(1) When making denatured spirit for the purpose of bringing the spirit to other uses, the licensee shall obtain approval from the concerned Internal Revenue Office by mixing pyridine or cochineal or methyl alcohol at least 0.02 percent by volume in the rectified or heads spirit to make denatured spirit. The department may give instructions to the licensee that such mixing should be done as per requirement. When the Internal Revenue Office approves the making of denatured spirit from rectified spirit, the approval should be given only so that the excise duty from the rectified spirit does not decrease.
(2) The licensee shall sell the anhydrous ethanol produced for the purpose of blending with petrol only to the Nepal Oil Corporation or the approved body of the Government of Nepal. Approval from the Internal Revenue Office should be obtained for the sale of such items from the establishment. When the Internal Revenue Office gives such approval, at least two percent of gasoline must be mixed with such goods to be approved for release. 3) The department will be able to control the process specifications for importation, production and sale distribution of molasses, rectified spirit, ENA, malt spirit and other raw materials of alcohol and denatured spirit.