MP Excise Act MCQs Set-2

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1. Under Section 16(4), State Government may:

a. Only regulate transport

b. Prohibit possession of intoxicants by notification

c. Only fix taxes

d. Only grant licences

2. The prohibition under Section 16(4) may apply:

a. Only in urban areas

b. Only to manufacturers

c. To any person or class of persons in State or specified area

d. Only to foreign nationals

3. Under Section 17(1), intoxicants may be sold only:

a. Freely without restriction

b. Under authority and conditions of a licence

c. With police permission only

d. Without any licence if quantity is small

4. Under Section 17, sale of intoxicants is generally:

a. Prohibited completely in all cases

b. Allowed only by courts

c. Allowed only under licence conditions

d. Allowed only in wholesale

5. Under proviso (a) of Section 17, tan drawn from trees may be sold without licence to:

a. Any person in market

b. Only government officers

c. Persons licensed to manufacture or sell tan

d. Foreign traders only

6. Under proviso (b) of Section 17, hemp plant cultivator may sell without licence to:

a. Any person in public

b. Only unlicensed traders

c. Licensed dealers or prescribed Excise Officer

d. Only farmers

7. The hemp plant under Section 17 refers to cultivation permitted under:

a. Section 9

b. Section 13

c. Section 11

d. Section 6

8. Under proviso (c), sale of foreign liquor without licence is allowed when:

a. It is imported recently

b. It is sold in wholesale only

c. It is lawfully procured for private use and sold on quitting station or after death

d. It is used for commercial trade

9. Section 17(1) mainly deals with:

a. Manufacture of intoxicants

b. Licensing requirement for sale of intoxicants

c. Import restrictions

d. Excise duty calculation

10. Under Section 17(2), a licence under other State Excise laws may be:

a. Cancelled automatically

b. Deemed valid under this Act

c. Treated as illegal

d. Converted into criminal liability

11. Deemed licence under Section 17(2) is subject to:

a. Approval of Parliament

b. Conditions determined by Excise Commissioner

c. Police verification only

d. Judicial sanction

12. The main purpose of Section 17 is to regulate:

a. Import of goods

b. Sale of intoxicants through licensing system

c. Criminal investigation

d. Tax exemption policy

13. Under Section 18(1), the State Government may lease to any person the right of:

a. Only manufacture of intoxicants

b. Only import of intoxicants

c. Manufacture, supply by wholesale or retail sale of liquor

d. Only transport of intoxicants

14. The lease under Section 18 may be granted:

a. Only by the Collector

b. Only by the Excise Commissioner

c. By the State Government on such conditions and for such period as it thinks fit

d. Only by Parliament

15. Under Section 18(1), the State Government may lease the right of:

a. Only retail sale of liquor

b. Only cultivation of hemp

c. Manufacturing or supplying or selling intoxicants within specified area

d. Only export of liquor

16. The lease under Section 18 is limited to:

a. Whole of India

b. Only municipal limits

c. Any specified area

d. Only rural areas

17. Under Section 18(2), licence to a lessee is granted by:

a. Police authority

b. Licensing authority

c. High Court

d. Central Government

18. A licence granted under Section 18(2) must be:

a. Different from lease terms

b. Independent of lease

c. In terms of the lease

d. Without conditions

19. Under Section 18(2), sub-letting is:

a. Always prohibited

b. Always mandatory

c. Allowed only if lease does not prohibit and approved by authority

d. Allowed without restriction

20. A sub-lessee licence under Section 18 may be granted when:

a. Collector permits orally

b. Sub-lessee is approved by licensing authority

c. Only State Government approves directly

d. Court orders it

21. Section 18 primarily deals with:

a. Criminal offences

b. Lease of excise rights

c. Import duties

d. Transport permits

22. Under Section 18, the State Government may lease rights relating to:

a. Only agriculture production

b. Manufacture, wholesale supply, or retail sale of intoxicants

c. Only medical alcohol

d. Only export of goods

23. Under Section 19, the State Government may declare that written permission of lessee to draw tari shall have:

a. No legal effect

b. Effect of police permission

c. Same force as a Collector’s licence

d. Effect of court order

24. Section 19 applies where right of manufacturing is leased under:

a. Section 17

b. Section 18

c. Section 16

d. Section 11

25. “Tari” in Section 19 refers to:

