(2) DISPOSAL BY THE SECRETARY.- The Secretary shall dispose of all distilled spirits, wine, and malt beverages which have been delivered to him pursuant to subsection (a)- (A) By delivery to such Government agencies as, in his opin- ion, have a need for such distilled spirits, wine, or malt beverages for medicinal, scientific, or mechanical purposes; or (B) By gift to such eleemosynary institutions as, in his opin- ion, have a need for such distilled spirits, wine, or malt beverages for medicinal purposes; or (C) By destruction. (3) LIMITATION ON DISPOSAL.- No distilled spirits, wine, or malt beverages which have been seized under any law of the United States, may be disposed of in any manner whatsover except after forfeiture and as provided in this section. (4) REGULATIONs.-T he Secretary is authorized to make all rules and regulations necessary to carry out the provisions of this section. (5) REMISSION, OR MITIGATION OF FORFEITUREs.-Nothing in this section shall affect the authority of the Secretary, under the cus- toms or internal-revenue laws, to remit or mitigate the forfeiture, or alleged forfeiture, of such distilled spirits, wines, or malt bev- erages, or the authority of the Commissioner, with the approval of the Secretary, to compromise any civil or criminal case in re- spect of such distilled spirits, wines, or malt beverages prior to commencement of suit thereon, or the authority of the Secretary to compromise any claim under the customs laws in respect of such distilled spirits, wines, or malt beverages. (b) DISTRAINT OR JUDICIAL PROCEss.-Except as provided in sec- tion 3074, all distilled spirits sold by order of court, or under process of distraint, shall be sold subject to tax; and the purchaser shall immediately, and before he takes possession of said spirits, pay the tax thereon. If any tax-paid stamps are affixed to any such cask or package, such stamps shall be obliterated and destroyed by the col- lector or marshal before such sale: Provided, That in all cases wherein it shall appear that any distilled spirits offered for sale on distraint for taxes, where the taxes on such spirits have not been paid, or offered for sale for the benefit of the United States under order of court, will not, by reason of such spirits being below proof, bring a price equal to the tax due and payable thereon, but will bring a price equal to, or greater than, the tax on said spirits, com- puted only upon the proof gallons contained in the packages, with- out regard to the greater number of wine gallons contained therein, then, and in such case, upon sale being so made, tax-paid stamps to the amount required to stamp such spirits as if the tax thereon were only on the proof gallons thereof, may, under such rules and regu- lations as the Commissioner shall prescribe, be used by the collector making such sale, or furnished by a collector to a United States marshal, or to any other government officer making such sale for the benefit of the United States, without making payment for said stamps so used or delivered. Any collector using or furnishing stamps in manner aforesaid, on presenting vouchers satisfactory to the Commissioner, shall be allowed credit for the same in settling his stamp account with the department. In such cases, the officer selling the distilled spirits shall affix, or cause to be affixed, to the same the tax-paid stamps so provided, and shall write across the face of such stamps the true number of proof and wine gallons contained in the package, the amount of tax actually paid thereon, and also the words "Affixed under provisions of Internal Revenue Code, section 2805 (b)." LIQUOR 305
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