27. Grant of leases of manufacture, sale etc.-

(1) The State Government may lease to any person, competent to contract, on payment of such sum in addition to excise duty or countervailing duty, on such conditions and for such period, as it may deem fit, the right–

(a) of manufacturing or of supplying by wholesale, or of both, or

(b) of selling by wholesale or by retail, or

(c) of storing for manufacture or sale, any country liquor, foreign liquor, beer, wine spirit within any specified area.

(2) The State Government may lease to any person, competent to contract, on payment of such fee and on such conditions as the Financial Commissioner may direct under section 28, the right of manufacturing and possessing for home consumption-

(a) country liquor by distillation from specified fruits or grains in tribal areas, or

(b) country fermented liquor from grains in any specified area.

Explanation.-

For the purpose of this sub-section ‘tribal area’ or ‘specified area’ shall meansuch area which stand notified as ‘tribal area’ or ‘notified area’ under the repealed Punjab Excise Act, 1914, on the date of commencement of the Himachal Pradesh Excise Act, 2011.

(3) The Financial Commissioner may grant to a lessee, a license for manufacturing or supplying the liquor in accordance with the terms of such lease as may be approved by the State Government under sub-section (1);

provided that Collector may grant to a lessee, such licenses for sale of liquor by wholesale or by retail as the Financial Commissioner may prescribe.

(4) The Collector may grant to a lessee under sub-section (2) a permit in such form as the Financial Commissioner may prescribe.

28. Fees and other conditions for grant of licenses, permits and passes.-

(1) Every license, permit or pass, under this Act, shall be granted-

(a) on payment of such fees, if any,

(b) in such form and containing such particulars,

(c) subject to such restrictions and on such conditions, and

(d) for such period,as the Financial Commissioner may direct.

(2) For the purposes of sub-section (1), the power of the Financial Commissioner to issue directions shall include the power to direct the licensee of a distillery, brewery, winery or warehouse to-

(a) provide free accommodation to the Excise Officer concerned at or near the licensed premises, failing which to pay to the State Government the rent and other charges for such accommodation as may be fixed by the Financial Commissioner; and

(b) pay to the State Government the costs, charges and expenses, including salaries and allowances of such Excise Officers, which the State Government may incur in connection with the supervision of such distillery, brewery, winery or warehouse.

(3) The authority granting a license under this Act, may require the licensee to give such security for the observance of the terms of his license, or to make such deposit in lieu of security, as such authority may direct.

(4) Subject to the rules made by the Financial Commissioner, the Collector may grant licenses for the sale of any liquor within a district: Provided that a license for sale in more than one district shall be granted by the Financial Commissioner only.

(5) Before any license is granted in any year for the retail sale of liquor for consumption on any premises which have not been so licensed in the preceding year, the Collector shall take such measures as the State Government may prescribe, as may best enable him to ascertain local public opinion in regard to the licensing of such premises.

29. Power to cancel or suspend licenses etc.-

Subject to such restrictions as the State Government may prescribe, the authority granting any lease, license, permit or pass under this Act, may cancel or suspend it-

(a) if it is transferred or sublet by the holder thereof without the permission of the said authority; or

(b) if any excise duty or countervailing duty or, other fee payable by the holder thereof is not duly paid; or

(c) in the event of any breach by the holder of such lease, license, permit or pass or by his servants, or by any one acting on his behalf with his express or implied permission, of any of the terms or conditions of such license, permit or pass; or

(d) if the holder thereof is convicted of any offence punishable under this Act or the Himachal Pradesh Value Added Tax Act, 2005, the Central Sales Tax Act, 1956 or the Himachal Pradesh Prevention of Specific Corrupt Practices Act, 1983 or of any cognizable and non-bailable offence, or any offence punishable under the Narcotic Drugs and Psychotropic Substances Act, 1985, or under the Trade and Merchandise Marks Act, 1958 or under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 or of any offence punishable under sections 482 to 489 ( both inclusive) of the Indian Penal Code, 1860 or any offence referred to in section 135 of the Customs Act, 1962; or

(e) where a license, permit or pass has been granted on the application of the grantee of a lease under this Act, on the request in writing of such grantee; or

(f) at will, if the conditions of the license, permit or pass provides for such cancellation or suspension.

30. Power to cancel any other license and to recover fee.-

(1) When a license, permit or pass held by any person is cancelled under clauses (a), (b), (c) or (d) of section 29, the authority granting the license may cancel any other license, permit or pass granted to such person by such authority within his jurisdiction but if such other license, permit or pass has been granted by any other authority, the Financial Commissioner may cancel or suspend the same.

(2) In the case of cancellation or suspension of a license under clauses (a), (b), (c) or (d) of section 29, the fee payable for the balance of the period for which any license would have been current but for such cancellation or suspension, may be recovered from the ex-licensee as excise revenue.

31. No compensation or refund claimable for cancellation or suspension of license etc.-

When a lease, license, permit or pass is cancelled or suspended under clauses (a), (b), (c) or (d) of section 29 or under section 30, the holder of such lease, license, permit or pass, as the case may be, shall not be entitled to any compensation for its cancellation or suspension nor to the refund of any fee paid or deposit made in respect thereof.

32. Power to withdraw license etc.-

(1) Whenever the authority which granted a license, permit or pass under this Act considers that such license, permit or pass should be withdrawn for any cause other than those specified in section 29, it may,-

(a) withdraw the license, permit or pass on the expiration of fifteen days’ notice in writing of its intention to do so; or

(b) withdraw any such license, permit or pass forthwith without notice.

(2) If any license, is withdrawn forthwith without notice under clause (b) of sub-section (1), there shall be paid to the licensee such sum, by way of compensation, as the Financial Commissioner may direct.

(3) When a license, permit or pass is withdrawn under this section, any fee paid in advance or deposit made by the licensee in respect thereof shall be refunded to him, after deducting the amount, if any, due to the State Government.

33. Technical irregularities in license etc.-

(1) No lease, license, permit or pass granted under this Act shall be deemed to be invalid by reasons merely of any technical defect, irregularity or omission in the lease, license, permit or pass or in any proceedings taken prior to the grant thereof.

(2) The decision of the Financial Commissioner as to what is a technical defect, irregularity or omission shall be final.

34. No claim in consequence of refusal to renew a license etc.-

No person to whom a lease, license, permit or pass has been granted shall be entitled to claim any renewal thereof and no claim shall lie for damages or otherwise in consequence of any refusal to renew a lease, license, permit or pass on the expiry of the period for which it remains in force.

35. Surrender of license.-

No holder of a license granted under this Act to sell liquor shall surrender his license except on the expiration of one month’s notice in writing given by him, to the authority which granted the license, of his intention to surrender the same and on payment of the fee payable for the license for the whole period for which it would have been current but for the surrender:

Provided that if the authority is satisfied that there is sufficient reason for surrendering the license, he may remit to the holder thereof the sum so payable on surrender or any portion thereof.

Explanation.-

The expression “holder of a license” as used in this section includes a person whose tender or bid or application for allotment of a license for any liquor vend has been accepted, although he may not actually have received the license.