Himachal
Pradesh
Excise
Act, 2011
CHAPTER – IV
LICENSES, PERMITS
AND PASSES
Section Term Definition
2 (m) License A license granted under this Act.
A document that authorizes the removal or
2 (s) Pass
transportation of liquor.
A no-objection statement issued by the Collector of
the district of destination or an authorized officer, for
2 (t) Permit the import and transport of liquor. Also includes a
document authorizing possession of liquor exceeding
the retail-sale limit.
Key Differences Between Lease and License
Aspect Lease License
A legal agreement granting rights to a lessee to A formal authorization for carrying out a specific
Definition undertake specific activities, such as activity (e.g., sale, transport, storage) under
manufacturing, wholesale supply, or sale of liquor. defined conditions.
Grants overarching rights to manufacture, sell, or Focused on granting specific permissions for
Purpose store liquor in a specific area, often involving individual activities, such as retail sales or
significant control over operations. transport.
Comprehensive rights, often covering multiple
Narrower in scope, dealing with permissions for
Scope activities such as manufacturing and wholesale
defined activities such as retail sales.
supply in a designated area.
Granted by the State Government for specified Granted by the Financial Commissioner or
Authority
purposes. Collector, depending on the type of license.
Often longer-term, covering periods required for Shorter-term or activity-specific, such as annual
Duration
extensive operations like manufacturing or supply. retail licenses.
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Section 27: Grant of Leases of Manufacture, Sale, etc.
Overview:
The State Government may lease rights related to liquor
manufacture, sale, and storage.
Leases are granted based on conditions, fees, and duration
as determined by the government and relevant authorities.
Sub-section (1): Rights Granted
Sell:
The State Manufacture or • By wholesale, or
Government may supply by • By retail.
lease the right to: wholesale, or both.
Applies to country
liquor, foreign Conditions and fees
Store for
liquor, beer, wine, include excise or
manufacture or sale.
and spirit within countervailing duty.
specified areas.
Sub-section (2): Special Provisions for Tribal/Specified Areas
● The State Government may lease the right to manufacture and possess liquor for home consumption,
specifically:
1. Country liquor:
1. By distillation from specified fruits or grains.
2. Limited to tribal areas.
2. Country fermented liquor:
1. From grains in any specified area.
● Explanation:
• "Tribal area" or "specified area" refers to areas notified under the repealed Punjab Excise Act, 1914, as of
the commencement of the Himachal Pradesh Excise Act, 2011.
Sub-section (3): Licensing by Financial Commissioner
Financial Commissioner:
Grants licenses to lessees for manufacturing or supplying liquor as per
lease terms approved by the State Government.
Collector:
May grant licenses for wholesale or retail sale of liquor as prescribed by
the Financial Commissioner.
Key Differences
Feature Wholesale Retail
Buyer Businesses or resellers End consumers
Quantity Bulk Small
Pricing Lower per-unit price Higher per-unit price
For resale or further
Purpose For personal consumption
distribution
Distributor selling to Supermarket selling to
Examples
supermarkets customers
Sub-section (4): Permit by
Collector
The Collector may grant permits to lessees under Sub-section (2)
in the form prescribed by the Financial Commissioner.
The Quest for the License
Section 28 – Fees and Conditions for Licenses, Permits, and Passes
Sub-section (1): General Conditions
Every license, permit, or pass is granted:
On Payment: Of fees, if any.
In Prescribed Form: Containing specified details.
With Restrictions: As directed by the Financial Commissioner.
For a Fixed Period: As determined by the Financial Commissioner.
Sub-section (2): Financial Commissioner’s Powers
Accommodation for Excise Officers:Free accommodation at or
near licensed premises, or
Rent and charges to the State Government as fixed by the
Financial Commissioner.
Supervision Costs:Licensees pay costs, salaries, and
allowances for Excise Officers supervising distilleries, breweries,
wineries, or warehouses.
Sub-section (3): Security or Deposit
The licensing
Provide Make a deposit
authority may
security for in lieu of
require the
compliance, or security.
licensee to:
Sub-section (4): Licensing
Authority
1.Collector: Grants licenses for
liquor sales within a district.
2.Financial Commissioner:
Grants licenses for sales across
multiple districts.
