The Karnataka Excise Act, 1965

Keywords : Beer, To Bottle, Cultivation, Denatured, Excisable Article, Excise Duty, Excise Revenue, Excise Tree, Export, Import, Indian Liquor, Intoxicant, Intoxicating Drug, Liquor, Manufacture, Mhowra Flower, Molasses, Rotten Jaggery, Sale or Selling, Spirit, Toddy, Transport, Wash

THE-KARNATAKA-EXCISE-ACT-1965 Download

1966: KAR. ACT 21] Excise 359

Security for appearance in case of arrest without warrant.
59A. Certificate of Inspectors of Excise to be evidence
Procedure for prosecution.
60A. Procedure to be followed by Magistrate
CHAPTER XI
APPEALS AND REVISION
Appeals.
Revision.
CHAPTER X
MISCELLANEOUS
Recovery of Government dues.
63A. Recovery of certain tax arrears as arrears of excise revenues.
Government lien on property of defaulters.
Recovery of dues by lessee under section 17.
Refund in cases of exported liquor.
Power of State Government to exempt, etc.
Protection of action taken under this Act.
68A. Suit or prosecution in respect of acts done under colour of duty not to
be entertained without sanction of the State Government.
68B. Bar of jurisdiction of Civil Courts
68C. Injection not to be granted in respect of recovery of exercise dues
68D. Excise revenue to be paid irrespective of pendency of any Writ
Petition, Suit, etc
Limitation of suits.
Offences by companies, etc.
Power to make rules.
Repeal and saving.
STATEMENTS OF OBJECTS AND REASONS
I
Act 21 of 1966.- After reorganisation of the States on 1st November
1956, there are different Acts in force in the New Mysore State Viz., in Old
Mysore Area and Hyderabad Karnataka area and Madras Karnataka area
respectively as noted below:-
The Mysore Excise Act, 1901 (Act No. V of 1901).
The Hyderabad Abkari Act, 1316 (No.1 of 1316 F).
The Madras Abkari Act, 1886 (Madras Act I of
360 Excise [1966: KAR. ACT 21
The existence of different sets of laws in different areas causes
considerable administrative and procedural difficulties and also in
conveniences in the proper implementation of Excise Act, on a uniform
basis throughout the State. Therefore, with a view to have a uniform law for
the entire New Mysore State, a uniform Excise bill has been prepared and it
replaces the Acts referred to above.
(Obtained from L.A. Bill No. 4315 dated 16-6-1962.)
II
Amending Act 1 of 1970.- A large number of licensees dealing in Indian
made Foreign Liquor have challenged the validity of levy and collection of
litre fee on Indian made foreign liquors, on the ground that the Mysore
Excise Act 1965 does not specifically empower the Government to levy litre
fees. It was considered necessary to make specific provision to levy excise
duty in the form of litre fees with retrospective effect.
At present there is an Enforcement Branch in the Excise Department,
with a Deputy Commissioner and a number of Excise Officers. They have
been detecting cases of illicit manufacture, sale, transport, possession,
import and export of liquors.
It was considered necessary to give statutory status to the Intelligence
Bureau so that the work of the officers could be carried on in a more
effective manner under the authority of law.
In order to ensure expeditious disposal of the trial of offences under the
Act, it was considered necessary to provide that offences under the Act
should be tried summarily.
As the Houses of Legislature were not in Session and the matter was
urgent, the Mysore Excise (Second Amendment) Ordinance, 1970 was
promulgated on the 7th August 1970, for the purposes indicated above and
for making some other provisions found necessary for carrying on the
administration of the Excise Department effectively.
This Bill is intended to replace the Ordinance.
(Vide Notification No. 5249 / L.A., Bangalore-1, dated 11-9-1970.)
III
Amending Act 1 of 1971.- The Mysore Excise Act, 1965 (Mysore Act 21
of 1966) does not empower the State Government to delegate its powers
under the Act to the Excise Commissioner or to any other officer. It was
considered necessary for the effective implementation of the Act to have
power enabling the Government to delegate its powers under the Act to the
Excise Commissioner or to any other officer. In order to effective prevent
commission of certain offences, it was considered necessary to provide the
minimum punishment for such offences. It was also considered necessary
1966: KAR. ACT 21] Excise 361
to prohibit the sale or supply of consumption of any intoxicant in a hotel,
boarding house or refreshment room not licensed under the Act except in a
place used for lodging of persons in such hotel or boarding house or
refreshment room. In the light of the experience gained in the working of the
Act, it was also considered necessary to make certain other amendments.
For this purposes, the Mysore Excise (Amendment) Ordinance, 1969,
was promulgated. The Bill seeks to replace the Ordinance.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A No. 9
dated 10-1-1970 at page 9.)
IV
Amending Act 61 of 1976.- Under section 67 of the Karnataka Excise
Act, 1965, the State Government may exempt or reduce the excise duty
leviable under section 22 of the said Act on any liquor sold for use or
consumption by the members of the Armed Forces of the Union. In exercise
of these powers, Government has reduced the excise duty leviable on RUM
manufactured in the State and sold for use or consumption by the Armed
Forces of the Union and exported outside the State to twenty five paise per
proof litre.
Representations have been made to Government from certain paramilitary Units for granting them concessional rate of export duty on supplies
of Rum. Some of these para-military Units are subject to Army Act and are
being deployed in the border areas in high altitudes and in times of
operation, they are also engaged in operational duty along with the Army in
the forward areas. Para-military Unit cannot however be regarded as Armed
Forces and granted the concessional rate of excise duty on RUM unless
Section 67 of the Karnataka Excise Act 1965 is amended. Considering
these facts, the issue of Rum at the concessional rate of export duty to paramilitary Units is justified. Hence, for this purpose Section 67 of the
Karnataka Excise Act had to be amended.
As the Karnataka legislative Assembly was not in session and as the
matter was urgent, the Karnataka Excise (Amendment) Ordinance, 1976
was promulageted.
This Bill seeks to replace the said Ordinance.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A as No.
4424 dated 8-11-1976 at page 3.)
V
Amending Act 32 of 1982.- Consequent on the new Code of Criminal
Procedure 1973 (Central Act 2 of 1974), coming into force with effect from
1st April 1974 the nomenclature and relevant sections referred to in the
Karnataka Excise Act has to be substituted.
362 Excise [1966: KAR. ACT 21
At present under Section 67 the State Government is empowered to
exempt or reduce either prospectively or retrospectively the excise duty
payable under section 22 of any liquor sold to certain categories of
institutions. The Accountant General has argued that licence fee is not in the
nature of excise duty or countervailing duty and therefore exemption cannot
be granted with retrospective effect to the licence fee. Therefore it is
proposed to take the power to exempt licence fee also in respect of certain
categories of institutions by amending clause (a) of section 67 of the said
Act.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A as No.
167 dated 10-3-1981 at page 4)
VI
Amending Act 28 of 1987.- It is considered necessary to amend the
Karnataka Excise Act, 1965 to provide that no licence to manufacture or to
bottle, or to manufacture and bottle arrack for sale shall be granted to
persons who are not the holders of distillery licence, under section 16.
As the Karnataka Legislative Council was not in session and the matter
was urgent the Karnataka Excise (Amendment) Ordinance, 1987 (Karnataka
Ordinance 2 of 1987) was promulgated.
This Bill seeks to replace the said Ordinance.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A as No.
574 dated 2-9-1987 at page 3.)
VII
Amending Act 36 of 1987.- It is considered necessary to amend the
Karnataka Excise Act 1965 (Karnataka Act No. 21 of 1966) to provide for
stringent measure to prevent illegal import, export, transport, manufacture
and possession of intoxicants.
Provision is also proposed for closure of liquor shops in the event of outbreak of infectious diseases.
As the existing punishment provided under sections 32 and 34 is
inadequate, a provision is made to enhance the same.
Similarly, the fee for compounding of offences under section 45 is also
enhanced.
Section 55 is amended to provide for the investigation of offences arising
under section 38 and 38A by the Excise Officers.
Provision is further made for confiscation by the Excise Officers of the
vehicle involved in a commission of offences under the Act. Provision is also
made for appeal and revision against the order of confiscation.
1966: KAR. ACT 21] Excise 363
The jurisdiction of Criminal Courts is taken away from adjudicating the
matters pertaining to confiscation of properties.
The remaining amendments are consequential in nature.
As the Karnataka Legislative Council was not in session and the matter
was urgent, the Karnataka Excise (Second Amendment) Ordinance, 1987
(Karnataka Ordinance No. 4 of 1987 ) was promulgated.
This Bill seeks to replace the said Ordinance.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A as No.
576 dated 2-9-1987 at page 8.)
VIII
Amending Act 1 of 1994.- It was considered necessary to amend the
Karnataka Excise Act, 1965 to terminate the existing licences for
manufacturing and bottling of arrack given to the private distillery by the end
of 30th June, 1993 and to entrust the manufacturing and bottling of arrack
to the Government agencies like Mysore Sugar Company and Mysore Sales
International Limited with effect from the 1st July 1993.
As the matter was urgent and both the Houses of the State Legislature
were not in session, the Karnataka Excise (Amendment) Ordinance 1993
(Karnataka Ordinance 6 of 1993) was promulagted.
This Bill seeks to replace the said Ordinance.
Hence the Bill.
