homemarket Newsstocks NewsSula Vineyards receives excise duty notice of Rs 116 crore from Maharashtra govt
Sula Vineyards receives excise duty notice of Rs 116 crore from Maharashtra govt
Shares of Sula Vineyards Ltd ended at Rs 516.25, down by Rs 5.25, or 1.01 percent on the BSE.
Leading wine producer Sula Vineyards Ltd on Tuesday (August 1) said the company has received an excise duty notice of Rs 116 crore from the Maharashtra excise department.
This comes after the minister vacated the interim stay granted on the demand notice issued by the Nashik collector for recovery of excise duty from Sula Vineyards.
However, Sula Vineyards said the order does not affect the existing business or the activities of the company as it strived to conduct — and carried out — its business in compliance with extant laws and regulations in letter and spirit, according to a stock exchange filing.
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.
Further, the company said it immediately filed a writ petition on August 1, 2023, before the High Court of Bombay, challenging the order. The company has been legally advised that the demand notice is not tenable in law, it said.
Sula Vineyards has been recognised as the market leader across wine variants, including red, white, and sparkling wines. The company distributes wines under a bouquet of popular brands such as Sula, its flagship brand, besides other popular brands like RASA, Dindori, The Source, Satori, Madera & Dia.
Also Read: New GST rule from today: Companies with more than Rs 5 crore turnover must generate e-invoices
Currently, it produces 56 different labels of wines across 13 distinct brands at its four owned and two leased production facilities located in Maharashtra and Karnataka.
Shares of Sula Vineyards Ltd ended at Rs 516.25, down by Rs 5.25, or 1.01 percent on the BSE.
First Published: Aug 1, 2023 11:07 PM IST
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