Excise duty provisions for Pan Masala and Gutkha notified

Till 1st July, 2008, an optional scheme existed for payment of excise duty on the basis of compounded levy for Pan Masala and Gutkha. However w. e. f 1st July, 2008 the Government has notified mandatory scheme of payment of excise duty based on capacity of production for pan masala, whether or not containing tobacco, manufactured with the aid of packing machine and put up in pouches. The scheme is not applicable to pan masala, not containing tobacco, with betel nut content not exceeding 15% and pan masala containing tobacco or gutkha, packed manually or put up in a form of packing other than pouches e.g. tin packs.