(Obtained from L.A. Bill No. 29 of 1993. )
IX
Amending Act 2 of 1994.- The High Court of Karnataka in Writ Petition
No. 1956 of 1971 had declared sub-rule (1) of rule 8 of the Karnataka
Excise (Sale of Indian and Foreign Liquors) Rules, 1968 as invalid in so far
as it relates to levy of licence fee retail vending of Indian and Foreign
Liquors. It also directed the State Government to refund the petitioner the
amount collected from him with in three years next before 2-8-1971 by way
of licence fee for retail vending of Indian and Foreign Liquors. The Supreme
Court in civil appeal no. 1801 of 1974, while confirming the judgement of
the High Court has held that rule 8(1) has gone beyond the enabling
provision in the section, by requiring licence fee to be paid. It has also
obesrved that it may be posible for the Legislature to make a statutory
provision for a licence fee of the type contemplated under the rules but
without authority of the statute a rule of the type impugned should not have
been made.
Accordingly, it was considered necessary to amend the Karnataka Excise
Act ,1965, retrospectively to take specific power for making rules to levy fee
and also to validate the collection of fee made under the impugned rule.
Hence the Bill.
364 Excise [1966: KAR. ACT 21
(Obtained from L.A. Bill 30 of 1993.)
X
Amending Act 2 of 1995.- It is considered necessary to restrain the
Civil Courts from granting injunctions for recovery of Excise revenue and to
bar jurisdiction of Civil Courts in respect of any action taken, or to be taken
by such officer or authority in pursuance of powers conferred under the
Karnataka Excise Act, 1965.
Hence the Bill.
(Obtained from L.A. Bill No. 42 of 1993.)
XI
Amendeing Act 7 of 1997.- It is considered necessary to amend the
Karnataka Tax on Luxuries (Hotel, Lodging Housed and Marriage Halls) Act,
1979 (Karnataka Act 22 of 1979), the Karnataka Tax on Entry of Goods Act
1979 (Karnataka Act 27 of 1979), the Karnataka Tax on Professions,
Traders, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976),
the Karnataka Excise Act, 1966 (Karnataka Act 21 of 1966), the Karnataka
Entertainment Tax Act, 1958 (Karnataka Act 30 of 1958), the Karnataka
Agricultural Income tax Act, 1957 (Karnataka Act 22 of 1957), the
Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Mysore
Betting Tax Act, 1932 (Mysore Act IX of 1932), and to give effect to the
proposals made in the Budget Speech and matters connected therewith.
Certain consequential amendments are also made.
Hence, the Bill.
(Obtained from L.A. Bill No. 12 of 1997.)
XII
Amending Act 21 of 1998.- Certain Posts of Deputy Commissioner of
Excise have been recently upgraded as Joint Commissioner of Excise. The
Joint Copmmissioner of Excise is required to exercise statutory powers
under the Karnataka Excise Act , 1965. But, the defintion “Excise Officer
“does not include Joint Commissioner of Excise. The term “Joint
Commissioner of Excise” is also not defined in the Act. Therefore, it is
considered necessary to amend the Karnataka Excise Act, 1965,-
(i) to define the term “Joint Commissioner of Excise”;
(ii) to bring the Joint Commissioner of Excise within the defintion of
Excise Officer; and
(iii) to enable the Joint Commissioner of Excise to exrecise certain
statutory powers.
Hence the Bill.
1966: KAR. ACT 21] Excise 365
(Obtained from L.A. Bill No. 5 of 1998)
XIII
Amending Act 12 of 1999.- To provide a deterrent in order to minimise
the Excise offences it is proposed to prescribed a minimum penalty of fine of
Rs. 5,000 and a maximum of Rs. 25,000 for each offence under section 45
of the Karnataka Excise Act, 1965. Presently the maximum penalty leviable
under this section is fine of Rs 5,000 only. Accordingly policy announcement
has been made in the Budget Speech 1998-99. In order to give effect to the
said policy announcement section 45 of the Karnataka Excise Act, 1965
requires amendment.
Hence the Bill.
(Obtained from L.C. Bill No. 8 of 1998. File No.

XIV
Amending Act 21 of 2000.- Representation were made to the
Government by the manufacturers, Wholesalers and Retail Traders of
Liquor for Merger of Sales Tax with the Excise duty, since for payment of
Sales Tax and Excise duty, the trade has to deal with two Department
resulting in administrative and procedural difficulties and inconvenience.
Further merger of sales tax with Excise duty will simplify the procedural
complication etc. On examination of the above representations the
Government considered it necessary to amend the Karnataka Sales Tax
Act, 1957 and the Karnataka Excise Act, 1965, to provide for,
(i) levy of additional excise duty on the value, cost or price of the
excisable articles.
(ii) recovery of sales tax arrears as arrears of excise revenue.
(iii) treating tax or other amount due as arrears of excise revenue for the
purpose of recovery of such tax or other amount due.
Hence the Bill.
(Obtained from L.A. Bill No. 38 of 2000)
XV
Amending Act 15 of 2001.- To give effect to the proposals made in the
Budget Speech, it is considered necessary to amend the Karnataka Excise
Act, 1965.
Hence the Bill.
(Vide L.A. Bill No. 11 of 2001 Filed No. SAMVYASAHE 16
SHASANA 2001)
366 Excise [1966: KAR. ACT 21
XVI
Amending Act 38 of 2003.- It is considered necessary to amend the
Karnataka Excise Act, 1965.-
i) to remove the ambiguity in the definition of “toddy” and
“excise tree” by omitting the words ” of which contains
alcohol and ” appearing in the definition of excise tree;
ii) to provide for giving the interim custody of the property seized
under sub-section (1) of section 43A to the owners of such
property on production of a Bank Guarantee equal to the
value of the seized property;
iii) to provide for acceptance of money or imposition of penalty in
lieu of cancellation or suspension of a license for
contravention of conditions of license or of any rule made
under the Act.
Hence the Bill.
(LA Bil No. 4 of 2003 DPAL 38 SHASANA 2003)
XVII
Amending Act 27 of 2004.- Section 16-A of the Karnataka Excise
Act, 1965 provides for entrusting the task of manufacture and/or bottle
arrack for sale to a Company or agency owned or controlled by the State
Government or a State Government Department. Accordingly, at present,
M/s. MSIL and M/s. Mysugar Co., have been entrusted with this task. MSIL
does not have primary distillery. M/s. Mysugar Co., is not in a position to
supply the required quantity as the Company is in difficult financial position.
Of late, due to scarcity of molasses, which is the main raw material for
providing rectified spirit, the manufacture and supply of arrack has been
gradually affected. After the Government of India has rescinded Molasses
Control Order and the State has no control to regulate the manufacture and
sale of molasses. However, the Karnataka legislature has recently passed a
bill to regulate it and the same has been sent to Government of India to get
the assent of the President. Further, there is an element of non-duty paid
arrack in the open market. In order to ensure supply of the required quantity
of rectified spirit for manufacture of arrack, it is necessary to liberalise arrack
manufacture.
Presently, inspection and scrutiny of records maintained by a
distillery or a brewery is the responsibility of the Excise Department. This
responsibility is discharged primarily by officers posted at the distillery or
brewery and through special inspections. However, more than the
inspection and scrutiny of records mandated by the Karnataka Excise Act,
1965, it is necessary to form an opinion on the output produced by the
manufacturer vis-à-vis the inputs consumed. The essential feature of such
an inspection/audit is to correlate the input and output. This is a specialised
1966: KAR. ACT 21] Excise 367
function for which expert help is necessary. A similar requirement is
mandated under section 14AA of the Central Excise Act, 1944. Section 51
of the Karnataka Excise Act, 1965 empowers Excise Commissioner, Deputy
Commissioner, Excise Officer and Police Officers to enter and inspect
places of manufacture and sale. In order to empower the proposed third
party similarly, it is necessary to amend the Karnataka Excise Act, 1965.
In the budget speech for the year 2004-05, the Hon’ble Deputy Chief
Minister had announced to liberalise manufacture of arrack by allowing
primary distilleries to undertake this activity. The primary objective of this
policy is to eliminate ‘seconds’ or non-duty paid arrack and to thus enhance
arrack revenues significantly. Further by liberalising the manufacture of
arrack it will be made as market driven such that it should not be
responsibility of the Government to supply arrack but rather the function of
demand and supply in the market.
Hence the Bill.
(L.A. Bill No. 19 of 2004)
XVIII
Amending Act 14 of 2005.- It is felt necessary to make the excise
law more stringent in order to net more revenue, check evasion of excise
duties, by taking away the existing compounding powers and making the
law more stringent by rendering the offences under the Act cognizable and
non-bailable.
Hence the Bill.
[L.A. Bill No. 13 of 2005]
XIX
Amending Act 27 of 2007.- In the Budget speech for the year
2007-08, it has been announced banning of sale of arrack in the State from
1st July 2007. Hence, it is considered necessary to amend section16A and
16B of the Karnataka Excise Act, 1965.
It is considered necessary to prevent hooch tragedies which
occurred in Bangalore and Hassan districts recently, claiming 45 lives and
one of the main causes of these tragedies has been the sale of illicit arrack
and spurious and adulterated liquor by unauthorized vendors in
unauthorized places. In order to prevent recurrence of such tragedies, it is
proposed to amend section 37 by introducing stringent punishment to the
persons who indulge in adulteration of liquor with harmful poisonous
substances or chemicals or methyl alcohol or any other poison as defined in
Indian Poisons Act, 1919 or substances, which endanger human life or
cause grievous hurt to human beings.
368 Excise [1966: KAR. ACT 21
It is considered that public Transport vehicle belonging to the
Karnataka State Transport Undertaking shall not be confiscated when an
offence is reported under the provisions of the Karnataka Excise Act, 1965.