a. Distilled alcohol

b. Fermented or unfermented palm juice

c. Hemp product

d. Grain alcohol

26. Under Section 20, within Military Cantonments, retail liquor licence shall not be granted except with:

a. Collector’s approval only

b. Excise Commissioner’s approval only

c. Knowledge and consent of Commanding Officer

d. State Government notification

27. Section 20 applies to:

a. Only civil areas

b. Military Cantonments and nearby prescribed areas

c. Only rural villages

d. Only metropolitan cities

28. Distance from Military Cantonment limits is prescribed by:

a. State Government

b. High Court

c. Central Government

d. District Collector

29. Under Section 21, licensee must:

a. Use only verbal measurements

b. Supply prescribed weights, measures and instruments

c. Avoid keeping instruments on premises

d. Use only government instruments

30. Instruments under Section 21 are prescribed by:

a. Police Commissioner

b. Excise Commissioner

c. Central Government

d. Magistrate

31. Under Section 21, Excise Officer may:

a. Only inspect premises once a year

b. Require measurement, weighing or testing of intoxicants

c. Only issue licences

d. Only collect tax

32. Duties under Section 21 apply to:

a. Only manufacturers

b. Only sellers

c. Every person manufacturing or selling intoxicants under licence

d. Only exporters

33. Under Section 27-A, Section 27-A permits the State Government to continue levy of duty:

a. Only after Parliament approval

b. Until provision to the contrary is made by Parliament

c. Only for one year after Constitution

d. Only with High Court permission

34. Under Section 27-A(1), continuation of duty was valid only if it was being levied:

a. After 1950 Constitution amendment

b. Immediately before commencement of the Constitution

c. After 1915 Act enforcement

d. Only after State notification

35. Section 27-A applies to duties:

a. Newly introduced after Constitution

b. Lawfully levied before Constitution commencement

c. Only imposed by Parliament

d. Only imposed by courts

36. Under Section 27-A(2)(a), the duty may be levied on:

a. Only foreign liquor

b. Intoxicants not being excisable articles under the Act

c. Only agricultural produce

d. Only industrial alcohol

37. Under Section 27-A(2)(b), duty may be levied on:

a. Only domestic goods

b. Only medicinal drugs

c. Excisable articles produced outside India and imported into the State

d. Only goods manufactured within State

38. Section 27-A permits duty on imported excisable articles even if:

a. They are exempt under customs law

b. They are imported across customs frontier or otherwise

c. They are not alcohol-based

d. They are locally produced

39. Section 27-A prohibits discrimination in duty between:

a. Goods of same brand only

b. Goods manufactured in State and similar goods not so manufactured

c. Only imported goods

d. Only retail and wholesale trade

40. Under Section 27-A(3), discrimination is also prohibited between:

a. Goods in same shop

b. Goods produced in different localities outside the State

c. Only government and private shops

d. Only licensed and unlicensed sellers

41. Section 27-A continues levy of duty until:

a. State Government withdraws it

b. Parliament makes provision to contrary

c. Collector cancels it

d. Supreme Court orders it

42. The main purpose of Section 27-A is to:

a. Introduce new licensing system

b. Continue pre-Constitution excise duties with non-discrimination safeguard

c. Abolish excise duty system

d. Regulate criminal procedure

43. Under Section 28(1), every licence or pass under the Excise Act is issued:

a. Without any conditions

b. Free of cost in all cases

c. On payment of fees and subject to prescribed conditions

d. Only after court approval

44. Under Section 28(1), licence conditions may be prescribed regarding:

a. Only criminal penalties

b. Form, period, restrictions and particulars of licence

c. Only import rules

d. Only tax exemptions

45. Under Section 28(2), licensee may be required to:

a. Sell unlimited liquor without target

b. Lift minimum quantity of country spirit or IMFL for sale

c. Only export liquor

d. Only store liquor without sale

46. Under Section 28(2), penalty may be imposed for:

a. Excess production only

b. Short lifting of minimum fixed quantity of liquor

c. Import violation only

d. Transport delay only

47. Under Section 28(3), penalty is leviable for:

a. Only criminal offences

b. Infraction or infringement of licence conditions

c. Only tax evasion

d. Only export violations

48. Under Section 28-A, supervision charges are imposed for:

a. Only retail sale of goods

b. Activities like manufacture, import, export, transport and sale of intoxicants

