BENGALURU: The Karnataka High Court has ruled that the central government is entitled to levy excise duty along with the Central GST (CGST). Tobacco and tobacco derivative products.
It rejected the petitions of tobacco manufacturers who had challenged it.
“Key Levi excise duty on tobacco And tobacco product is a matter of public policy and this Court shall not interfere in the exercise of writ jurisdiction. CGST itself considers the levy of excise duty on tobacco and tobacco products, in addition they are taxed under the provisions of CGST,” Justice MI Arun said in the recent judgment.
The Dharwad Bench of the HC heard the petitions of Ghorawat Packers LLP, HI Tamboli & Sons, Rajnandini Foods Pvt Ltd, Balaji Pouch, Ghorawat Foods International Ltd and Ghorawat Industries India Pvt Ltd against the Ministry of Finance, Union of India and the Joint Commissioner. CGST and Central Excise.
The Joint Commissioner issued an order for imposition of excise duty and national calamity contingency duty on March 25, 2021.NCCD) on tobacco products manufactured and sold in Belagavi jurisdiction.
Before the Central Goods and Services (GST) Act, 2017, tobacco products were taxed under the Central excise act Read along with Central Excise Tariff Act. Central Excise Act The Seventh Schedule of the Constitution was repealed except those included in the Union List. The Central Excise Tariff Act was also repealed.
The HC said that though the Excise Act was repealed, tobacco and tobacco products were added under entry 84 in the Seventh Schedule of the Constitution. “Thus, excise duty may be levied in addition to taxation under the provisions of the CGST Act, 2017. On tobacco and tobacco products under the Central Excise Act, 1944.
For NCCD, the HC noted that section 136 of the Finance Act, 2001 contemplates levy of such fee.
“NCCD is a surcharge and a form of excise duty which can be levied independently of the duty of excise under consideration under the provisions of the Fourth Schedule to the Central Excise Act, 1944. Thus, levy of NCCD in the absence of recovery of excise duty cannot be considered bad in law,” the HC said.
Dismissing the petitions, the HC clarified: “For better clarification, reference has been made to the Central Excise Act. Repeal of the Central Excise Act does not absolve the petitioners from paying NCCD as prescribed under the Seventh Schedule ”
It rejected the petitions of tobacco manufacturers who had challenged it.
“Key Levi excise duty on tobacco And tobacco product is a matter of public policy and this Court shall not interfere in the exercise of writ jurisdiction. CGST itself considers the levy of excise duty on tobacco and tobacco products, in addition they are taxed under the provisions of CGST,” Justice MI Arun said in the recent judgment.
The Dharwad Bench of the HC heard the petitions of Ghorawat Packers LLP, HI Tamboli & Sons, Rajnandini Foods Pvt Ltd, Balaji Pouch, Ghorawat Foods International Ltd and Ghorawat Industries India Pvt Ltd against the Ministry of Finance, Union of India and the Joint Commissioner. CGST and Central Excise.
The Joint Commissioner issued an order for imposition of excise duty and national calamity contingency duty on March 25, 2021.NCCD) on tobacco products manufactured and sold in Belagavi jurisdiction.
Before the Central Goods and Services (GST) Act, 2017, tobacco products were taxed under the Central excise act Read along with Central Excise Tariff Act. Central Excise Act The Seventh Schedule of the Constitution was repealed except those included in the Union List. The Central Excise Tariff Act was also repealed.
The HC said that though the Excise Act was repealed, tobacco and tobacco products were added under entry 84 in the Seventh Schedule of the Constitution. “Thus, excise duty may be levied in addition to taxation under the provisions of the CGST Act, 2017. On tobacco and tobacco products under the Central Excise Act, 1944.
For NCCD, the HC noted that section 136 of the Finance Act, 2001 contemplates levy of such fee.
“NCCD is a surcharge and a form of excise duty which can be levied independently of the duty of excise under consideration under the provisions of the Fourth Schedule to the Central Excise Act, 1944. Thus, levy of NCCD in the absence of recovery of excise duty cannot be considered bad in law,” the HC said.
Dismissing the petitions, the HC clarified: “For better clarification, reference has been made to the Central Excise Act. Repeal of the Central Excise Act does not absolve the petitioners from paying NCCD as prescribed under the Seventh Schedule ”