Therefore an amendment to section 43 is proposed.
Section 51 A is proposed to be substituted to empower the state
Government to prescribe the conditions and restrictions subject to which
accounts or records of every licencee shall be audited by a cost Accountant.
Hence the Bill.
[L.A.Bill No. 39 of 2007]
[Entry 51 of List II of the Seventh Schedule to the Constitution of India.]
XX
Amending Act 19 of 2010.- At present under Section 67 of the
Karnataka Excise Act, 1965, the State Government is empowered to exempt
or reduce either prospectively or retrospectively the excise dues payable
under Section 22 of any liquor sold to certain categories of institutions.
Of late, more number of consulates/diplomatic agents has started
functioning in the State Headquarters. The offices of Consulates of
Germany, Japan, France, Britain, Switzerland, Ireland, Maldives, Finland,
and Spain are established in Bangalore. It is the privilege of the State
Government to extend benefit of exemption of tax on liquor to the diplomats
as a matter of honouring their dignity.
Therefore, it is proposed to amend Section 67(1)(i) of the Karnataka
Excise Act, 1965 with an enabling provision to extend the benefit of
exemption of tax on liquor to ‘diplomatic agents’.
Hence the Bill.
[L.A.Bill No. 41 of 2009, File No.DPAL 38 Shasana 2009]
[Entry 8 and 51 of List II of the Seventh Schedule to the Constitution
of India.]
XXI
Amending Act 26 of 2013.- The Karnataka State Beverages
Corporation was established for distributing liquor for sale in the State. As
the Government grants distributor licence to the Corporation and collects
privilege fee from the Corporation. In order to bring clarity in the
interpretation of the scheme of collection of privilege fee, it is proposed in
the Budget speech for the year 2013-14 to amend section 24 of the
Karnataka Excise Act retrospectively to deem always the privilege fee
collected as part of State Government’s revenue.
Hence, the Bill.
[L.A. Bill No.14 of 2013, File No. Samvyashae 22 Shasana 2013]
[Entry 51 of List II of the Seventh Schedule to the Constitution of India.]
1966: KAR. ACT 21] Excise 369
XXII
Amending Act 11 of 2014.-It is considered necessary to amend the
Karnataka Excise Act, 1965 to facilitate payment of all Exicse Revenue like
License Fee, Excise Duty, Additional Excise Duty or any other form of fee by
way of electronic remittance.
Hence the Bill.
[L.A. Bill No.28 of 2014, File No. Samvyashae 54 Shasana 2013]
[Entry 51 of List II of the Seventh Schedule to the Constitution of India.]
XXIII
Amending Act 01 of 2017.- In the Budget Speech 2015-16, the
Hon’ble Chief Minister, proposed to bring amendment to the Excise Act to
permit members of Coconut Growers Federation to harvest ‘Neera’ in limited
quantities from the coconut trees and thereby increasing the income of the
coconut growers significantly. Further, Neera production is legally permitted
in the States like Kerala, Tamil Nadu, Maharashtra, Goa and Union
Territories of Lakshadweep and Andaman and Nicobar Islands.
Therefore, it is considered necessary to amend the Karnataka
Excise Act, 1965 to,-
(i) remove the term “unfermented juice” from the definition of
“Toddy” and to distinguish “Neera” from “Toddy”;
(ii) define the term “Neera”;
(iii) regulate tapping of Neera and manufacture of Neera products; and
(iv) provide punishment for violation of provisions of section 13A
and the rules made thereunder.
Hence, the Bill.
[L.A. Bill No.38 of 2016, File No. Samvyashae 53 Shasana 2016]
[entry 51 of List II of the Seventh Schedule to the Constitution of India]

370 Excise [1966: KAR. ACT 21
1
[ KARNATAKA ]1 ACT 21 OF 1966
(First published in the 1
[Karnataka]1 Gazette on the Eighteenth day of
August, 1966 )
THE 1
[KARNATAKA]1 EXCISE ACT, 1965
(Received the assent of the President on the Third day of August,1966)
(As amended by 1 of 1970, 1 of 1971, 61 of 1976, 32 of 1982, 28 of 1987,
36 of 1987, 1 of 1994, 2 of 1994, 2 of 1995, 7 of 1997, 21 of 1998, 12 of
1999, 21 of 2000, 15 of 2001, 38 of 2003, 27 of 2004, 14 of 2005,
27 of 2007, 19 of 2010, 26 of 2013, 11 of 2014 and 01 of 2017.)
An Act to provide for a uniform excise law in the 1
[State of
Karnataka]1
.
WHEREAS it is expedient to provide for a uniform law relating to the
production, manufacture, possession, import, export, transport, purchase
and sale of liquor and intoxicating drugs and the levy of duties of excise
thereon, in the 4
[State of Karnataka]4 and for certain other matters
hereinafter appearing;
BE it enacted by the 1
[Karnataka]1 State Legislature in the Sixteenth Year
of the Republic of India as follows:-

Adapted by the Karnataka Adapatations of Laws Order 1973 w.e.f. 1-11-1973.
CHAPTER I
PRELIMINARY
Short title, extent, commencement and application.- (1) This Act
may be called the 1
[Karnataka]1 Excise Act, 1965.
Adapted by the Karnataka Adapatations of Laws Order 1973 w.e.f. 1-11-1973.
(2) It extends to the whole of the 1
[State of Karnataka]1
.
Adapted by the Karnataka Adapatations of Laws Order 1973 w.e.f. 1-11-1973.
(3) It shall come into force on such 1
[date]1 as the State Government may
by notification, appoint.
Act came into force on 30-9-1967 by notification.
(4) All the provisions of this Act shall be applicable to the areas of the
State in which the 1
[Karnataka]1 Prohibition Act, 1961 (1
[Karnataka]1 Act 17
of 1962) is not in operation and shall apply to such extent as is specified in
the said Act in the areas in which the said Act, is in operation.
Adapted by the Karnataka Adapatations of Laws Order 1973 w.e.f. 1-11-1973.
Definitions.- In this Act, unless the context otherwise requires,-
(1) “beer” includes ale, stout and porter;
1966: KAR. ACT 21] Excise 371
(2) ” to bottle” means to transfer liquor from a cask or other vessel to a
bottle, jar, flask 5
[polythene sachet]5 or similar receptacle for the purpose of
sale, whether any process of manufacture be employed or not, and includes
re-bottling;
(3) “cultivation” includes the tending or protection of a plant during
growth and does not necessarily imply raising it from seed;
(4) “denatured” means subjected to a process prescribed for the purpose
of rendering unfit for human consumption;
2
[(5) “Deputy Commissioner” means the Deputy Commissioner of the
revenue district;]2
3
[(5A) ‘Deputy Commissioner of Excise’ means a Deputy Commissioner of
Excise appointed under section 4A;]3
(6) “excisable article” means,-
(a) any liquor;
(b) any intoxicating drug;
(c) opium; or
(d) other narcotic drugs, narcotics and non-narcotic drugs which the
State Government may by notification declare to be an excisable article;
(7) “Excise Commissioner” means the officer appointed as Excise
Commissioner under section 3;
(8) “excise duty” and “countervailing duty” means any such excise duty
or countervailing duty, as the case may be, as is mentioned in Entry 51 of
List II of the Seventh Schedule to the Constitution;
2
[(9) ‘Inspector of Excise’ means an Inspector of Excise appointed under
section 6 ;]2
(10) “Excise Officer” means the Excise Commissioner, 6
[a Joint
Commissioner of Excise]6 a Deputy Commissioner, 3
[a Deputy
Commissioner of Excise]3 or any officer or other person lawfully appointed or
invested with power under 2
[section 5, section 5A or section 6]2
;
(11) “excise revenue” means revenue derived or derivable from any
duty, fee, tax, rent, fine or confiscation imposed or ordered under the
provisions of this Act or any other law for the time being in force relating to
liquor or intoxicating drugs;
3
[(11A) ‘excise tree’ includes the Gulmohwa, cocoanut, palm, palmyra, date,
bagani or doddasal tree, or any other tree, the fermented or unfermented
juice 7
[x x x]7 from which toddy or any other liquor can be prepared;]3
372 Excise [1966: KAR. ACT 21
(12) “export” means to take out of the State otherwise than from a
Customs station as defined under section 2 of the Customs Act, 1962
(Central Act 52 of 1962);
2
[(13) “foreign liquor” includes every liquor imported into India;]2
(14) ” import” except in the phrase “import into India”, means to bring into
the State otherwise than from a Customs station as defined under section 2
of the Customs Act, 1962 (Central Act 52 of 1962);
2
[(15) ‘Indian liquor’ means liquor produced, manufactured or compounded
in India in the same manner as Gin, Brandy, Whisky or Rum imported into
India, and includes ‘milk punch’ and other liquor consisting of or containing
sprits;]2
(16) “intoxicant” means any liquor as defined in clause (18) or any
intoxicating drug as defined in clause (17);
(17) “intoxicating drug” means,-
(i) the leaves, small stalk and flowering or fruiting tops of the Indian
hemp plant including all forms known as bhang, siddi or ganja;
(ii) charas, that is, the resin obtained from the Indian hemp plant,
which has not been submitted to any manipulations other than those
necessary for packing and transport;
(iii) any mixture with or without neutral materials of any of the above
forms of intoxicating drug or any drink prepared therefrom; and
(iv) any other intoxicating or narcotic substance which the State
Government may, by notification, declare to be an intoxicating drug, such
substance not being opium, coca leaf or manufactured drug as defined
under section 2 of the Dangerous Drugs Act, 1930 (Central Act 2 of 1930);
6
[(17A) “Joint commissioner of Excise” means a Joint Commissioner of
Excise appointed under section 4A]6
(18) “liquor” includes,-
(a) spirits of wine, denatured spirits, wine, beer, toddy and all liquids
consisting of or containing alcohol 1
[or wash]1
; and
(b) any other intoxicating substance, which the State Government
may by notification, declare to be liquor for the purposes of this Act;
(19) “manufacture” includes every process whether natural or artificial, by
which any fermented, spirituous or intoxicating liquor or intoxicating drug is
produced or prepared and also redistillation and every process for the
rectification of liquor;
1
[(19A) “material” includes mhowra flower, molasses, wash, rotten jaggery,
grapes, cashewnut fruits, and such other substances as the State
Government may by notification specify;
1966: KAR. ACT 21] Excise 373
(19B) “mhowra flower” means the flower of passialatifolla(ippe) but does
no include the berry or seed of the mhowra tree;
(19C) “molasses” means the heavy, dark coloured residual syrup drained
away in the final stage of the manufacture of jaggery or sugar containing in
solution or suspension, sugars which can be fermented, and includes any
product formed by the addition to such syrup of any ingredient which does
not substantially alter the character of such syrup; but does not include any
article which the State Government may by notification declare not to be
molasses, for the purposes of this Act;]1
(20) “notification” means a notification published in the official Gazette;
(21) “place” includes a house, building, shop, booth, tent, vessel, raft and
vehicle;
(22) “police station” includes any place which the State Government may,
by notification, declare to be a police station for the purpose of this Act;
(23) “prescribed” means prescribed by rules made under this Act;
(24) “rectification” includes every process whereby spirits are purified or
are coloured or flavoured by mixing any material therewith;
1
[(24A) “rotten jaggery” means jaggery which is unfit for human consumption
or the consumption of which is injurious to health;
Explanation.-‘jaggery’ shall be deemed to be unfit for human
consumption or the consumption of it shall be deemed to be injurious to
health if it is of dark brown colour with strong smell or if on chemical analysis
it is found to contain more than fifteen percent of reducing sugar or less than
seventeen percent of total sugar;]1
(25) “sale” or “selling” includes any transfer otherwise than by way of gift;
(26) “spirit” means any liquor containing alcohol and obtained by distillation,
whether it is denatured or not;
3
[(26A) `Sub-Inspector of Exercise’ means an officer appointed as SubInspector of Excise under section 6;]3
8
[“(27) “Toddy” means fermented juice drawn from an excise tree but does
not include Neera.”]
