2026 (2) TMI 1337 - HC - Central Excise

Legislative Competence challenged over CCTV surveillance requirement; court issued notice and respondent to file reply.

Challenge to Rules governing capacity determination and related obligations for chewing tobacco manufacturers contests Rules 16 and 22(3) and the Form CE ... Exemption application - Legislative competence and ambit of Section 3A - Rules 16 and 22(3) of the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026 - arbitrary, unreasonable - violative of Article 14 of the Constitution - Manufacturer of chewing tobacco - provisions of the Central Excise Act, 1944 - contravention of the procedure mandated under Rule 16 - requirement of disclosure to be made in Form CE DEC-01 Rule 6 regarding details of the CCTV surveillance system installed in the premises - HELD THAT:- The Petitioner has relied upon the plain language employed in Section 3A of the Act, as well as the procedure prescribed under the aforesaid Rules concerning the obligations imposed upon the manufacturer, such as the petitioner, qua the capacity of the manufacturing machines and the duty leviable thereon. According to him, the provisions of Section 3A do not, in any manner, empower the respondent to frame the Rules imposing of conditions such as the installation of CCTV cameras and the preservation of CCTV footage for a period of 24 months. It is also brought to our notice by the petitioner that a similar issue is pending consideration before the Allahabad High Court in Writ Tax No. 891/2026. He has invited our attention to the order dated 04th February, 2026. As against above, learned counsel for the respondent submits that the instructions in the matter are awaited, however, the very object for which the Rule has been incorporated is to maintain checks and balances qua the manufacturing, production etc. He would claim that the Rule falls within the legislative competence and ambit of Section 3A of the Act. As such, he has sought time to file reply in the matter. That being so, issue notice. - Learned counsel appearing on behalf of the respective respondents waives notice. Outcome: Writ Petition (C) notice issued and matter listed for further consideration.