Tax on preparations containing distilled spirits as chief ingredient.
Section 138
SEC. 138. Tax on preparations containing distilled spirits as chief ingredient.—Medicinal preparations, flavoring extracts, and all other preparations, except toilet preparations, of which, excluding water, distilled spirits form the chief ingredient, shall be subject to the same tax as such chief ingredient. Upon permit from the Commissioner of Internal Revenue and subject to the regulations of the Department of Finance, manufacturers of cigars and cigarettes may withdraw from bond free of tax local and imported wine and distilled spirits in specific quantities and grades for use in the treatment of tobacco leaf to be used in the manufacture of cigars and cigarettes; but such wine or distilled spirits must first be suitably denatured.