MAHARASHTRA EXCISE GOVERNMENT RESOLUTION ANALYSIS

Document Type: Government Resolution (GR) – Policy Decision with Committee Formation

Reference Number: GR No. BWR-0418/Pr.Cr.96/RAUSHU-3

Issued By: Government of Maharashtra, Home Department (गृह विभाग)

Date of Issue: 8 May 2018

Portal ID: 1421

Digital Reference/Portal Code: 201805081632096329

Effective Date: Retroactive effect requested from 2006 onwards (शक्याशक्यता तपासणे = pending feasibility examination)

SUMMARY

This Government Resolution directs the formation of a committee to examine the feasibility of amending existing regulations to grant a 100% production duty exemption on wine produced from grapes grown in Maharashtra when such wine is blended with wines from other wineries for further wine production. The exemption is sought to incentivize grape farmers and wine producers. The committee is mandated to report within 15 days and also examine the possibility of granting this exemption with retroactive effect from 2006.

KEY PROVISIONS

Committee Composition:

1. Chairman: Chief Secretary, Government of Maharashtra (मा. मुख्य सचिव, महाराष्ट्र राज्य)
2. Member: Principal Secretary (RAUSHU) – Home Department (प्रधान सचिव राउशु)
3. Member: Secretary (Soil, Water Conservation and Animal Husbandry) (सचिव मृदा, जलसंधारण व पशुपालन)
4. Member-Secretary: Joint Secretary (RAUSHU) – Home Department (सह सचिव राउशु)

Committee's Mandate and Scope:

The committee shall:

1. Primary Task: Recommend necessary amendments to existing regulations to permit the following practice:

   • Allow bulk wine produced from Maharashtra-grown grapes to be blended (mixed) with wines from other wineries for the purpose of wine production at those other wineries
   • Grant a 100% exemption from production duty (उत्पादन शुल्क) on the wine produced through such blending

2. Secondary Task: Examine the feasibility of granting this exemption with retroactive effect from 2006 (पूर्वलक्षी प्रभावाने सन 2006 पासून)

Submission Deadline: The committee must submit its report to the Government within 15 days of the date of this resolution (सदर समिती ने आपला अहवाल 15 दिवसांच्या आत शासनास सादर करावा)

WHO IS AFFECTED

• Wine manufacturers/wineries (वाईन उत्पादक) — specifically those utilizing bulk wine made from Maharashtra grapes for blending purposes
• Grape farmers in Maharashtra (द्राक्ष उत्पादक शेतकरी) — intended beneficiaries through incentivization
• Excise Department/Commissioner of State Excise (राज्य उत्पादन शुल्क आयुक्त) — implementing authority for rule amendments
• License Category Affected: Wine manufacturing/production licenses (शराब उत्पादन परवाने)

RELEVANT REGULATIONS TO BE AMENDED

The committee is tasked with recommending changes to existing rules governing:

• Production duty on wine (वाइन वर उत्पादन शुल्क)
• Wine blending permissions (वाइन मिश्रण परवानगी)
• Potentially the Maharashtra Wine Rules or relevant schedules under the Bombay Foreign Liquor Rules 1953 (BFLR) or Bombay Prohibition Act 1949 (BPA)

(Specific rule/section references are not enumerated in this GR, as it authorizes a committee to draft amendments)

PREAMBLE / RATIONALE (प्रस्तावना)

The Government acknowledges that:

1. Persistent Demand: Grape farmers and wine producers have continuously requested exemption from production duty on wine made from Maharashtra-grown grapes for blending purposes (राज्यातील द्राक्ष उत्पादक शेतकरी तसेच वाइन उत्पादक घटकामापण सातत्याने मागणी करण्यात येत आहे)

2. Policy Objective: To incentivize and support grape farmers in Maharashtra by promoting local grape-based wine production (राज्यातील द्राक्ष उत्पादक शेतकऱयांच्या प्रोत्साहन देण्यासाठी)

3. Regulatory Change Required: Necessary amendments to current rules are required to implement this policy (प्रचलित नियमामध्ये आवश्यक ते बदल करण्याबाबत)

IMPORTANT NOTES / CONDITIONS / SPECIAL PROVISIONS

1. Retroactive Claim: The resolution explicitly requests the committee to examine the feasibility of making any exemption retroactive to 2006 — this is NOT automatically granted but requires feasibility study (शक्याशक्यता तपासणे)

2. 100% Exemption Scope: The exemption applies to production duty ONLY — other taxes, royalties, or licensing fees are not mentioned as being waived

3. Blending Requirement: The exemption is conditional on the Maharashtra grape wine being used for blending/mixing with wines from OTHER wineries (अन्य वाईनरीमध्ये वाईन तयार करण्यासाठी मिसळण)

4. No Automatic Implementation: This GR merely establishes the committee — actual rule amendments will follow only after the committee's report is received and approved by Government

5. Digital Authentication: The order is digitally signed and available on www.maharashtra.gov.in

6. Distribution: Copies distributed to Chief Minister's office, Opposition Leaders, Minister for State Excise, Chief Secretary, Commissioners, and Excise records (का. राउशु-3 संग्रहाथण)

PROCEDURAL STATUS

• Current Status: Committee formation approved
• Next Step: Committee to submit report within 15 days
• Then: Government will review committee recommendations and issue formal rule amendments (if approved)
• Timeline to Actual Rule Change: Minimum 15 days from 8 May 2018, likely longer depending on Government's deliberation period

FINANCIAL/DUTY IMPACT (Intended)

Type of Relief: Production Duty Exemption (उत्पादन शुल्क माफी)
Extent: 100% (पूर्ण माफी)
Applicable Wines: Wine made from Maharashtra-grown grapes used for blending at other wineries
Estimated Affected Parties: Wine manufacturers, grape farmers (exact revenue impact not quantified in this GR)

DOCUMENTS REFERENCED (Not Provided in This GR)

• Current wine production duty rules/schedules (to be amended by committee)
• Maharashtra Wine Rules or relevant schedules under BFLR 1953 / BPA 1949
• Historical excise policy from 2006 onwards (for retroactive feasibility study)

NO FEES SCHEDULE IN THIS DOCUMENT

This GR does not establish or modify any fee schedule.

END OF ANALYSIS