The Minister of State Excise Revenue has vacated the interim stay on a demand notice issued by the Collector of Nashik, Maharashtra for recovery of excise duty from Sula Vineyards. The demand notice was issued on the grounds that Sula Vineyards had blended wine brought from across the custom frontier or from other states with wine produced or manufactured from grapes produced in Maharashtra.

The excise duty, along with interest, is estimated to be Rs 115.89 crore. However, Sula Vineyards has filed a writ petition in the High Court of Bombay challenging the demand notice. The company has been legally advised that the demand notice is not tenable in law.

The company clarified that the demand order will not affect its existing business or the activities.

Sula Vineyards is principally engaged in the business of manufacture, purchase and sale of premium wine and other alcoholic beverages. The company's consolidated net profit jumped 4.9% to Rs 14.25 crore on 6.4% increase in revenue from operations to Rs 113.23 crore in Q4 FY23 over Q4 FY22.