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Specified rate of duty payable on the basis of capacity of production on Pan Masala and Gutkha - 42/2008 - Central Excise - Tariff

Contents

Recinded vide Notification No. 9/2017-Central Excise Dated 30th June, 2017 w.e.f. 1st day of July, 2017.

Specified rate of duty payable on the basis of capacity of production on Pan Masala and Gutkha

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 42/2008-Central Excise

New Delhi, the 1^st July, 2008

G.S.R. (E).- In exercise of the powers conferred by sub-section (3) of section 3A of the Central Excise Act, 1944, the Central Government hereby specifies on, -

(i) pan masala falling under tariff item 2106 90 20 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) except the pan masala containing not more than 15% betel nut; and

(ii) pan masala containing tobacco, commonly known as gutkha, falling under tariff item 2403 99 90 of the said Tariff Act (hereinafter referred to as specified goods),

manufactured with the aid of packing machine ⁷[having maximum packing speed as specified in column (3) or column (4) or column (5) of Table-1, as the case may be, at which they can be operated for packing of specified goods which are packed in pouches of retail sale prices as specified in column (2) of the said Table, the rates of duty specified in the corresponding entry in column (3a) or column (3b) or column (4a) or column (4b) or column (5a) or column (5b) ] of the said Table, as the case may be:

¹³[TABLE-1

S. No.	Retail sale price (per pouch)	Rate of duty per packing machine per month (Rs. in lakh)
S. No.	Retail sale price (per pouch)	Up to 300 pouches per minute		301 to 750 pouches per minute		751 pouches per minute and above
(1)	(2)	(3)		(4)		(5)
		Pan masala	Pan masala containing tobacco	Pan masala	Pan masala containing tobacco	Pan masala	Pan masala containing tobacco
		(3a)	(3b)	(4a)	(4b)	(5a)	(5b)
1.	Up to ₹ 1.00	19.60	35.35	32.08	57.84	71.29	128.54
2.	From ₹ 1.01 to ₹ 1.50	29.41	53.02	48.12	86.77	106.93	192.82
3.	From ₹ 1.51 to ₹ 2.00	37.25	67.16	60.95	109.91	135.44	244.23
4.	From ₹ 2.01 to ₹ 3.00	55.87	100.75	91.42	164.86	203.16	366.35
5.	From ₹ 3.01 to ₹ 4.00	72.14	130.09	118.05	212.87	262.33	473.04
6.	From ₹ 4.01 to ₹ 5.00	90.18	162.61	147.56	266.09	327.91	591.30
7.	From ₹ 5.01 to ₹ 6.00	108.21	195.13	177.07	319.30	393.50	709.56
8.	Above ₹ 6.00	108.21+1 7.64 x (P- 6)	195.13+31.8 1 x (P-6)	177.07 +28.87 x (P-6)	319.30+52.06 x (P-6)	393.50+ 64.15 x (P-6)	709.56+115.69 x (P-6)
		Where ‘P’ above represents retail sale price of the pouch for which rate of duty is to be determined.

Illustration. - The rate of duty per packing machine per month for a pan masala pouch having retail sale price of ₹ 8.00 (i.e. ‘P’) packed with the aid of a machine having maximum packing speed, at which it can be operated for packing of pan masala pouch of the said retail sale price, of 600 pouches per minute shall be = ₹ 177.07+28.87 x (8-6) = ₹ 234.81 lakh.”;

(ii) in paragraph 3, for Table-2, the following shall be substituted, namely:-

S. No.	Duty	Duty ratio for pan masala	Duty ratio for pan masala containing tobacco
(1)	(2)	(3)	(4)
1.	The duty leviable under the Central Excise Act, 1944 (1 of 1944)	0.3725	0.7864
2.	The additional duty of excise leviable under section 85 of the Finance Act, 2005 (18 of 2005)	0.1765	0.1165
3.	National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001 (14 of 2001)	0.4510	0.0971
4.	Education Cess leviable under section 91 of the Finance Act, 2004 (23 of 2004)	0.0	0.0
5.	Secondary and Higher Education Cess leviable under section 136 of the Finance Act, 2007 (22 of 2007)	0.0	0.0.]

