Both GST and Excise duty can be imposed on tobacco: Karnataka HC


PTI, Oct 5, 2022, 12:09 PM IST

The Karnataka High Court has ruled that the Union government is entitled to levy Central GST (CGST) as well as excise duty on tobacco and tobacco-derived products.

It dismissed a bunch of petitions by tobacco manufacturers who had challenged the same.

”The levy of excise duty on tobacco and tobacco products is a matter of public policy and this court in exercise of writ jurisdiction would not interfere with the same. The CGST itself contemplates levy of excise duty upon tobacco and tobacco products apart from they being taxed under the provisions of CGST,” Justice M I Arun said in the recent judgment.

The Dharwad bench of the HC heard petitions by Ghodawat Packers LLP, H I Tamboli and Sons, Rajnandini Foods Pvt Ltd, Balajee Pouches, Ghodawat Foods International Limited and Ghodawat Industries India Private Limited, against the Ministry of Finance, Union of India and Joint Commissioner of CGST and Central Excise.

The Joint Commissioner on March 25, 2021 issued an order imposing excise duty and National Calamity Contingent Duty (NCCD) on tobacco products manufactured and sold in the Belagavi jurisdiction.

Before the Central Goods and Services (GST) Act, 2017, tobacco products were taxed under Central Excise Act read with Central Excise Tariff Act. The Central Excise Act was repealed except for goods included in Union List of Seventh Schedule of the Constitution. The Central Excise Tariff Act was also repealed.

The HC said that though the Excise Act was repealed, tobacco and tobacco products were added to the Seventh Schedule of the Constitution under Entry 84. ”Thus, apart from levy of taxes under the provisions of CGST Act, 2017, excise duty can be levied on tobacco and tobacco products under the Central Excise Act, 1944.” As for the NCCD, the HC noted that Section 136 of the Finance Act, 2001 contemplates levy of such a duty.

”NCCD is a surcharge and a type of excise duty which can be levied independently of the excise duty as contemplated under the provisions of Fourth Schedule to the Central Excise Act, 1944. Thus, levy of NCCD in the absence of levy of excise duty cannot be considered as bad in law,” the HC said.

Dismissing the petitions, the HC clarified: ”For better clarification, reference is made out in the Central Excise Act. Repealing of Central Excise Act does not absolve the petitioners paying NCCD as determined under the Seventh Schedule.”

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

‘Will you induct me into BJP?’ Rowdy sheeter during solo protest in Mysuru

Poll authorities find ‘MCC violation’ in Delhi yoga event by AAP, direct action

MP: FIR against four over controversial book being taught in govt law college; ABVP stages protest

Cong attacks govt over ‘Chinese shelters in Depsang’; asks when will status quo ante be restored

Court convicts ex-Asst Director of factories H Suresh in bribery case

Karnataka Min Sunil Kumar flays move to collect combined toll at Hejamadi

Mudigere wild elephant menace: Another tusker captured on Saturday


Related Articles More

‘Will you induct me into BJP?’ Rowdy sheeter during solo protest in Mysuru

Teenager drowns at Ermai Falls

Newly built studio of Udayavani online team inaugurated

Court convicts ex-Asst Director of factories H Suresh in bribery case

Kasaragod: Three dead, another injured in car-tipper lorry collision

MUST WATCH

How to become flipper

Bannur Sheep Breed Information | Uv

This rare jackfruit tree Sidddu Halasu

Oxygen Concentrator

Deepotsava at Shri Durga Adishakti temple


Latest Additions

‘Will you induct me into BJP?’ Rowdy sheeter during solo protest in Mysuru

Poll authorities find ‘MCC violation’ in Delhi yoga event by AAP, direct action

Organisations, victims march to defunct Union Carbide factory to mark anniversary of Bhopal gas tragedy

MP: FIR against four over controversial book being taught in govt law college; ABVP stages protest

Woman attacked by friend in Kochi, suffers deep wound

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.