Section 22.107 - Pathological laboratories(a) Pathological laboratories, not operated by a hospital or sanitarium, may withdraw and use tax-free alcohol if exclusively engaged in making analyses or tests for hospitals or sanitariums. If a pathological laboratory does not exclusively conduct analyses or tests for hospitals or sanitariums, it does not qualify for the permit issued under this part.(b) A pathological laboratory which uses tax-free alcohol for any other purpose, except as provided in this section, shall become liable for the tax on the alcohol.(c) Except as provided in § 22.102 , the use of tax-free alcohol and of products resulting from the use of tax-free alcohol shall be confined strictly to the permit premises.Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1362, as amended ( 26 U.S.C. 5001 , 5214 )