Explanation 1. - For the purposes of this notification, "packing machine" includes all types of Form, Fill and Seal (FFS) machines and Profile Pouch Making Machine, by whatever names called, whether vertical or horizontal, with or without collar, single-track or multi-track, and any other type of packing machine used for packing of pouches of notified goods.

Explanation 2. - For the purposes of this notification, if there are multiple track or multiple line packing machine which besides packing the specified goods in pouches, perform additional processes involving moulding and giving a definite shape to such pouches with a view to distinguish the brand or to prevent the counterfeiting of the goods, etc., two such tracks or lines shall be deemed to be one individual packing machine for the purposes of calculation of the duty liability.

¹[Provided that in case of multiple track or multiple line packing machine which are incapable of performing such additional processes, each such track or line shall be deemed to be one individual packing machine for the purposes of calculation of the duty liability.]

Explanation 3. - For the purposes of this notification, "retail sale price" means the maximum price at which the specified goods in packaged form may be sold to the ultimate consumer and includes all taxes, local or otherwise, freight, transport charges, commission payable to dealers, and all charges towards advertisement, delivery, packing, forwarding and the like and the price is the sole consideration for the sale:

Provided that where on the package, more than one retail sale price is declared, the maximum of such retail sale prices shall be deemed to be the retail sale price:

Provided further that if the goods are cleared in wholesale packages containing a number of standard packages with retail sale price declared on them, then, such declared retail sale price shall be taken into consideration for determining the rate of duty under respective S. Nos. referred to in Table-1.

2. ⁹[The number of packing machines and the maximum packing speed at which the machine can be operated for packing of specified goods of various retail sale prices] for the purpose of computation of the rate of excise duty specified in the opening paragraph shall be determined in terms of Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008.

3. The duty levied and collected on such specified goods shall be the aggregate of the duty leviable under the Central Excise Act, 1944 (1 of 1944), the additional duty of excise leviable under section 85 of the Finance Act, 2005 (18 of 2005), the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), Education Cess leviable under section 91 of the Finance Act, 2004 (23 of 2004) and Secondary and Higher Education Cess leviable under section 136 of the Finance Act, 2007 (22 of 2007) and shall be apportioned in the ratios specified in the Table-2 below.

¹²[TABLE-2

S. No.	Duty	Duty ratio for pan masala	Duty ratio for pan masala containing tobacco
(1)	(2)	(3)	(4)
1	The duty leviable under the Central Excise Act, 1944	0.3958	0.8350
2	The additional duty of excise leviable under section 85 of the Finance Act, 2005	0.1250	0.0619
3	National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001	0.4792	0.1031
4	Education Cess leviable under section 91 of the Finance Act, 2004	0.0	0.0
5	Secondary and Higher Education Cess leviable under section 136 of the Finance Act, 2007	0.0	0.0.]

F.No. 341/49/2008-TRU]

[G. G. Pai]
Under Secretary to the Government of India

****************************

Notes :

1. Has been added vide Notification No. 43/2008-Central Excise dated 15th July, 2008

2. Substituted vide Notification No. 13/2012-CE, dated, 17/03/2012. Before it was read as:-

Table-1

S. No.	Retail sale price (per pouch)	Rate of duty per packing machine per month (Rs. in lakh)
		Pan masala	Pan masala containing tobacco

(1)	(2)	(3)	(4)
1.	Up to ₹ 1.00	9.25	12.50
2.	From ₹ 1.01 to ₹ 1.50	14	19
3.	From ₹ 1.51 to ₹ 2.00	18	24
4.	From ₹ 2.01 to ₹ 3.00	26	36
5.	From ₹ 3.01 to ₹ 4.00	34	47
6.	From ₹ 4.01 to ₹ 5.00	43	59
7.	From ₹ 5.01 to ₹ 6.00	51	70
8.	Above ₹ 6.00	50 + 8.36 * (P - 6), where P represents retail sale price of the pouch	69 + 11.45 * (P - 6), where P represents retail sale price of the pouch

