Tamil Nadu Prohibition (Amendment) Act, 1981*
| [Tamil Nadu Act No. 23 of 1981]* | [22nd April, 1981] |
An Act further to amend the Tamil Nadu Prohibition Act, 1937.
Be it enacted by the Legislature of the State of Tamil Nadu in the Thirty-second Year of the Republic of India as follows:-
* For Statement of Objects and Reasons, see Tamil Nadu Government Gazette Extraordinary, dated the 6th April, 1981, Part IV-Section 1, page 507.
* Received the assent of the Governor on the 22nd April, 1981, first published in the Tamil Nadu Government Gazette Extraordinary on the 22nd April, 1981 (Chithirai 10, Thunmathi-2012-Thiruvalluvar Aandu).
1. Short title and commencement.- (1) This Act may be called the Tamil Nadu Prohibition (Amendment) Act, 1981.
(2) It shall come into force on such date as the State Government may, by notification, appoint.
2. Amendment of section 3, Tamil Nadu Act X of 1937.- In section 3 of the Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937) (hereinafter referred to as the principal Act),-
(i) clause (1) may be re-numbered as clause (1-A) and before clause (1-A) as so re-numbered, the following clause shall be inserted, namely:-
"(1) ‘blending unit’ means a unit where arrack or Indian-made foreign spirits are manufactured;";
(ii) after clause (5), the following clause shall be inserted, namely:-
"(5-A) ‘excisable article’ means any alcoholic liquor for human consumption but does not include medicinal and toilet preparations mentioned in entry 84 of List I in the Seventh Schedule to the Constitution;";
(iii) after clause (6), the following clause shall be inserted, namely:-
"(6-A) ‘foreign liquor’ (except for purposes of section 21-A) includes every liquor imported into India, other than Indian-made foreign spirits, plain rectified spirits and denatured and methylated spirits;";
(iv) after clause (7), the following clause shall be inserted, namely:-
"(7-A) ‘Indian-made foreign spirits’ means spirits manufactured and compounded in India aid made in colour and flavour to resemble gin, brandy, whisky or rum imported into India and includes "milk punch" and other liquors consisting of or containing spirits;";
3. Substitution of new sections for section 17-B, Tamil Nadu Act X of 1937.- For section 17-B of the principal Act, the following sections shall be substituted, namely:-
"17-B. Licence for manufacture, etc., of potable liquor.-The State Government, or subject to their control, the Collector may, subject to such conditions as may be prescribed, issue licence to any person or any institution whether under the management of Government or not,-
(a) for the manufacture of liquor for human consumption-
(i) for the purpose of sale to persons and institutions who hold permits or licences for sale of such liquor;
(ii) for other purposes permitted under this Act; or
(b) for the import, export or transport of liquor for human consumption.
17-C. Exclusive privileges of manufacture, etc., may be granted.-(1) It shall be lawful for the State Government to grant to any person or persons on such conditions and for such period as they may deem fit the exclusive or other privilege-
(a) of manufacturing or supplying by wholesale, or
(b) of selling by retail, or
(c) of manufacturing or supplying by wholesale and selling by retail,
any liquor other than foreign liquor within any local area.
(2) No grantee of any privilege under this section shall exercise the same until he has received a licence in that behalf from the prescribed authority".
4. Insertion of new sections 18-B to 18-G in Tamil Nadu Act X of 1937.- After section 18-A of the principal Act, the following sections shall be inserted, namely:-
"18-B. Excise duty or countervailing duty on excisable articles.-(1) Notwithstanding anything contained in section 18-A, with effect on and from the date of the commencement of the Tamil Nadu Prohibition (Amendment) Act, 1981, an excise duty or countervailing duty at such rate not exceeding rupees thirty per proof litre as the State Government may, from time to time, by notification specify, shall be levied on all excisable articles-
(a) permitted to be imported under this Act;
(b) permitted to be exported under this Act;
(c) permitted to be transported under this Act;
(d) manufactured under any licence granted under this Act;
(e) manufactured at any distillery, blending unit or brewery licensed or established under this Act;
(f) issued from a distillery, blending unit, brewery or warehouse licensed or established under this Act; or
(g) sold, in any part of this State.
