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The Maharashtra government issues an excise duty notice to Sula Vineyards for Rs 116 crore

Aug 2, 2023

By: BlinkX Research Team

Leading wine producer Sula Vineyards Ltd reported receiving an excise duty notice from the Maharashtra excise department for Rs. 116 crore on Tuesday, August 1.

This happened after the interim stay on the demand notice issued by the Nashik collector to recover excise duty from Sula Vineyards was revoked by the minister.

According to a stock exchange filing, Sula Vineyards stated that the said order does not affect the company's operations or current business because it made every effort to operate in line with all applicable laws and regulations.

The demand notice was received by Sula Vineyards on the grounds that under the Maharashtra Manufactured Beer and Wine Rules, 1966, excise duty was recoverable on wine produced or manufactured from grapes produced in Maharashtra by blending wine brought from across custom frontier or from other states, the company said.

The company also stated that on August 1, 2023, it immediately filed a writ petition before the High Court of Bombay challenging the order. The company further stated that it has been legally advised that the demand notice is not tenable under the law.

Source: Media Reports