Liquor sold above MRP - 4

In another article (Yeddyurappa ‘castes’ the dice for LS polls) I find:

The share of profit by the retail liquor sellers would be reduced and without increasing the minimum retail price of the IMFL.

The additional excise duty on IMFL would also be reviewed. The government orders would be issued shortly.

And what the hell is "minimum retail price"?? Never heard of such. BTW, IMFL = Indian Made Foreign Liquor.

From another article, No cheers over beer, wine in Karnataka:

Having refrained from announcing duty hikes for liquor and related products in his budget a week ago, chief minister B S Yeddyurappa succumbed to the pressures of a sharply depleted treasury, and, on Friday said that additional excise duty (AED) would be increased on alcoholic beverages while the profit margin of liquor retailers would be decreased.

Also, the structure of AED on the IMFL (Indian made foreign liquor) would be revised. However, in the same breath, the chief minister said: “Steps will be taken so that the MRP (maximum retail price) on the IMFL won’t go up steeply.’’

These proposals have been included in the budget for 2009-10. Unlike excise duty, which is Rs 45 per litre, AED varies with respect to the price of liquor.

Presently, in the state, the retailers are entitled for a profit margin of 20%. This will come down with the new move. “We are yet to work out how much of AED to increase and how much of reduction to make in the profit margin,’’ said a senior official of the excise department.

Liquor sold above MRP - 3

Salient facts of Excise duty, from Central Excise -A guide to Assessees:

Central Excise duty is an indirect tax which is levied and collected on the goods/commodities manufactured in India. Generally, manufacturer of commodities is responsible to pay duty to the Government. This indirect taxation is administered through an enactment of the Central Government viz., The Central Excise Act, 1944 and other connected rules- which provide for levy, collection and connected procedures. The rates at which the excise duty is to be collected are stipulated in the Central Excise Tariff Act, 1985.

Power to impose excise on alcoholic liquors, opium and narcotics is granted to States under entry No. 51 of list II of Seventh Schedule to the Constitution and it is called 'State Excise'. The Act, Rules and rates for excise on liquor are different for each State.

So, liquor Excise Duty is a state subject. Now interestingly I see in this article: Liquor, beer to cost more in Karnataka:

He imposed additional excise duties on Indian made foreign liquor (IMFL), beer and other low alcohol beverages to net Rs 820 crore more revenue from the excise during the coming year. The exact amount of the additional excise duties on liquor is yet to be worked out and will be notified shortly in view of the commencement of the excise year from July 1 (2009).

Last I heard we were still in May.

Liquor sold above MRP - 2

Its amazing that there's hardly any information on the internet about the Excise department of Karnataka, current excise duty, increase, circulars, etc. I do find a bunch of complaints about liquor being sold above MRP. And some heartening articles.

94 liquor shops licences suspended

Liquor price goes up even before order comes into force which is interesting coz it says:

According to Shubhakar Ajiri, depot manager of KSBCL, retailers were not authorised to sell their old stocks at new rates even after the rates were increased. Unlike petroleum products, liquor should be sold at the rate at which it was procured from the KSBCL depot, he said.

Liquor sold above MRP - 1

A couple or so weeks ago I bought many bottles of liquor from Spencers Retail in Koramangla. All the prices charged were above MRP. There were 3 excise department notices that some brands of beer have been increased in price from such an such date (TBD). However, there was no notice for the 6 or 7 different alcohol brands I was purchasing. I called for the manager, spoke to him, explained to him the problems.

1. The purchase price of fresh stock of liquor might have gone up, but that does not mean the old stock was purchased at the higher price.
2. MRP on liquor was made mandatory from (AFAIK) Nov 06. That means the MRP is the final price on that old stock and all taxes have been paid already, and as far as MRP rules go, the price cannot be changed on old stock.
3. Excise duty in India is different from sales tax / service tax / VAT. Its a point of origin or manufacture duty, hence this duty is already charged, whether the sale is made or not. (I need to check into the legaclity of Excise duty increase after the MRP has been printed on the bottle.)
4. Notice was not published for the brands I was purchasing.

He in turn called up his manager, they brought their files for inspection and showed me that the price that they had purchased the beer brand that I'd bought was higher than the MRP printed. And the price that they were selling at was higher than their purchase price, which is of course valid. So I asked for a letter from them stating that they were selling the liquor above MRP and there was no notice. He of course refused.

I purchased all the liquor and took a bill. That makes my posistion secure. Now to find out whether I am in the right, and if so how to nail these buggers.