Illustration. - The rate of duty per packing machine per month for a gutkha pouch having retail sale price of ₹ 8.00 (i.e. 'P') shall be = ₹ 69 + 11.45*(8-6) lakhs = ₹ 91.90 lakhs

3. Substituted vide Notification No. 01/2014-Central Excise dated 24th January, 2014, before it was read as,

“²[Table-1

Sl. No.	Retail sale price (per pouch)	Rate of duty Per packing machine per month(Rs. in Lakhs)
		Pan masala	Pan masala containing tobacco
(1)	(2)	(3)	(4)
1.	Up to ₹ 1.00	14	19
2.	Exceeding ₹ 1.00 but not exceeding ₹ 1.50	21	29
3.	Exceeding ₹ 1.50 but not exceeding ₹ 2.00	26	36
4.	Exceeding ₹ 2.00 but not exceeding ₹ 3.00	40	54
5.	Exceeding ₹ 3.00 but not exceeding ₹ 4.00	51	70
6.	Exceeding ₹ 4.01 but not exceeding ₹ 5.00	64	88
7.	Exceeding ₹ 5.00 but not exceeding ₹ 6.00	77	105
8.	Above ₹ 6.00	76 + 12.54 * (P-6), where „P‟ represents the retail sale price of the pouch	104+ 17.17 * (P-6), where „P‟ represents the retail sale price of the pouch

Illustration. - The rate of duty per packing machine per month for a gutkha pouch having retail sale price of ₹ 8.00 (i.e. ‟P‟) shall be= ₹ 76 + 12.54 * (8-6) lakhs = ₹ 101.08 lakhs.”]”.

4. Substituted vide Notification No. 01/2014-Central Excise dated 24th January, 2014, before it was read as,

“Table-2

Sr. No.	Duty	Duty ratio for pan masala	Duty ratio for pan masala containing tobacco
(1)	(2)	(3)	(4)
1	The duty leviable under the Central Excise Act, 1944	0.3161	0.7355
2	The additional duty of excise leviable under section 85 of the Finance Act, 2005	0.1355	0.0883
3	National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001	0.5193	0.1471
4	Education Cess leviable under section 91 of the Finance Act, 2004	0.0194	0.0194
5	Secondary and Higher Education Cess leviable under section 136 of the Finance Act, 2007	0.0097	0.0097”

5. Substituted vide Notification No.16/2014-Central Excise, dated 11th July, 2014, before it was read as,

[³[Table-1

Sl. No.	Retail sale price (per pouch)	Rate of duty Per packing machine per month(Rs. in Lakhs)
Sl. No.	Retail sale price (per pouch)	Pan masala	Pan masala containing tobacco
(1)	(2)	(3)	(4)
1.	Up to Re. 1.00	14.76	24.42
2.	Exceeding ₹ 1.00 but not exceeding ₹ 1.50	22.14	36.64
3.	Exceeding ₹ 1.50 but not exceeding ₹ 2.00	28.04	46.40
4.	Exceeding ₹ 2.00 but not exceeding ₹ 3.00	42.06	69.61
5.	Exceeding ₹ 3.00 but not exceeding ₹ 4.00	54.31	89.88
6.	Exceeding ₹ 4.00 but not exceeding ₹ 5.00	67.88	112.35
7.	Exceeding ₹ 5.00 but not exceeding ₹ 6.00	81.46	134.82
8.	Above ₹ 6.00	81.46 + 13.28 * (P-6),	134.82 + 21.98 * (P-6),
		Where ‘P’ above represents RSP of the pouch for which duty rate is to be determined

Illustration. - The rate of duty per packing machine per month for a Pan masala pouch having retail sale price of ₹ 8.00 (i.e. ’P’) shall be= ₹ 81.46 + 13.28 * (8-6) lakhs = ₹ 108.02 lakhs.]]