8
9
[“(27-A) “Neera” means the juice drawn from a coconut tree and collected
in receptacles in any manner and not subjected to fermentation, which is
transparent, syrupy, sweet in smell and taste, without the slightest foam on
its surface and preserved without any acid.”]
9
4
[(28) xxx]4
(29) “transport” means to move from one place to another within the State
whether the intervening area lies wholly within the State or not.
374 Excise [1966: KAR. ACT 21
1
[(30) “wash ” includes fermented wort and a dilute solution of sugar from
which spirit is distilled.]1
Inserted by Act 1 of 1970 w.e.f. 23-12-1969.
Substituted by Act 1 of 1971 w.e.f. 7-8-1970.
Inserted by Act 1 of 1971 w.e.f. 7-8-1970.
Omitted by Act 1 of 1971 w.e.f.7-8-1970.
Inserted by Act 1 of 1994 w.e.f. 1-7-1993.
Inserted by Act 21 of 1998 w.e.f. 28-5-1998.
Omitted by Act 38 of 2003 w.e.f. 3.9.2003.
Substituted by Act 1 of 2017 w.e.f. 4-1-2017.
Inserted by Act 1 of 2017 w.e.f. 4-1-2017.
CHAPTER II
ESTABLISHMENT AND CONTROL
Appointment of Excise Commissioner.- (1) The State Government
may appoint, by notification, an officer not below the rank of a Deputy
Commissioner, as Excise Commissioner for the 1
[State of Karnataka]1
, who
subject to the general or special orders of the State Government in this
behalf, shall be the chief controlling authority in all matters connected with
the administration of this Act.
Adapted by the Karnataka Adapatations of Laws Order 1973 w.e.f. 1-11-1973.
(2) The Excise Commissioner shall exercise all the powers of the Deputy
Commissioner in respect of the administration of this Act and shall have the
control of the administration of the Excise Department.
Deputy Commissioner.- (1) The Deputy Commissioner shall within
the limits of his jurisdiction exercise such powers and perform such duties
and functions as are assigned by or under the provisions of this Act to a
Deputy Commissioner subject to such control as the State Government may
from time to time direct.
(2) For the purposes of this Act, all Deputy Commissioners shall be
subordinate to the Excise Commissioner.
1
[4A. 2
[Joint Commissioner of Excise and Deputy Commissioner of
Excise]2
.- (1) The State Government may appoint, by notification, as many 2
[Joint Commissioners of Excise or Deputy Commissioners of Excise]2 as it
thinks fit, for such area or areas as may be specified in the notification.
I 1. Inserted by Act 1 of 1971 w.e.f. 7-8-1970.
Substituted by Act 21 of 1998 w.e.f.28-5-1998.
1966: KAR. ACT 21] Excise 375
(2) 1
[A Joint Commissioner of Excise or a Deputy Commissioner of
Excise]1 appointed under sub-section (1), shall exercise such powers and
perform such duties and functions assigned to a Deputy Commissioner
under this Act, as may be specified by the State Government in the
notification, and thereupon the Deputy Commissioner shall not be
competent to exercise the powers or perform the duties and functions so
specified.
Substituted by Act 21 of 1998 w.e.f.28-5-1998.
(3) 1
[A Joint Commissioner of Excise or a Deputy Commissioner of
Excise]1 shall be subordinate to the Excise Commissioner and shall be
subject to the control of the Excise Commissioner and the State
Government.]1
Substituted by Act 21 of 1998 w.e.f.28-5-1998.
Appointment of 1
[Superintendents of Excise and Deputy
Superintendents of Excise]1
.- (1) The State Government may appoint an
officer as 1
[ Superintendent of Excise]1 for a district or part of a district to
exercise all or any of the powers and to perform all or any of the duties of a
Deputy Commissioner in respect of the administration of this Act, either
concurrently with or in subordination to the Deputy Commissioner subject to
such control as the State Government may direct.
Substituted by Act 1 of 1971 w.e.f. 7-8-1970.
(2) The State Government may appoint such number of 1
[Deputy
Superintendents of Excise]1 for a district or part of a district as it thinks fit to
exercise such powers and perform such duties as the State Government
may direct.
Substituted by Act 1 of 1971 w.e.f. 7-8-1970.
1
[5A. Constitution of an Intelligence Bureau and appointment of
Superintendents and Deputy Superintendents of Excise (Intelligence
Bureau).- (1) There shall be an Intelligence Bureau headed by the Excise
Commissioner and consisting of a 2
[Joint Commissioner of Excise or a
Deputy Commissioner of Excise]2 and such number of Superintendents of
Excise (Intelligence Bureau) and Deputy Superintendents of Excise
(Intelligence Bureau) as may be appointed by the State Government under
sub-section (2) and such other officers as may be appointed by the Excise
Commissioner with the prior approval of the State Government.
(2) The State Government may appoint,-
(i) an officer as Superintendent of Excise (Intelligence Bureau) for a
district or part of a district or for more than one district;
376 Excise [1966: KAR. ACT 21
(ii) an officer as Deputy Superintendent of Excise (Intelligence
Bureau) for a district or part of a district or for more than one
district,
to exercise the powers relating to detection, investigation and trial of
offences under the Act, and to perform such duties and functions of an
Excise Officer as the Excise Commissioner may direct subject to such rules
as may be prescribed.]1
Inserted by Act 1 of 1971 w.e.f. 7-8-1970.
Substituted by Act 21 of 1998 w.e.f 28-5-1998.
Appointment of 1
[Inspectors of Excise, Sub-Inspectors of
Excise]1 and other subordinate officers.- (1) The State Government may
appoint 1
[Inspectors of Excise and Sub – Inspectors of Excise]1 to exercise
the powers and to perform the duties in connection with detection,
investigation and trail of offences under this Act.
Substituted by Act 1 of 1971 w.e.f. 7-8-1970.
(2) The State Government may appoint subordinate officers of such
classes and with such designations, powers and duties under this Act as it
may think fit.
(3) The State Government may, by notification direct that all or any of the
powers and duties assigned to an 1
[Inspector of Excise, Sub-Inspector of
Excise]1 or subordinate officer under sub-sections (1) and (2), shall be
exercised and performed by any officer of the State Government.
Substituted by Act 1 of 1971 w.e.f. 7-8-1970.
(4) The State Government may, by notification, delegate its powers
under sub-sections (1), (2) and (3) to the Excise Commissioner, 2
[the Joint
Commissioner]2 the Deputy Commissioner 1
[the Superintendent of Excise or
the Deputy Superintendent of Excise]1
, as the case may be.
Substituted by Act 1 of 1970 w.e.f. 23-12-1969.
Inserted by Act 21 of 1998 w.e.f. 28-5-1998.
1
[7. Delegation of powers- (1) The State Government may by
notification delegate to the Excise Commissioner or to any other Excise
Officer any of its powers under this Act except the powers under section
67 and 71.
