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

2 Aug 2023 , 02:31 AM

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 occurs after the interim stay on the demand notice issued by the Nashik collector to recover excise duty from Sula Vineyards was revoked by the minister.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 ruling has no bearing on the company’s operations or current business because it made every effort to operate in line with all applicable laws and regulations.

According to the Maharashtra Manufactured Beer and Wine Rules, 1966, the excise duty was recoverable on wine produced or manufactured from grapes produced in Maharashtra by blending wine brought from across the customs frontier or from other states, according to Sula Vineyards, which received the demand notice.

The business also claimed that on August 1, 2023, it immediately petitioned the High Court of Bombay to overturn the decision. The corporation claimed that legal counsel had informed it that the demand notice was unenforceable under the law.

Red, white, and sparkling wines from Sula Vineyards have all been honoured as the industry leader. The company sells wines under a variety of well-known names, including its main brand, Sula, as well as RASA, Dindori, The Source, Satori, Madera & Dia.

Currently, it has four owned and two leased production facilities in Maharashtra and Karnataka that create 56 different labels of wines under 13 different brands.

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