Brussels, 10/04/2014 (Agence Europe) - In a ruling in case C-115/13 on Thursday 10 April, the European Court of Justice ruled that, by exempting private production of small quantities of spirits from excise duty, Hungary has infringed EU law. The Commission took the view that Hungary had not complied with EU rules on excise duties on alcoholic beverages and brought infringement proceedings before the Court of Justice. The Court points out that the directive does not allow member states to introduce preferential rules whose scope goes beyond what is permitted by the European legislature, and the Hungarian legislation, which provides a total exemption for spirits manufactured from fruit supplied by fruit growers, up to the amount of 50 litres per year, exceeds the maximum 50% reduction which the directive permits Hungary to give. The Court notes that, similarly, national rules exempting spirits manufactured by private individuals from excise duty are contrary to the directive, since the directive does not provide for such an exception to the normal rate. The Court of Justice therefore declares that “Hungary has failed to fulfil its obligations under EU legislation relating to excise duties on alcoholic beverages”. (LC)