Sula Vineyards saw its shares plunge over 8% in today’s trade session, touching an intraday low of Rs 473.5 as it received an excise duty notice for Rs 116 crore from the Maharashtra state excise department. The total revenue of the winemaker for the 2023 fiscal was Rs 114 crore. 

Shares of Sula Vineyards were trading at Rs 474.40, down 8.07% from the previous closing price. The stock is trading 44.37% up in the year-to-date period and 52.76% up from its listing date. 

In an exchange filing, the company stated that the Minister of the Maharashtra State Excise Revenue Department had vacated the interim stay order dated September 19, 2019. However, Sula Vineyards said this order would not affect the existing operations or ongoing activity. A sum of Rs 115.89 crore is to be paid as excise duty and interest charges. 

The stay order was granted on the demand notice issued by the Collector of Nashik for recovery of excise duty from Sula Vineyards after it filed an appeal before the Commissioner of State Excise, Maharashtra, challenging the demand notice. 

The demand notice was issued that excise duty was recoverable on wine produced or manufactured from grapes grown in Maharashtra by blending wine from across the customs frontier or from other states, as per the Maharashtra Manufactured Beer and Wine Rules, 1966. 

The company stated that it has consistently worked to adhere to existing laws and regulations in letter and spirit and conducted its business accordingly.

Further, the company has filed a writ petition with the High Court of Bombay to challenge the order since the legal team has advised that the demand notice is not tenable in law. The company will inform the stock exchanges of any new information on this situation.