CESTAT Clarifies that Tobacco Packs Below 10g Cannot be Taxed Under Section 4A

The CESTAT held that tobacco pouches of small quantities (such as 4 grams and 9 grams) do not attract excise duty under Section 4A of the Central Excise Act, 1944.

The Tribunal noted that such small packages are exempt from the requirement of declaring Maximum Retail Price (MRP) under the Packaged Commodities Rules.

Since Section 4A applies only to goods assessed on the basis of MRP, its provisions cannot be invoked where MRP declaration itself is not mandatory.

Accordingly, the Tribunal ruled that these tobacco products must be assessed under Section 4 instead, setting aside the duty demand raised by the department.

[M/s Shiva Tobacco Co. v. Commissioner of Central Excise, Delhi-III]