stand notified as ‘tribal
area’ or ‘notified area’ under the repealed Punjab Excise Act, 1914, on
the date of commencement of the Himachal Pradesh Excise Act, 2011.
(3) The Financial Commissioner may grant to a lessee, a license for
manufacturing or supplying the liquor in accordance with the terms of
such lease as may be approved by the State Government under sub-
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section (1); provided that Collector may grant to a lessee, such licenses
for sale of liquor by wholesale or by retail as the Financial
Commissioner may prescribe.
(4) The Collector may grant to a lessee under sub-section (2) a
permit in such form as the Financial Commissioner may prescribe.
28. Fees and other conditions for grant of licenses, permits and
passes.—(1) Every license, permit or pass, under this Act, shall be
granted—
(a) on payment of such fees, if any,
(b) in such form and containing such particulars,
(c) subject to such restrictions and on such conditions, and
(d) for such period,
as the Financial Commissioner may direct.
(2) For the purposes of sub-section (1), the power of the Financial
Commissioner to issue directions shall include the power to direct the
licensee of a distillery, brewery, winery or warehouse to—
(a) provide free accommodation to the Excise Officer concerned at
or near the licensed premises, failing which to pay to the State
Government the rent and other charges for such
accommodation as may be fixed by the Financial
Commissioner; and
(b) pay to the State Government the costs, charges and
expenses, including salaries and allowances of such Excise
Officers, which the State Government may incur in connection
with the supervision of such distillery, brewery, winery or
warehouse.
(3) The authority granting a license under this Act, may require the
licensee to give such security for the observance of the terms of his
license, or to make such deposit in lieu of security, as such authority
may direct.
(4) Subject to the rules made by the Financial Commissioner, the
Collector may grant licenses for the sale of any liquor within a district:
Provided that a license for sale in more than one district shall be
granted by the Financial Commissioner only.
(5) Before any license is granted in any year for the retail sale of
liquor for consumption on any premises which have not been so
licensed in the preceding year, the Collector shall take such measures
as the State Government may prescribe, as may best enable him to
ascertain local public opinion in regard to the licensing of such
premises.
29. Power to cancel or suspend licenses etc.—Subject to such
restrictions as the State Government may prescribe, the authority
granting any lease, license, permit or pass under this Act, may cancel
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or suspend it—
(a) if it is transferred or sublet by the holder thereof without the
permission of the said authority; or
(b) if any excise duty or countervailing duty or, other fee payable
by the holder thereof is not duly paid; or
(c) in the event of any breach by the holder of such lease, license,
permit or pass or by his servants, or by any one acting on his
behalf with his express or implied permission, of any of the
terms or conditions of such license, permit or pass; or
(d) if the holder thereof is convicted of any offence punishable
under this Act or the Himachal Pradesh Value Added Tax Act,
2005, the Central Sales Tax Act, 1956 or the Himachal Pradesh
Prevention of Specific Corrupt Practices Act, 1983 or of any
cognizable and non-bailable offence, or any offence punishable
under the Narcotic Drugs and Psychotropic Substances Act,
1985, or under the Trade and Merchandise Marks Act, 1958 or
under the Medicinal and Toilet Preparations (Excise Duties) Act,
1955 or of any offence punishable under sections 482 to 489
( both inclusive) of the Indian Penal Code, 1860 or any offence
referred to in section 135 of the Customs Act, 1962; or
(e) where a license, permit or pass has been granted on the
application of the grantee of a lease under this Act, on the
request in writing of such grantee; or
(f) at will, if the conditions of the license, permit or pass provides
for such cancellation or suspension.
30. Power to cancel any other license and to recover fee.—(1) When
a license, permit or pass held by any person is cancelled under clauses
(a), (b), (c) or (d) of section 29, the authority granting the license may
cancel any other license, permit or pass granted to such person by such
authority within his jurisdiction but if such other license, permit or pass
has been granted by any other authority, the Financial Commissioner
may cancel or suspend the same.
(2) In the case of cancellation or suspension of a license under
clauses (a), (b), (c) or (d) of section 29, the fee payable for the balance
of the period for which any license would have been current but for
such cancellation or suspension, may be recovered from the ex-licensee
as excise revenue.
31. No compensation or refund claimable for cancellation or
suspension of license etc.—When a lease, license, permit or pass is
cancelled or suspended under clauses (a), (b), (c) or (d) of section 29
or under section 30, the holder of such lease, license, permit or pass, as
the case may be, shall not be entitled to any compensation for its
cancellation or suspension nor to the refund of any fee paid or deposit
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made in respect thereof.

