Clarification on Excise Duty: Pan Masala Packs Under 4g to Use 50% MRP Assessment Per Notification No. 27/97-C.E.

The circular addresses the interpretation of two notifications concerning the excise duty on pan masala in retail packages not exceeding 4 grams. Notification No. 16/98-C.E. (N.T.) sets tariff values for packages under 10 grams, with a fixed assessable value for packs not exceeding 2 grams. However, due to concerns about high excise duty on cheaper varieties, Notification No. 27/97-C.E. allows assessment based on 50% of the maximum retail price for certain packages. The circular clarifies that packages meeting specific conditions under Notification No. 27/97-C.E. should benefit from this assessment method, rather than a higher tariff value under Notification No. 16/98-C.E. (N.T.).

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