Excise Dept tax recovery from a liquor manufacturer embroiled in legal tangle

Five companies under the suspension of liquor licences over non- payment of Sri of taxes have been given some time to settle their tax arrears amounting to Rs.2.71 billion, Finance Ministry sources said.

The total tax default with the three per cent penalty for default will be around Rs. 6.72 billion, a senior Treasury official told the Times Online.

But one company has resorted to legal proceedings challenging the suspension of its licence and pleading some relief in repayment of tax arrears amounting to Rs. 580 million.   

These five companies have been given a deadline of December 29 this year to settle their tax arrears.

The five companies are: Royal Ceylon Distilleries; W. M. Mendis and Co Limited, Finnland Distilleries Corporation (Pvt) Ltd (formally known as Randiya Distilleries (Pvt) Ltd), Synergy Distilleries (Pvt) Ltd, and Randenigala Distilleries Lanka (Pvt) Ltd.

But one of those companies Royal Ceylon Distilleries (formally known as Wayamba Distilleries) has filed a case at the Appeal Courts on October 17 challenging the order of suspending their licence.

Lawyers Nihal Fernando PC, Lakmal Ratnayake and S Premachandra appearing on behalf of the company has filed a case No WAT 064923 pleading relief to settle the tax arrears.

They have informed the court that the company has to been given time to make submissions indicating the reasons behind the non-payment of taxes amounting to Rs.580 million.  

After hearing the submissions, President of the Court of Appeal Nishshanka Bandula Karunaratne and Justice M.C.B.S. Moraes have issued a writ order extending the period of validity of the licence till March 25, 2024.

The Appeal Court has also directed the respondents to make objections if there are any before January15, 2024. (Bandula)