Indian customs official inspects imported Scotch whisky.
French spirits producer Pernod Ricard, known for brands like Absolut vodka and Jameson Irish whiskey, has withdrawn its legal challenge against a significant tax demand from Indian authorities. The company had contested a demand of approximately $314 million (₹2,600 crore) related to the alleged undervaluation of Scotch whisky imports into India.
The dispute, which represented one of Pernod Ricard’s largest tax issues in India, centered on the valuation of imported spirits. Pernod Ricard had argued that Indian tax authorities did not provide adequate data from their investigation to support the demand. The withdrawal of the court plea marks a significant development in the ongoing tax scrutiny faced by multinational corporations operating in India’s burgeoning spirits market.
This move comes amidst a broader context of regulatory challenges for the alcohol industry in India, including ongoing legal battles concerning liquor policy violations in various states. The resolution of this tax dispute, by way of withdrawal, suggests a strategic shift by Pernod Ricard in managing its legal and financial obligations within the Indian market.
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