No provision in the ABC Act applies to alcohol intended for use in the manufacture and sale of any of the following when they are unfit for beverage purposes: (1) Denatured alcohol produced and used pursuant to acts of Congress and regulations promulgated thereunder; (2) Patent, proprietary, medicinal, pharmaceutical, antiseptic, and toilet preparations; (3) Flavoring extracts, syrups, and food products; and (4) Scientific, chemical, mechanical, and industrial products. A person who knowingly sells any product enumerated in items (1), (2), (3), or (4) for beverage purposes is guilty of a misdemeanor and, upon conviction, is subject to a fine of not more than two hundred dollars or imprisonment of not more than sixty days, or both. No provision of the ABC Act applies to ethyl alcohol intended for use by hospitals, colleges, governmental agencies, or other permittees entitled to obtain this alcohol tax free, as provided by acts of Congress and regulations promulgated thereunder.
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