Where it is proved to the satisfaction of the Commissioners that any beer F1produced in the United Kingdom which is chargeable with duty is to be used only for the purposes of research or of experiments in F2the production of beer, the Commissioners may, if they think fit and subject to such conditions as they see fit to impose, remit or repay the duty chargeable on that beer.

If any person contravenes or fails to comply with any condition imposed under subsection (1) above, F3his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties).