Issuance of Licenses to manufacture cigarettes by Central Excise Department - reg. - Central Excise - 905/25/2009-CX

Circular No. 905/25/2009-CX F.No.110/47/2009-CX3 Government of India Ministry of Finance Department of Revenue ******** Dated: 4th November, 2009 To All Chief Commissioner of Central Excise, All Commissioners of Central Excise, All Director Generals. Subject: Issuance of Licenses to manufacture cigarettes by Central Excise Department - reg. Sir/Madam, I am directed to say that Board has received various references from the trade association and field formations regarding issue of licenses to cigarette manufacturing units. 2. The matter had been taken up with Ministry of Commerce and Industry, Department of Industrial Policy and Promotion. The legal position regarding requirement of obtaining industrial license by cigarette manufacturing units under IDRA has been clarified vide letter no. 9(3)2009-IP dated 8th September, 2009. A copy of the same is enclosed for your kind information. Trade and Field formations may be informed suitably. 4. Hindi version will follow. Yours faithfully, (RAJESH VERMA) Under Secretary to the Government of India . ***************************************************** (Annexure to Circular No.905/25/2009-CX, dated 4.11.2009) Most Immediate F.No.9(3) 2009-IP Governent of India Ministry of Commerce Industry Department of Industrial Policy and Promotion ( Industrial Policy Section) --- Udyog Bhavan, New Delhi , 8th September, 2009 . OFFICE MEMORANDUM Subject- Representation from Bharatiya Kisan Union forwarded by PM Office -' issuance of licenses to manufacture cigarette by the Central Excise Department illegally and discriminately' regarding The undersigned is directed to refer to Central Board of Excise Customs' Office Memorandum No. 110/47/2009-CX.3 dated 26th August, 2009 on the subject mentioned above and to say that as per notification No. 477(E) dated 25.7.1991 Cigars and cigarettes of tobacco and manufactured tobacco substitutes is compulsory industrial licensable item which is as follows: 24.02 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. As per National Industrial classification Tobacco item is as follows: 160 1600: manufacture of tobacco products [tobacco related products are also included while preliminary processing of tobacco leaves is classified in class 0111] 16001 Tobacco stemming, redrying etc. of tobacco leaf. However, under Section 3C of the Industries (Development Regulation) Act, 1951 'factory' is defined as any industrial unit having 50/100 workers with/without the aid of power. Units with less than 50/100 workers as defined therein do not appear within the purview of 'factory' definition and therefore beyond the applicability of IDR Act, under which comes licensing. S/d (D.E. Richards) Deputy Secretary to the Govt. of India Tele.No. 23061987 To O/o Central Board of Excise Customs (Shri Sushil Solanki, Commissioner (CX) Room No. 154-B, North Block New Delhi