F.No.354/120/201 1-TRU
New Delhi, the 27th January, 2014
Subject: Revision of rate of duty on pan masala and gutkha under the compounded levy scheme – Regarding.
Pan masala, pan masala containing tobacco (gutkha), chewing tobacco, unmanufactured tobacco and filter khaini packed in pouches with the aid of packaging machines are leviable to excise duty in terms of section 3A of the Central Excise Act. The rates of duty applicable to all these goods under the compounded levy scheme have been increased. In this regard, I am directed to invite your attention to:
(i) Notifications No.3/2014-Central Excise (NT) and No.4/2014-Central Excise (NT) both dated 24.01.2014, which seek to amend the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 and the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 respectively, in order to specify the amended deemed production of these goods in pouches of various retail sale price specified there under; and
(ii) Notifications No.1/2014-Central Excise and No.2/2014-Central Excise, both dated 24.01.2014, which seek to specify the duty payable in respect of these goods in pouches of various retail sale price specified there under, in view of the amended deemed production of such goods.
2. Difficulties faced, if any, in implementation of the said notification may be brought to the notice of the Board.
Yours faithfully,
(Raj Kumar Digvijay)
Under Secretary (TRU)
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Related Press Release by Ministry of Finance dated 27.01.2014 is as follows :-
Government Revises the Capacity of Production and Consequent Increases the Duty on Pan Masala and Tobacco Products Including, Gutka, Chewing Tobacco, and Filter Khani etc
Considering the increase in the average speed of packing machines, the Government has revised the capacity of production and consequently increased the duty applicable to pan masala and tobacco products including gutka, chewing tobacco, unmanufactured tobacco and filter khaini packed in pouches with the aid of packaging machines etc. under the compounded levy scheme. Pan masala, pan masala containing tobacco (gutkha), chewing tobacco, unmanufactured tobacco and filter khaini packed in pouches with the aid of packaging machines are leviable to excise duty on the basis of the capacity of production which is determined based on the average speed of packing machines of pouches of various retail sale prices. The duty rate on the said goods was last revised in the Budget 2012-13.
CBEC has issued its Notifications No.3/2014-Central Excise (NT) and No.4/2014-Central Excise (NT) both dated 24.01.2014 in order to specify the amended deemed production of these goods in pouches of various retail sale prices. Notifications No.1/2014-Central Excise and No.2/2014-Central Excise, both dated 24.01.2014 specify the duty payable in respect of these goods packed in pouches of various retail sale prices.
Pouch packing on pan masala and tobacco product should be totally BANED in India, because,it is the only a reasion to people have keep in pocket and use it again n again. The useres of those products are increasing dueto pouch packing.And easy to evision of ce
mitral excise duty ,vat tax and entry tax. It is the fact that no entvision party attempt these units for a long time and some one never,what was the reason,may you know
Ministry of Health and Family Welfare and Food Safety and Standards Authority of India banned the production/ sale Pan Masala or any other containing tobacco including Gutkha being harmful. On the other side Ministry of Finance issues notification for revision of duties on Gutkha etc. on 27.1.2014.
This is totally contradictory and issue must be settled by MOHFW before prosecuting Manufactures/ Distributors/ Retailers. This is joke to Govt. policies.