Confusion on taxation of Rolling Tobacco

[Anant Gupta]

Hi!

I wanted to understand how will the Central Excise Duty be calculated on Rolling Tobacco under the new regime. What I have understood so far is that the rate of duty is 325% on the abated value of the RSP. If that is the case, won't the taxation always be more than the RSP of the product?

AI Summary

Central excise duty on rolling tobacco under the new regime raises valuation concerns over abated RSP taxation. Central excise treatment of rolling tobacco is queried under the new regime, with reference to duty being calculated at 325% on the abated value of the retail sale price (RSP). The issue raised is whether applying that rate to the abated RSP would result in the tax burden exceeding the product's RSP.