Pharmacy · Pharmaceutical Jurisprudence
Under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, what is the primary operational distinction between a 'Bonded' and a 'Non-bonded' manufactory regarding the payment of excise duty?
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- 1In a bonded manufactory, excise duty is paid only when the finished products are removed from the premises, whereas in a non-bonded manufactory, spirit is obtained only after the duty has been paid.✓
- 2In a bonded manufactory, the manufacturer pays duty on the spirit at the time of indent, whereas in a non-bonded manufactory, duty is only collected if the finished products are intended for export outside India.
- 3Non-bonded manufactories are exempt from all excise regulations and inspections, while bonded manufactories must be supervised by a whole-time excise officer provided with quarters on the premises.
- 4In a bonded manufactory, excise duty is paid on the raw spirit immediately upon procurement from a distillery, whereas in a non-bonded manufactory, duty is paid only after the final sale of the medicinal preparation.
Correct answer
In a bonded manufactory, excise duty is paid only when the finished products are removed from the premises, whereas in a non-bonded manufactory, spirit is obtained only after the duty has been paid.
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