Case C-115/13: Action brought on 11 March 2013 — European Commission v Hungary
Date: 2013-03-11
Institutions: Court of Justice
Subjects: Hungary, alcohol, distillation, excise duty, infringement of EU law, tax, tax exemption








C_2013129EN.01001102.xml










4.5.2013   


EN


Official Journal of the European Union


C 129/11





Action brought on 11 March 2013 — European Commission v Hungary
(Case C-115/13)
2013/C 129/20
Language of the case: Hungarian

Parties


Applicant: European Commission (represented by: C. Barslev and A. Sipos, acting as Agent(s))

Defendant(s): Hungary

Form of order sought







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Declare that Hungary has failed to fulfill its obligations under Articles 19 to 21 of Council Directive 92/83/EEC, (1) in conjunction with Articles 22(7) of that directive and 3(1) of Council Directive 92/84/EEC, (2) by adopting and maintaining in force provisions under which, in circumstances determined by national law,






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the rate of the excise duty on the manufacture of ethyl alcohol in distilleries for an individual customer (‘bérfőzető’) is set at HUF 0;










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the manufacture of ethyl alcohol by individuals is exempt from special duty;














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order Hungary to pay the costs.





Pleas in law and main arguments

Under Article 19 of Council Directive 92/83/EEC of 19 October 1992 on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages, Hungary is required to apply the rate of excise duty in accordance with the directive — and Article 22 thereof in particular — and to maintain in force the national rules in that regard, while Article 22 governs the cases in which the Member States may apply rates of excise duty which are more favourable compared with the standard national rates of duty.
Pursuant to Paragraph 64(3) of the Hungarian law CXXVII of 2003 on excise duties and the specific rules on the marketing of goods subject to excise duties (a jövedéki adóról és a jövedéki termékek forgalmazásának különös szabályairól szóló 2003. évi CXXVII. Törvény), in the case of distillation on behalf of individual customers, the duty applicable to the spirit manufactured from the raw materials of the individual customer is HUF 0 up to a maximum amount of 50 litres per year for an individual customer. However, the directive does not allow a reduction of more than 50 per cent of the normal rate of excise duty.
Further, on the basis of that national law, the manufacture by individual distillers of up to 50 litres of ethyl alcohol per year is exempt from excise duty. Directive 92/83/EEC does not contain any provisions concerning the exemption from duty of the home manufacture of ethyl alcohol, and, for that reason, the Commission takes the view that it is not possible — without breaching the provisions of the directive — to introduce an exemption at national level. If the Union legislature had wished to provide for such a possibility, express provision to that effect would have been included in the directive. The directive allows the exemption from duty — provided that the requirements laid down are complied with — only in the case of the manufacture by individuals of beer, wine or other still or sparkling fermented drinks.


(1)  Council Directive 92/83/EEC of 19 October 1992 on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages (OJ 1992 L 316, p. 21).

(2)  Council Directive 92/84/EEC of 19 October 1992 on the approximation of the rates of excise duty on alcohol and alcoholic beverages (OJ 1992 L 316, p. 29).