32. Power to withdraw license etc.—(1) Whenever the authority
which granted a license, permit or pass under this Act considers that
such license, permit or pass should be withdrawn for any cause other
than those specified in section 29, it may,—
(a) withdraw the license, permit or pass on the expiration of
fifteen days' notice in writing of its intention to do so; or
(b) withdraw any such license, permit or pass forthwith without
notice.
(2) If any license, is withdrawn forthwith without notice under clause
(b) of sub-section (1), there shall be paid to the licensee such sum, by
way of compensation, as the Financial Commissioner may direct.
(3) When a license, permit or pass is withdrawn under this section,
any fee paid in advance or deposit made by the licensee in respect
thereof shall be refunded to him, after deducting the amount, if any,
due to the State Government.
33. Technical irregularities in license etc.—(1) No lease, license,
permit or pass granted under this Act shall be deemed to be invalid by
reasons merely of any technical defect, irregularity or omission in the
lease, license, permit or pass or in any proceedings taken prior to the
grant thereof.
(2) The decision of the Financial Commissioner as to what is a
technical defect, irregularity or omission shall be final.
34. No claim in consequence of refusal to renew a license etc.—No
person to whom a lease, license, permit or pass 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 lease,
license, permit or pass on the expiry of the period for which it remains
in force.
35. Surrender of license.—No holder of a license granted under this
Act to sell liquor shall surrender his license except on the expiration of
one month's notice in writing given by him, to the authority which
granted the license, of his intention to surrender the same and on
payment of the fee payable for the license for the whole period for
which it would have been current but for the surrender:
Provided that if the authority is satisfied that there is sufficient
reason for surrendering the license, he may remit to the holder
thereof the sum so payable on surrender or any portion thereof.
Explanation.- The expression “holder of a license” as used in this
section includes a person whose tender or bid or application for
allotment of a license for any liquor vend has been accepted, although
he may not actually have received the license.
Chapter-V
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DUTIES OF EXCISE AND COUNTERVAILING DUTIES

36. Excise duty and countervailing duty.—(1) There shall be levied
and paid an excise duty or the countervailing duty, as the case may be,
at such rate or rates as the State Government may, by notification
direct, on any alcoholic liquor for human consumption—
(a) manufactured, produced or bottled in the State under any
license granted under section 15 of this Act;
(b) manufactured or produced elsewhere in India but imported or
transported into State; and
(c) imported, exported or transported in accordance with the
provisions of section 21 of this Act.
(2) The excise duty or countervailing duty may be imposed under
sub section (1) at different rates according to varying kind, strength,
quality or price of alcoholic liquor for human consumption.
(3) Notwithstanding anything contained in sub-section (1), no excise
duty or countervailing duty shall be levied on—
(a) any alcoholic liquor for human consumption imported into
India and which, on its importation, was liable to duty under
the Customs Tariff Act, 1975 or the Customs Act, 1962, and
(b) medicinal preparations and toilet preparations containing
alcohol on which excise duty is levied under the Medicinal and
Toilet Preparations (Excise Duties) Act, 1955.
37. Manner in which duty be levied.—Subject to such rules
regulating the time, place and manner as the Financial Commissioner
may prescribe, such duty shall be levied rateably, on the quantity of
alcoholic liquor for human consumption imported, transported or
manufactured in, or issued from a distillery, brewery, winery or
warehouse.
38. Payment for grant of leases.—The State Government may, in
addition to or instead of any excise duty or countervailing duty leviable
under this Chapter, accept a sum in consideration of the lease of any
right under section 27.
Chapter-VI
OFFENCES AND PENALTIES
39. Penalty for unlawful production, manufacture, possession,
import, export, transport, sale etc.—(1) Whoever, in contravention of
any provisions of this Act, or of the rules made thereunder or
notification issued, or any order made, or of any license, permit or pass
granted under this Act—
(a) produces, manufactures, possesses, imports, exports or
transports any liquor, or
(b) constructs or works any distillery or brewery or winery or
warehouse, or
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(c) uses, keeps or has in his possession any material, still, utensil,
implement or apparatus whatsoever, for the purpose of
manufacturing or producing any liquor,
shall be punishable for every such offence with imprisonment for a
term which may extend to three years and with fine which may extend
to two lakh rupees but shall not be less than five thousand rupees:
Provided that in the case of an offence relating to the possession
of—
(i) a working still for manufacture of any liquor, the imprisonment
shall not be less than three years and the fine shall not be less
than one lakh rupees;
(ii) lahan, the imprisonment shall not be less than one year and
the fine shall not be less than fifty thousand rupees;
(iii) country liquor manufactured otherwise than in a licensed
distillery or warehouse in Himachal Pradesh—
(a) in a quantity not exceeding seven-and-a-half litres, the
imprisonment shall not be less than six months and the fine
shall not be less than five thousand rupees; and
(b) in a quantity exceeding seven-and-a-half litres, the
imprisonment shall not be less than one year and the fine
shall not be less than ten thousand rupees;
(iv) foreign liquor other than,—
(a) manufactured in a licensed distillery or brewery or winery or
warehouse in India; or
(b) imported into India on which custom duty is leviable under
the Customs Tariff Act, 1975 or the Customs Act, 1962,
the imprisonment shall not be less than one year and the fine shall
not be less than twenty thousand rupees:
Provided further that in the case of an offence relating to import,
export or transport of—
(i) country liquor exceeding forty-five litres; or
(ii) foreign liquor exceeding forty-five litres; or
(iii) other spirits exceeding five litres,
such imprisonment shall not be less than three years and the fine
shall not be less than one lakh rupees.
(2) Whoever, in contravention of any provisions of this Act or the
rules made thereunder or notification issued, or any order made, or of
any licence, permit or pass granted under this Act—
(i) possesses any unused and printed label, cork, capsule, or seal,
or an imitation thereof; or
(ii) sells any liquor; or
(iii) bottles any liquor; or
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(iv) removes any liquor from any distillery, brewery, winery or