(2) The State Government may by notification delegate subject to such
conditions and as may be specified therein any of the powers conferred by
or under this Act on the Excise Commissioner 2
[or the Joint Commissioner of
Excise]2 or the Deputy Commissioner, to any Excise Officer.]1
Substituted by Act 1 of 1971 w.e.f. 7-8-1970.
Inserted by Act 21 of 1998 w.e.f. 28-5-1998.
1966: KAR. ACT 21] Excise 377
CHAPTER III
IMPORT, EXPORT AND TRANSPORT
Import of intoxicant.- (1) No intoxicant shall be imported except
under a permit granted by the Deputy Commissioner on payment of such
countervailing duty and fees, as may be levied under this Act and on such
other terms as may be prescribed:
Provided that the Deputy Commissioner may subject to such restrictions
and conditions as may be prescribed to ensure the collection of the
countervailing duty, permit the import of any intoxicant without the payment
of the countervailing duty:
Provided further that no countervailing duty shall be payable on any
intoxicant which being liable to the payment of duty under the Indian Tariff
Act, 1934, or any other law, for the time being in force, relating to the duties
of customs on goods imported into India, it has been dealt with according to
such law.
(2) A permit granted under sub-section (1), may be cancelled by the
Deputy Commissioner for breach of any of the terms subject to which it was
granted or for any other reason to be recorded in writing.
Export of intoxicant.- (1) No intoxicant shall be exported except
under a permit granted by the Deputy Commissioner on payment of such
fee as may be levied under this Act and on such terms as may be
prescribed:
Provided that no intoxicant produced or manufactured in India shall, save
as provided in section 66, be permitted to be exported unless the excise
duty or countervaling duty to which such intoxicant is liable, has been paid.
(2) A permit granted under sub-section (1) may be cancelled by the
Deputy Commissioner for breach of any terms subject to which it was
granted or for any other reason to be recorded in writing.
Prohibiting of transport of intoxicant.- The State Government
may, by notification, prohibit the transport of intoxicants or any kind of
intoxicants from any local area into any other local area.
Transport of intoxicant.- No intoxicant exceeding such quantity as
may be prescribed either generally or for any local area shall be transported,
except under a permit issued under section 12.
Permits for transport.- (1) The Deputy Commissioner or any other
person duly empowered by the State Government in that behalf may issue a
permit for the transport of intoxicants.
(2) A permit under sub-section (1) may be either a general permit for
definite periods and kinds of particular intoxicants or a special permit for
specified occasions and particular consignments only:
378 Excise [1966: KAR. ACT 21
Provided that a general permit shall be granted only to persons licensed
under this Act and may cover any quantity of liquor transported at any one
time not exceeding the quantity specified in the permit.
(3) Every permit under this section shall specify,-
(a) the name of the person authorised to transport intoxicants;
(b) the period for which the permit is to be in force;
(c) the quantity and description of intoxicants for which it is granted;
and
(d) any other particulars which may be prescribed.
(4) A permit granted under this section shall extend to and include
servants and other persons employed by the grantee and acting on his
behalf.
CHAPTER IV
MANUFACTURE, POSSESSION AND SALE
Manufacture, etc., of excisable article prohibited except under a
licence.- (1) No person shall,-
(a) manufacture or collect an intoxicant; or
(b) cultivate hemp plant; or
(c) tap a toddy producing tree or draw toddy from any tree; or
(d) construct or work a distillery or brewery; or
(e) bottle liquor for sale; or
(f) use, keep, or have in his possession, any material, still, utensil,
implement or apparatus, whatsoever for the purposes of
manufacturing any intoxicant other than toddy,
except under the authority and subject to the terms and conditions of a
licence granted by the Deputy Commissioner in that behalf or under the
provisions of section 18.
(2) A licence granted under this section shall extend to and include
servants and other persons employed by the licensee and acting on his
behalf.
1
[“13A. Manufacture etc., of Neera and Neera Products prohibited
except under a licence.- No person shall tap Neera from coconut tree or
further process it, except with a licence granted by the competent authority
or payment of such fee and subject to such terms and conditions as may be
prescribed.]1
Inserted by Act 1 of 2017 w.e.f. 4.1.2017.
Possession of excisable articles in excess of the quantity
prescribed.- (1) The State Government may, by notification, prescribe a
limit of quantity for the possession of any intoxicant:
1966: KAR. ACT 21] Excise 379
Provided that different limits may be prescribed for different qualities of
the same article.
(2) No person shall have in his possession any quantity of any intoxicant
in excess of the limit prescribed under sub-section (1), except under the
authority and in accordance with the terms and conditions of,-
(a) a licence for the manufacture, cultivation, collection, sale or
supply of such article; or
(b) a permit granted by the Deputy Commissioner in that behalf.
Sale of excisable articles without licence prohibited.- (1) No
intoxicant shall be sold except under the authority and subject to the terms
and conditions of a licence granted in that behalf:
Provided that, subject to such restrictions and conditions as the Excise
Commissioner may by general or special order specify,-
(a) a person having the right to the toddy drawn from any tree may
sell such toddy without a licence to a person licensed to manufacture or sell
toddy under this Act;
(b) a cultivator or owner of any plant from which an intoxicating drug
is produced may sell without a licence those portions of the plant from which
the intoxicating drug is manufactured or produced, to any person licensed
under this Act to sell, manufacture or export the intoxicating drugs or to any
officer, whom the Excise Commissioner may generally or specially
authorise.
(2) A licence for sale under sub-section (1), shall be granted,-
(a) by the Deputy Commissioner, if the sale is within a district, or
(b) by the Excise Commissioner, if the sale is in more than one
district:
Provided that subject to such conditions as may be determined by the
Excise Commissioner, a licence for sale granted under the Excise law in
force in any other State may be deemed to be a licence granted under this
Act.
(3) Nothing in this section shall apply to the sale of any 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 decease.
(4) Notwithstanding anything contained in sub-sections (1) and (2), no
club shall supply liquor to its members on payment of a price or of any fee or
subscription except under the authority of and subject to the terms and
conditions of a licence granted in that behalf by the Excise Commissioner
and on payment of such fees according to a scale of fees to be fixed by the
State Government in this behalf.
380 Excise [1966: KAR. ACT 21
1
[15A. Consumption or allowing consumption of Liquor in unlicensed
Public Places.- No person being the owner or incharge of the management
or control of any public place shall allow consumption of liquor or no person
shall consume liquor in any public place unless consumption of liquor in
such place is permitted under a licence granted by the Excise
Commissioner or the Deputy Commissioner.
Explanation 1.- For the purposes of this section and section 32 “public
place” means any public office or any place of public amusement or resort,
recreation centre or on board, any passenger boat or vessel or any public
passenger vehicle or a dining or refreshment room in a restaurant or hotel
where different individuals or groups of persons consume food, but shall not
include any private residential room or private residential house.
Explanation 2.- For the purposes of Explanation 1, “public passenger
vehicle” means a vehicle used for carrying passengers for hire or reward
other than a vehicle which carries passengers for hire or reward under a
contract, express or implied for the use of the vehicle as a whole at or for a
fixed or agreed rate or sum.]1
Inserted by Act 15 of 2001 w.e.f. 19.4.2001.
Establishment of distilleries and warehouses.- (1) The Excise
Commissioner may, with the previous sanction of the State Government,-
(a) establish a distillery, in which spirit may be manufactured under
licence granted under section 13 on such conditions as the State
Government may impose;
(b) discontinue any distillery so established;
(c) licence, on such conditions as the State Government deems fit
to impose, the construction and working of a distillery or brewery;
(d) licence a private bonded warehouse;
(e) establish or licence a warehouse wherein intoxicants may be
deposited and kept without payment of duty; and,
(f) discontinue any warehouse so established.
(2) A warehouse established under sub-section (1), shall be for general
accommodation to warehouse intoxicants subject to duty pending removal
for local consumption or for export.
(3) Without the sanction of the State Government no intoxicants shall be
removed from any distillery, brewery, warehouse or other place of storage
established or licenced under this Act, unless the duty, if any, imposed
under this Act has been paid or a bond has been executed for the payment
thereof.
1
[16A. Prohibition on grant or renewal of licence for
manufacture, bottle or manufacture and bottle Arrack for sale etc.,- (1)
1966: KAR. ACT 21] Excise 381
Notwithstanding anything contained in this Act or rules made thereunder,
no licence to,-
(a) manufacture; or
(b) bottle; or
(c) manufacture and bottle;
arrack for sale shall be granted or renewed to any person with effect from
the 1st day of July, 2007.
(2) Notwithstanding anything contained in this Act or rules made
thereunder or in any judgement, decree or order of any court, every licence
granted to,-
(a) manufacture; or
(b) bottle; or
(c)manufacture and bottle;
arrack for sale shall be ceased to be valid on the expiry of 30th day of June
2007:
Provided that nothing contained in this section shall affect any
obligation or liability in respect of such licence granted before the 1st day of
July, 2007.”
1.Substituted by Act 27 of 2007 w.e.f. 1-7-2007.
1
[16B. Prohibition on grant or renewal of lease or licence to sell
arrack.- (1) Notwithstanding anything contained in this Act or rules made
thereunder, no lease of right, the exclusive or other right,-
(a) of manufacturing or supplying by wholesale or of both; or
(b) of selling by wholesale or by retail; or
(c) of manufacturing or supplying by wholesale or of both and of
selling by retail of arrack
shall be granted or renewed with effect from the 1st day of July 2007.
