Background
The Rajasthan Excise Act, 1950 serves as the principal legislation for regulating the manufacture, possession, transport, sale, and taxation of liquor and intoxicating substances in the State of Rajasthan. The Act empowers the State Government to control the excise trade, levy duties, prescribe licensing procedures, and enforce penalties to prevent illegal production and sale. It plays a dual role of safeguarding public order and generating significant state revenue through excise duties. The Rajasthan Excise (Grant of Hotel Bar/Club Bar Licenses) Rules, 1973 were introduced under the Rajasthan Excise Act, 1950 to specifically regulate the licensing of hotels and clubs serving liquor. The rules lay down conditions for eligibility, procedures for obtaining and renewing licenses, prescribed fees, and operational requirements to ensure that hospitality establishments serve alcohol in a controlled and compliant manner.
As per Rules the Licenses are defined as:
Applicability of the Compliance
Any person who owns and runs a hotel as defined under The Rajasthan Excise (Grant of Hotel Bar/Club Bar Licenses) Rules, 1973 and who does not possess any of the disqualifications mentioned in the rules shall be eligible to apply for a Hotel Bar/club Bar Licence.
Eligibility and Procedure for Grant of Hotel Licence (Rule 3)
Any person, eligible for a licence and desiring to obtain a Hotel bar Licence or a club bar licence shall apply for sanction to the Excise Commissioner through the District Excise Officer concerned in Form A which can be obtained from his office on payment of a fee as prescribed in the rules.
Every application for a Hotel Bar/club Bar Licence shall be properly signed and shall be accompanied by the following amount of initial fee which shall be in addition to the usual annual fee payable under rule 69 (1) of the Rajasthan Excise Rules, 1956.
As soon as the applicant receives the sanction of licence to him he shall within 15 days, deposit into the Treasury the minimum fee prescribed under rule 69(1) of the Rajasthan Excise Rules, 1956.
As per Rule 7 – Renewal of Licence
Licence for Hotel Bar may also be granted or renewed, as the case may be, for a period of four
consecutive financial years, the fee as specified in sub-rule (3) of rule 3 ofthese rules shall be deposited annually.
Penalty & Punishment
Selling liquor without a license is explicitly prohibited. Violation can lead to imprisonment which may extend upto 3 years, and or, fines ranging upto 5 times the duty lost.
Conclusion
The Act ensures a structured excise system balancing revenue generation with regulation of intoxicating substances. By mandating licenses, duties, and strict compliance, it minimizes illicit liquor trade and promotes accountability across the excise industry in Rajasthan.