Sula Vineyards shares dropped 6.27 percent to Rs 483.95 at 9.50 am after the winemaker said it had received a demand notice from the Maharashtra excise department.
The excise duty demand is for Rs 115 crore, the company said in its stock exchange filing . The excise duty is equivalent to Sula Vineyards total revenue in FY23 which was Rs 114 crore. However, Sula Vineyards said that this order will not affect the existing business or activities of the company.
The demand notice was sent to Sula Vineyards as it was asked to pay excise duty on wine which was manufactured using grapes from Maharashtra or by blending wine brought from across custom frontier or from other states.
The company said that it will immediately file a writ petition in Bombay High Court, challenging the order. The company has been legally advised that the demand notice is not tenable in law, it said.
The stock has grown 47 percent since January 1. It touched a 52-week high at Rs 535 on August 1.
Sula has grown to be India's largest and most awarded wine brand in India. Sula introduced grape varietals such as Chenin blanc, Sauvignon blanc, Riesling and Zinfandel in India and is the leading player in the Indian wine industry.
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