Till 1st July, 2008, an optional scheme existed for payment of excise duty on the basis of compounded levy for Pan Masala and Gutkha. However w. e. f 1st July, 2008 the Government has notified mandatory scheme of payment of excise duty based on capacity of production for pan masala, whether or not containing tobacco, manufactured with the aid of packing machine and put up in pouches. The scheme is not applicable to pan masala, not containing tobacco, with betel nut content not exceeding 15% and pan masala containing tobacco or gutkha, packed manually or put up in a form of packing other than pouches e.g. tin packs. Mandatory excise duty based on production capacity now applies to pan masala and gutkha packaged in pouches. Notification requires excise duty for pan masala and gutkha to be paid on the basis of production capacity where products are manufactured using a packing machine and put up in pouches, replacing the prior optional compounded-levy scheme; exclusions include non-tobacco pan masala with betel nut content not exceeding fifteen percent and items packed manually or in packaging forms other than pouches.
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Provisions expressly mentioned in the judgment/order text.
Mandatory excise duty based on production capacity now applies to pan masala and gutkha packaged in pouches.
Notification requires excise duty for pan masala and gutkha to be paid on the basis of production capacity where products are manufactured using a packing machine and put up in pouches, replacing the prior optional compounded-levy scheme; exclusions include non-tobacco pan masala with betel nut content not exceeding fifteen percent and items packed manually or in packaging forms other than pouches.
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