(1) The removal of spirit from the distillery shall be subject to the following conditions, namely:-
(i) Rectified spirit shall be removed under bond for transport or export to another distillery or to a bonded manufactory established under the Medicinal and Toilet Preparations (Excise Duties) Rules, 1955 within, the State for the manufacture of Medicinal or Toilet Preparations or to the licensed premises of a licensee for the manufacture in bond of culinary aerated waters and other flavouring essences, extracts and colourings.
(ii) Rectified spirits shall be removed under bond for export to other countries or to any other State in the Indian Union when specially permitted by the Commissioner.
(iii) Rectified spirits shall be removed on payment of prescribed fee and duty if sold to licensees in the State or to any other person or institutions specially authorized to receive supply from the distillery.
Provided that rectified spirit may be removed without prepayment of prescribed fee and duty, if sold to the Medical Store Depot, Chennai, a unit of Directorate General of Health Services of Ministry of Health and Family Welfare of the Government of India, for its requirement from the distilleries in the State. Such prescribed fee and duty shall be remitted by the Medical Stores Depot, Chennai, later once in a half year on the quantity of rectified spirit disposed of by it.
(iv) Rectified Spirits shall be removed without bond and without payment of any fee or duty if sold to prescribed officers and institutions of the State or Central Government and without duty if sold to officers and institutions who are specifically exempted from payment of duty alone and with or without fee or duty to the licensee as samples under Rule 42.
(v) Denatured spirit shall be issued free of duty but on collection of the vend fee at the prescribed rate to licensees of such spirit in the State:
Provided that the Medical Stores Depot, Chennai and any Officer of the Southern Railway holding a licence in Form DL.3 under the Tamil Nadu Denatured Spirits and Varnish (French Polish) Rules, 1959, may obtain their requirements of denatured spirit from the distillery without payment of vend fee.
(vi) Denatured spirit shall be issued for export to any other State in the Indian Union or transport to the port of export in the State in case it is intended for export to foreign countries, subject to the rules and restrictions in force in the place of destination and subject to such conditions as may be imposed by the Commissioner in this regard, with or without vend fee to the distiller as samples under Rule 42.
(vii) Fusel Oil shall be removed after the alcohol content in it is determined and the prescribed duty is paid. For this purpose the Distillery Officer shall send a sample to the Tamil Nadu Forensic Science Laboratory for analysis to ascertain the alcohol content of it.
(viii) Export of fusel oil to other States can be made only if specifically permitted by the Commissioner under restrictions that may be imposed from time to time.
(ix) Duty shall be paid at the rate of Eight rupees per proof litre on the alcohol content of the fusel oil.
15
(2) Spirit of any kind removed from the distillery for use within the State or for export from the State to any other place in India or for export to any other country shall be transported from the distillery to the place of destination under escort consisting of such personnel as may be decided by the Commissioner.
Provided that the Commissioner may, for reasons to be recorded in writing, dispense with escort in cases where, in his opinion such dispensation is necessary.
Explanation:- For the purpose of this sub-rule, the expression “place of destination” shall, in the case of export to any other country, mean the port of embarkation in the country.
(3) The cost of escort provided under sub-rule (2) shall be borne by the persons who transport the spirit from the distillery.