May 16: Union Territory of Chandigarh announced the extension of its policy for 2020-21 on Saturday, with no additional taxes due to Covid-19 even though the UT of Delhi had announced on May 4, the day it allowed the selling of alcohol in Delhi when it was flummoxed with the huge lines causing it to, impose a surcharge of 70% on MRP, allowing only about 125 of the 800 shops-only State owned, pre-emptying the sale through private shops, writes Subhash Arora 
       
 
   In  a notification issued on 16 November the Administration stated that the license  fee paid already by the retail sale licensees for the period from March 23 to  31 when they could not run their retail sale liquor vends due to the lockdown  would be adjusted in the licence fee to be paid for the extended period. 
   Extending  the liquor Excise Policy till June 30, the Administration has reiterated that  the Excise Policy 2020-21 will help the UT to earn a revenue of approximately  Rs 680 crore against Rs 617 crore estimated for last year. 
   To  promote beverages with low alcoholic content and boost Indian wine industry,  the annual license fee has not been increased and kept at Rs 12,000. The label  registration fee of wine has been reduced from Rs 10,000 per label to Rs 7,500.  This compares much more favourably with the astronomical registration charges  of Rs. 60,000 per label in Delhi. 
   Furthermore,  in order to promote tourism in Chandigarh, 5-star or higher category hotels are  allowed to serve liquor round the clock if they pay an increased fee from Rs.  12 lakhs to Rs15 lakhs. Presumably this fees will be applicable only when  Lockdown conditions are relaxed in the UT and the hotels are opened. Punjab has already announced refund of the license fee during the period. 
   Chandigarh is  a Union Territory like the Indian Capital. But it has very progressive policies  for the past few years-perhaps the beginning was made in 2007 when delWine had focused on the policy and wine marketing  in Chandigarh, which was designed to avoid smuggling from the neighbouring  States like Punjab, Haryana and Himachal Pradesh. Unlike Delhi they have been very regular in announcing their policy every year in March,  even this year. Thus, the current circular is in fact a mere extension of that  policy.
   For  a few of the Articles about Chandigarh, please visit:
   Wine Label Registration for Chandigarh reduced to Rs.7500
   Unlikely lower drinking age in Chandigarh Policy 2020-21
   Excise: Chandigarh Policy favourable for Wine and Beer
   Delhi  on the other hand, presents a rather gloomy picture, so far as the wine and  alcohol excise policy is concerned. Over the years, it had shown some  progressive traits by allowed the opening of wine and liquor stores in the  shopping malls where women could buy wine and spirit of their choice without  standing in lines at the thekkas and feeling embarrassed. They could  also buy in the recent years in about 150 department stores in various  localities. Now the shops in the Malls have been closed and so are the  department stores.
   
   Incidentally,  Haryana’s new Policy for wholesale distribution has been postponed due to  Lockdown imposed before the policy could be formalised though Retail Shops were  allotted based on the highest bids. Haryana converted last year to Oligopoly  after 2 years of experimentation with monopoly. This year, the State was  reportedly keen to make it more open to various players.
   Strange  Case of Delhi Excise applicable to Department Stores and L1 Licensees 
   L-12/L12F  Licenses for the Department Stores were applicable till 31.3.2020. But the  Delhi Government took the unilateral decision to cancel the Licenses on 19  December, 2019 for alleged violation of the rules. The stakeholders had gone to  High Court which had given a Stay Order against the impugned order and directed  the 113 stores to ensure that they complied with the terms and conditions of  the contract. 
   The  shops were allowed to open in January, 2020 and were functioning smoothly till the  lockdown was announced. It is a moot point whether the authorities would refund  the unutilized portion of the annual fee for the period in which the order  pervaded and for the 24-31 March period of Lockdown. 
   But  the court order has now become infructuous because the new annual license for  2020-21 is unlikely to be renewed unless there is a strong lobbying by  department stores to convince them otherwise or alternatively, they have to  wait at least till the next Assembly elections due in 2025. 
   In  the meanwhile, although there has been a lockdown this year so far after March  24, the L1/L1F Licensees were asked to deposit pro-rata license fees till June  2020 if they wanted to renew their license during this extension. Till date,  only the big corporates like Diageo, Pernod Ricard and Moet Hennessey-the big  liquor sellers have managed to get the labels registered after depositing the  license fee for the extended period, till June 30. 
   Punjab  and Chandigarh are progressive and equitable enough to have allowed the refund  for April 2020. 
   Confusion  persists 
   There  has been a lot of confusion about marketing of wine and liquor throughout  India. A few States have resisted and not allowed the shops to be opened  despite losing the excise revenues heavily . Tamil Nadu had opened up  the sales but High Court had disallowed the Sales on grounds  of violations of the coronavirus guidelines However Supreme Court stayed  the Madras High Court order for closure of state-run liquor outlets on last  Friday, 16 May. Tamil Nadu should start allowing sales soon. In Maharashtra,  the government allowed home delivery but BMC has apparently blocked the  re-opening as on Sunday. 
   The  Chapter in the book of Lockdown during Corona Virus in India has lot of amusing  stories but dry throats for the alcohol consumers and with the situation being  fluid and changing rapidly every day. Media is having a good time with lots of  content provided by various States. This might continue to outlast the Lockdown  which was again extended till 31 May all across India from today. 
   Corona Tax at 70% MRP
   Subhash  Arora 
  
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