36. Excise duty and countervailing duty.-

(1) There shall be levied and paid an excise duty or the countervailing duty, as the case may be, at such rate or rates as the State Government may, by notification direct, on any alcoholic liquor for human consumption-

(a) manufactured, produced or bottled in the State under any license granted under section 15 of this Act;

(b) manufactured or produced elsewhere in India but imported or transported into State; and (c) imported, exported or transported in accordance with the provisions of section 21 of this Act.

(2) The excise duty or countervailing duty may be imposed under sub section (1) at different rates according to varying kind, strength, quality or price of alcoholic liquor for human consumption.

(3) Notwithstanding anything contained in sub-section (1), no excise duty or countervailing duty shall be levied on-

(a) any alcoholic liquor for human consumption imported into India and which, on its importation, was liable to duty under the Customs Tariff Act, 1975 or the Customs Act, 1962, and

(b) medicinal preparations and toilet preparations containing alcohol on which excise duty is levied under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955. 

37. Manner in which duty be levied.-

Subject to such rules regulating the time, place and manner as the Financial Commissioner may prescribe, such duty shall be levied rateably, on the quantity of alcoholic liquor for human consumption imported, transported or manufactured in, or issued from a distillery, brewery, winery or warehouse.

38. Payment for grant of leases.-

The State Government may, in addition to or instead of any excise duty or countervailing duty leviable under this Chapter, accept a sum in consideration of the lease of any right under section 27.