Andhra Pradesh Excise Act, 1968

The Andhra Pradesh Excise Act, 1968

• The Andhra Pradesh Excise Act was enacted in 1968 as Act 17.
• The act aims to consolidate and amend laws related to the production, manufacture, possession, transport, purchase, and sale of intoxicating liquor and drugs.
• It also covers the levy of duties of excise and countervailing duties on alcoholic liquors for human consumption, opium, Indian hemp, and other narcotic drugs and narcotics
• The act provides for matters connected to these issues within the state of Andhra Pradesh.
• The Act extends to the entire state of Andhra Pradesh.
• Upon the commencement of the Andhra Pradesh Prohibition Act, 1995, any provisions inconsistent with it ceased to operate.
• The government can bring the Act into force on a specified date through notification.

Definitions within the Act

• "Arrack" includes all liquors produced or manufactured in India and supplied by the Government, excluding Foreign Liquor and Indian Made Foreign Liquor.
• "Bar" refers to the privilege granted to an establishment serving food to sell Indian Made Foreign Liquor and Foreign Liquor for consumption on the premises.
• "Beer" encompasses ale, stout, porter, and all other fermented liquors typically made from malt.
• "Bona fide purpose” is a privilege granted for the sale/use of any intoxicant/liquor, not including Indian Made Foreign Liquor, Foreign Liquor, or Toddy
• "Bottle" means transferring liquor from one cask to another, or from casks or vessels to different receptacles for sale, with or without manufacturing processes, including re-bottling
• "Buy" or "buying" includes receiving anything, including gifts.
• "Collector" is the district collector, including the Joint Collector, or any government-appointed person exercising the powers of a Collector under the Act.
• "Commissioner" refers to the officer appointed under section 3 of the act.
• "Corporation” means the Andhra Pradesh Beverages Corporation Limited, Hyderabad.
• "Cultivation" or "cultivating" includes tending to or protecting a plant during growth, not necessarily implying raising it from seed.
• "Denatured" means a substance subjected to a prescribed process rendering it unfit for human consumption.
• "Excisable article" includes any alcoholic liquor for human consumption or any intoxicating drug.
• "Excise duty" or "countervailing duty" refers to the duty mentioned in entry 51 in List II of the Seventh Schedule to the Constitution, including additional excise and countervailing duties
• "Excise officer" means the Commissioner, the Collector, or individuals appointed/invested with powers under the Act.
• "Excise revenue" includes revenue derived from duties, fees, taxes, rents, fines, penalties, or confiscations levied under this Act or any other law relating to intoxicating liquors/drugs.
• "Excise tree" is any tree of mohwa, coconut, palm, palmyrah, date, bagani, sago, sendhi, or any tree of the species of palm or palmyrah, from which toddy or liquor can be prepared.
• "Export" means taking something to an area of the State where the Act doesn't extend, or taking something out of the State from other than a Customs station.
• "Foreign liquor" includes every liquor imported into India, other than Indian liquor and arrack.
• "Government" means the State Government.
• "Grama/Ward Mahila Samrakshana Karyadarshi” refers to those employed in Village/Ward Secretariats and Gram/Ward Volunteers belonging to the Department of Gram Volunteers/Ward Volunteers and Village Secretariats/Ward Secretariats.
• "Import" means bringing something into an area of the State from another area of the State where this Act doesn't extend, or from outside the State to other than a Customs station.
• "Indian Made Foreign Liquor" is liquor produced, manufactured, or compounded in India after the manner of Gin, brandy, whisky or rum imported from foreign countries; includes Wine, Beer, Mild Punch, and other liquors consisting of or containing any such spirits, but does not include Foreign liquor.
• "In-house" means the privilege granted under the Act for sale of Indian Made Foreign Liquor and Foreign Liquor by a Club, Guest House of A.P. Tourism Development Corporation, Military Canteen, Airport Transit lounge for International Air passengers
• "Intoxicant" means any liquor defined in clause (21) or any drug defined in clause (20), including gulmohwa (mohwa flower).
• "Intoxicating drug" includes the leaves, stalks, and flowering tops of the Indian hemp plant (bhang, siddi, ganja), charas (resin from hemp), mixtures with neutral materials, and any other substance the Government declares to be an intoxicating drug - but not opium, coca leaf, or drugs defined in the Narcotic Drugs and Psychotropic Substances Act, 1985.
• "Liquor" includes wine spirits, denatured/methylated/rectified spirits, beer, toddy and every liquid consisting of or containing alcohol, as well as any other intoxicating substance that the Government may declare as liquor.
• "Manufacture" includes every process, whether natural or artificial, by which any fermented, spirituous, or intoxicating liquor or intoxicating drug is produced, re-distillation is also included.
• “Material” includes molasses, wash, and other substances specified by the State Government in a notification.
• "Molasses” are heavy dark residual syrups from the manufacture of jaggery, sugar, Akhandasari sugar cane, or gur, containing sugars that can be fermented, including any product formed by adding ingredients that don't alter the syrup's character, but this does not include any article that the State Government may, by notification, declare not to be molasses
• "Notification" is a notice published in the Andhra Pradesh Gazette, and "notified" is to be construed accordingly.
• "Place" includes a house, building, booth, shed, enclosure, shop, tent, vessel, raft and vehicle
• "Police station” includes any place which the Government may, by notification, declare to be a police station for the purposes of this Act.
• "Prescribed" means prescribed by rules made under this Act.
• "Rectification" includes every process whereby spirits are purified/colored/flavored by mixing any material.
• "Sale" or "selling" includes any transfer otherwise than by way of gift;
• “Shop” means the privilege granted under the Act for exclusive sale of Indian made Foreign Liquor or Foreign Liquor in sealed or capsule bottles or packages or tins to an individual in quantities not exceeding the limits as prescribed without permitting consumption on the licensed premises.
• “Special Enforcement Bureau” means the Department of Special Enforcement Bureau.
• "Special Enforcement Bureau Officers” means the Commissioner of Special Enforcement Bureau or any other officer employed/posted in Special Enforcement Bureau or invested with powers under the relevant provisions of this Act
• "Spirit" is liquor containing alcohol obtained by distillation.
• "Toddy" is fermented or unfermented juice drawn from an excise tree that contains alcohol.
• "Transport" means to move from one place to another within the State (even if it involves an intervening area), and to move something out of in through the State.
• "Wash” includes fermented wort or a dilute solution of sugar from which spirit is distilled.