c. Only court proceedings

d. Only land revenue collection

49. Supervision under Section 28-A is carried out by:

a. Police Department only

b. Excise staff appointed by Excise Commissioner

c. Municipal officers only

d. Court-appointed officers only

50. Supervision charges under Section 28-A are paid to:

a. Local Panchayat

b. Central Government

c. State Government

d. Private agencies

51. Under Section 28-A, State Government may:

a. Only increase duty

b. Exempt any class of persons or institutions from supervision charges

c. Cancel all licences automatically

d. Fix criminal liability

52. Section 28 primarily deals with:

a. Manufacture offences

b. Form and conditions of licences and penalties for breach

c. Import prohibition

d. Transport regulation only

53. Under Section 29, any authority granting a licence may require the licensee to:

a. Pay income tax in advance

b. Execute a counterpart agreement and give security

c. Obtain court approval before starting business

d. Register under Companies Act only

54. Security under Section 29 may be required for:

a. Criminal liability only

b. Performance of agreement under the licence

c. Import of goods only

d. Transport of goods only

55. Under Section 29, the authority granting licence may require:

a. Only security deposit

b. Only execution of agreement

c. Security, deposit, or both

d. Only bank guarantee in all cases

56. A counterpart agreement under Section 29 must be:

a. Contrary to licence terms

b. In conformity with tenure of licence

c. Independent of licence conditions

d. Approved by High Court

57. Under Section 30(1), a licence shall not be invalid merely due to:

a. Fraudulent activity

b. Technical defect, irregularity or omission

c. Non-payment of duty

d. Criminal offence

58. Section 30(1) protects licences from invalidation due to defects in:

a. Only final judgment

b. Licence or prior proceedings taken before grant

c. Only manufacturing process

d. Only tax calculation

59. Under Section 30(2), the decision as to what constitutes a technical defect is made by:

a. District Court

b. State Government

c. Excise Commissioner

d. Collector

60. The decision of the Excise Commissioner under Section 30(2) is:

a. Appealable to High Court

b. Final

c. Advisory only

d. Subject to Parliament approval

61. Section 29 primarily deals with:

a. Licensing security mechanism

b. Import restrictions

c. Criminal punishment

d. Duty calculation

62. Section 30 ensures that licences are:

a. Easily cancelled

b. Protected from invalidation due to minor procedural defects

c. Always renewed automatically

d. Free from any conditions

63. Under Section 31(1), the authority granting a licence, permit or pass may cancel or suspend it if:

a. The holder requests cancellation only

b. Any duty or fee payable is not duly paid

c. The Collector orders it without reason

d. The State Government dissolves the Act

64. Cancellation or suspension under Section 31(1)(b) may occur in case of:

a. Increase in excise duty only

b. Breach of licence conditions by holder or his servants

c. Change in market price

d. Change in ownership of land

65. Under Section 31(1)(c), licence may be cancelled if the holder is convicted under:

a. Only civil laws

b. Excise Act or revenue-related laws or specified statutes

c. Only Motor Vehicles Act

d. Only Contract Act

66. Which of the following offences can lead to cancellation under Section 31?

a. Only traffic offences

b. Cognizable and non-bailable offences

c. Only minor civil disputes

d. Only tax disputes

67. Under Section 31(1)(d), licence may be cancelled if holder is convicted of:

a. Any civil offence

b. Any cognizable and non-bailable offence

c. Only excise offence

d. Only administrative violation

68. Under Section 31(1)(e), licence may be cancelled if punishment is imposed under:

a. Sea Customs Act, 1878 provisions

b. Income Tax Act, 1961

c. Companies Act, 2013

d. Evidence Act, 1872

69. Under Section 31(1)(f), cancellation may occur on:

a. Oral complaint by public

b. Written requisition of lessee under Section 18

c. Police suggestion only

d. Court recommendation only

70. Under Section 31(1)(g), cancellation is allowed if:

a. Licence conditions provide cancellation at will

b. Collector dislikes licensee

c. Market price changes

d. Demand increases

71. Under Section 31, cancellation power is subject to:

a. Only High Court directions

b. Restrictions prescribed by State Government

c. Only Parliament rules

d. No restrictions

72. Section 31 primarily deals with:

a. Grant of new licences

b. Suspension and cancellation of excise licences

c. Import duty calculation

d. Manufacture of intoxicants

73. Under Section 31(1-A), before cancelling or suspending a licence, the authority must:

a. Issue public notice only

b. Obtain High Court permission

c. Record reasons and give opportunity of hearing

d. Conduct police inquiry only

74. Under Section 31(1-A), the authority must furnish to the licence holder:

a. Full investigation report

b. Brief statement of reasons

c. Court judgment copy

d. Police FIR copy

75. Section 31(1-A) ensures compliance with:

a. Doctrine of separation of powers

b. Principle of natural justice

c. Doctrine of estoppel

d. Rule of strict liability

76. Under Section 31(2), cancellation of a licence under clauses (a), (b), (c) or (e) may lead to cancellation of:

a. Only same licence type

b. Any other licence under this Act or related excise laws

c. Only transport permits

d. Only retail licences

77. Section 31(2) empowers cancellation of other licences under:

a. Only Motor Vehicles Act

b. This Act and other laws relating to excise revenue

c. Only Civil Procedure Code

d. Only Criminal Procedure Code

78. Section 31(2) also includes cancellation of licences under:

a. Indian Contract Act

b. Opium Act, 1878

c. Income Tax Act

d. Evidence Act

79. Under Section 31(3), a licensee is entitled to:

a. Full refund of all deposits

b. Compensation for cancellation

c. No compensation for cancellation or suspension

d. Government pension benefits

80. Under Section 31(3), refund is not available for:

a. Taxes only

b. Fees paid or deposits made

c. Criminal fines only

d. Court costs only

81. Requirement of hearing before cancellation is given under:

a. Section 30

b. Section 31(1-A)

c. Section 29

d. Section 28

82. The main safeguard under Section 31(1-A) is:

a. Appeal to Supreme Court

b. Mandatory hearing before cancellation or suspension

c. Automatic renewal of licence

d. Compensation to licensee

83. Under Section 31(4), when a licence is cancelled under clause (c) or (e) of sub-section (1), the fee for the remaining period:

a. Is fully refunded to licensee

b. Becomes non-recoverable

c. May be recovered from the ex-licensee as excise revenue

d. Is waived automatically

84. Under Section 31(4)(a), the fee recoverable relates to:

a. Past period only

b. Balance period of licence

c. Only penalty period

d. Court proceedings period

85. Under Section 31(4), the recovered fee is treated as:

a. Civil damages

b. Excise revenue

c. Court fee

d. Private compensation

86. Under Section 31(4)(b), in case of cancellation, the Collector may:

a. Only warn the licensee

b. Take grant under management or resell it

c. Transfer case to court

d. Reduce excise duty

87. Under Section 31(4), management or resale is done at:

a. Profit of State Government only

b. Fixed price

c. Risk and loss of ex-licensee

d. Court valuation

88. Under Section 31(4), profit from resale is payable to ex-licensee if:

a. Always payable fully

b. It is in excess of recovered amount

c. It is less than recovered amount

d. Never payable

89. Under Section 31(4), if profit is not in excess of recovered amount, it is:

a. Paid to State Government only

b. Shared equally

c. Adjusted against recovery only

d. Refunded to Collector

90. Section 31(4) applies specifically when cancellation is under:

a. Clause (a) and (b)

b. Clause (c) or (e)

