HC directs beverage suppliers to resume supplies

The Orissa High Court today directed the beverage suppliers to resume supply of their products to the state at the newly-fixed offer prices after signing the agreement with the State Breverage Corporation, which shall be subjected to disposal of the pending writ petitions.
The court also asked the state government to convene the price fixation committee (PFC) meeting of government-run Odisha State Beverages Corporation (OSBC) for reconsideration of the decision on offer price.
The beverage suppliers had challenged the state's excise policy contesting the reduction of 'offer prices' (10 per cent reduction for IMFL/FMFL/wine and 20 percent reduction for beer suppliers) and additional rounding off of the price to next Rs 5, which shall be part of the maximum retail price of the products.

A division bench, comprising Justices Indrajit Mohanty and Biswanath Rath, after a hearing for the last three days, adjourned the next hearing of the matters to July 16.
The beverages companies in their petitions maintained that the new excise policy of Odisha government aims at introducing ad valorem tax and mandates reduction of offer prices, which are ultra vires. These steps would substantially impact the pricing of various alcoholic beverages to the detriment of the financial interest of the petitioners.
The petitioners have also objected to the rounding off of the prices to next Rs 5 and adding that to the MRP of the product.