Establishment and Control Under the Act

• The Government may appoint by notification a Commissioner of Excise for the State as the chief controlling authority in matters connected with the administration of the Act.
• The Commissioner can exercise all powers of the Collector under the Act and controls the administration of the Excise Department.
• Collectors exercise powers and functions assigned by or under this Act, subject to the Commissioner's control
• The Government may appoint Additional Commissioners, Joint Commissioners, Deputy Commissioners, Assistant Commissioners of Prohibition, Excise, and District Prohibition and Excise Officers.
• They can also appoint other officers to perform the functions under this Act.
• Government can sanction Superintendents, Assistant Prohibition and Excise Superintendents, and other subordinate staff.
• Officers perform functions within areas assigned by Government or Commissioner.
• The Commissioner, Collector, or Excise Superintendent may delegate powers or functions to subordinate officers but only subject to such restrictions, control, limitations, and conditions applied.

Import, Export, and Transport Regulations

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• No intoxicant import without a permit from an officer not below Excise Superintendent, and according to terms prescribed, on payment of excise or countervailing duty.

• The officer may allow import without duty to ensure duty collection

• No countervailing duty is payable on an intoxicant that has already been paid under the Indian Tariff Act, 1934, or any other customs law.

• Imports can be ordered canceled by the officer granting the permit if there is a breach of conditions, or they can be canceled for any other recorded reason.

• Export of intoxicants is regulated similarly, requiring a permit from an officer not below the rank of Excise Superintendent, on prescribed terms, and on payment of fees.

• Intoxicants produced/manufactured in India can only be exported if the excise/countervailing duty has been paid.

