(1) No person shall have in his possession any quantity of any intoxicant in excess of such quantity as the State Government, may, under section 4 declare to be the limit of sale by retail, except under the authority and in accordance with the terms and conditions of—
(i) a licence for the manufacture, sale or supply of such article, or
(ii) in the case of intoxicating drugs, a licence for the cultivation or collection of the plants from which such drugs were produced, or
(iii) a permit granted by the Collector in that behalf.
(2) Nothing in sub-section (1) shall apply to—
(a) any foreign liquor other than denatured spirit in the possession of any common carrier or warehouseman, as such, or
(b) any foreign liquor lawfully procured by, and in the possession of any person for his own bonafide private consumption and not for sale, or
(c) tari intended to be used solely for the manufacture of gur or molasses, or
(d) tari intended to be used solely for the domestic consumption, and not as an intoxicant or for the preparation of any intoxicating article or of any article for sale.
(2) Notwithstanding anything contained in sub-section (1) the State Government may by notification, prohibit the possession by any person or class of persons, either throughout the whole of the territories to which the Act applies, or any local area, place or class of place comprised therein, of any intoxicant either absolutely or subject to the conditions as it may prescribe.