CH. 51—DISTILLED SPIRITS, WINES, AND BEER
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(e) ASSESSMENT FOR DEFICIENCIES IN PRODUCTION AND E X C E S S OP M A T E R I A L S U S E D. —
(1) REQUIREMENT,—On the receipt of the distiller's return in each month, the Secretary or his delegate shall inquire and determine whether the distiller has accounted for all the grain or molasses used, and all the spirits produced by him in the preceding month. If he is satisfied that the distiller has reported all the spirits produced by him, and the quantity so reported is found to be less than 80 percent of the producing capacity of the distillery as estimated according to law, he shall make an assessment for such deficiency at the rate of tax imposed by law for every proof gallon. In determining the quantity of grain used, 56 pounds shall be accounted as a bushel; and if the Secretary or his delegate finds that the distiller has used any grain or molasses in excess of the capacity of his distillery as estimated according to law, he shall make an assessment against the distiller at the rate imposed by law for every proof gallon of spirits that should have been produced from the grain or molasses so used in excess, which assessment shall be made whether the quantity of spirits reported is equal to or exceeds 80 percent of the producing capacity of the distillery. If the Secretary or his delegate finds that the distiller has not accounted for all the spirits produced by him, he shall, from all the evidence he can obtain, determine what quantity of spirits was actually produced by such distiller, and an assessment shall be made for the difference between the quantity reported and the quantity shown to have been actually produced, at the rate of tax imposed by law for every proof gallon: Provided, That the actual product shall be assumed to be in no case less than 80 percent of the producing capacity of the distillery as estimated according to law. All assessments made under this subsection shall be a lien on all distilled spirits on the distillery premises, the distillery used for distilling the same, the stills, vessels, fixtures, and tools therein, the tract of land whereon the said distillery is located, and any building thereon, from the time such assessment is made until the same shall have been paid. (2) R E L I E F FROM ASSESSMENT.—Whenever, under the provisions of this subsection, an assessment shall have been made against a distiller for a deficiency in not producing 80 percent of the producing capacity of his distillery as established by law, or for the tax upon the spirits that should have been produced from the grain or fruit or molasses found to have been used in excess of the capacity of his distillery for any month, as estimated according to law, such excessive use of grain or fruit or molasses having arisen from a failure on the part of the distiller to maintain the capacity required by law to enable him to use such grain or fruit or molasses without incurring liability to such assessment, and it shall be made to appear to the satisfaction of the Secretary or his delegate that said deficiency, or said failure, whereby such excessive use of grain, molasses, or fruit arose, was not occasioned by any want of diligence or by any fraudulent purpose on the part of the distiller, but from misunderstanding as to the requirements of the law and regulations in that respect or by reason of unavoidable accidents, then, and in such case, the Secretary or his delegate, subject to regulations pre§ 6007(e)(2) 49012°—54
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