• Permits can be canceled with a written order by the issuing officer

• The Government may prohibit/regulate the transport of intoxicants from/to any area within the State, or from one State to another.

• Transport of intoxicants exceeding prescribed quantities requires a permit.

• Permits for transporting intoxicants may be issued by officers authorized by the Commissioner, not below the rank of an Assistant Prohibition and Excise Superintendent.

• Permits can be either general (for definite periods/kinds of intoxicants) or special (for specified occasions/particular consignments)

• General permits are only issued to licensed individuals, specifying the maximum transportable quantity at one time.

• Permits must specify the name of the authorized transporter, the period and valid route, the quantity, strength, and description of intoxicants, and conditions of transport.

• The expression 'person authorized' includes the person's servants/employees acting on the permit holder's behalf.

Manufacture, Possession, and Sale Regulations

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• No person shall manufacture/collect an intoxicant, cultivate hemp plants, tap excise trees, draw toddy, construct/operate distilleries or breweries, or bottle liquor for sale without a licence issued by an officer not below the rank of an Excise Superintendent.
• Using or possessing materials, stills, utensils, or apparatus to manufacture any intoxicant besides toddy requires the proper license and authorization.
• The clauses related to establishing, continuing or licensing a distillery shall apply only to those distilleries which manufacture spirits for potable purpose otherwise regulatory provisions relating to regulation and supervision, shall be applicable to all distilleries.
• Licenses extend to the licensee's servants or employees acting on their behalf.
• Government can direct that certain areas do not require a license for manufacturing liquor for bona fide home consumption.
• Government can specify the maximum quantity of intoxicants a person can possess through notification.
• Maxima can vary for different types of intoxicants.
• Possession of intoxicants exceeding specified quantities is prohibited without a related license or permit.
• No selling or buying intoxicants without a license.
• A person licensed to draw toddy can sell that toddy to a person licensed to buy toddy without further licensing for the sale.
• Licenses must be applied for under any conditions the Commissioner specifies
• Licenses for sale/buying are granted by the Excise Superintendent (within a district), the Deputy Commissioner (in multiple districts within their jurisdiction), or by the Commissioner (in an area spanning multiple Deputy Commissioners).
• A license in another part of India is treated like the others, subject to any other conditions the Commissioner implements.
• This does not apply to the sale of lawfully procured liquor for private use (or sold after a death).
• Clubs/hotels supplying liquor to members/customers for payment need a license granted by the Commissioner, with fees based on a prescribed scale of fees, regardless.

Distilleries and Warehouses

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• The Commissioner may, with the prior sanction of the Government, establish/continue a distillery where spirit may be manufactured on conditions the government may enforce:
• The Commissioner may, discontinue established distilleries.
• The Commissioner must, license the construction and work of a distillery or brewery subject to conditions
• The Commissioner is required to establish and continue to license warehouses where excise items may be kept or deposited:
• The Commissioner may, discontinue those established warehouses.
• A warehouse must be one of general accommodation of excisable articles pending removal.
• Intoxicants cannot be removed from a licensed distillery, brewery, warehouse, or storage without the sanction of the Government and payment of duty.
• The provisions of this section in so far as they relate to establishing, continuing or licensing a distillery shall apply only to those distilleries which manufacture spirits for potable purpose and other regulatory provisions relating to regulation and supervision, shall be applicable to all distilleries.

Exclusive Privilege Grant

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• The government may grant a lease/license/both for exclusive privilege at any place within the State for tapping/drawing toddy, for exclusive privilege of manufacturing/supplying/selling wholesale or retail

• Government can prescribe different methods for selecting the grant of exclusive privilege for different items.

• Licenses/leases for 'Shop' may be granted for a period not exceeding two years at a time.

• Licensees must obtain a license from the Commissioner/authorised officer to use their privileges. Govt has the powers to specify on any officer all or any of the sub section 1&3.

• The Commissioner of Prohibition and Excise may, after due inquiry as he deem fit, permit a licence holder in respect of manufacture of any liquor or intoxicant to sub-let such a privilege and grant a licence to the person who holds the sub-lease, on collection of such fee as may be prescribed.

