Allowance for the actual loss in transit by leakage, evaporation or other unavoidable causes, or spirits transported, shall not exceed 0.5 percent for journey of not greater duration than 5 days; 1.0 percent for journey of greater duration than 5 days. The allowance under this rule, for rectified spirit, shall be determined from the quantity of spirits despatched from the distillery, the quantity received at the place of destination, both quantities being stated in terms of proof litres. If the loss that has occurred to a greater extent than that prescribed above, the Commissioner may treat such unaccountable loss as a breach of condition of licence and take action accordingly. The Commissioner shall after issue of a notice to the Distiller and after considering the explanation, if any, levy a penal duty not exceeding twice the normal rate of Excise duty on such deficiency in excess of the prescribed allowance. For such wastage in the case of denatured spirit, vend fee shall be charged not exceeding twice the normal rate of vend fee:
Provided that if it is proved to the satisfaction of the Commissioner that such deficiency could not have been prevented by the exercise of proper care and precaution and that spirit could not have passed into consumption or misuse, the duty or vend fee, levied on such deficiency shall be waived.
Provided further that if the value of spirit, lost in transit, exceeds Rs.50,000/- (Rupees Fifty thousand ), the Commissioner shall obtain the concurrence of the Government for such waiver.
52-A. Power to Exempt:- The Government may, by notification, and subject to such conditions, if any, as they may specify in such notification, exempt any person or class of persons, from the operation of the provisions of sub-rule(d) of rule 3 of these Rules.