The Ministry of Finance (Department of Revenue) has issued Notification No. 01/2026–Central Excise (N.T.) to amend the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026.
The amended rules will come into force from 1 February 2026.
The amendment introduces clearer definitions, revised technical parameters, and updated terminology for determining machine capacity used in packing chewing tobacco, jarda scented tobacco, and gutkha.
Key Highlights of the Notification
Introduction of Formula for “Maximum Rated Speed”
A new Explanation has been inserted under Rule 5, defining the calculation of the maximum rated speed of packing machines.
The speed shall be determined using the formula:
S = (r / g) × n
Where:
- S = Maximum rated speed (pouches per minute)
- r = RPM rating of the main disc rotary motor
- g = Overall gear ratio between the main rotary motor and machine drum
- n = Number of funnels (horizontal machine) or number of cups (vertical machine)
Replacement of the Word “Tracks” with “Cups”
To ensure technical accuracy, references to “tracks” in various forms and tables have been replaced with “cups”, wherever applicable.
This substitution aligns rules with the actual functional components of modern packing machines.
Updates in Forms CE DEC-01 and CE CCE-01
Several modifications have been made in the prescribed forms:
- Column headings have been updated to replace “track” with “cup or funnel”.
- Additional ratio indicators such as [10/9], [14×11], [14×8], [7/6], [11×8], etc., have been inserted for standardization of machine speed parameters.
- Capacity calculation terminology revised to (Capacity per cup or funnel × Number of cups or funnels).
Update of Year Reference from 2025 to 2026
In Form CE CCE-01, references to the year 2025 have been replaced with 2026 to align with current applicability.
Purpose of the Amendment
These changes aim to:
- Improve accuracy and uniformity in machine capacity determination
- Enhance compliance transparency for manufacturers of chewing tobacco and gutkha
- Streamline the duty collection mechanism under Section 3A of the Central Excise Act, 1944
The notification builds upon the original rules notified on 31st December 2025 under Notification No. 05/2025–Central Excise (N.T.).
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/02/CBIC-Cus-NT-01-of-2026.pdf
