ACT NO. 16 OF 1955
[27th April, 1955.] B
 An Act to provide for the levy and collection of duties of excise on medicinal and
toilet preparations containing alcohol, 3*[narcotic drug or narcotic].
1. Short title, extent and commencement.
     1. This Act may be called the Medicinal and Toilet Preparations (Excise Duties) Act, 1955.
     2. It extends to the whole of India.
     3. It shall come into force on such date 2* as the Central Government may, by notification in the                 Official Gazette, appoint.
2. Definitions.
    Definitions. In this Act, unless the context otherwise requires,–
a. “alcohol” means ethyl alcohol of any strength and purity having the chemical composition C2 H5 OH;
4*[(aa) “coca derivative” means–
    i. crude cocaine, that is, any extract of coca leaf which can be used, directly or indirectly, for the                 manufacture of cocaine;
   ii. ecgonine, that is, laevo-ecgonine having the chemical formula C9 H15 NO3 H2O, and all the                derivatives of laevo-ecgonine from which it can be recovered; and
   iii. cocaine, that is, methyl-benzoyl-laevo- ecgonine having the chemical formula C17 H21 NO4, and          its salts;
(ab) “coca leaf” means–
  iv. the leaf and young twigs of any coca plant, that is, of the Erythroxylon coca (Lamk.) and the                   Erythroxylon novogranatense (Hiern.) and their varieties, and of any other species of this genus               which     the Central Government may, by notification in the Official Gazette, declare to be coca             plants for the purposes of this Act; and
   v. any mixture thereof, with or without neutral materials;]
b. “collecting Government” means the Central Government or, as the case
may be, the State Government which is entitled to collect the duties
levied under this Act
4*[(bb) “derivative of opium” means–
i. medicinal opium, that is, opium which has under-gone the processes necessary to adapt it for medicinal use;
ii. prepared opium, that is, any product of opium obtained by any series of operations designed to transform opium into an extract suitable for smoking, and the dross or other residue remaining after opium is smoked;
iii. morphine, that is, the principal alkaloid of opium having the chemical formula C17 H19 NO3, and its salts, and its derivatives;]
c. “dutiable goods” means the medicinal and toilet preparations specified
in the Schedule as being subject to the duties of excise levied under
this Act;
d. “excise officer” means an officer of the Excise Department of any
State and includes any person empowered by the collecting
Government to exercise all or any of the powers of an excise officer
under this Act;
3*[(e) “Indian hemp” means–
a. the leaves, small stalks and flowering or fruiting tops of the Indian hemp plant (Cannabis sativa L.), including all forms known as bhang, siddhi or ganja;
b. charas, that is, the resin obtained from the Indian hemp plant, which has not been submitted to any manipulations other than those necessary for packing and transport;
c. any mixture, with or without neutral materials, of any of the above forms of Indian hemp or any drink prepared therefrom; and
d. any extract or tincture of any of the above forms of Indian hemp;]
e. “manufacture” includes any process incidental or ancillary to the completion of the manufacture of any dutiable goods;
Extended to Dadra and Nagar Haveli (w.e.f. 1-1-1968) vide
Notifn. No. G S R 1534 dt. 30-9-1967, Gaz. of India, Pt. II sec.
3 (i), p. 1678.
1. This Act has been extended to Goa, Daman and Diu by
Reg. 12 of 1962, s. 3 and Sch., and to Pondicherry
(w.e.f. 1-10-1963) by Reg. 7 of 1963, s. 3 and Sch. I.
2. 1st April, 1957, vide Notification No. S.R.O. 892, dated
the 9th March, 1957, see Gazette of India, 1957, Pt. II,
Sec. 3, p. 602.
3. Ins. by Act 66 of 1976, s. 39.
4. Subs. by s. 39, ibid.
f. “medicinal preparation” includes all drugs which are a remedy or prescription prepared for internal or external use of human beings or animals and all substances intended to be used for or in the treatment, mitigation or prevention of disease in human
beings or animals;
g. “narcotic drug” or “narcotic” means a substance which is coca leaf, or coca derivative, or opium, or derivative of opium, or Indian hemp and shall include any other substance, capable of causing or producing in human beings dependence, tolerance and withdrawal syndromes and which the Central Government may, by notification in the Official Gazette, declare to be a narcotic drug or narcotic;]
h. “opium” means–
1. the capsules of the poppy (Papaver somniferum (L), whether in their original form or cut, crushed or powdered and whether or not juice has been extracted therefrom;
2. the spontaneously coagulated juice of such capsules which has not been submitted to any manipulations other than those necessary for packing and transport; and
3. any mixture, with or without neutral materials, of any of the above forms of opium, and includes any derivative of opium;]
i. “prescribed” means prescribed by rules made under this Act;
j. “toilet preparation” means any preparation which is intended for use in the toilet of the human body or in perfuming apparel of any description, or any substance intended to cleanse, improve or alter the complexion, skin, hair or teeth, and includes deodorants and perfumes.
