Section 6(2) in The Madhya Pradesh Distillery Rules, 1995
(2)Subject to the following proviso the distiller or supply contractor shall account to the Excise Commissioner for all spirit not forthcoming at such stock taking :Provided that an allowances of 1-½ per cent per quarter will made for Racking, storage, evaporation and other wastages calculated on the actual balance in hand at the end of previous quarter's stock taking plus the quantity since manufactured and received and deducting that issued for re-distillation. At the end of the financial year, the quarterly figures of such wastages shall be totalled and action against the distiller/supply contractor shall be taken with regard to quantities of such wastages found to be in excess of 1 ½ per cent :Provided further that in blending and reducing operations an allowance of one percent will be made for wastage in each operation. The allowance of one per cent in blending will be calculated on the quantity which is added to the vat.Note. - When spirits are reduced to 60 under proof or to a weaker strength, an allowance of 2 per cent will be made for wastage in each operation :Provided also that in re-distillation operation an allowance of two percent will be made for loss in each operation.
