Challenge to Tobacco Rule Dismissed

The Patna High Court has dismissed the petition of Prabhat Zarda Factory India challenging the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules notified by the central government.

According to the rule, the excise duty is determined not by the actual production but on the basis of the total manufacturing capacity of the unit.

This rule along with heavy duty has affected the industry all over the country and it was against the right to trade.