Section 7(1) in The Medicinal And Toilet Preparations (Excise Duties) Rules, 1955
(1)Except as provided in sub-rule (2) no duty shall be collected on medicinal preparation containing alcohol manufactured in India and supplied direct from a bonded manufactory or a warehouse to the following institutions:(i)hospitals and dispensaries working under the supervision of the Central Government or a State Government;(ii)hospitals and dispensaries subsidised by the Central Government or a State Government(iii)charitable hospitals and dispensaries under the administrative control and management of a local body;(iv)Medical Store Depot, of the Central Government or a State Government; and(v)every other institution certified by the principal Medical Officer of the district in which such institution is situated as supplying medicines free to the poor.