(2) Notwithstanding anything contained in this Act or rules made
thereunder, or in any judgement, decree or order of any court, every lease
of right, the exclusive or other right,-
(a) of manufacturing or supplying by wholesale or of both; or
(b) of selling by wholesale or by retail; or
(c) of manufacturing or supplying by wholesale or of both and of
selling by retail of arrack
shall be ceased to be valid on the expiry of 30th day of June 2007:
Provided that nothing contained in this section shall affect any obligation or
liability in respect of such lease of right the exclusive or other right.]1
Substituted by Act 27 of 2007 w.e.f. 1-7-2007.
Power to grant lease of right to manufacture, etc.- (1) The State
Government may lease to any person, on such conditions and for such
period as it may think fit, the exclusive or other right,-
382 Excise [1966: KAR. ACT 21
(a) of manufacturing or supply by wholesale or of both, or
(b) of selling by wholesale or by retail, or
(c) of manufacturing or supplying by wholesale, or of both and of
selling by retail,
any Indian liquor or intoxicating drug within any specified area.
1
[(1A) No lease granted under sub-section (1) shall be transferred:
Provided that the State Government may grant permission to the lessee
to transfer the lease or a part thereof in favour of any other person subject to
such terms and conditions (including the transferee entering into an
agreement of lease with the State Government), as may be prescribed.;]1
Inserted by Act 1 of 1971 w.e.f. 7-8-1970.
(2) The licensing authority may grant to a lessee 1
[under sub-section (1)
or a transferee under sub-section (1A)]1
, a licence in the terms of his lease;
and when there is no condition in the lease, which prohibits sub-letting may,
on the application of the lessee, grant licences to any sub-lessee approved
by such authority.
Substituted by Act 1 of 1971 w.e.f. 7-8-1970.
1
[(3) A lease referred to in sub-section (1) or sub-section (1A) may be
determined,-
(a) if any duty or fee payable by the lessee is not duly paid; or
(b) in the event of breach of any term or condition of the lease by
the lessee or any of his servants or any person acting on behalf of or under
the express or implied permission of the lessee; or
(c) if the lessee becomes incapable of carrying on the business; or
(d) if the conditions of the lease provide for determination at will:
Provided that no such determination shall be made unless the person
affected has had a reasonable opportunity of showing cause against such
determination.
(4) Where a lease is determined under clause (a), (b), or (c) of subsection (3), the State Government may direct the Deputy Commissioner, to
take the right under his management and to lease it again by re-sale or
other-wise; and if on such management or re-sale, the amount realised is
less than the amount payable under the lease which was determined, the
loss shall be payable by the person whose lease was determined.]1
Sub-sections (3) and (4) Inserted by Act 1 of 1971 w.e.f. 7-8-1970.
Lessee’s permission to draw toddy.- Where a right to manufacture
toddy has been leased under section 17, the State Government may declare
that the written permission of the lessee to draw toddy shall have the same
1966: KAR. ACT 21] Excise 383
force and effect as a licence under section 13 from the Deputy
Commissioner for that purpose.
Duties of licensees with regard to measurement and testing.-
Every person, who manufactures or sells any intoxicant under a licence
granted under this Act shall be bound,-
(a) to provide himself with such measures, weights and instruments as
the Excise Commissioner may prescribe and to keep the same in good
condition and on the licensed premises, and
(b) on the requisition of the Excise Officer duly empowered in that behalf,
at any time to measure, weigh or test any intoxicant in his possession in
such manner as the said Excise Officer may require.
Prohibition of employment of children and of women.- (1) No
person, who is licensed to sell any intoxicant for consumption on his
premises shall, during the hours in which such premises are kept open for
persons employ or permit to be employed, either with or without
remuneration, any children under such age as the State Government may,
by rule, prescribe in this behalf, in any part of such premises in which such
excisable article is consumed by the public.
(2) No person who is licensed to sell any intoxicant for consumption at
his premises shall, without the previous permission in writing of the Deputy
Commissioner, during the hours in which such premises are kept open for
persons, employ or permit to be employed, either with or without
remuneration any woman in any part of such premises in which such
excisable article is consumed by the public.
(3) Every permission granted under sub-section (2) shall be endorsed on
the licence and may be modified and withdrawn.
Closing of shops for the preservation of public peace 1
[etc.,]1
.-
(1) The District Magistrate may, by notice in writing to the licensee require
that any shops in which any intoxicant is sold shall be closed at such times
and for such period as he may think necessary for the preservation of the
public peace 1
[or the prevention of the spreading of any infectious diseases]1
Inserted by Act 36 of 1987 w.e.f. 10-8-1987.
(2) If any riot or any unlawful assembly is apprehended or occurs in the
vicinity of any such shop, any Magistrate or any Police Officer not below the
rank of a Sub-Inspector, who is present, may require such shop to be kept
closed for such period as he may think necessary :
Provided that where a riot or unlawful assembly so occurs, the licensee
shall in the absence of such Magistrate or officer, close the shop without any
order and keep it closed during the continuance of such riot or unlawful
Assembly.
384 Excise [1966: KAR. ACT 21
CHAPTER V
EXCISE DUTY AND COUNTERVAILING DUTY
Excise duty or countervailing duty on excisable articles.- (1) An
excise duty at such rate or rates as the State Government may prescribe,
shall be levied on any excisable article manufactured or produced in the
State under any licence or permit granted under this Act.
(2) A countervailing duty at such rate or rates as the State Government,
may prescribe shall be levied on any excisable article manufactured or
produced in India outside the State and imported into the State under a
licence or permit granted under this Act.
(3) The rates prescribed under sub-sections (1) and (2) may be different
for different kinds of excisable articles and may also be different when levied
in the different ways specified in section 23.
Ways of levying such duties.- Subject to such rules regulating the
time, place and manner, as may be prescribed, excise duty and
countervailing duty under section 22 shall be levied in one or more of the
following ways as may be prescribed, namely :-
(a) rateably on the quantity of any excisable article produced or
manufactured in or issued from a distillery, brewery, manufactory or
warehouse, or imported into the State;
1
[(aa) by fees (called litre fees) on the quantity of excisable article
imported by any person or received by any person when issued form a
distillery, brewery, manufactory or warehouse, as the case may be;
Explanation.- In this clause, ‘warehouse’ includes a place where liquor is
kept by a person selling liquor by wholesale.]1
Inserted by Act 1of 1971 w.e.f. 30-9-1967.
1
[(aaa) in the form of duty or additional duty on the value or cost price of the
excisable articles produced or manufactured in, or issued from, a Distillery,
Brewery, Winery or Manufactory or Warehouse or in the form of
contervailing duty or additional contervailing duty on the value, cost or price
of the liquor imported into the State, at such rate or rates or at such stage or
stages and in such manner as may be prescribed.]1
Inserted by Act 21 of 2000 w.e.f. 11-1-2001 by notification.
(b) in the case of spirit or other liquor produced in any distillery
established or any distillery, brewery or manufactory licensed under this
Act, in accordance with its quality or strength, or in accordance with such
scale of equivalents calculated on the quantity of materials used, or by the
degree of attenuation of the wash or wort, as the case may be, as may be
prescribed;
1966: KAR. ACT 21] Excise 385
(c) in the case of toddy, by tax on each tree from which toddy is drawn;
(d) by fees on licences in respect of the manufacture or sale of any
excisable article.
1
[23A. Remittance of Excise Revenue through electronic means.- All
payments of Excise revenue shall be remitted or done through electronic
means (Internet), in such manner as may be prescribed. The excise
commissioner shall cause to develop appropriate electronic means for
remittance of all excise revenue in the manner prescribed effectively.]1
Inserted by Act 11 of 2014 w.e.f. 22.02.2014
2
[
1
[24. Payment of fees for grant or renewal of lease or license.- (1)
Instead of or in addition to any excise duty or countervailing duty leviable
under sections 22 and 23, the State Government may, Levy and Collect
such amount as license fee or privilege fee as may be, determined by
notification by the State Government, subject to, such rules as may be
prescribed in consideration of grant or renewal of a license or lease or
both, by or under this Act.
(2) In consideration of grant or renewal of Distributor license by or
under this Act, the State Government shall levy privilege fee at such rate or
amount as may be determined by notification subject to such rules as may
be prescribed and the privilege fee may be collected in the notified manner
at any time of the year:]
1
]
2
Substituted by Act 2 of 1994 w.e.f. 30-9-1967
deemed to have been substituted by Act, 26 of 2013 w.e. f 30.06.2003
1
[24A. Grant of Exclusive or other privilege in respect of foreign
liquor.- (1) The Excise Commissioner or Deputy Commissioner may subject
to such rules as may be prescribed grant to any person a licence for the
exclusive or other privilege for the entire State or for any specified area,-
(a) for importing directly from outside the country or from outside the
State any foreign liquor manufactured outside India, or
(b) for supplying by wholesale or by retail or for selling by Wholesale
or retail any foreign liquor manufactured outside India and imported into the
State.
(2) The licence to import foreign liquor under sub-section (1) shall be
granted only to a person who has got the authority to import foreign liquor
under the licence or authority granted by the Government of India.
(3) For grant of the licence under sub-section (1), the State Government
may levy such licence fee, privilege fee, vend fee or any other form of fee as
consideration.]1
Inserted by Act 15 of 2001 w.e.f. 19.4.2001
386 Excise [1966: KAR. ACT 21
Tax for tapping trees from whom leviable.- When duty is levied by
way of tax on 1
[excise trees]1 under section 23 and 1
[excise trees]1 are
tapped without licence, the tax due shall be recoverable primarily from the
tapper or in default by him, from the occupier, if any, of the land, or if the
trees do not belong to the occupier of the land, or if the land is not occupied,
from the person, if any, who owns or is in possession of the trees, unless he
proves that the trees were tapped without his consent.
