139. (1) Subject to the provisions of this Act, the Commissioner may remit any excise duty payable in respect of goods where he is satisfied -

(a) that a person is, in accordance with the provisions of this Act, entitled to remission;

(b) that the goods were destroyed by accidental fire, or other unavoidable cause, while in a building, room or place which has been entered in accordance with this Act and which is in the factory in which they were manufactured;

(c) that the goods have, with the prior permission of the Commissioner, been destroyed by the licensee under the supervision of a proper officer prior to their leaving any building, room or place which has been entered in accordance with this Act and which is in the factory in which they were manufactured;

(d) that the goods were duly exported or shipped for use as stores for any aircraft or vessel:

Provided that remission shall be granted only to the licensee and shall not be granted -

(i) where the goods are so exported or shipped in a vessel of less than ten tons register;

(ii) where the amount of the duty thereon is less than fifty shillings; or

(iii) unless previous notice of exportation or shipment is given to the proper officer and the goods are produced for examination by the proper officer at the port or place of exportation;

(e) that the goods were delivered by the manufacturer thereof-

(i) to the Kenya Defence Forces.

(ii) to the Armed Forces Canteen Organization; or

(iii) to privileged bodies and persons described in paragraphs (3) and (4) of item 7 of Part A of the Third Schedule;

(f) that in the case of spirits -

(i) Deleted by 10 of 2010, s7;

(ii) Deleted by 10 of 2010, s7;

(iii) Deleted by 10 of 2010, s7;

(iv) they have been delivered from a distillery or distiller's warehouse, in such quantities and in accordance with such conditions as he may determine, for use for medical, scientific or educational purposes, to one of the following persons -

(g) that in the case of petroluem oils, they were refined in Kenya:

Provided that remission under this paragraph shall be granted subject to such limit as the Minister may be notice in the Gazette, specify.

(h) that in the case of alcoholic beverages, remission shall be granted to such extent as the Minister may, by notice in the Gazette, specify.

(i) that in the case of water, remission shall be granted to such extent as the Minister may, by notice in the Gazette, specify.

(A) a medical practitioner or a dentist registered under the Medical Practitioners and Dentists Act;

(B) a registered veterinary surgeon within the meaning of the Veterinary Surgeons Act;

(C) a registered pharmacist within the meaning of the Pharmacy and Poisons Act;

(D) a chemist, holding qualifications approved by the Commissioner, who is in charge of a chemical laboratory approved by the Commissioner;

(E) the curator of a public museum;

(F) the principal of an educational institution approved by the Commissioner;

(G) any other person approved for the purpose by the Commissioner by notice in the Gazette;

Provided that an exemption under this paragraph shall not apply to spareparts, equipment, machinery, materials or motor vehicles in respect of any agreement between the Government and an aid agency entered into after the 1st July, 2003.

(v) they have been delivered for denaturing in accordance with this Act or, in the case of compounded spirits, deposited in a bonded warehouse for exportation or shipment for use as stores for an aircraft or vessel in accordance with this Act.

(vi) they have been used for the manufacture of power alcohol and if he is further satisfied that the power alcohol has been delivered from the factory in such quantities as he may determine to a hydrocarbon warehouse for the manufacture of gasohol.

(2) No remission of excise duty under subsection (1) shall be granted unless the person claiming remission presents a claim in the prescribed manner within a period of twelve months from the date when the duty became due.

(3) The Commissioner shall, subject to the provisions of this Act, refund any excise duty paid on goods to which a remission applies under this section.