3. Duties of excise to be levied and collected on certain goods.
    0. There shall be levied duties of excise, at the rates specified in the Schedule, on all dutiable goods             manufactured in India.
   1. The duties aforesaid shall be leviable–
. where the dutiable goods are manufactured in bond, in the State in which such goods are released      from
   a bonded-warehouse for home consumption, whether such State is the State of manufacture or not;
1 Subs. by Act 66 of 1976, s. 39.
2 Subs. by Act 5 of 1964, s. 64, for cl. (i).
2. Subject to the other provisions contained in this Act, the duties aforesaid shall
be collected in such manner as may be prescribed.
    Explanation.–Dutiable goods are said to be manufactured in bond within the meaning of this section if they are allowed to be manufactured without payment of any duty of excise leviable under any law for the time being in force in respect of alcohol, 1*[narcotic drug or narcotic] which is to be used as an ingredient in the manufacture of such goods.
1 Subs. by Act 66 of 1976, s. 39
4. Rebate of duty on alcohol, etc., supplied for manufacture of dutiable goods.
 Where alcohol, 1*[narcotic drug or nareotie] had been supplied to a manufacturer of any dutiable goods for use as an ingredient of such goods by, or under the authority of, the collecting Government and a duty of excise on the goods so supplied had already been recovered by such Government under any law for the time being in force, the collecting Government shall, on an application being made to it in this behalf, grant in respect of the duty of excise leviable under this Act, a rebate to such manufacturer of the excess, if any, of the duty so recovered over the duty leviable under this Act.
5. Recovery of sums due to Government.
In respect of the duty of excise and any other sums of any kind payable to the collecting Government under any of the provisions of this Act or of the rules made thereunder, the excise officer empowered by the said rules to levy such duty or require the payment of such sums, may deduct the amount so payable from any money owing to the person from whom such sums may be recoverable or due, which may be in his hands or under his disposal or control or may recover the amount by attachment and sale of dutiable goods belonging to such person; and if the amount payable is not so recovered, he may prepare a certificate signed by him specifying the amount due from the person liable to pay the sum and send it to the Collector of the district in which such person resides or conducts his business, and the said Collector on receipt of such certificate shall proceed to recover from the said person the amount specified therein in the same manner as an arrear of land revenue
6. Certain operations to be subject to licenses.
     0. The Central Government may, by notification in the Official Gazette, provide that from such date as may be specified in the notification, no person shall engage in the production or manufacture of any dutiable goods or of any specified component parts or ingredients of such goods or of specified containers of such goods or of labels of such containers except under the authority and in accordance with the terms and conditions of a licence granted under this Act.
1. Every licence under sub-section (1) shall be granted for such area, if any, for such period, subject to such restrictions and conditions, and in such form and containing such particulars as may be prescribed.
7. Offences and penalties.
   If any person contravenes any of the provisions of a notification issued under section 6; or
a. evades the payment of any duty of excise payable under this Act; or
1 Subs. by Act 66 of 1976, s. 39
b. fails to supply any information which he is required by rules made under this
Act to supply or (unless with a reasonable belief, the burden of proving which shall be
upon him, that the information supplied by him is true) supplies false information; or
c. attempts to commit or abets the commission of any offence mentioned
in clause (a) or clause (b),
he shall for every such offence be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees, or with both.
8. Power of Courts to order forfeiture.
Any Court trying any offence under section 7 may order the forfeiture to the collecting Government of any dutiable goods in respect of which the Court is satisfied that an offence under this Act has been committed, and may also order the forfeiture of any alcohol, drugs or materials by means of which the offence has been committed and of any receptacles, packages or coverings in which any such goods or articles are contained and the animals, vehicles, vessels or other conveyances used in carrying such goods or articles and any implements or machinery used in the manufacture of such goods.
9. Power to arrest.
0. Any excise officer duly empowered by rules made in this behalf may arrest
1. Any person accused or reasonably suspected of committing an offence under this Act or any rules made thereunder, who, on demand of any excise officer duly empowered by rules made under this Act, refuses to give his name and residence, or who gives a name or residence which such officer has reason to believe to be false may be arrested by such officer in order that his name and residence may be ascertained.
10. Power to summon persons to give evidence and produce documents
in inquiries under this Act.