Substituted by Act 1 of 1971 w.e.f. 7-8-1970.
CHAPTER VI
LICENCES AND PERMITS
Form and conditions of licence, etc.- (1) Every licence or permit
granted under this Act shall be granted on payment of such fees for such
period, and subject to such restrictions and on such conditions, and shall be
in such form and shall contain such particulars, as may be prescribed.
(2) The conditions prescribed under sub-section (1) may include
provision of accommodation by the licensee to Excise Officers at the
licenced premises or the payment of rent or other charges for such
accommodation at or near the licensed premises, and the payment of the
costs, charges and expenses (including the salaries and allowances of the
Excise Officer) which the State Government may incur in connection with
supervision to ensure compliance with the provisions of this Act, the rules
made thereunder and the licence.
Power to take security and counterpart agreement.- Subject to
such rules as may be prescribed, any authority granting a licence under this
Act may require the licensee,-
(a) to give security for the observance of the terms of his licence, and
(b) to execute a counterpart agreement in conformity with tenor of his
licence.
Technical defect, irregularities and omissions.- (1) No licence
granted under this Act, shall be deemed to be invalid by reason merely of
any technical defect, irregularity or omission in the licence or in any
proceeding taken prior to the grant thereof.
(2) The decision of the Excise Commissioner as to what is a technical
defect, irregularity or omission, shall be final.
Power to cancel or suspend licence, etc.- (1) Subject to such
restrictions as the State Government may prescribe, the authority granting
any licence or permit under this 1
[shall cancel it]1
,-
Substituted by Act 14 of 2005 w.e.f. 11.4.2005.
(a) if any duty or fee payable by the holder thereof is not duly paid;
or
1966: KAR. ACT 21] Excise 387
(b) in the event of any breach by the holder thereof, or by any of his
servants or by any one acting on his behalf with his express or implied
permission, of any of the terms and conditions thereof ; or
(c) if the holder thereof or any of his servants or any one acting on
his behalf with his express or implied permission, is convicted of any offence
under this Act; or
(d) if the holder thereof is convicted of any cognizable and nonbailable offence or of any offence under the Dangerous Drugs Act, 1930, or
under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, or
under the Trade and Merchandise Marks Act, 1958, or under section 481,
482, 483, 484, 485, 486, 487, 488 or 489 of the Indian Penal Code or of any
offence punishable under section 112 or 114 of the Customs Act, 1962; or
(e) if the conditions of the licence or permit provide for such
cancellation or suspension at will.
1
[Provided that in case of contravention of provisions of sub-section
(1) of section 36 except clauses (c), (g) and (h), the authority granting the
licence or permit shall have discretion to cancel or suspend a licence or
permit:
Provided further that a licence or permit shall not be cancelled or suspended
without giving an opportunity of being heard to the licensee or the holder of
permit, as the case may be.]1
Inserted by Act 14 of 2005 w.e.f. 11.4.2005.
(2) Where a licence or permit held by any person is cancelled under
1
[xxx]1 sub-section (1) the authority aforesaid may cancel any other licence
or permit granted to such person under this Act or under the Opium Act,
1878.
Omitted by Act 14 of 2005 w.e.f. 11.4.2005.
(3) The holder shall not be entitled to any compensation for its
cancellation or suspension nor to the refund of any fee paid or deposit made
in respect thereof.
Power to withdraw licence.- (1) Whenever the authority which
granted any licence under this Act considers that such licence should be
withdrawn for any cause other than those specified in section 29, it may
withdraw the licence on the expiration of not less than thirty days’ notice in
writing of its intention to do so.
(2) When a licence is withdrawn under sub-section (1), a part of the
licence fee proportionate to the unexpired portion of the term of the licence
and the deposit made by the licensee in respect thereof shall be refunded to
him after deducting the amount due from him to the State Government.
388 Excise [1966: KAR. ACT 21
Surrender of licence.- (1) Any holder of a licence granted under this
Act to sell an excisable article may surrender his licence on the expiration of
one month’s notice in writing given by him to the Deputy Commissioner of
his intention to surrender the same and on payment of the fee payable for
the licence for the reminder of the period for which it would have been
current but for such surrender :
Provided that if the Excise Commissioner is satisfied that there is
sufficient reason for surrendering a licence, he may remit the sum so
payable on surrender or any portion thereof.
(2) Sub-section (1) shall not apply in the case of any licence granted
under
section 17.
CHAPTER VII
OFFENCES AND PENALTIES
Penalty for illegal import, etc.- (1) Whoever, in contavention of this
Act, or any rule, notification or order, made, issued or given thereunder, or
of any licence or permit granted under this Act, imports, exports, transports,
manufactures, collects or possesses any intoxicant, shall, on conviction, 1
[be
punished for each offence with rigorous imprisonment for a term which may
extend to 2
[five years and with fine which may extend to fifty thousand
rupees.]2
]
1
1
[Provided that the punishment,-
(i) for the first offence shall be not less than 4
[
2
[one year rigorous
imprisonment and fine of not less than ten thousand rupees]
2
]
4
; and
(ii) for the second and subsequent offences shall be not less than 2
[two
years rigorous imprisonment and fine of not less than twenty thousand
rupees]2 for each such offence.]1
(2) Whoever in contravention of this Act, or of any rule, notification or
order made, issued or given thereunder, or of any licence or permit granted
under this Act,-
(a) save in the cases provided for in section 37, sells any intoxicant; or
(b) cultivates or fails to take the measures prescribed for checking the
spontaneous growth or for the extirpation of the hemp plants; or
(c) taps or draws toddy from any toddy-producing tree or;
(d) constructs or works any distillery or brewery; or
(e) uses, keeps or has in his possession any materials, still, utensil,
apparatus or implement whatsoever for the purpose of
manufacturing any intoxicant other than toddy ; or
(f) removes any intoxicant from any distillery, brewery or warehouse
licenced, established or continued under this Act ; or
1966: KAR. ACT 21] Excise 389
(g) bottles any liquor;
shall, on conviction, 1
[be punished for each offence with rigorous
imprisonment for a term which may extend to 2
[five years and with a fine
which may extend to twenty thousand rupees]2
]
1 .
1
[Provided that the punishment,-
(i) for the first offence shall be not less than 4
[one year rigorous
imprisonment and fine of not less than five thousand rupees]4
; and
(ii) for the second and subsequent offences shall be not less than 2
[one
year rigorous imprisonment and fine of not less than ten thousand rupees]2
for each such offence.]1
3
[(3) Whoever, being the owner or incharge of management or control of
any public place allows consumption of liquor or whoever consumes liquor
in any public place in which consumption of liquor is not permitted under a
licence granted by the Excise Commissioner or the Deputy Commissioner,
in contravention of the provisions of section 15A, shall on conviction be
punished with fine which shall not be less than rupees two hundred but
which may extend to 4
[five thousand rupees.]4
]
3
5
[“(4) Whoever violates the provisions of section 13A or the rules
made thereunder shall on conviction be punished with a fine of rupees five
thousand for each time, upto first five offences. In case of subsequent
offence, he shall be punished with an imprisonment for a term of six months
or with fine which may extend to ten thousand rupees or with both.”]5
Substituted by Act 1 of 1970 w.e.f. 23-12-1969.
Substituted by Act 36 of 1987 w.e.f.10-8-1987.
Inserted by Act 15 of 2001 w.e.f. 19.4.2001.
Substituted by Act 14 of 2005 w.e.f. 11.4.2005.
Inserted by Act 01of 2017 w.e.f. 4.1.2017.
Penalty for rendering denatured spirit fit for human
consumption.- Whoever,-
(a) renders fit for human consumption any spirit, which has been
denatured; or
(b) has in his possession any spirit in respect of which he knows, or has
reason to believe that any such offence has been committed or that
an attempt to commit such an offence has been made;
shall, on conviction, 1
[be punished for each offence with rigorous
imprisonment for a term which may extend to 3
[four years and with fine
which may extend to twenty thousand rupees.]3
]
1
2
[Provided that the punishment,-
390 Excise [1966: KAR. ACT 21
(i) for the first offence shall be not less than 3
[two years rigorous
imprisonment and fine of not less than five thousand rupees]3
; and
(ii) for the second and subsequent offences shall be not less than
rigorous imprisonment for 3
[two years and fine of not less than ten thousand
rupees]3 one thousand, for each such offence.]2
Explanation.- For the purposes of this section, it shall be presumed,
unless the contrary is proved, that any spirit which is proved on chemical
analysis to contain any quantity of any of the prescribed denaturants, is, or
contains, or has been derived from denatured spirit.
Substituted by Act 1of 1970 w.e.f. 23-12-1969.
Inserted by Act 1 of 1970 w.e.f. 23-12-1969.
Substituted by Act 14 of 2005 w.e.f. 11.4.2005.
Penalty for illegal possession.- Whoever, without lawful authority
has in his possession any quantity of any intoxicant knowing the same to
have been unlawfully imported, transported, manufactured, cultivated or
collected, or knowing the prescribed duty not to have been paid thereon,
shall, on conviction, be punished with imprisonment for a term which may
extend to 1
[four years and with fine which may extend to fifty thousand
rupees.]1
]
2
2
[Provided that the punishment,-
(i) for the first offence shall be not less than 1
[one year imprisonment
and fine of rupees ten thousand]1
; and
(ii) for the second and subsequent offences shall be not less than
imprisonment for 1
[two years and fine of not less than rupees twenty
thousand]1
, for each such offence:
Provided further that the fine inflicted, shall not be less than four times
the amount of duty leviable on such intoxicant.]2
Substituted by Act 36 of 1987 w.e.f. 10-8-1987 and again substituted by Act 14 of
2005 w.e.f. 11.4.2005.