Sub-section (5): Public
Opinion for Retail Licenses
For new premises not licensed
in the preceding year:
•Collector must ascertain local
public opinion as per State
Government rules.
Section 29 – Power to Cancel or Suspend Licenses, Permits, and Passes
Cancellation or suspension may occur if:
Transferred or Sublet: Without permission.
Fees Unpaid: Excise duty or countervailing duty is not paid.
Terms Violated: Breach of license terms by the holder or their agents.
Offenses: Conviction under certain Acts (e.g., Narcotic Drugs, VAT, Customs, Indian Penal Code).
Grantee Request: Requested in writing by the lease grantee.
At Will: If the license conditions allow for cancellation or suspension.
Section 30 – Power to Cancel Other Licenses and Recover Fees
Section 32 – Power to Withdraw Licenses
Sub-section (1): Withdrawal of License, Permit, or Pass
Authorities may withdraw a license:
1.After 15 days’ notice.
2.Without notice for immediate withdrawal.
Sub-section (2): Compensation for Immediate Withdrawal
For withdrawals without notice, the licensee may receive compensation
as directed by the Financial Commissioner.
Sub-section (3): Refund of Fees
If withdrawn, fees or deposits are refundable after deducting dues to the
State Government.
Section 35 – Surrender of Licenses
01 02 03
Licenses can only be Exception: Explanation:
surrendered with: If the authority finds The term "holder of a
• One month’s notice to the sufficient reason for license" includes those
issuing authority. surrender, they may whose bids or
• Payment of fees for the entire waive the fees fully or applications for licenses
license period.
partially. have been accepted,
even if the license has
not been issued.
CHAPTER- V
DUTIES OF EXCISE AND
COUNTERVAILING DUTIES
Section Aspect Details
Levy of Excise duty or countervailing duty is levied on alcoholic liquor for human
36(1)
Duty consumption at rates notified by the State Government.
(a) Liquor manufactured, produced, or bottled in the State under a
Applicability
license (Section 15).
(b) Liquor manufactured or produced elsewhere in India but imported or
transported into the State.
(c) Liquor imported, exported, or transported as per Section 21.
Variation of Duty rates may vary based on the kind, strength, quality, or price of the
36(2)
Rates alcoholic liquor.
Exemptions (a) Liquor imported into India and already subject to duty under the
36(3)
from Duty Customs Tariff Act, 1975 or the Customs Act, 1962.
(b) Medicinal and toilet preparations containing alcohol, subject to excise
duty under the Medicinal and Toilet Preparations (Excise Duties) Act,
1955.
Manner of
37 Duty is levied rateably on the quantity of liquor:
Levy
- Imported, transported, or manufactured in the State.
- Issued from a distillery, brewery, winery, or
warehouse.
The Financial Commissioner prescribes rules for the
Regulations
time, place, and manner of levying the duty.
38 Payment for Lease Grants The State Government may:
- Accept a sum of money instead of or in addition to
excise/countervailing duty for leasing any right under
Section 27.
CHAPTER -VI
OFFENCES AND PENALTIES
Section Offence Punishment/Penalty
Imprisonment up to 3 years;
Unlawful production, manufacture, possession,
39(1) fine between ₹5,000 to
import, export, transport, or sale of liquor.
₹2,00,000.
Possession of a working still for liquor Minimum 3 years imprisonment
39(1)(i)
manufacture. and fine of at least ₹1,00,000.
Minimum 1 year imprisonment
39(1)(ii) Possession of lahan (fermented material).
and fine of at least ₹50,000.
- Minimum 6 months
Possession of illicitly manufactured country liquor: - imprisonment, fine ₹5,000.
39(1)(iii)
Up to 7.5 liters - Above 7.5 liters - Minimum 1 year
imprisonment, fine ₹10,000.
Possession of foreign liquor not manufactured or Minimum 1 year imprisonment,
39(1)(iv)
imported legally. fine ₹20,000.
Imprisonment between 6
Possession of unused labels, corks, or seals;
39(2) months to 2 years; fine
bottling, selling, removing, or adulterating liquor.
between ₹50,000 to ₹2,00,000.
Imprisonment between 6
Rendering or attempting to render denatured spirit
40 months to 5 years; fine
fit for human consumption.
between ₹50,000 to ₹2,00,000.
