Section 51(2) in The Medicinal And Toilet Preparations (Excise Duties) Rules, 1955
(2)Medicinal preparations, containing alcohol, which are capable of being consumed as ordinary alcoholic beverages falling under item No. 1 (ii)(c) of the Schedule to the Act shall not be manufactured from rectified spirit on which only the duty of (Rs. 10) per London Proof Litre has been paid and such preparations shall be manufactured only from rectified spirit on which a duty of ( Rs. 20) per London Proof Litre has been paid and the rectified spirit obtained after payment of the aforesaid duty of Rs. 3.85 paise shall be accounted for separately.(2-A) Medicinal preparations containing alcohol which are capable of being consumed as ordinary alcoholic beverages falling under either item No. 1 (ii) (b) or item No. 2 (iii) of the Schedule to the act shall not be manufactured from rectified spirit on which only the duty of ( Rs. 10) or (Rs. 20) per London Proof Litre has been paid and such preparations shall be manufactured only from rectified spirit on which duty of (Rs. 80) paise per London Proof Litre has been paid and the rectified spirit obtained after payment of the aforesaid duty of Rs. 80) shall be accounted for separately.
