SC admits Pernod Ricard India’s plea on lesser penalty

The Supreme Court of India admitted Pernod Ricard India’s petition to reduce the penalty for crossing its permissible limits for loss of liquor in transit during imports due to leakage, evaporation and wastage. Accepting the company’s plea, the apex court set aside the Madhya Pradesh High Court’s order that upheld imposition of higher penalty on the matter.

The SC will hear the matter on the applicability of the rule for penalty under the Madhya Pradesh Foreign Liquor Rules 1996 that existed when the violation was reported during the Pernod Ricard India’s license period of 2009-10, or the 2011 amended rule when proceedings for penalty were initiated and demand notice was issued.

As per the report, during the Pernod Ricard India’s license year 2009-10, the rules provided for a penalty which was four times the maximum duty payable on foreign liquor. After amendment, the penalty was reduced to an amount not exceeding the duty payable on foreign liquor. As the 2011 amendment reduced the cost of penalty, the company insisted on applicability of amended rule on penalty but the concerned state authorities rejected the case and imposed higher penalty under the old rule.