The state government is in for fresh trouble on excise front with liquor manufacturers approaching the High Court against the procurement policy of the government. The excise department is already struggling with poor response to the liquor outlets in more than 600 places.
Sources told this newspaper that the difference of opinion between principal revenue secretary Asutosh Mishra and AP Beverages Corporation Limited MD M. Jagadeeshwar led to the stalemate over the procurement policy. AP Wineries and Distilleries Association filed a case against the government, excise commissioner and APBCL questioning the latter's decision to include the cost of the holograms in the basic price of liquor.
“The excise labels, be it adhesive or hologram, amount to levy which along with duties shall not be included in the basic price,” said an association representative. “Our supply price will come down by Rs 25- Rs 50 if the cost of hologram is included in the basic price,” he added. The association had referred to the previous orders (GO Ms 87 and 327) in which the definition of basic price was clearly mentioned as “ex-factory price, cost of bottles, cost of packing material, freight, insurance, handling charges and import fee, if any.”
On the contrary, the notification issued by the APBCL included the cost of holograms in the basic price, it added. The principal revenue secretary, at a meeting on July 25 agreed with the distilleries and even directed APBCL to issue a corrigendum removing the cost of hologram from the basic price. Sources said Mr Jagadeeshwar, however, did not agree for corrigendum and stuck to the earlier notification.
Though the last date for filing of tenders for supply of liquor was July 3, the APBCL extended the date till July 10 as the distilleries refused to submit their price offers.