Section 37: Penalty for adulteration, etc., by licensed vendor or manufacturers

Whoever being the holder of a licence for the sale or manufacture of any intoxicant under this Act, or a person in the employment of such holder,-

(a) mixes or permits to be mixed with 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 the offence of the adulteration under section 272 of Indian Penal Code; or

(b) sells or keeps or exposes for sale as Foreign Liquor, liquor which he knows or has reason to believe to be ¹[Indian Made Foreign Liquor]; or

(c) makes any bottle or the cork of any bottle, case, packing or other receptacle containing ¹[Indian Made Foreign Liquor], or uses any bottle, case, package or other receptacle containing ¹[Indian Made 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 trademark with intention to deceive or injure any person under section 482 of the Indian Penal Code; or

(d) sells or keeps or exposes for sale any ¹[Indian Made Foreign Liquor] in a bottle, case, package or other receptacle with any mark thereon or on the mark 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;

²[(e) makes any block for printing counterfeit excise adhesive label, photo copies of such label for counterfeiting, prints any counterfeit excise adhesive label, makes counterfeit cork or capsule, to be used on bottles, packages or other receptacles containing ¹[Indian Made Foreign Liquor] or Foreign Liquor or in possession of counterfeit excise adhesive label, cork, capsule, block or any other material to be used for printing such label or making such cork or capsule.] ³[shall on conviction be punished with imprisonment,-

⁴[(i) in case of first offence for ⁵[a term which shall not be less than three years but which may extend upto five years] and with fine which shall not be less than rupees ten thousand but which may extend upto rupees thirty thousand.

(ii) in case of second or subsequent offence for ⁵[a term which shall not be less than three years but which may extend up to six years] and with fine which shall not be less than rupees fifty thousand but which may extend upto rupees one lakh.]