(1) Subject to subsections (2) and (3), the following shall take place only in a tax warehouse -
(a) the production and processing of excisable products, and
(b) the holding or storage of excisable products under a suspension arrangement, or on which the appropriate rate of excise duty has not been paid.
(2) Subsection (1)(a) does not apply to -
(a) [deleted]
(b) any operation by which the user of mineral oil makes its re-use possible in his or her own undertaking, and where the mineral oil tax already paid on that mineral oil is not less than that which would be due if the mineral oil resulting from such operation was liable to excise duty,
(c) the mixing or blending of excisable products with other excisable products or other materials, but only where -
(i) excise duty has been paid in full on the excisable products so mixed or blended, and
(ii) the amount so paid is not less than the amount chargeable on the mixture or blend,
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