The FAQs explain that duty rates have been notified separately and that a capacity-based levy applies only to manufacturers producing these goods in pouches using packing machines. Duty is determined on a deemed production basis linked to the maximum rated capacity and retail sale price, not actual output. Mandatory declarations in Form CE DEC-01, technical certification by a Chartered Engineer, monthly filings, and CCTV installation are prescribed. The jurisdictional excise authority will verify declarations through physical inspection and determine annual capacity.
(Link: Central Excise FAQs FinMin PIB Release Dated 01/01/2026)