Regulations for Exemption of Commodity Tax on Goods for Military Use Article 10
If a manufacturer receives military status tax-exempt goods as materials for making goods for military use under a contract, but subsequently becomes unable to carry out the contract, or the contract is terminated due to other reasons, or the processed goods are rejected by the military for failing an acceptance inspection, the original purchasing unit shall be responsible for notifying the tax authority to impose back tax on the aforesaid tax-exempt materials.
中文原文 軍用貨品貨物稅免稅辦法第10條
廠商因承製軍用品收受軍用免稅貨品為原料，遇廠商不能履約或其他原因終止契約者，或經加工後之成品，經軍方驗收不合格退貨者，原採購單位應負責通知稽徵機關補稅。