India Accuses Pernod Ricard of Understating Scotch Imports

India has accused Pernod Ricard of withholding key details about the age and composition of Scotch whisky imported into the country in an effort to pay lower tariffs, escalating a tax dispute that could leave the French spirits company facing more than $600 million in duties and penalties.

The case centers on Pernod, the maker of Chivas Regal whisky and Absolut vodka, which has said India is its biggest market by volume. Indian tax authorities allege that the company underreported the value of some whisky shipments over more than a decade by failing to disclose information that would have affected customs valuation. The government has demanded about $314 million in taxes, and officials say the total could rise sharply if fines are added.

Pernod is challenging the findings in Delhi High Court and is seeking to overturn a September ruling tied to the dispute. The company has denied wrongdoing and is contesting the federal tax demand, according to the Reuters report carried by Moneycontrol.

The dispute matters because India applies different tariff rates depending on product classification, age and composition for imported spirits. In a market where Scotch imports are closely watched by regulators and competitors alike, any ruling against Pernod could affect how other foreign liquor companies declare shipments and calculate duties.

Indian investigators say the issue goes beyond a single shipment or one brand. They contend that Pernod’s import practices affected valuation for years, which would have reduced the amount of customs duty owed on Scotch brought into India. The company’s legal challenge now puts those valuation rules under scrutiny at a time when India remains one of the world’s fastest-growing spirits markets.

Pernod has not publicly detailed how it classified the imports at issue, but the case has drawn attention because it involves one of the largest global drinks groups and a market that has become central to its growth strategy. The outcome could shape future enforcement around imported whisky and other premium spirits in India, where tax treatment can vary widely depending on how products are described at the border.