warehouse or other place of storage established or licensed
under this Act; or
(v) adulterates any liquor by adding any substance with an
intention to vary the prescribed strength or quality of such
liquor,
shall be punishable with imprisonment for a term which shall not be
less than six months but which may extend to two years and with fine
which shall not be less than fifty thousand rupees but which may
extend to two lakh rupees.
40. Penalty for rendering or attempting to render denatured spirit fit
for human consumption.—Whoever renders or attempts to render fit for
human consumptions any denatured spirit or knowingly possesses any
spirit so rendered or attempted to be rendered, fit for human
consumption, shall be punishable with imprisonment which shall not be
less than six months but which may extend to five years and with fine
which shall not be less than fifty thousand rupees but which may
extend to two lakh rupees.
41. Penalty for mixing noxious substance with liquor.—Whoever
mixes or permits to be mixed with any liquor sold or manufactured or
possessed by him any noxious drugs or any foreign ingredient likely to
cause disability or grievous hurt or death to human beings, shall on
conviction be punishable,—
(a) if as a result of such an act, death is caused to any person,
with punishment which may extend to death and with fine
which may extend to ten lakh rupees;
(b) if as a result of such an act, grievous hurt is caused to any
person, with imprisonment which shall not be less than six
years but which may extend to life term 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 with fine which may extend to two lakh
fifty thousand rupees; and
(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.
Explanation.- For the purpose of this section the expression
“grievous hurt” shall have the same meaning as defined in section 320
of the Indian Penal Code, 1860.
42. Payment of compensation.—(1) Notwithstanding anything
contained in the Code of Criminal Procedure, 1973 and without
prejudice to any other punishment, the court when passing judgment
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in a case under section 41, may, if it is satisfied that death or injury

has been caused to any person due to consumption of such liquor,
order the person found guilty to pay, by way of compensation, an
amount—
(a) not less than three lakh rupees to the legal representatives of
each of the deceased, or
(b) not less than two lakh rupees to the person to whom grievous
hurt has been caused, or
(c) not less than twenty thousand rupees to the person for any
other consequential injury.
(2) Any person aggrieved by an order passed under sub-section (1)
may, within ninety days from the date of order, prefer appeal in the
High Court:
Provided that no appeal shall be entertained unless the amount of
compensation ordered to be paid under sub-section (1) is deposited
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.
43. Penalty for certain acts by licensee or his servant.—Whoever,
being the holder of a licence, permit or pass granted under this Act or
being in the employ of such holder or acting on his behalf—
(a) allows disorderly conduct or gaming or prostitution on the
licenced premises; or
(b) failswillfully to produce such license, permit or pass on
demand of any Excise Officers; or
(c) in any case not provided for in section 39, wilfully contravenes
any rules made under sections 80 or 81; or
(d) wilfully does or omits to do anything in breach of any of the
conditions of the license, permit or pass not otherwise provided
for in this Act; or
(e) reduces the strength of any liquor below the prescribed limit;
shall be punishable with fine which may extend to fifty thousand
rupees but shall not be less than five thousand rupees.
44. Penalty for fraud by licensed manufacturer or vendor or his
servant.—If any licensed manufacturer or licensed vendor or any person
in his employ or acting on his behalf—
(a) sells, or keeps, or exposes for sale as foreign liquor any liquor
which he knows or has reason to believe to have been
manufactured from rectified spirit or country liquor; or
(b) marks any bottle, case, package or other receptacle containing
liquor so manufactured from rectified spirit or country liquor, or
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other receptacle containing such liquor with the intention of