6. Substituted vide Notification No.16/2014-Central Excise, dated 11th July, 2014, before it was read as,

^“4[Table -2

Sr. No.	Duty	Duty ratio for pan masala	Duty ratio for pan masala containing tobacco
(1)	(2)	(3)	(4)
1	The duty leviable under the Central Excise Act, 1944	0.2842	0.7665
2	The additional duty of excise leviable under section 85 of the Finance Act, 2005	0.1421	0.0766
3	National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001	0.5446	0.1277
4	Education Cess leviable under section 91 of the Finance Act, 2004	0.0194	0.0194
5	Secondary and Higher Education Cess leviable under section 136 of the Finance Act, 2007	0.0097	0.0097]

7. Substituted vide Not. 06/2015 - Dated 1-3-2015 before it was read as “and packed in pouches having retail sale prices as specified in column (2) of Table-1 below, the rates of duty specified in the corresponding entry in column (3) or column(4)”

8. Substituted vide Not. 06/2015 - Dated 1-3-2015 before it was read as

^“5[Table-1

Sl. No.	Retail sale price (per pouch)	Rate of duty per packing machine per month(Rupees in lakhs)
Sl. No.	Retail sale price (per pouch)	Pan masala	Pan masala containing tobacco
(1)	(2)	(3)	(4)
1.	Up to Re. 1.00	16.20	27.64
2.	Exceeding Re. 1.00 but not exceeding ₹ 1.50	24.29	41.46
3.	Exceeding ₹ 1.50 but not exceeding ₹ 2.00	30.77	52.51
4.	Exceeding ₹ 2.00 but not exceeding ₹ 3.00	46.16	78.77
5.	Exceeding ₹ 3.00 but not exceeding ₹ 4.00	59.60	101.70
6.	Exceeding ₹ 4.00 but not exceeding ₹ 5.00	74.50	127.13
7.	Exceeding ₹ 5.00 but not exceeding ₹ 6.00	89.40	152.56
8.	Exceeding ₹ 6.00	89.40 + 14.58 x (P-6),	152.56 + 24.87 x (P-6),
	where „P‟ above represents retail sale price of the pouch for which rate of duty is to be determined

Illustration. - The rate of duty per packing machine per month for a pan masala pouch having retail sale price of ₹ 8.00 (i.e. ‟P‟) shall be= ₹ 89.40 + 14.58 x (8-6) lakhs = ₹ 118.56 lakhs. ]”

9. Substituted vide Not. 06/2015 - Dated 1-3-2015 before it was read as, “The number of packing machines,”

10. Substituted vide Not. 06/2015 - Dated 1-3-2015 before it was read as,

^“6[Table -2

Sl. No.	Duty	Duty ratio for pan masala	Duty ratio for pan masala containing tobacco
(1)	(2)	(3)	(4)
1	The duty leviable under the Central Excise Act, 1944	0.3453	0.7903
2	The additional duty of excise leviable under section 85 of the Finance Act, 2005	0.1294	0.0677
3	National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001	0.4962	0.1129
4	Education Cess leviable under section 91 of the Finance Act, 2004	0.0194	0.0194
5	Secondary and Higher Education Cess leviable under section 136 of the Finance Act, 2007	0.0097	0.0097]

11. Substituted vide Not. 17/2016 - Dated 1-3-2016, before it was read as,

^"8[Table-1

S. No.(1)

Retail sale price (per pouch) (2)

Rate of duty per packing machine per month (Rs. in lakh)

Up to 300 pouches per minute (3)

301 to 750 pouches per minute (4)

751 pouches per minute and above (5)

Pan masala

Pan masala containing tobacco

Pan masala

Pan masala containing tobacco

Pan masala

Pan masala containing tobacco

(3a)

(3b)

(4a)

(4b)

(5a)

(5b)

