Dwarikesh Sugar Industries Limited has received a letter from the Assistant Excise Commissioner, Government of Uttar Pradesh, directing its Dwarikesh Dham Unit to remit ₹79.45 lakh as import/export fee on denatured spirit (power alcohol) for the period from FY 2018-19 to FY 2024-25. This levy, at ₹1 per bulk liter, had not been collected earlier and the company is currently reviewing the implications of this order and shall take necessary steps as per applicable legal provisions.
The directive follows an order from the Supreme Court dated October 23, 2024, which upheld the state's authority to levy import/export fees on denatured alcohol. Consequently, the Assistant Excise Commissioner reinstated the levy of ₹1 per bulk liter, revoking a previous interpretation that had discontinued the collection of such fees. The order has been applied retrospectively, covering the period from FY 2018-19 to FY 2024-25.
Dwarikesh Sugar Industries is currently examining the implications of the order and will take appropriate steps in accordance with applicable laws and regulatory guidance. The company is also evaluating legal recourse in the matter.
The company has stated that there is no material impact financially, operationally, or otherwise, except to the extent of ₹79.45 lakh. The department has clarified that this is a retrospective statutory recovery and not a penalty.
| Particulars | Details |
|---|---|
| Amount Payable | ₹79,45,000 |
| Levy | ₹1 per bulk liter on denatured spirit |
| Period | FY 2018-19 to FY 2024-25 |
Detailed Analysis
The directive follows an order from the Supreme Court dated October 23, 2024, which upheld the state's authority to levy import/export fees on denatured alcohol. Consequently, the Assistant Excise Commissioner reinstated the levy of ₹1 per bulk liter, revoking a previous interpretation that had discontinued the collection of such fees. The order has been applied retrospectively, covering the period from FY 2018-19 to FY 2024-25.
Company Response
Dwarikesh Sugar Industries is currently examining the implications of the order and will take appropriate steps in accordance with applicable laws and regulatory guidance. The company is also evaluating legal recourse in the matter.
Financial Impact
The company has stated that there is no material impact financially, operationally, or otherwise, except to the extent of ₹79.45 lakh. The department has clarified that this is a retrospective statutory recovery and not a penalty.
