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The Supreme Court order on the closure of liquor vends located within 500 metres on the either side of national highways across the state also applied to the sale of wine, according to KWB managing director T Somu, says a report in Deccan Herald. Wine may not be sold in taverns (a concept introduced by the State thanks to the earlier new wine policy allowing opening of licensed outlets at very low fees, for selling wine and beer) and other liquor outlets falling within the restricted zone. Also, it cannot be sold in malls or stores along highways. However, wine tourism, grape stomping and wine making would not be affected.
The Supreme Court on Tuesday said however that roads within cities can be de-notified as national highways, opening a window for numerous liquor shops that were set to lose their license after a blanket ban on alcohol shops within 500 meters of all highways.
The move will benefit numerous bars in cities such as Bangalore where long stretches of important thoroughfares, totaling 78 k
ms. are actually parts of six national highways. Many five-star hotels, including ITC Windsor, Lalit Ashok, Le Meridian and The Oberoi, are located on Ballari Road, MG Road and Hosur Road, which are designated on the records as highways.
Illegal Retail Price at Vends due to GST
Meanwhile, the liquor and wine companies have still been undecided about how to handle the higher costs of 2-3% due to the set off not being possible on the purchase of packing material, freight costs and other such cost inputs, but the retailers in Karnataka are merrily making illegal profits by reportedly overcharging in the garb of increased input coasts.
From July 1, several liquor stores increased prices by at least 15% over and above the MRP. Beer was costlier by 38%- going up from Rs. 120 to Rs. 165, in the name of GST, according to a report in TOI.
Similarly the price of one bottle of Black Dog Reserve Scotch whisky was Rs 1,730.85 until Friday when it was hiked to Rs. 1,960. A bottle of Black Dog Triple Gold, which sold for Rs 2,870 before, is being sold at Rs 3.070 (6% higher), according to the report.
Goods and services tax (GST) does not cover alcohol but applies to goods being manufactured and packaged alcohol for sale, adding to costs. Liquor manufacturers, who incur the additional cost, and excise officials who determine MRP for CL-2 (retail) license holders, term it illegal. "Liquor sold is not in the ambit of GST and the new taxation system is not linked to the pricing of liquor. The MRP of liquor is subject to excise rules and it has not been changed," said Rajendra Prasad, joint commissioner of excise. "Traders must sell the drink at the price they used to before July 1. Selling liquor at a price other than MRP is illegal."
KWB set to play another pivotal role
The Karnataka Wine Board (KWB) plans to write to the Union and the state governments highlighting the health benefits of wine and request them to exempt wine from the restricted list. Locally made wine and unfortified wine should be accorded a special status and their sale should be permitted, at least near places where it is bottled,’ reportedly says one KWB official.
SC declines to stay Punjab government’s order
Meanwhile, Supreme Court also declined to stay the Punjab government’s recent declassification of state highways on Tuesday, saying “driving within the city is different from outside the city. We could have appreciated if road was in the nature of highways where there is a fast moving traffic,” a bench headed by Chief Justice of India Justice J S Khehar reportedly said. “All roads notified are inside the city where there is no fast moving traffic,” the bench also noted.
The NGO Arrive Safe Society of Chandigarh has moved Supreme Court alleging that declassification of state highways and municipal roads by Punjab government is to circumvent the Apex Court order banning sale of liquor on highways.
It was contended that by de-notifying state highways and renaming them major district roads, the Chandigarh administration had made a mockery of the Supreme Court order of 15 December, 2016 setting out the distance criteria. The Proceedings will carry on at future dates; next date of hearing has been fixed for July 11.
Subhash Arora |