Section 37 in The Medicinal And Toilet Preparations (Excise Duties) Rules, 1955
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 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.