causing it to be believed that such bottle, case, package, or
other receptacle contains foreign liquor,
he shall be punishable with imprisonment for a term which may
extend to one year and with fine which may extend to two thousand
rupees.
45. Penalty for consumption of liquor in chemist's shop.—(1) If any
chemist, druggist, apothecary or keeper of a dispensary, allows any
liquor which has not been bonafide medicated for medicinal purposes to
be consumed on his business premises by any person, he shall be
punishable with imprisonment for a term which may extend to one year
and with fine which shall not be less than two thousand rupees and
which may extend to ten 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.
46. Penalty for consumption of liquor in public places.—Whoever in
contravention of any of the provisions of this Act or of any rule,
notification or order made thereunder,—
(a) consumes liquor in any unlicensed public place, or
(b) after consuming liquor at any place creates nuisance in a
public place, shall be punishable—
(i) in the case of an offence falling under clause (a), with fine
which shall not be less than one thousand rupees and which
may extend to five thousand rupees; and
(ii) in the case of offence falling under clause (b), with
imprisonment for a term which may extend to three months
and fine which shall not be less than two thousand rupees
and which may extend to ten thousand rupees.
47. Penalty for offences not otherwise provided for.—Whoever is
guilty of any act or intentional omission in contravention of any of the
provisions of this Act, or of any rule, notification or order made, issued
or given thereunder, and not otherwise provided for in this Act, shall be
punishable for every such act or omission with a fine which may extend
to one thousand rupees.
48. Manufacture, sale or possession by one person on account of
another.—(1) When any liquor has been manufactured or sold or is
possessed by any person on account of any other person and such other
person knows or has reason to believe that such manufacture or sale
was, or that such possession is, on his account, the article shall for the
purpose of this Act be deemed to have been manufactured or sold by or
deemed to be in the possession of such other person.
(2) Nothing in sub-section (1) shall absolve any person who
manufactures, sells or possesses any liquor on account of another
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person from liability to any punishment under this Act for the unlawful
manufacture, sale or possession of such article.
49. Enhanced punishment for certain offences after previous
conviction.—Whoever having been convicted, of an offence under
section 39 of this Act, is subsequently convicted of a similar offence
under the said section, shall be punishable for every such subsequent
offence with double the sentence of imprisonment and fine awarded on
previous conviction:
Provided that the enhanced punishment shall not exceed the
imprisonment of five years and a fine of three lakhs rupees:
Provided further that the enhanced punishment in any case shall
not affect the minimum sentences provided for the offences specified
in the first or the second proviso of sub-section (1) of section 39 of
this Act.
50. Attempt to commit or abet offences punishable.—Whoever
attempts to commit or abets any offence punishable under this Act
shall be liable to the punishment provided for the offence.
51. Procedure relating to arrests, searches etc.—Save as otherwise
expressly provided in this Act, the provisions of the Code of Criminal
Procedure, 1973, relating to arrests, detentions in custody, searches,
summons, warrants of arrest, search-warrants, production of persons
arrested and investigation of offences etc. shall be applicable to all
action taken in relation there to under this Act:
Provided that any offence under this Act may be investigated by
an officer empowered under section 9 without the order of a Judicial
Magistrate:
Provided further that whenever an Excise Officer makes any
arrest, seizure or search, he shall, within twenty-four hours
thereafter, make a full report of all the particulars of the arrest,
seizure or search to his immediate official superior, and shall, unless
bail is accepted under this section, take or send the person arrested,
or the article seized, with convenient dispatch to a Judicial
Magistrate for trial or adjudication.
52. Report by investigating officer for institution of proceedings.—(1)
Subject to the other provisions of this Act, if on an investigation by an
Excise Officer, empowered under section 9 of this Act, it appears that
there is sufficient evidence to justify the prosecution of the accused,
the investigating officer, unless he submits the report for orders of the
Collector under section 66, shall submit a report, which shall for the
purposes of section 190 of the Code of Criminal Procedure, 1973 be
deemed to be a police report, to a Judicial Magistrate having
jurisdiction to enquire into or try the case and empowered to take
cognizance of offences on police report.
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(2) If the Excise Officer is satisfied on completion of investigation

that there does not exist sufficient evidence to justify the prosecution of
the accused, he shall submit a report to the Collector concerned, who
may pass such order as may deem fit.
53. Offences to be bailable etc.—All offences punishable under this
Act shall be bailable within the meaning of Code of Criminal Procedure,
1973:
Provided that the offences punishable under the first proviso and
second proviso of sub-section (1) of section 39, and sections 40 and
41 of this Act shall be non-bailable.
54. Security for appearance in case of arrest without warrant.—(1)
The State Government may empower any Excise Officer to grant bail,
notwithstanding that such officer is not empowered under section 9.
(2) When a person is arrested under this Act, otherwise than on
warrant, by a person or officer who is not empowered to grant bail, he
shall be produced before—
(a) the nearest Excise Officer empowered by the State
Government to grant bail, or
(b) the nearest officer-in-charge of a police station, whoever is
nearer.
(3) Whenever any person arrested under this Act, otherwise than on
a warrant, is prepared to give bail, and is arrested by, or produced in
accordance with sub-section (2) before an officer empowered to grant
bail, he shall be released upon bail, or, at the discretion of the officer
releasing him, on his own bond.
(4) The provision of Chapter XXXIII of the Code of Criminal
Procedure, 1973 shall apply, so far as may be, in every case in which
bail is accepted or a bond taken under this section.
55. Cognizance of offences.—(1) No Judicial Magistrate shall take
cognizance of any offence punishable,—
(a) under sections 39, 40 or 41, except on the complaint or report
of an Excise Officer; or
(b) under sections 26, 43, 44, 45, 46, 47 or 59, except on the
complaint of the Collector or an Excise Officer authorized by
him in that behalf.
(2) Except as otherwise provided elsewhere in this Act, no court shall
take cognizance of an offence under sub-section (1), after the expiry of
the period of limitation specified in sub-section (3).
(3) The period of limitation for the offences shall be—
(a) six months, if the offence is punishable with fine only;
(b) one year, if the offence is punishable with imprisonment for a
term not exceeding one year; and
(c) three years, if the offence is punishable with imprisonment for
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a term exceeding one year.