Punishment may extend to
41(a) Mixing noxious substances causing death.
death; fine up to ₹10,00,000.
Imprisonment between 6 years to
41(b) Mixing noxious substances causing grievous hurt.
life; fine up to ₹5,00,000.
Imprisonment up to 1 year; fine
41(c) Mixing noxious substances causing other injuries.
up to ₹2,50,000.
Imprisonment up to 6 months;
41(d) Mixing noxious substances without causing injury.
fine up to ₹1,00,000.
Acts by licensee or servant: disorderly conduct, failing
43 Fine between ₹5,000 to ₹50,000.
to produce license, or breaching license terms.
Fraud by licensed manufacturer/vendor: Imprisonment up to 1 year; fine
44
misrepresenting liquor as foreign liquor. up to ₹2,000.
Imprisonment up to 1 year;
45(1) Allowing liquor consumption in a chemist’s shop.
fine between ₹2,000 to ₹10,000.
45(2) Consuming liquor in a chemist’s shop. Fine up to ₹2,000.
46(a) Consuming liquor in unlicensed public places. Fine between ₹1,000 to ₹5,000.
Imprisonment up to 3 months;
46(b) Creating nuisance after consuming liquor in public.
fine between ₹2,000 to ₹10,000.
General contravention of the Act not specified
47 Fine up to ₹1,000.
elsewhere.
Double the previous punishment;
49 Repeat offences under Section 39. max 5 years imprisonment and
₹3,00,000 fine.
Same punishment as the
50 Attempting or abetting offences under the Act.
principal offence.
Vexatious search, seizure, detention, or arrest by excise
59 Fine up to ₹10,000.
officers.
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.
Provision: Section 55 Details
Offences requiring complaint/report Judicial Magistrate shall take cognizance only on:
(a) Complaint or report of an Excise Officer for offences
under Sections 39, 40, 41.
(b) Complaint of the Collector or an authorized Excise
Officer for offences under Sections 26, 43, 44, 45, 46, 47,
59.
Judicial Magistrate cannot take cognizance after the period
Time Limit for Cognizance
of limitation specified:
(a) Fine-only offences Limitation period: 6 months.
(b) Imprisonment ≤ 1 year Limitation period: 1 year.
(c) Imprisonment > 1 year Limitation period: 3 years.
Limitation period is determined by the offence with the most
Multiple offences tried together
severe punishment.
CHAPTER-VII
CONFISCATION
Section Provision Details
Confiscation of articles
60 Articles liable to confiscation include:
related to offences
- Liquor or excise bottles in respect of the offence.
- Stills, utensils, implements, or apparatus used in the offence.
- Lawfully imported, transported, or manufactured liquor along with illicit liquor.
- Containers, receptacles, packages, and coverings with liquor or apparatus
used in the offence.
- Conveyances (e.g., carts, vehicles) used to transport items related to the
offence.
Judicial Magistrate’s The Judicial Magistrate may order confiscation during the trial of an offence,
60(2)
Role except for liquor, vehicles, or conveyances specified in Section 61.
- Confiscation can occur when the offender is unknown, or possession cannot
60(3) Collector’s Role
be justified.- Requires one-month notice and hearing of claims.
- Perishable or decaying items may be sold by the Collector, with proceeds
treated as per confiscation rules.
- Excise Officer can stop vehicles suspected of carrying illicit liquor.- Seize
61 Inspection and Seizure
liquor and related vehicles if an offence under Section 39 is suspected.
- Seized items are marked and reported to the Excise Officer-in-
charge.
- District Excise Officer can order confiscation of
62 Confiscation by Excise Officer vehicles/conveyances and liquor.- Confiscated items may be sold at
public auction.
- Proceeds from the auction (after deducting expenses) are returned
if confiscation is annulled.
- Notice is issued to the person from whom the vehicle/liquor was
63 Show Cause Notice seized and the registered owner.- Confiscation may be avoided if
the owner proves no knowledge of the offence.
District Excise Officer may accept a penalty up to the market price
64 Penalty in lieu of confiscation
of the vehicle/conveyance instead of confiscation.
- Judicial Magistrate may order the disposal of seized liquor to
65 Disposal of seized liquor during trial
prevent theft, substitution, or storage constraints.
