Posted: Wednesday, 30 March 2011 17:28

Excise Policy Extended in Delhi by a Month

Delhi Excise department has always played the role of a mom-and-pop style of management, announcing policies as and when they please. In all fairness, this year has been exceptional with the reins of the Finance Ministry falling in the hands of the Chief Minister, Mrs. Sheila Dixit only about a month ago. There would have been no takers for the bet that the new year’s policy would be announced on time.

According to a circular dated 25th March and received by the trade on Saturday and Monday, the validity of the L1 and L1F (for the sale of Indian and foreign alcohols resp)
Licenses are being extended till 30 April at the same terms and conditions as earlier. License Fee, Brand Fee, Brand Registration fee and other expenses related to the excise for the  licenses remaining the same, have to be deposited on a pro-rata basis.

The corollary to the circular is that no new licenses would be issued during the month of April. It also means that the usual suspense period during which there are no supplies feasible due to the excise constraints like filing of labels for registration, has been postponed for at least a month.

The importers, though pleased with the possibility of filling up the orders they could not execute due to technical complexities, are apprehensive about the charges to be paid next month will be for 12 months. Although this would be patently illegal and excise department is not likely to announce a blatantly unfair policy, importers feel that since they are a miniscule minority, they may not ever be able to openly protest against the policy howsoever unfair it is.

Chandigarh too

After several years of announcing the policy before the fiscal year end the Union Territory of Chandigarh which was one of the first to launch a progressive wine distribution policy has announced a Status Quo for another month. Reportedly, it is working on changing the distribution policy and going  back to the tendering system prevalent earlier. For the last few years, the licenses were being renewed every year on payment of the license fee. Perhaps, those who did not get the license felt it was unfair policy.

What is the latest buzz? ‘The excise policy would be announced in a day or two. The same speculation, the registration charges are going up, nay, they are going down. The license fee is going down to Rs.200,000, mabe to Rs.100,000 or perhaps its going up to Rs.600,000. When the day ore reckoning comes, the readers of delWine would not have to wait any longer.

For an earlier related article, visit
Exorcising Dilli-Dailying Excise

Subhash Arora                                              Circular