(4) For the purposes of this section, the period of limitation, in
relation to offences which may be tried together, shall be determined
with reference to the offence which is punishable with the more severe
punishment or, as the case may be, the most severe punishment.
56. Presumption as to commission of offence in certain cases.—(1)
Whenever any person is found in possession of—
(a) any still, utensil, implement or apparatus whatsoever or any
part or parts thereof, as are ordinarily used for the manufacture
of any liquor, or
(b) any materials which has undergone any process towards the
manufacture of liquor or from which liquor has been
manufactured,
it shall be presumed, until the contrary is proved, that his possession
was in contravention of the provisions of this Act.
(2) It shall be presumed without further evidence, until the contrary
is proved, that the accused person has committed an offence under
section 40 in respect of any denatured spirit which has been or
attempted to be rendered fit for human consumption.
57. Liability of employer for offence committed by the employee or
agent.—The holder of a license, permit or pass under this Act as well as
the actual offender, shall be liable to punishment for any offence
punishable under sections 26, 39, 40, 43 or 44 committed by any
person in his employ or acting on his behalf as if he had himself
committed the same, unless he establishes that all due and reasonable
precautions were exercised by him to prevent the commission of such
offence.
58. Relevancy of statements under certain circumstances.—A
statement made and signed by a person before any officer empowered
under section 9 for the investigation of offences, during the course of
any inquiry or proceedings by such officer, shall be relevant for the
purpose of proving, in any prosecution for an offence under this Act, the
truth of the facts which it contains—
(a) when the person who made the statement is dead or cannot
be found, or is incapable of giving evidence, 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 the
opinion that having regard to the circumstances of the case,
the statement should be admitted in evidence in the interest of
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justice.
59. Penalty for any excise officer making vexatious search, seizure,
detention or arrest.—Any excise officer who vexatiously and without
specific information or reasonable ground for suspicion,—
(a) enters or searches or causes to be entered or searched any
closed place under colour of exercising any power conferred by
this Act, or
(b) seizes the moveable property of any person on the pretext of
seizing or searching for any article liable to confiscation under
this Act, or
(c) searches, detains or arrests any person, or
(d) in any other way exceeds his lawful powers under this Act,
shall, on conviction, be punishable with fine which may extend to ten
thousand rupees.
Chapter-VII
CONFISCATION
60. Confiscation of article in respect of which offence committed.—
(1) Whenever an offence punishable under this Act has been
committed,—
(a) every liquor or excise bottle in respect of which such offence
has been committed, together with the contents of such bottle,
if any;
(b) every still, utensil, implement or apparatus and all materials
in respect of or by means of which such offence has been
committed;
(c) every liquor or excise bottle lawfully imported, transported or
manufactured, had in possession or sold alongwith or in
addition to, any liquor liable to confiscation under clause (a);
(d) every receptacle, package, container and covering in which
any liquor, excise bottle, materials, still, utensil, implement or
apparatus as aforesaid is or are found together with the other
contents, if any, of such receptacle, package, container or
covering; and
(e) every cart, vessel, raft or other conveyance used in carrying
such receptacle, package, container, covering or articles as
aforesaid;
shall be liable to confiscation.
(2) When in the trial of any offence punishable under this Act, the
Judicial Magistrate decides that anything specified in clauses (a), (b),
(c) or (d) of sub-section (1) is liable to confiscation, he may order
confiscation thereof, except the liquor, the vehicle or the conveyance as
specified in section 61.
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(3) When there is reason to believe that an offence under this Act
has been committed, but the offender is not known or cannot be found
and when anything liable to confiscation under this Act and not in the
possession of any person cannot be satisfactory accounted for, the case
shall be enquired into and determined by the Collector concerned, who
may order confiscation thereof:
Provided that no such order shall be made until the expiration of
one month from the date of seizing the thing in question or without
hearing the person, if any, claiming any right thereto, and
considering the evidence, if any, which he produces in support of his
claim:
Provided further that if the thing in question is liable to speedy
and natural decay or if the Collector concerned is of opinion that the
sale of the thing in question would be for the benefit of its owner, he
may, at any time, direct it to be sold; and the provisions of this
section and section 62 shall, so far as may be, apply to the net
proceeds of such sale.
61. Inspection and seizure of vehicle, conveyance and liquor liable to
confiscation.—(1) Any Excise Officer may, if he has reasons to believe
that a vehicle or conveyance has been or is being used in the
commission of offence under section 39 of this Act, require the driver or
other person-in- charge of such vehicle or conveyance to stop it and
cause it to remain stationary as long as may reasonably be necessary to
examine the contents in it and inspect all records relating thereto,
which are in the possession of such driver or other person-in-charge of
such vehicle or conveyance.
(2) When there is reason to believe that an offence has been
committed under section 39, in respect of any liquor, such liquor
together with vehicle or conveyance used in committing such offence,
may be seized by any Excise Officer.
(3) Every Excise Officer seizing any liquor or vehicle or conveyance
under this section shall place on such liquor or vehicle or conveyance a
mark indicating that the same has been seized and shall, as soon as
may be, make a report of such seizure to the Excise Officer-in-charge of
the district.
(4) The Excise Officer seizing the liquor or vehicle or conveyance
shall take appropriate steps for the safe custody of the liquor, vehicle or
conveyance till the orders under section 62 are passed by the Excise
Officer-in-charge of the district.
62. Confiscation of vehicle or conveyance by Excise Officer in certain
cases.—(1) Where an offence is believed to have been committed under
section 39 of this Act, in respect of any liquor, the Excise Officer-in-
charge of the district on being satisfied that the vehicle or conveyance
has been used for commission of offence under section 39, may order
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confiscation of the vehicle or conveyance so seized together with the

