The company proposed to import alcohol flavouring ingredients for the manufacture of its popular brand "Southern Comfort".

The proposal was shot down on the recommendation of the administrative ministry -- ministry of food processing on the ground that the licensed capacity of the Indian partner, Jagatjit Industries had not been transferred to the joint venture company despite repeated requests.

The proposal also involved import of bulk bourbon spirit and tequila concentrate for blending with Indian spirit for the manufacture of locally blended bourbon and tequila.

In the proposal, the company had requested for import of raw materials in place of vatted malt spirit which is required for local scotch.

The FIPB had shot down the proposal last year on the same grounds. The companyhas, however, been representing against the rejection from time to time. The company contended that it met all the requirements with respect to the transfer of capacity as it furnished a no-objection certificate to use the licensed capacity of the Indian partner Jagatjit Industries from the excise department of Punjab.

Jagatjit Brown Forman India Pvt Ltd is a 50:50 joint venture between Brown Forman and Jagatjit Industries to manufacture, market and distribute premium alcoholic beverages.

FIPB had approved the joint venture on the condition that the licensed capacity of the joint venture company will be limited to the licensed capacity of the Indian partner and also that no fresh capacity for manufacture of potable liquor will be allowed. The company was also directed to submit the details of the industrial licence holder.

The company had been allowed to import vatted malt spirit for the bottling of the local scotch and for blending with local whisky. For this purpose, the company was to obtain animport licence as per the prescribed policy and procedure under the Exim policy. The duties were to be paid at the applicable rate.