Scotch whisky tax dispute: France’s Pernod retreats in court fight over $314 million Indian levy

French spirits maker Pernod Ricard has withdrawn its legal challenge against India's demand for $314 million (around Rs 2,700 crore) in back taxes over alleged undervaluation of Scotch whisky imports and will instead pursue the statutory appeals process, according to a Delhi High Court order.

The dispute, one of the company's biggest regulatory challenges in India, relates to allegations that Pernod undervalued imported Scotch whisky over several years, resulting in lower customs duty payments. Indian authorities had issued the tax demand in September 2025 following a four-year investigation.

Pernod had approached the Delhi High Court seeking to quash the demand, arguing that tax authorities failed to provide key investigation documents that were necessary for the company to defend its case.

However, in an order released on Monday, the Delhi High Court noted that Pernod had withdrawn its petition to "avail statutory alternative remedy of appeal," meaning the company will now challenge the tax demand through the prescribed appellate mechanism under Indian tax laws.

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The tax dispute is among the most significant legal issues facing Pernod Ricard in India, which contributes around 10 per cent of the company's global sales and is its largest market by volume.

Apart from the tax case, the maker of Chivas Regal whisky and Absolut Vodka is also dealing with an antitrust investigation and a separate sales ban in New Delhi linked to alleged liquor policy violations, allegations that the company has denied.

Neither Pernod Ricard nor Indian tax authorities immediately responded to requests for comment.