Zuari Industries Limited has secured interim relief from the High Court of Judicature at Allahabad, Lucknow Bench, concerning a export fee dispute on denatured alcohol.
Earlier, on 19 July 2025, Zuari Industries informed about the reinstatement of export fee on denatured alcohol by the Government of Uttar Pradesh and the related letter received by the company from the office of the Assistant Excise Commissioner, Lakhimpur Kheri, Uttar Pradesh to deposit import/export pass fees levied on denatured alcohol retrospectively, covering the period from FY 2018–19 up to the date of the order and also to deposit such fees prospectively, as and when they become due.
U.P. Sugar Mills Association, of which Zuari Industries is a member, challenged the state government’s fee imposition through Writ Petition (C) No. 7023 of 2025. On 30 July 2025, the Allahabad High Court granted interim relief.
The Court has permitted the movement of trucks carrying industrial alcohol from distilleries, subject to the maintenance of proper records and submission of indemnity bonds by distillery operators (including the Company), clearly stating that in the event the writ petition fails and they are held liable to pay the fee under any Rule or Government Order, they shall pay the fee, subject to further rights of appeal, if available in law.
This interim relief was granted without prejudice to the rights of the parties and pending final adjudication of the petition.
