Notification No. 04/2025–Central Excise (N.T.), dated 31 December 2025, issued by the Ministry of Finance (Department of Revenue), notifies specified tobacco products as “notified goods” for the purposes of levy and collection of excise duty under Section 3A of the Central Excise Act, 1944. The notification covers chewing tobacco classified under tariff item 2403 99 10, jarda scented tobacco under tariff item 2403 99 30, and gutkha under tariff item 2403 99 90 of the Fourth Schedule to the Act, when such goods are manufactured with the aid of packing machines and packed in pouches. By invoking Section 3A, the Government enables levy of excise duty on these products based on the capacity of production, rather than actual clearance, reflecting a machine-based levy regime. To remove ambiguities, Explanation 1 clarifies that chewing tobacco under tariff item 2403 99 10 expressly includes filter khaini, thereby preventing disputes on classification and scope. Explanation 2 further provides an expansive definition of “packing machine,” stating that it includes all types of vertical or horizontal form-fill-seal machines, whether single-track or multi-track, and any other machines used for packing pouches of the notified goods, irrespective of nomenclature. This broad definition aims to prevent circumvention of duty through technical distinctions in machinery used for packing. The notification is issued in public interest and is intended to strengthen regulatory oversight, improve revenue certainty, and address tax evasion concerns prevalent in the tobacco sector. The provisions of the notification are set to come into force from 1 February 2026, giving manufacturers a defined transition period to align their operations with the machine-based excise duty framework.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 04/2025-Central Excise (N.T.) | Dated: 31st December, 2025
G.S.R. 952(E).— In exercise of the powers conferred by sub-section (1) of section 3A of the Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as the Act), the Central Government on being satisfied that it is necessary in the public interest so to do, hereby specifies,-
(a) chewing tobacco falling under tariff item 2403 99 10 of the Fourth Schedule of the Act,
(b) jarda scented tobacco falling under tariff item 2403 99 30 of the said Schedule of the Act, and
(c) Gutkha falling under tariff item 2403 99 90 of the said Schedule of the Act;
manufactured with the aid of packing machine and packed in pouches, as notified goods, on which there shall be levied and collected duty of excise in accordance with the provisions of the said section 3A.
Explanation 1. – For the removal of doubts, it is clarified that, chewing tobacco under tariff item 2403 99 10 includes filter khaini;
Explanation 2. – For the purposes of this notification, “packing machine” includes all types of vertical Form Fill Seal machine machines and horizontal machine, by whatever names called, whether vertical or horizontal, single-track or multi-track and any other type of packing machine used for packing of pouches of notified goods.
2. This notification shall come into force on the 1st day of February, 2026.
[F. No. CBIC-190349/72/2025-TRU]
DHEERAJ SHARMA, Under Secy.
