Centre Revises Central Excise Duty on Unmanufactured Tobacco
Court / Authority
Indirect Taxes and Customs (CBIC)
Update / Judgement Date
01 Jul 2026
Source
WCP News Bulletin
Author
Manas Yadav — WCP Legal Desk
Reading Time
1 min read
View Count
The Ministry of Finance, Department of Revenue, has issued Notification No. 04/2026–Central Excise dated 1 February 2026, amending the earlier Notification No. 03/2025–Central Excise. The amendment, issued under Section 5A(1) of the Central Excise Act, 1944, introduces a clear distinction in the excise duty structure applicable to unmanufactured tobacco.
Under the revised notification, unmanufactured tobacco or tobacco refuse falling under tariff heading 2401, which does not bear a brand name and is not packed for retail sale, will continue to attract a Nil rate of central excise duty. However, a new entry has been inserted as Sl. No. 1A, under which all other forms of unmanufactured tobacco or tobacco refuse will now attract central excise duty at the rate of 18 percent.
This change signals a calibrated policy approach, providing relief to non-branded, non-retail tobacco while imposing a significant duty on other categories. The amendment is expected to impact pricing, compliance, and tax planning for stakeholders in the tobacco supply chain.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about Indirect Taxes and Customs (CBIC)
- What is the CBIC?
- The Central Board of Indirect Taxes and Customs (CBIC), in the Department of Revenue, Ministry of Finance, administers customs, central excise and the Central GST and IGST. It issues notifications, circulars and instructions that field formations follow.
- How do importers and exporters file customs documents?
- Bills of entry and shipping bills are filed electronically through ICEGATE, the CBIC's customs e-commerce gateway. Most bills of entry are assessed under the Faceless Assessment system.
- How do I appeal against a customs order?
- A first appeal lies to the Commissioner (Customs Appeals) within 60 days, with a pre-deposit of 7.5 per cent of the duty in dispute. A further appeal lies to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) within three months, with a pre-deposit of 10 per cent.
- Where are CBIC notifications published?
- Notifications and circulars on customs, GST and central excise are published on the CBIC website (cbic.gov.in) and in the Gazette of India, under separate series for tariff and non-tariff notifications.
- How can White Collar Professional help with a customs or CBIC matter?
- Post your requirement on White Collar Professional to receive proposals from verified Chartered Accountants, customs brokers and Advocates, compare them, and pay securely through the platform. This page also tracks the latest customs or CBIC CBIC and customs updates as they are reported.
