Maharashtra Excise Department which allowed excise rebate for ten years in 2001 to the existing and new wine producers to give a boost to the grape growing farmers, has started raising demand notes on all, starting from the three most recent additions.

The notices have already been sent to Chateau d'Ori, Vallée de Vin and Mercury 'as it was the easiest to compute the demand on them,' says one producer. Many others like Vintage Wines have been asked to give a helping hand and compute the amount payable on a self-assessment basis. Others are expecting the notices anytime.

One hand giveth and the other taketh, says an old American Indian saying'; the person doing so is known as the Indian Giver-the import of the word being relevant in this case. The department which had devised a scheme to protect the Maharashtra producers from out-of-state competition, and has been in the eye of the storm raised by WTO for levying an extra excise duty of 200% has seemingly turned a predator, asking the producers to pay back whatever was waived off, or else….

The fact is, the department has been forced by the Aurangabad Bench of Mumbai High Court to take this harsh step. Directed to comply with the order, it has had no other choice. Pressed by a possible carelessness and some technical botch up by the department lawyers, it has now passed the buck onto the producers who have suddenly started getting sleepless nights.

The grape growers expect to get the notice last as they can run to the ministers, feels Prahlad Khadangale, Chairman of Vinsura Wines, who concedes that eventually the notice must come to them too.

United We Fight

This High Court order may be a blessing in disguise. The producers most of whom do not see eye to eye with each other normally, are being obliged to sit across the table and put up a joint front, if they are to get out of this mess. The first obvious step, also suggested by delWine in an earlier article where we had predicted that the demand notice would be sent to all, would be to try and get an injunction against the order of the Honourable Court at Aurangabad. 

About 20 producers met at the office of Mr. Sham Chougule, Chairman of Champagne Indage and the President of the Indian Wine Producers Association yesterday where it was decided to pool in resources and take a joint stand. Confirming the meeting and the proposed action, Mr. Deepak Roy of Vallée de Vin, latest addition to the Nashik wine belt, said he is now planning to join the Association which will take the legal steps required to protect their interest. Rajeev Samant, another stalwart producer was not present in the meeting and could not be contacted for comments.

Vintage Wines' owner Yatin Patil who along with his wife has been happily busy the past weekend at the Upper Crust Food Show( where 'we sold wine worth over Rs. 180,000' says a beaming Kiran) was also present in the meeting. He has been asked by the department to be a gentleman and calculate how much he 'owes' them.

Naturally, he is seeking directions from the Association.

The Association plans to approach the court for some relief by Friday, before the 15-day deadline given by the department to make the payments against the demand raised.

Next few days and weeks might be stressful not only for the Maharashtra wine producers but also the excise department which has been caught on the wrong foot.

Subhash Arora