liquor.
(2) Where the Excise Officer-in-charge of the district, after passing
an order of confiscation under sub-section (1), is of the opinion that it
is expedient in the public interest so to do, he may order confiscated
vehicle or conveyance or liquor to be sold by public auction, and the
proceeds thereof, after deduction of the expenses of any such auction
or other incidental expenses relating thereto, shall, where the order of
the confiscation made under sub-section (1) is set aside or annulled by
an order under section 68 or 69, be paid to the owner thereof or the
person from whom it was seized.
63. Issue of show cause notice before confiscation under section 62.
—(1) No order confiscating any vehicle or conveyance shall be made
under section 62, except after notice in writing to the person from
whom it is seized and the registered owner thereof, and considering
their objections, if any.
(2) Without prejudice to the provisions of sub-section (1), no order
confiscating any vehicle or conveyance shall be made under section 62
of this Act, if the owner of such vehicle or conveyance proves to the
satisfaction of the Excise Officer-in-charge of the district that it was
used in carrying the liquor without the knowledge or connivance of the
owner himself, his agent, if any, and the person-in-charge of such
vehicle or conveyance and that each of them had taken all reasonable
and necessary precautions against such use:
Provided that the confiscation made under section 62 of this Act
shall not affect the punishment of the accused for the offence for
which he is liable under this Act.
64. Penalty in lieu of confiscation.—Notwithstanding anything
contained in section 62, the Excise Officer-in-charge of the district may,
in lieu of confiscation of the vehicle, accept by way of penalty a sum not
exceeding the market price of the vehicle or the conveyance.
65. Disposal of seized liquor during the pendency of trial.—(1)
Whenever any liquor seized under this Act is the subject matter of any
trial of an offence before a Judicial Magistrate, he may, having regard to
its vulnerability to theft, substitution, constraints of proper storage
space or any other relevant considerations, after its seizure, order the
same to be disposed of by such officer and in such manner as the State
Government may, by notification, specify, after following the procedure
specified in sub-section (2).
(2) Where any liquor has been seized and forwarded to the officer-in
-charge of the nearest police station, the officer referred to in sub-
section (1) shall prepare an inventory of such liquor containing such
details relating to its description, quality, quantity, mode of packing,
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marks, numbers or such other identifying particulars of such liquor or

the packing in which it is packed,Country or State of origin and other
particulars as the officer referred to in sub-section (1) may consider
relevant to the identity of the liquor in any proceedings under this Act
before a Judicial Magistrate and make an application, to him for the
purpose of—
(a) certifying the correctness of the inventory so prepared; or
(b) taking, in the presence of such Magistrate, photographs of
such liquor and certifying such photographs as true; or
(c) allowing to draw representative samples of such liquor, in the
presence of such Magistrate and certifying the correctness of
any list of samples so drawn.
(3) Where an application is made under sub-section (2), the Judicial
Magistrate shall, as soon as may be, allow the application.
(4) Notwithstanding anything contained in the Indian Evidence Act,
1872 or the Code of Criminal Procedure, 1973, every court trying an
offence under this Act, shall treat the inventory, the photographs of
liquor and any list of samples drawn under sub-section (2) and certified
by the Judicial Magistrate, as primary evidence in respect of such
offence.
Chapter-VIII
COMPOSITION
66. Composition of offences by the Collector.—(1) The Collector may,
on an application from any person who is reasonably suspected of
having committed an offence punishable under sections 26, 43, 44, 45,
46, 47 or 59 including the attempts to commit or abet any of these
offences under section 50 of this Act, accept a sum of money not
exceeding twenty five thousand rupees subject to a minimum of five
thousand rupees by way of composition, for each of such offences, and
on payment of such sum of money to the Collector, the accused person
if in custody shall be discharged and no further proceedings shall be
taken against him in respect of such offence.
(2) If any lease, license, permit or pass has become liable for
cancellation or suspension or has been cancelled or suspended under
clauses (a), (b) or (c) of section 29 of this Act, the authority having
power to cancel or suspend it, may, on application made by holder of
such lease, license, permit or pass, after payment of such penalty, as it
may fix, revoke or forego such cancellation or suspension, as the case
may be.
(3) Where any liquor has been seized under the provisions of this
Act, the Collector may, if he considers it expedient but subject to the
provisions of section 65, at any time, before the Judicial Magistrate has
passed an order under sub-section (2) of section 60, release it on
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receiving payment of the value thereof, if such liquor is fit for human
consumption:
Provided that such release of liquor shall not affect the
punishment of the accused for the offence for which he is liable
under this Act.
67. Composition of certain other offences.—(1) Notwithstanding
anything contained in section 39, any offence whether committed
before or after commencement of this Act relating to the import,
export, transport or possession upto one hundred litres of lahan or upto
forty-five bulk litres of liquor, may, on an application made by the
accused, be compounded,—
(i) before institution of the prosecution, by the Excise Officer of
first class (not below the rank of the Excise Officer Incharge of
the district), and
(ii) after institution of the prosecution, by the Judicial Magistrate
of the first class, by accepting an amount which shall not be
less than five thousand rupees but which shall not exceed
twenty-five thousand rupees.
(2) Where an offence has been compounded under sub-section (1),
the offender, if in custody, shall be discharged and no further
proceedings shall be taken against him in respect of such offence:
Provided that if a person commits an offence specified in sub-
section (1), for more than three times, the same shall not be
compounded.
(3) When a case has been compounded under sub-section (1), the
Judicial Magistrate of the first class or the Excise Officer of first class
(not below the rank of Excise Officer-in-charge of the district), as the
case may be, may make such orders as he thinks fit for the disposal of
the case property.
Chapter-IX
APPEAL AND REVISION
68. Appeal.—(1) Any person aggrieved by an order passed by any
Excise Officer under this Act may, within thirty days from the date of
communication of such order, appeal to the Collector in the manner
prescribed.
(2) Any person aggrieved by an order passed by the Collector, under
sub-section (1) may, within thirty days from the communication of
such order, appeal to the Financial Commissioner.
69. Revision.—(1) The Financial Commissioner may, of his own at
any time, call for the record of any proceedings which are pending
before, or have been disposed of, by any Collector or Excise Officer, for
the purpose of satisfying himself as to the legality or propriety of such
proceedings or order made therein and may pass such order in relation
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thereto as he may think fit.

