In its second blow to liquor imports, the Maharashtra government has withheld imported liquor stocks on the basis that they do not display the maximum retail price.

Last month, the state government became the first to levy a hefty excise duty on imported spirits. Two weeks ago, Maharashtra shocked the liquor industry by delivering an excise blow of 100 per cent for beer, 150 per cent for wine and 200 per cent for spirits on the assessable value of foreign liquor. This was shortly after the Centre had slashed additional Customs duty by 20-75 per cent on imported spirits.

Since July 16, Maharashtra's excise department has not issued release orders on imported liquor stocks that do not display the maximum retail price. The state accounts for 35 per cent of the country's annual imports of 600,000 cases of liquor.

The state government has also levied an additional Rs 2.5 lakh (Rs 250,000) licence fee on licensee distributors for distributing imported liquor. Sources said this might be raised to Rs 5 lakh (Rs 500,000) soon.

Importers met the state excise commissioner today to discuss the issue.

A state government official said this move was not to discriminate against foreign liquor but to provide a level playing field to importers and Indian manufacturers. "After levying this special fee, we would like to see how it works for some time and we will revisit the policy if necessary," he added.

The state government has applied the same formula for assessing maximum retail price as is applicable to Indian-made liquor -- it has to be four times the assessable value.

Assessable value is equivalent to the price of liquor at the distillery, brewery or winery in addition to insurance cost and freight charges, plus 1 per cent of these three components together.