(2) Nothing in this section shall authorise the levy of any duty which as between excisable articles manufactured or produced in the State and similar excisable articles not so manufacture or produced, discriminates in favour of the former or which in the case of excisable articles manufactured or produced outside the State discriminates between excisable articles manufactured or produced in one locality and similar excisable articles, manufactured or produced in another locality.
18-C. How duty may be imposed.-The excise duty or the countervailing duty under section 18-B may be levied in one or more of the following ways:-
(a) by duty of excise to be charged in the case or spirits or beer either on the quantity produced in, or passed out of a distillery, blending unit, brewery or warehouse licensed or established under this Act, 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;
(b) by payment of a sum in consideration of the grant of any exclusive or other privilege-
(1) of manufacturing or supplying by wholesale, or
(2) of selling by retail, or
(3) of manufacturing or supplying by wholesale and selling by retail,
any liquor other than foreign liquor in any local area and for any specified period of time;
(c) by fees on licences for manufacture or sale;
(d) in the case of toddy, or spirits manufactured from toddy, by a tax on each tree from which toddy is tapped or drawn, to be paid in such instalments and for such period as the State Government may direct; or
(e) by import, export or transport duties assessed in such manner as the State Government may direct;
Provided that where there is a difference of duty as between two licence periods, such difference may be collected in respect of all stocks of liquor other than foreign liquor held by licensees at the close of the former period.
18-D. Tax for tapping of or drawing from, unlicensed trees from whom leviable.-(1) When duty is levied by way of tax on toddy trees under section 18-C, the State Government may, notification, direct that the licence required under this Act, shall be granted only on the production, by the person applying for it, of the written consent of the owner, or person in possession, of such trees to the licence being granted to such person so applying for it; and when such notification has been issued such tax shall, in default of payment by the licensee, be recoverable from the owner or other person in possession who has so consented.
(2) When, in like case, trees are tapped or toddy is drawn without licence, the tax due shall be recoverable primarily from the tapper or drawer or in default by him from the occupeir, if any, of the laud, 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 or toddy was drawn without his consent.
18-E. Duties may be farmed.-All or any of the duties leviable under this Act in any local area may, with the potion of the State Government, be farmed, subject to such payment and on such other conditions as the State Government shall specify. Farmers of duties under this section shall take out licences as such from such authority as may be prescribed.
18-F. Toddy farmer may grant licence.-When the exclusive or other privilege of manufacturing toddy has been granted under section 17-C, the State Government may declare that the written permission of the grantee to tap or draw toddy shall have, within the area to which the privilege extends the same force and effect as a licence from such authority as may be prescribed for that purpose under this Act.
18-G. Farmer may let or assign.-In the absence of any contract or condition to the contrary, any grantee of any exclusive or other privilege may let or assign the whole or any portion of his privilege or farm. But no such lessee or assignee shall exercise any rights as such unless and until the grantee or farmer, as the case may be, shall have applied to the prescribed authority for a licence to be given to such lessee or assignee, and such lessee or assignee shall have received the same".
5. Insertion of new section 15-A in Tamil Nadu Act X of 1937.- After section 19 of the principal Act, the folio wing section shall be inserted, namely:-
"19-A. Licence for tapping or drawing of any toddy, etc.,-Subject to the control of the State Government and subject to such conditions as may be prescribed, the prescribed authority may,-
(i) issue licences to any person,-
(a) for tapping any toddy-producing tree or permitting or suffering toddy to be tapped from any tree belonging to him or in his possession; or
(b) for drawing toddy from any tree or permitting or suffering toddy to be drawn from any tree belonging to him or in his possession; or
(ii) issue permits for the possession or transport of such toddy".