(2) No order shall be passed under this section, which adversely
affects any person, unless such person has been given a reasonable
opportunity of being heard.
70. Bar of certain proceedings.—No proceedings undertaken or order
passed, by any authority appointed under this Act, or the rules made
thereunder, shall be called into question in any court.
Chapter-X
RECOVERY OF DUES
71. Power to recover license fee etc.—In the case of cancellation or
suspension of a license under clauses (a), (b), (c), (d) or (e) of section
29, the license fee payable for the balance of the period for which any
license would have been current but for such cancellation or
suspension, including any other fee, may be recovered from such
licensee as excise revenue.
72. Power of Collector to take grants under his management or resell
and recover deficiency.—If any holder of a license granted under this
Act, or any person to whom a lease has been granted under section 27,
makes default in complying with any condition imposed upon him by
such license or lease, the Collector may take the grant under his
management at the risk of the person who has so defaulted, or may
resell it and recover any deficiency in price and all expenses of such
resale in the manner specified in section 73 of this Act.
73. Excise revenue to be first charge and recoverable as arrears of
land revenue.—(1) Notwithstanding anything to the contrary contained
in any law for the time being in force, any amount of excise revenue
including all other amounts due to the State Government under this Act
from any person shall be the first charge on the property of such person
including the distillery, brewery, winery, warehouse, shop, premises,
fittings, apparatus and all stocks of liquors or materials for manufacture
of the same.
(2) All excise revenue including all other amounts due to the State
Government under this Act, which remain unpaid after the due date,
shall be recoverable as arrears of land revenue under the provisions of
the Himachal Pradesh Land Revenue Act, 1954.
Chapter-XI
GENERAL PROVISIONS
74. Measures, weights and testing instruments.—Every person who
manufactures or sells any liquor under a license granted under this Act
shall be bound—
(a) to keep such measures, weights and instruments as the
Financial Commissioner may prescribe, and to keep the same
in good condition; and
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(b) on the requisition of any Excise Officer, duly empowered by

the Collector in that behalf, at any time, to measure, weigh or
test any liquor in his possession in such manner as the said
Excise Officer may require.
75. Power to exempt.—The State Government may, by notification,
either wholly or partially and subject to such conditions as it may think
fit, exempt any liquor from all or any of the provisions of this Act.
76. Delegation of powers.—(1) The State Government may, by
notification, delegate to the Financial Commissioner any of its powers
under this Act, except the powers conferred by sections
5,6,8,9,12,15,16,36,75 and 80.
(2) The State Government may, by notification, permit the
delegation by the Financial Commissioner or Collector to any person or
class of persons specified in such notification of any powers conferred
on them by this Act.
77. Power to regulate advertisement.—No advertisement, direct or
surrogate, shall be made for promoting consumption of liquor.
78. Establishment of check posts or barriers.—The Financial
Commissioner may, by notification, establish check posts or barriers at
such places as it thinks fit, for prevention and checking of illegal
transport of liquor by any means and for carrying out the purposes of
this Act.
79. Protection of action taken in good faith.—No suit, prosecution or
other legal proceeding shall lie in any court against the State
Government or any officer of the State Government or any other person
exercising any power or discharging any functions or performing any
duties under this Act, for anything done or ordered to be done or
intended to be done in good faith under this Act or any rules or order
made thereunder.
80. Powers of the State Government to make rules.—(1) Except as
otherwise provided in section 81, the State Government may, by
notification, make rules for carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the
foregoing provision, the State Government may make rules,—
(a) to provide for the powers and duties of Excise Officer;
(b) to permit delegation of powers by the Financial Commissioner
or the Collector;
(c) to provide for the time and manner of presenting appeals and
the procedure for prosecuting and dealing with appeals;
(d) regulating import, export, transport, manufacture, collection,
possession supply or storage of any liquor, molasses or excise
bottle and wholesale or retail sale of any liquor;
(e) regulating the time, place and manner of payment of Excise
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duty or countervailing dutyand taking of security for its due

payment;
(f) providing for grant of award to Excise Officer and informers;
(g) regulating the power of Excise Officers to summon witnesses;
(h) curbing activities of boot-leggers who distill, manufacture,
store, import, export, transport, sell or distribute any liquor in
contravention of any provisions of this Act or the rules made
thereunder;
(i) regulating the periods and localities for which, and the
persons, or classes of persons, to whom, licenses, permits and
passes for the vend by wholesale or by retail of any liquor may
be granted and regulating the number of such licenses which
may be granted in any local area;
(j) providing for the procedure to be followed and the matters to
be ascertained before any license is granted for the retail vend
of liquor for consumption on the premises;
(k) prohibiting the printing, publishing or otherwise displaying or
distributing any advertisement or other matter commending or
soliciting the use of, or offering any liquor calculated to
encourage or incite any individual or class or classes of
individuals or the public generally to commit an offence under
this Act, or to commit a breach or evade the provisions of any
rule or order made thereunder, or the conditions of any license,
permit or pass obtained thereunder;
(l) prohibiting within the State the circulation, distribution or sale
of any newspaper, book, leaflet, booklet, or other publication
printed and published outside the State which contains any
advertisement or matter of the nature described in clause (k);
(m) declaring any newspaper, book, leaflet, booklet, or other
publication wherever printed or published, containing any
advertisement or matter of the nature described in clause (k)
to be forfeited to the State Government; and
(n) implementing generally the policy of prohibition.
(3) 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 not less than ten days, which may be comprised in
one session or in two or more successive sessions, and if, before the
expiry of the session in which it is so laid or the session immediately
following, the Assembly makes any modification in the rule or decides
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.
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81. Powers of Financial Commissioner to make rules.—The Financial

