Shares of Sula Vineyards, India’s largest wine producer plunged nearly 5% at open on Wednesday after the company received an excise duty notice.
What Happened: The winemaker said on Tuesday that it was slapped with an excise duty notice amounting to ₹116 crore from the Maharashtra excise department.
This came after the ministry scrapped an interim stay granted on the demand notice issued for excise duty recovery from the company.
However, Sula Vineyards clarified that the order will not impact its existing business or operations. The company asserted that it has diligently followed all laws and regulations in conducting its business. It promptly filed a writ petition before the High Court of Bombay to challenge the order, saying the demand notice is legally untenable.
According to the demand notice, excise duty is recoverable on wine produced or manufactured from grapes produced in Maharashtra by blending wine brought from across custom frontier or from other states, as per the Maharashtra Manufactured Beer and Wine Rules, 1966.
Price Action: Sula Vineyards’ share price were down 4.93% at ₹490.90 in early trade on Wednesday.
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