Excise Duty on liquor is imposed by

The correct answer is (b) State Governments.

Excise duty is a tax levied on goods produced or manufactured within a country. In India, excise duty on liquor is levied by the state governments. The rates of excise duty vary from state to state. The state governments also have the power to grant exemptions from excise duty.

Nagar Nigams are municipal corporations that are responsible for the administration of cities in India. District Boards are local self-government bodies that are responsible for the administration of districts in India. Both Nagar Nigams and District Boards do not have the power to levy excise duty.