(1) A finished medicinal or toilet preparation which is or is suspected to have deteriorated in quality may, if the manufacturer so desires, be destroyed with the permission of the Excise Commissioner in the presence of the officer-in-charge and relevant entries made in the register in Form R.G.4.
(2) The Excise Commissioner may, ON an application made to him by the manufacturer, allow him to re-process a sub-standard preparation.
(3) Excise duty shall not be levied on the preparation so destroyed provided the Excise Commissioner is satisfied that the deterioration of the preparation, or in the alternative its improper manufacture, was due to reasons beyond the control of the licensee.
37. Disposal of recovered alcohol.--- (1) Alcohol recovered in the course of production of a medicinal or toilet preparation or distilled separately from the mark of such preparation may be used for subsequent production of the same preparation provided such alcohol is collected separately and accounted for separately.
(2) In cases where the alcohol recovered from a preparation liable to duty at the lower rate is sought to be used in the manufacture of a preparation subject to higher rate 15 of duty, the duty on the preparation so manufactured shall be collected or made leviable on determination of the spirit strength of the preparation.
(3) An account of recovered alcohol in a recovered alcohol vat shall be maintained by the officer-in-charge in Form R.G.2.
(4) Recovered alcohol declared by the licensee to unfit for use shall be destroyed by him in the presence of the officer-in-charge on submission of written application.
No rebate of duty shall be allowed on recovered alcohol so destroyed.