Rev. Rul. 54-450

Tax-free alcohol may be recovered, by redistillation, for use in accordance with the terms of the tax-free alcohol permit pursuant to application and amendment of the basic permit, Form 1447, `Application and Basic Permit to Use Alcohol Free of Tax by States, Municipalities, Hospitals, Colleges, Scientific Institutions, Etc.' However, the provisions of Regulations 23, with respect to stills to be used for the recovery of the alcohol, must be complied with.

The recovered tax-free alcohol must be accounted for on the monthly report, Form 1451, `Record of Tax-Free Alcohol Received and Used,' by a separate summary showing the quantity of recovered alcohol on hand the first of the month, the quantity recovered during the month, the quantity used during the month, and the quantity on hand the last day of the month. Such summary should be attached to, and made a part of, the summary covering the new alcohol.