Section 7 in The Medicinal And Toilet Preparations (Excise Duties) Rules, 1955
7. [ Exemption from duty on medicinal preparation for Government and charitable institutions. [Substituted by G.S.R. 368, dated the 8th March, 1973]
(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.(2)If in the supply of any medicinal preparation made direct to all any of the institutions referred to in sub-rule (1), any loss or shortage detected at the destination, the manufacturer or the licensee of a warehouse, as the case may be, shall be liable to pay duty on such loss or shortage at the rate in force on the date on which such loss or shortage is detected made known to the proper officer :Provided that if is proved to the satisfaction of the Excise Commissioner that the loss or shortage was due to circumstances over which the manufacturer or licensee, as the case may be, had no control, the Excise Commissioner may remit the whole or part of the duty payable.]