- Inventory, photographs, and representative samples certified by
the Judicial Magistrate are treated as primary evidence.
CHAPTER –VIII
COMPOSITION
60 Confiscation of articles related to offences Articles liable to confiscation include:
- Liquor or excise bottles in respect of the offence.
- Stills, utensils, implements, or apparatus used in the offence.
- Lawfully imported, transported, or manufactured liquor along with illicit
liquor.
- Containers, receptacles, packages, and coverings with liquor or apparatus
used in the offence.
- Conveyances (e.g., carts, vehicles) used to transport items related to the
offence.
The Judicial Magistrate may order confiscation during the trial of an offence,
60(2) Judicial Magistrate’s Role
except for liquor, vehicles, or conveyances specified in Section 61.
- Confiscation can occur when the offender is unknown, or possession
60(3) Collector’s Role
cannot be justified.- Requires one-month notice and hearing of claims.
- Perishable or decaying items may be sold by the Collector, with proceeds
treated as per confiscation rules.
- Excise Officer can stop vehicles suspected of carrying illicit liquor.- Seize
61 Inspection and Seizure
liquor and related vehicles if an offence under Section 39 is suspected.
- Seized items are marked and reported to the Excise Officer-in-charge.
- District Excise Officer can order confiscation of vehicles/conveyances and
62 Confiscation by Excise Officer
liquor.- Confiscated items may be sold at public auction.
- Proceeds from the auction (after deducting expenses) are returned if confiscation
is annulled.
- Notice is issued to the person from whom the vehicle/liquor was seized and the
63 Show Cause Notice registered owner.- Confiscation may be avoided if the owner proves no knowledge
of the offence.
District Excise Officer may accept a penalty up to the market price of the
64 Penalty in lieu of confiscation
vehicle/conveyance instead of confiscation.
- Judicial Magistrate may order the disposal of seized liquor to prevent theft,
65 Disposal of seized liquor during trial
substitution, or storage constraints.
- Inventory, photographs, and representative samples certified by the Judicial
Magistrate are treated as primary evidence.
Section Provision Details
- Applicable to offences under Sections 26, 43, 44, 45, 46, 47,
59, or attempts/abetment under Section 50.- Penalty: ₹5,000 to
66(1) Composition by Collector
₹25,000 per offence.- On payment: - Discharge from custody.-
No further proceedings.
- Licenses suspended/canceled under Section 29(a)-(c) may be
66(2) Cancellation/Suspension of Licenses reinstated by the authority on payment of a penalty.- The
penalty amount is determined by the respective authority.
- Collector may release seized liquor if: - It is fit for human
consumption.- Payment of its value is made.- Subject to Section
66(3) Release of Seized Liquor
65 (regarding its disposal).- Does not exempt the accused from
punishment.
- Relates to: - Up to 100 liters of lahan, OR - Up to 45 bulk liters
Composition of Import, Export, Transport, of liquor.- Penalty: ₹5,000 to ₹25,000.- Compounded by: (i)
67(1)
Possession Offences Before prosecution: Excise Officer (First Class). (ii) After
prosecution: Judicial Magistrate (First Class).
- On compounding, the accused is discharged, and no further
67(2) Discharge from Custody proceedings are taken.- Applies only for the first three offences;
subsequent offences cannot be compounded.
- The Judicial Magistrate or Excise Officer may
67(3) Disposal of Case Property issue orders for disposal of the case property
after compounding.
CHAPTER -IX
APPEAL AND REVISION
Section Provision Details
- Aggrieved person may appeal to the Collector.- Time limit: 30 days
68(1) Appeal to Collector from the communication of the order.- Procedure: As prescribed in
the Act.
- Appeal against Collector's order can be made to the Financial
68(2) Appeal to Financial Commissioner Commissioner.- Time limit: 30 days from the communication of the
order.
- The Financial Commissioner can, suo motu, review any
69(1) Revision by Financial Commissioner proceedings by a Collector or Excise Officer.- Purpose: To verify
legality or propriety of proceedings or orders.
- No adverse order shall be passed without giving the affected
69(2) Opportunity of Hearing
person a reasonable opportunity to be heard.
- Orders passed or proceedings undertaken by authorities under the
70 Bar of Proceedings
Act cannot be questioned in any court.