Substituted by Act 1 of 1970 w.e.f.23-12-1969.
Penalty for offence not otherwise provided for.- Whoever does
any act 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, on conviction, be punished 1
[with fine which
shall not be less than two hundred rupees and not more than one thousand
rupees.]1
Substituted by Act 1 of 1970 w.e.f. 23-12-1969.
Penalty for misconduct of licensee, etc.- (1) Whoever, being the
holder of a licence or permit granted under this Act, or being in the employ
of such holder and acting on his behalf,-
1966: KAR. ACT 21] Excise 391
(a) fails to produce such licence or permit on the demand of any
Excise Officer or of any other person duly empowered to make
such demand; or
(b) wilfully does or omits to do, anything in breach of any of the
conditions of his licence, or permit, not otherwise provided for in
this Act; or
(c) save in a case provided for by section 32 wilfully contravenes any
rule made under section 71; or
(d) permits drunkenness, disorderly conduct or gaming in any place
wherein any intoxicant is sold or manufactured; or
(e) permits or suffers persons whom he knows or has reason to
believe to have been convicted of any non-bailable offence, or who
are reputed prostitutes or habitual offenders, to resort to, or
assemble or remain in or on the premises where any excisable
article is sold or manufactured; or
(f) sells any intoxicant to a person who is drunk; or
(g) sells or gives any intoxicant to any child apparently under eighteen
years of age or permits or suffers such child or remain in or on the
premises where any excisable article is sold, or manufactured; or
(h) in contravention of section 20 employs or permits to be employed
on any part of his licenced premises referred to in that section any
child or women,
shall, on conviction, be punished with imprisonment which may extend to
three months or with fine which may extend to five hundred rupees, or with
both.
(2) Where any holder of a licence or permit under this Act or any person
in his employ or acting on his behalf is charged with permitting drunkenness
on the premises of such holder, and it is proved that any person was drunk
on such premises, it shall lie on the person charged to prove that the holder
of the licence and the persons employed by him took all reasonable steps
for preventing drunkenness on such premises.
Penalty for adulteration, etc., by licensed vendor or
manufacturer 1
[or any other person]1
.- (1) Whoever, being the holder of a
licence for the sale or manufacture of any intoxicant under this Act, or a
person in the employ of such holder 1
[or any other person]1
mixes or
permits to be mixed with the intoxicant sold or manufactured by him, any
noxious drug or any foreign ingredient likely to add to its actual or apparent
intoxicating quality or strength, or any article prohibited by any rule made
under this Act, when such admixture does not amount to an offence of
adulteration under section 272 of the Indian Penal Code, shall, on conviction
392 Excise [1966: KAR. ACT 21
be punished with imprisonment for a term 2
[three years and with a fine which
shall not be less than ten thousand rupees and not more than fifty thousand
rupees.]2
Inserted by Act 27 of 2007 w.e.f. 29-8-2007.
Substituted by Act 1 of 1970 w.e.f. 23-12-1969 and substituted by Act 14 of 2005
w.e.f. 11.4.2005
(2) Whoever, being the holder of a licence for the sale or manufacture of
any intoxicant under this Act, or a person in the employ of such holder 1
[or
any other person]1
,-
Inserted by Act 27 of 2007 w.e.f. 29-8-2007.
(a) sells or keeps or exposes for sale as foreign liquor, liquor which
he knows or has reason to believe to be Indian liquor; or
(b) marks any bottle or the cork of any bottle, case, package, or
other receptacle containing Indian liquor or uses any bottle,
case, package or other receptacle containing Indian liquor,
with any mark thereon or on the cork thereof, with the intention
of causing it to be believed that such bottle, case, package or
other receptacle contains foreign liquor, when such act shall
not amount to the offence of using a false trade mark with
intention to deceive or injure any person under section 482 of
the Indian Penal Code; or
(c) sells or keeps or exposes for sale any Indian liquor in a
bottle,case, package or other receptacle with any mark thereon
or on the cork thereof with the intention of causing it to be
believed that such bottle, case, package or other receptacle
contains foreign liquor, when such act shall not amount to the
offence of selling goods marked with counterfeit trade mark
under section 486 of the Indian Penal Code;
shall, on conviction, be punished with imprisonment for a term which may
extend to 1
[five years and with fine which may extend to fifty thousand
rupees.]1
2
[Provided that the punishment,-
(i) for the first offence shall be not less than 1
[three years’ imprisonment
and fine of not less than twenty thousand rupees]1
; and
(ii) for the second and subsequent offences shall be not less than
imprisonment for 1
[five years and fine of not less than fifty thousand rupees]1
for each such offence;]2
Substituted by Act 14 of 2005 w.e.f. 11.4.2005.
Inserted by Act 1 of 1970 w.e.f. 23-12-1969.
1966: KAR. ACT 21] Excise 393
Penalty for consumption in Chemist’s shop, etc.- (1) A chemist
druggist, apothecary or keeper of a dispensary, who allows any intoxicant
which has not been bona fide medicated for medicinal purposes to be
consumed on his business premises by any person shall, on conviction, be
punished with imprisonment for a term which may extend to three months or
with fine which may extend to one thousand rupees, or with both.
(2) Any person not employed as aforesaid, who consumes any such
intoxicant on such premises shall, on conviction, be punished with fine
which may extend two hundred rupees.
1
[38A. Penalty for allowing premises, etc, to be used for the
purpose of committing an offence under this Act.- Whoever, being the
owner or occupier or having the use or care or management or control, of
any place, room, enclosure, space, vessel, vehicle , or place knowingly
permits it to be used for the purpose of commission by any other person of
an offence punishable under sections 32, 33, 34, 36 and 37 shall, on
conviction, be punished as if he has committed the offences punishable
under the respective sections.]1
Inserted by Act 1 of 1970 w.e.f. 23-12-1969.
Manufacture, sale or possession by one person on account of
another.- (1) Where any intoxicant has been manufactured or sold or if
possessed by any person on account of any other person and such other
person knows or has reason to belive that such manufacture or sale was or
that such possession is, on his account, the article shall, for the purposes of
this Act, be deemed to have been manufactured or sold by or to be in the
possession of such other person.
(2) Nothing in sub-section (1) shall absolve any person, who
manufactures, sells or has possession of any intoxicant on account of
another person from liability to any punishment under this Act for unlawful
manufacture, sale or possession of such article.
Presumption as to commission of offence in certain cases.- In
prosecutions under section 32 and section 34, it shall be presumed, until the
contrary is proved, that the accused person has committed the offence
punishable under that section in respect of,-
(a) any intoxicant; or
(b) any still, utensil, implement or apparatus whatsoever in the
manufacture of any intoxicant other than toddy; or
(c) any material which have undergone any process towards the
manufacture of an intoxicant or from which an intoxicant has been
manufactured,
for the possession of which he is unable to account satisfactorily.
394 Excise [1966: KAR. ACT 21
Criminal liability of licensee for acts of servants.- Where any
offence under section 32, section 33, section 34, section 36 or section 37 is
committed by any person in the employ and acting on behalf of the holder of
a licence or permit granted under this Act, such holder shall also be
punishable as if he had committed himself the said offence, unless he
establishes that all due and reasonable precautions were exercised by him
to prevent the commission of such offence:
Provided that no person other than the actual offender shall be
punishable under this section with imprisonment, except in default of
payment of fine.
Enhanced punishment after previous conviction.- If any person
after having been previously convicted of an offence punishable under
1
[xxx]1 section 38 or under the corresponding provisions of any enactment
repealed by this Act, subsequently commits and is convicted of an offence
punishable under 2
[the said section]2
, he shall be liable to twice the
punishment which might be imposed on a first conviction under this Act:
Provided that nothing in this section shall prevent any offence which
might otherwise have been tried summarily under 3
[Chapter XXI of the Code
Of Criminal Procedure, 1973]3
, from being so tried.
Omitted by Act 1 of 1970 w.e.f. 23-12-1969.
Substituted by Act 1 of 1970 w.e.f. 23-12-1969.
Substituted by Act 32 of 1982 w.e.f. 4.9.1982.
1
[42A. Security for abstaining from commission of certain
offences.- (1) Whenever any person is convicted of an offence punishable
under section 32, section 33, section 34, section 36, or section 37 and the
court convicting him is of opinion that it is necessary to require such person
to execute a bond for abstaining from the commission of such offence, the
court may, at the time of passing sentence on such person, order him to
execute a bond in the prescribed form for a sum proportionate to his means,
with or without sureties, for abstaining from the commission of such offences
during such period, not exceeding three years, as it thinks fit to fix.
Inserted by Act 1 of 1971 w.e.f. 07.08.1970.
(2) The provisions of the 1
[Code of Criminal Procedure, 1973]1
, shall, in
so far as they are applicable, apply to all matters connected with such bond
as if it were a bond to keep the peace ordered to be executed under section
106 of the said Code.
Substituted by Act 32 of 1982 w.e.f. 04.09.1982
(3) If the conviction is set aside on appeal or otherwise, the bond so
executed shall become void

The Karnataka Excise Act, 1965

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