c. Clause (d) only

d. Clause (g) only

91. Under Section 31(4), Collector’s power includes:

a. Only seizure of goods

b. Management or resale of licence grant

c. Only suspension orders

d. Only tax assessment

92. The main purpose of Section 31(4) is to:

a. Provide criminal punishment

b. Protect revenue and manage consequences of licence cancellation

c. Increase retail prices

d. Regulate import duty

93. Under Section 32, a licence may be withdrawn for causes:

a. Only specified under Section 31

b. Other than those specified under Section 31

c. Only criminal offences

d. Only non-payment of tax

94. Before withdrawing a licence under Section 32(1), the authority must remit:

a. Full licence fee for the entire period

b. A sum equal to fees payable for fifteen days

c. Only penalty amount

d. No amount is required to be remitted

95. Under Section 32(1), withdrawal of licence may be done:

a. Only after court order

b. Either after 15 days’ notice or forthwith without notice

c. Only with Collector approval

d. Only after hearing licensee

96. Notice period required under Section 32(1)(a) is:

a. 7 days

b. 10 days

c. 15 days

d. 30 days

97. Under Section 32(2), additional compensation (if any) is directed by:

a. District Magistrate

b. State Government

c. Excise Commissioner

d. High Court

98. Under Section 32(2), compensation is payable:

a. Only in all cases

b. As Excise Commissioner may direct

c. Only by Collector

d. Only by court order

99. Under Section 32(3), upon withdrawal of licence:

a. No refund is allowed

b. Only partial refund is allowed without deduction

c. Fee paid in advance or deposit is refunded after deductions due to Government

d. Deposit is forfeited automatically

100. Under Section 32(3), refund is subject to deduction of:

a. Police charges

b. Court fees

c. Amount due to Government

d. Private damages

101. Section 32 applies when licence is withdrawn for:

a. Same reasons as Section 31 only

b. Causes other than those in Section 31

c. Only public emergency cases

d. Only criminal conviction cases

102. The main objective of Section 32 is:

a. To impose criminal liability

b. To regulate withdrawal of licences with compensation and refund mechanism

c. To increase excise duty

d. To regulate import of liquor

103. Under Section 33(1), a licence to sell intoxicant may be surrendered on:

a. Immediate notice without conditions

b. One month’s written notice to Collector

c. Three months’ notice to Excise Commissioner

d. Court permission only

104. Notice of surrender under Section 33 must be given to:

a. Police Commissioner

b. Excise Inspector

c. Collector

d. State Government

105. Under Section 33(1), surrender of licence requires payment of:

a. No fee

b. Only penalty

c. Fee for remaining period of licence

d. Refund of full fee

106. Under Section 33 proviso, Excise Commissioner may:

a. Cancel all licences

b. Remit whole or part of surrender amount

c. Increase surrender fee

d. Transfer licence to another person

107. Surrender remission under Section 33 is possible when:

a. Licensee is convicted of crime

b. Excise Commissioner is satisfied there is sufficient reason

c. Collector orders without reason

d. Police report is filed

108. Section 33(2) provides that Section 33(1) does NOT apply to licences granted under:

a. Section 13

b. Section 18

c. Section 10

d. Section 7

109. Under Section 33, surrender is applicable to:

a. Only manufacturing licences

b. Only transport licences

c. Licences to sell intoxicants

d. Only import licences

110. The explanation under Section 33 includes as “holder of licence”:

a. Only actual licence holders

b. Only government officers

c. Persons whose tender or bid is accepted even if licence not issued

d. Only manufacturers

111. Surrender fee is calculated based on:

a. Past usage only

b. Remaining period of licence

c. Market value of liquor

d. Criminal liability

112. The main purpose of Section 33 is:

a. To regulate import of liquor

b. To allow voluntary surrender of licences with financial settlement

c. To impose criminal punishment

d. To regulate transport of intoxicants

113. Under Section 34(1), penalty applies to contravention of:

a. Only court orders

b. Only municipal rules

c. Act, rules, notifications, orders or licence conditions

d. Only police instructions

114. Under Section 34(1)(a), punishment applies for:

a. Only consumption of liquor

b. Manufacture, transport, import, export, collection or possession of intoxicants