6. Amendment of section 21, Tamil Nadu Act X of 1937.- In section 21 of the principal Act, for the figures, letter and word "17-B, 18, 19 or 20", the figures, letters and word "17-B, 17-C, 18, 19, 19-A or 20" shall be substituted.
7. Substitution of new section for section 22, Tamil Nadu Act X of 1937.- For section 22 of the principal Act, the following section shall be substituted, namely:-
"22. Counterpart agreement to be executed by licensees.-Every person taking out any licence or permit under section 6-A, 17-B, 17-C, 18, 19, 19-A or 20 shall, if so required, execute a counterpart agreement in conformity with the tenor of his licence or permit and give such security for the performance of the agreement as the State Government, or the Collector or the prescribed authority, as the case may be, may require".
8. Amendment of section 23, Tamil Nadu Act X of 1937.- In section 23 of the principal Act,-
(a) in sub-section (1), for the words "The Collector", the words "The State Government or the Collector or the prescribed authority, as the case may be" shall be substituted:
(b) in sub-section (2), after the words "licence or permit", the words "issued by the Collector or the prescribed authority" shall be inserted.
9. Insertion of new sections, 24-A and 24-Bin Tamil Nadu Act X of 1937.- After section 24 of the principal Act, the following sections shall be inserted, namely:-
24-A. Punishment for adulteration, etc., by licensed vendor or manufacturer.-Whoever, being the holder of licence or permit for the sale or manufacture of liquor under this Act,-
(a) mixes or permits to be mixed with the liquor sold or manufactured by him,-
(i) any noxious drugs or any foreign ingredient likely to add to its actual or apparent intoxicating quality or strength, when such admixture shall not amount to the offence of adulteration under section 272 of the Indian Penal Code (Central Act XLV of 1860) or
(ii) any illicit liquor; or
(b) mixes or permits to be mixed with the arrack sold or manufactured by him any colour and flavour to resemble any Indian-made foreign spirit with the intention of causing it to be believed that such arrack is Indian made foreign spirit; or
(c) sells or keeps or exposes for sale,-
(i) as foreign liquor, liquor which he knows or has reason to believe to be liquor other than foreign liquor; or
(ii) as licit liquor, liquor which he knows or has reason to believe to be illicit liquor; or
(d) dilutes or permits to be diluted any liquor sold or manufactured by him with any matter whatsoever; or
(e) marks the cork of any bottle or any bottle, case, package or other receptacle containing liquor other than foreign liquor or uses any bottle, case, package or other receptacle containing liquor other than foreign 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 intent to deceive, or injure any person under section 482 of the Indian Penal Code (Central Act XLV of 1860); or
(f) sells or keeps or exposes for sale any liquor other than foreign 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 a counterfeit trade mark under section 486 of the Indian Penal Code (Central Act XLV of 1860),
shall be punished with rigorous imprisonment for a term which may extend to three years and with fine which may extend to three thousand rupees:
Provided that,-
(a) for a first offence, such rigorous imprisonment shall not be less than three months and such fine shall not be less than one thousand rupees,
(b) for a second or subsequent offence, such rigorous imprisonment shall not be less than six months and such fine shall not be less than two thousand rupees.
24-B. Offences by companies.-(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in-charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.-For the purposes of this section,-
(a) ‘company’ means any body corporate and includes a firm or other association of individuals, and
(b) ‘director’ in relation to a firm means a partner in the firm".
10. Insertion of new section 25-A in Tamil Nadu Act X of 1937.- After section 25 of the principal Act, the following section shall be inserted, namely:-
"25-A. Delegation of powers of State Government.- (1) The State Government may, by notification, authorise the Commissioner or any other officer subordinate to them to exercise any of the powers vested in them under this Act except the power to make rules and to issue notification.
(2) The exercise of any power delegated under sub-section (1) shall be subject to such restrictions and conditions as may be specified in the notification and subject also to control and revision by the State Government".