The Ministry of Finance, (MoF), on December 31, 2025, issued the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026, under sub-sections (2) and (3) of Section 3A of the Central Excise Act, 1944. The rules will come into effect from February 1, 2026, and govern the determination of production capacity and excise duty for packing machines used in manufacturing the specified tobacco products.
The rules define key terms including chewing tobacco, gutkha, jarda scented tobacco, packing machines, and retail sale price. They specify the quantity of notified goods deemed to be produced per machine per month, depending on machine speed and retail price, and outline the procedure for manufacturers to declare production details through FORM CE DEC-01, including technical certifications. The rules also provide for verification by the jurisdictional Deputy or Assistant Commissioner of Central Excise, and determination of annual production capacity for duty calculation.
Provisions are included for duty calculation on a monthly basis, adjustments in case of installation, addition, or removal of machines, and abatement of duty if a machine remains inoperative for fifteen or more continuous days, subject to proper intimation, sealing, and verification. Abatement amounts are calculated proportionally to the number of inoperative days in the month.
[Notification No. 05/2025–Central Excise (N.T.)]