Up to ₹ 1.00

17.30

29.52

28.30

48.30

62.90

107.33

From ₹ 1.01 to ₹ 1.50

25.95

44.27

42.46

72.45

94.35

160.99

From ₹ 1.51 to ₹ 2.00

32.86

56.08

53.78

91.77

119.51

203.92

From ₹ 2.01 to ₹ 3.00

49.30

84.12

80.67

137.65

179.26

305.88

From ₹ 3.01 to ₹ 4.00

63.65

108.62

104.16

177.74

231.47

394.97

From ₹ 4.01 to ₹ 5.00

79.57

135.77

130.20

222.17

289.34

493.71

From ₹ 5.01 to ₹ 6.00

95.48

162.92

156.24

266.60

347.20

592.45

Above ₹ 6.00

95.48+ 15.57*(P- 6)

162.92+ 26.56 * (P-6)

156.24+ 25.47 * (P-6)

266.60+ 43.47 * (P-6)

347.20+ 56.61 * (P-6)

592.45+ 96.60 * (P-6)

where ‘P’ above represents retail sale price of the pouch for which rate of duty is to be determined

Illustration. - The rate of duty per packing machine per month for a pan masala pouch having retail sale price of ₹ 8.00 (i.e. ‘P’) packed with the aid of a machine having maximum packing speed, at which it can be operated for packing of pan masala pouch of the said retail sale price, of 600 pouches per minute shall be = ₹ 156.24 + 25.47 x (8-6) lakhs = ₹ 207.18 lakh.]"

12. Substituted vide Not. 17/2016 - Dated 1-3-2016, before it was read as,

^"10[Table-2

Sr. No.	Duty	Duty ratio for pan masala	Duty ratio for pan masala containing tobacco
(1)	(2)	(3)	(4)
1	The duty leviable under the Central Excise Act, 1944	0.3556	0.814
2	The additional duty of excise leviable under section 85 of the Finance Act, 2005	0.1333	0.0698
3	National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001	0.5111	0.1162
4	Education Cess leviable under section 91 of the Finance Act, 2004	0.0	0.0
5	Secondary and Higher Education Cess leviable under section 136 of the Finance Act, 2007	0.0	0.0]"

13. Substituted vide Not. 04/2017 - Dated 2-2-2017, before it was read as,

^"11[TABLE-1

S. No.	Retail sale price (per pouch)	Rate of duty per packing machine per month (Rs. in lakh)
		Up to 300 pouches per minute		301 to 750 pouches per minute			751 pouches per minute and above
(1)	(2)	(3)		(4)			(5)
		Pan masala	Pan masala containing tobacco	Pan masala		Pan masala containing tobacco	Pan masala	Pan masala containing tobacco
		(3a)	(3b)	(4a)		(4b)	(5a)	(5b)
1.	Up to ₹ 1.00	18.45	33.29	30.19	54.48		67.09	121.06
2.	From ₹ 1.01 to ₹ 1.50	27.68	49.94	45.29	81.71		100.64	181.58
3.	From ₹ 1.51 to ₹ 2.00	35.06	63.25	57.36	103.50		127.48	230.01
4.	From ₹ 2.01 to ₹ 3.00	52.58	94.88	86.05	155.25		191.21	345.01
5.	From ₹ 3.01 to ₹ 4.00	67.90	122.51	111.11	200.47		246.90	445.49
6.	From ₹ 4.01 to ₹ 5.00	84.87	153.14	138.88	250.59		308.63	556.86
7.	From ₹ 5.01 to ₹ 6.00	101.85	183.76	166.66	300.70		370.35	668.23
8.	Above ₹ 6.00	101.85 + 16.61 x (P- 6)	183.76+ 29.96 x (P-6)	166.66 + 27.17 x (P-6)	300.70 + 49.03 x (P-6)		370.35 + 60.38 x (P-6)	668.23 + 108.95 x (P-6)
		where „P‟ above represents retail sale price of the pouch for which rate of duty is to be determined

Illustration. - The rate of duty per packing machine per month for a pan masala pouch having retail sale price of ₹ 8.00 (i.e. „P‟) packed with the aid of a machine having maximum packing speed, at which it can be operated for packing of pan masala pouch of the said retail sale price, of 600 pouches per minute shall be = ₹ 166.66 + 27.17 x (8-6) lakh = ₹ 221 lakh.]"