Telangana seeks pending excise duty from liquor suppliers

The Telangana State Beverages Corporation Limited (TSBCL) has issued notices to IMFL and beer suppliers, seeking the remaining 70 percent Excise Duty (ED) or Countervailing Duty (CVD) on drain out stock from depots for the period 2020-21 to 2022-23.

The notice highlights discrepancies in duty payments, stating, “As per the MIS reports on drain out stock for the period 2020-21 to 2022-23 in IMFL depots, it was observed that certain bottles of IMFL/Beer were drained out. The supplier had paid only 30 percent of Excise Duty instead of 100 percent.”

According to TSBCL, the order dated August 23, 2019, mandates that suppliers pay 70 percent ED/CVD at the time of removal of IMFL/beer from depots, which includes sales, drain out, returns, breakages, or shortages.

Suppliers are reminded of their contractual obligation under the Excise Act, rules, and rate contracts to pay the due amount. The notice states, “It is the responsibility of suppliers/licensees to pay the remaining 70 percent Excise Duty /Countervailing Duty on IMFL/beer drain out stock.”

Suppliers are directed to verify the calculations and respond within 10 days. “In case no reply is received within (10) days, it shall presume that you have nothing to say in the matter. 70 percent ED/CVD on drain out stock as indicated shall be made final and recovered,” the notice states.