Section 38 in The Medicinal And Toilet Preparations (Excise Duties) Rules, 1955
38. Wastage in manufacture.
(1)The State Government may, from time to time, fix the percentage of wastage in the production of a particular medicinal or toilet preparation. Any wastage that exceeds the allowable limit and is not properly accounted for shall be charged with the duty together with such penalty not exceeding the duty leviable thereon as the Excise Commissioner may deem fit. If the alcohol in strength of a preparation is found by the Chemicals Examiner to exceed the highest allowable limit by more than 3 proof degrees or to be below the lowest allowable limit, its issue from the bonded manufactory, shall be withheld.(2)The licensee may be allowed to adjust the alcoholic strength or the medicaments or the ingredients of such a batch of preparation in a suitable manner with the previous approval of the Excise Commissioner provided the process employed does not impair the therapeutic or toilet properties of the preparation in any way.(3)A sample of the preparation shall be sent to the Chemical Examiner for analysis after adjusting the spirit or medicament or other ingredients, and issue of the adjusted batch of such preparation shall be allowed only when the Chemical Examiner's report has been found to be satisfactory.(4)When an excess of more than 20 proof degrees over the strength declared by the licensee of any batch of preparation is found by the Chemical examiner, the true strength, as ascertained by the Chemical Examiner, shall be entered in the batch account in Form R.G. 3 and the reason for this alteration shall be briefly noted in the remarks column, and the excess duty due from the licensee or any quantity issued from the batch on payment of such duty to the credit of the Central Government ( in the case of Union territories) or the State Government prior to the receipt of the Chemical Examiner's report, shall be realized by the officer-in-charge with the previous sanction of the Excise Commissioner.(5)No refund or abatement of excess duty shall be allowed on any quantity of a batch of preparation issued on payment of such duty and prior to the receipt of the Chemical examiner's report, if the strength is found to be lower than that declared by the licensee.
