Scotch Whisky Import Probe: DRI Team Visits Pernod Ricard Office
A team from the Directorate of Revenue Intelligence (DRI) visited the premises of Pernod Ricard India, the company confirmed on Thursday. The visit is linked to an examination of how bulk Scotch whisky imports were classified and whether they qualified for customs concessions under the India-UK trade agreement.
The company said it is working closely with the officials and has shared all the documents and details they requested. In its statement, it said that it has confidence in its position and will respond to every question raised in a transparent and constructive manner.
Pernod Ricard India reiterated that it follows the highest standards of compliance in all its operations. A spokesperson said, "We confirm that officials of the Directorate of Revenue Intelligence visited our premises. Pernod Ricard India is cooperating fully with the authorities and providing all the information requested."
The confirmation came in the wake of media reports that Indian tax officials are investigating whether Pernod Ricard and other liquor companies, including Diageo, correctly classified certain Scotch whisky imports that benefited from reduced duties under the trade pact.
As per the reports, DRI officials visited the company's headquarters near New Delhi last week and requested details of its Scotch whisky imports.
Earlier this year, the Delhi High Court dismissed a petition filed by the French wine and spirits company challenging the rejection of its application for a wholesale liquor licence.
Justice Purushaindra Kumar Kaurav observed that the company has a criminal background under the Delhi Excise Act and is therefore not eligible for an L-1 licence. The court considered the pending prosecution against the company in the alleged Delhi excise policy scam case and said the rejection of its wholesale licence applications was justified.
The court concluded that, in the present situation, the company's criminal background under Section 13(1)(c) of the Delhi Excise Act disqualifies it from obtaining an L-1 licence.