Commissioner may, by notification, make rules—
(a) regulating the manufacture, supply, storage or sale of any
liquor including the character, erection, alteration, repair,
inspection, supervision, management and control of any place
for the manufacture, supply, storage or sale of such article and
the fittings, implements, apparatus and registers to be
maintained therein;
(b) regulating the bottling of liquor for purposes of sale;
(c) regulating the deposit of any liquor in a warehouse and the
removal of any liquor from any warehouse or distillery, or
brewery or winery;
(d) providing for the scale of fees or the manner of fixing the fees
payable in respect of any license, permit or pass, or in respect
of the storing of any liquor;
(e) regulating the time, place and manner of payment of any fee;
(f) providing for the authority by whom, the restrictions under
which and the conditions on which, any license, permit or pass
may be granted, which may include—
(i) the prohibition of the admixture with any liquor of any
substance deemed to be noxious or objectionable;
(ii) the regulation or prohibition of the reduction of liquor by a
licensed manufacturer or licensed vendor from a higher to a
lower strength;
(iii) the fixing of the strength, or price below or above which
any liquor may not be sold, supplied or possessed;
(iv) the prohibition of sale of any liquor, except for cash;
(v) the fixing of the days and hours during which any licensed
premises may or may not be kept open, and the closure of
such premises on special occasions;
(vi) the specification of the nature of the premises in which any
liquor may be sold, and the notices to be exposed at such
premises;
(vii) the form of the accounts to be maintained and the returns
to be submitted by license holders;
(viii) the prohibition or regulation of the transfer of licenses;
(ix) declaring the process by which spirit shall be denatured;
(x) causing spirit to be denatured through the agency or under
the supervision of its own officers; and
(xi) ascertaining whether such spirit has been denatured;
(g) providing for the destruction or other disposal of any liquor
deemed to be unfit for human consumption or use;
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(h) regulating the disposal of confiscated articles; and

(i) providing for the amount of security to be deposited by holders
of leases, licenses, permits or passes for the performance of the
conditions of the same.
82. Repeal and savings.—(1) Except the provisions contained in
section 1, clauses (3), (5), (6), (6-b), (9), (10), (11), (12), (12-a),
(14), (16), (19) and (21) of section 3 and sections 16, 20, 21, 22, 23,
31, 32, 33-A, 58, 59 and 60 of the Punjab Excise Act, 1914 (Punjab Act
No. 1 of 1914), (hereinafter called the ‘said Act’) as in force by virtue of
section 88 of the Punjab Re-organization Act, 1966 (Act No. 31 of
1966) in the areas added to Himachal Pradesh under section 5 thereof
and as applied to the areas which comprised Himachal Pradesh
immediately before the 1st day of November, 1966, by virtue of the
Himachal Pradesh (Application of Laws) Order, 1948 and the Bilaspur
(Application of Laws) Order, 1949, all other provisions of the said Act
are hereby repealed:
Provided that the repeal of these provisions of the said Act shall
not affect,—
(a) any right, privilege, obligation or liability acquired, accrued or
incurred under the said Act; or
(b) any penalty, forfeiture or punishment incurred in respect of
any offence committed against the said Act; or
(c) any investigation, legal proceeding or remedy in respect of any
such right, privilege, obligation, liability, penalty, forfeiture or
punishment as aforesaid; and
(b) any such investigation, legal proceedings or remedy may be
instituted, continued or enforced andany such penalty,
forfeiture or punishment may be imposed as if the provisions of
the said Act had not been repealed:
Provided further that anything done or any action taken, including
any appointment or delegation made, notification, order or directions
issued, rule made, license granted, duty levied, license fee or other
fee imposed, under the repealed provisions of the said Act shall, in
so far as it is not inconsistent with the provisions of this Act, be
deemed to have been done or taken under the corresponding
provisions of this Act and such appointment, delegation, notification,
order, direction, rules, license, duty, license fee or other fee shall
continue to be in force accordingly until superseded.
(2) For carrying out the purposes of the un-repealed provisions of
the said Act, the relevant provisions of this Act relating to,—
(i) definitions,
(ii) establishment, control, powers and duties of officers,
(iii) appeals and revision,
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(iv) delegation of powers, and

(v) establishment of check posts or barriers,
subject to the unrepealed provisions of the said Act, shall apply
mutatis mutandis.
———
1.
Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of Objects and
th
Reasons see the Rajpatra, Himachal Pradesh, dated 24 December, 2011, pp. 4813 and 4841
-4842.

2.
Received the assent of the President of India on the 19th July, 2012 and was published
th
both in Hindi and English in the Rajpatra, Himachal Pradesh, dated 18 August, 2012, pp.
2737-2849).

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