Licensee Duties and Restrictions

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• Licensees who manufacture/sell intoxicants must keep set measures, weights, and instruments properly.

• Licensees must measure, weigh, or test any intoxicant as required by an excise officer.

• Licensees must not employ children under a certain age during hours of operation.

• They should not employ anyone with leprosy or contagious conditions.

Closures for Public Peace

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• District Magistrate can order shops closed at certain times to maintain public peace as well as any bar

• Magistrates near riots or unlawful assemblies can close shops for reasonable periods as well as any shop.

• The licensee is not entitled to compensation/refund of fees due to closures.

Excise, Additional, and Countervailing Duties

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• In a state notification, the Government may implement added excise duty for manufactured or produced excisable items, as well as import fees, and this implementation will not exceed the listed schedule.
• These may be fixed rates of duty on excisable articles or they may be differing forms of duty.

Modes of Levying Duties

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• Excise duty, additional excise duty, countervailing duty, and additional countervailing duty under section 21 may be levied in one or more of the following ways:
  • rateably, on the quantity or ad valorem of excisable article produced, manufactured, issued, or imported
  • in the case of spirits or liquors and in accordance with quality, strength, or materials used
  • in the case of toddy, a tax on each variety of excise tree having regard to the period during which such tree is capable of yielding toddy
  • By different rates of fees on licenses issued for different purposes mentioned in the sub-section (1) of Section 17 as may be prescribed.
• The Government is authorized to prescribe different modes for different products.

Exclusive Privilege Payment

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• The Commissioner or other authorized officers may accept payment for the grant of lease/license for exclusive privilege over liquor/intoxicant/material under Section 17

• The Government is authorised to prescribe rates for different purposes under sub-section 1 of Section 17.

Owner Intimations

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• Owners must notify authoritaties if unwilling to allow their private trees to be tapped in areas a duty is levied in section 21 of this act.

Tree Recoverables

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• Illegally tapped trees' duty is recoverable primarily from the tapper, occupier, the owner or person in possession.

Owner Entitlement

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• Licensed property owners shall receive up to "fifty percent" of the section 23 duty and the deposit must be deposited in treasury.

Restrictions

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• One may not destroy exicise tree without express order from the collector of government authorized actors or pay fees for it's removal.

Licenses, Permits & Conditions

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• Licenses are granted through the government, on set payment schedules, restriction codes, and other particulars that may be set within.

• There must be accomodations made for excise officers at set rates and the payment of costs, charges, salaries etc must be payed to officers supervising the license compliance.

Security

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• Requiring a licensor to provide any security towards the terms of the license

• Requiring a licensor to execute a contract agreement

Technical License Defects

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• A license is valid even when dealing wth technicality of some form. This commissioner has ultimate and unlimited power to ultimately decide any technicality.

License Action Codes

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• It may be required by local authority that the licensee action if:

• Payment isn't duly made

• A term is breached

• They are convicted of an offense

• Drugs or Trade act, central act offenses

• License revokations can occur when provisions indicate such, however due process requires representation from the accused. The entity that did initially authorized the license can itself cancel the license over the actors offenses. Licensors are not entitled to any damage payments due of the cancellation of one's license.

Withrawal of License

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• Upon the authority considering a withdrawal of an license, at least 30 days should be specified of the entities intention in doing so to the licensor.

• Payments will be refunded back where appliciable

Surrender of Licenses

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• Licenses can be surrendered after one month of writing and intent, but payments will not be refunded. This rule does not apply to those under section 17.

Penalties

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• Illegally acting in any sub section of 34 will be punished, be it importing, exporting, transporting etc

• In several circumstances the punishment will range for 6 months to multiple years and may invovle fines in excess of 10,000s rupees

• Alcohol must be prevented from un-denaturing , and doing so will result in further fines

• Explanation- The explanation specifies chemical presumptions unless proved other wise

• Several penalitions will apply towards ones license on any infraction.

• If one does not do something then is considered guilty of an offense and penalties

• Drunkeness, disorder, or other riotous activites is not permitted.

• Licenses can be denied, revoked, or suspended following infraction

• They may be penalized with inprisonment for some time.