c. Only retail sale of food items

d. Only export of agricultural goods

115. Under Section 34(1)(b), selling intoxicant is punishable:

a. Only in all cases without exception

b. Except in cases provided under Section 38

c. Only with Collector permission

d. Only in wholesale

116. Under Section 34(1)(c), offence includes:

a. Cultivating wheat

b. Cultivating bhang

c. Cultivating tea

d. Cultivating sugarcane

117. Under Section 34(1)(d), offence includes:

a. Transporting alcohol

b. Tapping toddy-producing trees or drawing toddy

c. Selling beer

d. Importing wine

118. Under Section 34(1)(e), offence includes:

a. Only sale of liquor

b. Constructing or working a distillery, brewery or vintnery

c. Only transport of liquor

d. Only possession of liquor

119. Under Section 34(1)(f), offence includes possession of:

a. Only finished liquor

b. Materials, still, utensils or apparatus for manufacturing intoxicant (except toddy)

c. Only food materials

d. Only vehicles

120. Under Section 34(1)(g), offence includes:

a. Storage in house

b. Removal of intoxicant from licensed distillery, brewery or warehouse

c. Export of goods

d. Sale of medicines

121. Under Section 34, punishment may extend to:

a. 6 months imprisonment only

b. 1 year imprisonment and fine up to ₹5,000

c. 2 years imprisonment only

d. Life imprisonment

122. For second or subsequent offence under Section 34, minimum imprisonment is:

a. No minimum

b. 1 day

c. 2 months

d. 1 year

123. Under Section 34(2), enhanced punishment applies when quantity of liquor exceeds:

a. 10 bulk litres

b. 25 bulk litres

c. 50 bulk litres

d. 100 bulk litres

124. If liquor exceeds 50 bulk litres under Section 34(2), minimum imprisonment is:

a. 6 months

b. 1 year

c. 2 years

d. 5 years

125. Under Section 34(2), fine for first offence may extend up to:

a. ₹10,000

b. ₹50,000

c. ₹1,00,000

d. ₹5,00,000

126. Under Section 34(2), minimum fine is:

a. ₹5,000

b. ₹10,000

c. ₹25,000

d. ₹50,000

127. For second or subsequent offence under Section 34(2), minimum imprisonment is:

a. 6 months

b. 1 year

c. 2 years

d. 3 years

128. Under Section 34(2), maximum imprisonment for subsequent offence may extend up to:

a. 3 years

b. 5 years

c. 7 years

d. 10 years

129. Under Section 34(2), minimum fine for repeat offence is:

a. ₹10,000

b. ₹25,000

c. ₹50,000

d. ₹1,00,000

130. Under Section 34(3), when liquor exceeds 50 bulk litres, liable to be:

a. Only seized

b. Only taxed

c. Seized and confiscated along with related articles

d. Only returned

131. Under Section 34(3), confiscation may include:

a. Only liquor

b. Only cash

c. Implements, utensils, materials, conveyance etc.

d. Only licence documents

132. Under Section 34(3), if licence holder is convicted for such offence, licence:

a. Is automatically renewed

b. May be cancelled notwithstanding Section 31

c. Cannot be cancelled

d. Is transferred to State

133. Section 34(4) provides that seizure/confiscation is:

a. In place of all other actions

b. Without prejudice to other actions under Act/rules

c. Only civil in nature

d. Only advisory

134. Under Section 35(a), penalty applies to:

a. Drinking potable liquor in public

b. Altering or attempting to alter denatured spirit for human consumption

c. Exporting beer without licence

d. Manufacturing food products

135. Under Section 35(b), possession offence applies when a person:

a. Possesses potable spirit legally

b. Knows or has reason to believe spirit has been altered for human consumption

c. Possesses food items

d. Possesses water bottles only

136. Under Section 35(c), offence includes:

a. Mixing potable water with juice

b. Mixing denatured spirit with potable spirit

c. Storing alcohol in warehouse

d. Exporting liquor legally

137. Minimum imprisonment for first offence under Section 35 is:

a. 15 days

b. 1 month

c. 3 months

d. 6 months

138. Maximum imprisonment for first offence under Section 35 may extend to:

a. 6 months

b. 1 year

c. 2 years

d. 5 years

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