CBIC has notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules 2026, which will come into force with effect from 1st February 2026. It reintroduces a capacity-based levy system under section 3A of the Central Excise Act. Under the new framework, excise duty will be determined based on the number of packing machines installed and their maximum rated production capacity, linked to the retail sale price (RSP) of pouches.
(Link: Central Excise Notification 05/2025 (NT) Dated 31/12/2025)