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Excise crackdown: 1,795 liquor bottles seized for sale sans permit in Chandigarh
The excise and taxation department in Chandigarh has confiscated over 1,300 bottles of imported and Indian liquor in a crackdown on sales without valid permits. Legal proceedings have been initiated against the licensees involved. The department is also distributing unallocated liquor quota among allotted vends to mitigate a potential loss of ₹150 crore ($20.2 million) this financial year. Contractors have blamed the poor response to auctions on factors such as higher VAT and excise fees in Chandigarh compared to Punjab.
As part of its a crackdown on sale of liquor without valid permits, the UT excise and taxation department has confiscated a total of 1,315 bottles of various brands of imported foreign liquor and Indian made foreign liquor, apart from 480 bottles of country made liquor.
The department has also initiated legal proceedings against the defaulting licensees.
The action came following series of random inspections by the department’s enforcement team at the liquor vends located in Sectors 7, 19, 20, 22, 44 and Industrial Area, Phase 2.
“The excise department has been actively coordinating with Chandigarh Police for curbing illegal smuggling by way of sharing of information and regular coordination meetings,” said Vinay Pratap Singh, commissioner, excise and taxation, UT.
“This operation is part of the ongoing efforts to maintain the integrity of the excise system and protect the interests of city residents. The excise department will continue taking stringent action against any individual or establishment found involved in such illegal activities. Those found involved in duty evasion will be held accountable under excise laws,” Pratap said.
He also urged citizens to be vigilant and report any suspicious activities related to the sale of alcoholic beverages to the department.
Unallocated liquor quota distributed among allotted vends
Staring at a loss of ₹150-crore this financial year owing to 18 liquor vends remaining unsold, the excise and taxation department has announced equitable distribution of unallocated quota of unallotted liquor vends among the 77 allotted liquor vends.
Through city’s 95 liquor vends, the department had established a revenue target of ₹830 crore from liquor vend licence fees for 2023-24. Seven months into the financial year, the department has been able to collect only ₹500 crore.
In 2022-23, the department was able to sell 93 out of the total 96 liquor vends after conducting seven auctions.
Liquor contractors have maintained that the poor response to the auctions is due to the Punjab excise policy offering more perks than that rolled out by Chandigarh.
They say VAT in Punjab is 1% of the ex-distillery price (EDP), compared to a much steeper 12.5% VAT in Chandigarh. Another reason for contractors’ exodus from Chandigarh is the excise fee, which is 1% in Punjab, but ranges between ₹445 and ₹3,500 per case in the UT.
Contractors have also blamed UT for fixing quota at 18 lakh liquor boxes a year, which means unlifted liquor cases will lead to a penalty. The penalty is ₹900 per case for Indian made foreign liquor and ₹3,500 per case for foreign liquor. In contrast, Punjab has an open quota with no compulsion.
They have also cited the higher licence fee in Chandigarh for the poor response, which is ₹6 crore on an average compared to ₹1.5 crore to ₹2 crore in Punjab.
