Stock taking of spirits in warehouse shall be taken at such intervals, not exceeding three months, in such manner as the Commissioner may direct and any deficiency that could not be accounted for to the satisfaction of the Commissioner, the licensee shall pay a penal duty not exceeding twice the normal rate of duty, for any deficiency in stocks that is found in excess of 1 ½ per cent on the total quantity handled during the period.
Deficiency for the purpose of collection of penal duty shall be calculated at the end of every 12 months from the date on which the licence comes into force or the official year. If the licence is granted for a period of less than twelve months, the deficiency shall be calculated at the end of such period.
Provided that if it is proved to the satisfaction of the Commissioner or such officer as he appoints, that any deficiency in excess of 1.5 percent could not have been prevented by the exercise of proper care and precaution, the penal duty on such deficiency shall not be required to be paid.
Explanation:- Total quantity handled means the opening stock plus quantity produced (all in terms of proof litres)