Section 42: Power of Chief Excise Authority to make rules

The Excise Commissioner may subject to the previous sanction of the ¹[State Government] make rules-

(a) regulating the manufacture, supply, storage or sale of any excisable article including-

(i) the erection, alteration, repair, inspection, supervision, management and control of any place for the manufacture, supply, storage or sale of such article or drug and the fittings, implements and apparatus to be maintained therein;

(ii) the cultivation of the hemp plant (Cannabis Sativa);

(iii) the collection of portions of the hemp plants (Cannabis Sativa) from which many intoxicating drugs can be manufactured and the manufacture of any intoxicating drug therefrom;

²[(iv) the bottling of liquor for the purpose of sale];

(b) regulating the deposit of any excisable article in a warehouse and the removal thereof from any such warehouse or from any distillery, pot-still or brewery;

(c) prescribing the scale of fees or the manner of fixing the fees payable in respect of any licence, permit or pass or of the storing of any excisable article:

Explanation. - Fees may be prescribed under this sub-clause at different rates for different classes of licence, permits, passes or storage and for different areas.

(d) regulating the time, place and manner of payment of any duty or fee;

(e) prescribing the restrictions under and the conditions on which any licence, permit or pass may be granted including provisions for the following matters-

(i) the prohibition of the admixture with any excisable article of any substance deemed to be noxious or objectionable;

(ii) the regulation or prohibition of the reduction of liquor by a licensed manufacturer or licensed vendor from a higher to a lower strength;

(iii) the fixing of the strength, price or quantity in excess of or below which any excisable article shall not be sold or supplied or possessed and of the quantity in excess of which denatured spirit shall not be possessed, and the prescription of a standard of quality or any excisable article:

(iv) the prohibition of sale except for cash;

(v) the fixing of the days and hours during which any licensed premises mayor may not be kept open, and the closure of such premises on special occasions;

(vi) the specification of the nature of the premises in which any excisable article may be sold and the notices to be exposed at such premises;

(vii) the form of accounts, to be maintained and the returns to be submitted by licence-holders; and

(viii) the regulation of the transfer of Licences;

(f) (i) declaring ³[substance and the process] by which spirit manufactured in India shall be denatured;

(ii) for causing such spirit to be denatured through the agency or under the supervision of Excise Officers;

(iii) for ascertaining whether such spirit has been denatured;

(g) providing for the destruction or other disposal of any excisable article deemed to be unfit for use;

(h) regulating the disposal of confiscated articles.⁴[;]

⁴[(i) Prescribing the norms of production of excisable articles from any king of raw material].