Excise Act (R.S.C., 1985, c. E-14)

Marginal note:Computing duty

• 137 (1) The duty on spirits shall be charged and computed as follows:

  • (a) on the grain used for its production at the rate of one litre (1 L) of absolute ethyl alcohol for every three and six-tenths kilograms (3.6 kg), or in a distillery where malt only or a clear wort process is used, on the grain or malt used for its production at the rate of one litre (1 L) of absolute ethyl alcohol for every four and two-tenths kilograms (4.2 kg),

  • (b) on the quantity of beer, wash or wort fermented or made in the distillery, at the rate of one litre (1 L) of absolute ethyl alcohol for every twenty-four and one-half litres (24.5 L) of beer, wash or wort,

  • (c) on the quantity of beer, wash or wort fermented or made, in proportion to its alcoholic value,

  • (d) on the quantity of spirits that passes into the closed spirit-receivers, or

  • (e) on the quantity of spirits sold or removed from any distillery by the distiller, or by his agent or for his account,

  and that method of computation that yields the greatest amount of revenue is, in all cases, the one on which the distiller shall pay the duty.

• Marginal note:When damaged grain or mill offal used

  (2) When any distiller is about to use damaged grain or mill offal and gives the collector one week’s notice of his intention to do so, such officer as is instructed for that purpose by the collector shall specially inspect the beer or wash made from the damaged grain or mill offal and test its alcoholic value and the quantity of the material that it contains.

• Marginal note:Idem

  (3) If the officer referred to in subsection (2) reports that the yield of the damaged grain or mill offal is less than one litre (1 L) of absolute ethyl alcohol to three and six-tenths kilograms (3.6 kg), the Minister may authorize the assessment of the duty on the highest quantity ascertained by any of the other methods, without reference to the quantity of damaged grain or mill offal used by the distiller.