Sula Vineyards share price slumps over 6% on excise duty notice of ₹116 crore

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Sula Vineyards share price slumped over 6% on Wednesday's trade after receiving an excise duty notice for ₹116 crore from the Maharashtra excise department on Tuesday. Sula Vineyards share price opened at intraday high of ₹496.65 apiece on BSE. The company stated in an exchange filing that the State Excise Revenue Minister has vacated the interim order granted pursuant to the decision dated September 19, 2019, issued by the State Excise Revenue Minister, Government of Maharashtra.

The interim stay was granted regarding the demand notice ("Demand Notice") issued by the Collector of Nashik, Maharashtra (State Excise Department) for the recovery of excise duty from the Company and the appeal filed by the Company before the Commissioner of State Excise, Maharashtra State, Fort, Mumbai, Maharashtra, challenging the Demand Notice. The company assured in its exchange filing that it may be noted that the order has no bearing on its operations or ongoing activity. The company stated that it has consistently worked to adhere to existing laws and regulations in letter and spirit and conducted its business accordingly.

Additionally, on August 1, 2023, the company filed a writ petition with the High Court of Bombay to challenge the Order (against the State of Maharashtra via the Principal Secretary and others). The legal team has informed the Company that the demand notice is not tenable in law. The Company will inform the stock exchanges of any new information on this situation.

On the technical front, as per trendlyne data, Sula Vineyards stock price rose 2.2% outperformed its sector by 0.9% in the past week. “This is a newly listed stock with limited price data to give a technical view. it was trading at all time high however