(1) The State Government may, by notification and subject to such conditions as it thinks fit, direct that,-
(a)any preparation containing alcohol not exceeding a specified percentage by volume, or
(b)any liquor or intoxicating drug or preparation containing such liquor or drug, and required for medicinal, scientific, industrial or such like purpose, 1[or]1 15 1[(c)members of the Armed Forces of the Union or of any other Armed Forces raised or maintained by the Union or attached to or operating with any of its Armed Forces:]1 shall be exempt from any of the provisions of this Act or rules, regulations or orders made thereunder.
1. Inserted by Act 10 of 1967 w .e.f. 24.8.1967
(2) When issuing a notification under sub-section (1), the State Government shall have power to provide that a breach of any of the conditions subject to which the exemption is notified, shall be punished with imprisonment which may extend to six months or with fine which may extend to one thousand rupees, or with both.