• If caught a second or subsequent time the term or fees will increase under local law.

Adulteration Penalties

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• Vender adulteration of another's stock with "an article prohibited by any rule made under this Act" will trigger code provisions.

• Any foreign liquor being sold as indian liquor is a violation of this rule, as well and trade mark alteration of liquors shall be further prosecued under Indian Penal Code

• Counterfitting, or other material in aid of a criminous act is fully prohibited under Indian code, and is punishable by imprisonment, with increased time if its a repeat.

• There are further death triggers that cause life imprisonment to those who caused pain or suffering, otherwise there are provisions where reasonable care wasn't given or precautions against deaths.

• Those who possess such liquor will be considered a year if not up to a decade of sentence time.

• It is up to the high court on an apreal to compensate those who were hurt in a case of illegal actions or activities by a owner, manager, or possessor of something in this code.

Chemist Code

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• A chemist who allows intoxicant that wasn't to be medicated will be imprisoned in this section.

Proxy Code Section

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• Sale of a substance from one person to another will trigger additional penalties.

Destruction of Exise Tree Code

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• One who destroys trees under this section will be impirosned for 3 months at not less than a 1000 fine.

False Affidavit Code

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• One making a false affidavit in the excise will be punished under this section

Unotherwise Provided For Code

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• This is a catch-all provision, with a six month penalty.

Commission Presumption

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• It will be presumed one has acted a criminous act under some sections, which can include.

• An intoxicant

• utensils of some form with a material

• A satisfactory explaintation cannot be given.

License Criminal Liabilility for Serve-ants

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• One is liable under the actions of a serve-ant and may act as if they committed the crime.

• This can be overruled if due diligence was reasonably exercised.

43A punishment Code For Comission

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• The premise will be liable as if the owner was involved.

Additional Punishment section

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• If a section is committed the punishement will be doubled. Section 45-50.A are applicable.

Items to Confisicate

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• Any intoxicant, materials, still, utensil, implements or apparatus

  • Any lawfully material used in possession, transported.

• Receptable materials of anything contained.

Section 46

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• Anything that could be liable for punishment under this act, may be seized without reasonable delay and must be produced the officer seizing and has to present it to the authority..

• On such production of property , and it satified, then it may order said property confiscated as of this act.

Article 46a

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• You can bring the property only without the express knowledge without the owner's knowledge

Article 46-B

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• The offenders are never known

Special power Commissioner Article

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• One suspecting to be in falling under section 38 may have their case applied to "commision"

47 Code

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• Compounding offences is punishable if license can be revoked on a given officer.

  • This in lieue of cancilation or suspsension for offences, property may also see be released so long as payment is fulfilled. There are minimum sums that govern the code as well.

Delay Code

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• Delaying or harrasing officers has penalities apply.

48. Penalty Code

• Exciese officers refusing duties will be penalized for 1-3 months and/or a term of 100-5000

50-A Code

• Attacking and attemptory attacks are heavily penalized as actions against officer

50-B

• Criminal conspiracies fall under the indian penal code and licenses will be revoked under any collusion activities.

Landholders/Officers Code

• All holders are expected to report illegal activity

Warrant Code

• Magistrates are expected to issue warrants on illegal activity or for personnel. This requires a written warrent to be granted first
• These will require information to ascertain the criminal and the item is criminal, an intoxicant, etc. that will allow an officer to undertake the job

Code 53-A - To assist other personnel and officers are entitled to assist each other when under legal duties

50-70 sections are about personnel conduct and rules under the law

• This incldues:
• Powers to reach places
• Penalities to search
• Duty conduct
• What actions may require punishment depending on conditions and conduct rules - all of the above
• There is a rule that may require further rules as prescribed
• A police officer may or may not be required , in these sections, depending the location. If a location falls within a a police station, then one is required.

Overview of The Andhra Pradesh Excise Act, 1968, Act 17. The act consolidates and amends laws related to intoxicating liquor and drugs, including production, transport and sale. It also covers excise duties on alcohol, opium, hemp and other narcotics within Andhra Pradesh.