Repacked Chewing Tobacco Falls Under Tariff Heading 2403 | HC

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  • Last Updated on 19 January, 2026

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Chewing Tobacco Tariff Heading 2403

Case Details: Patel Products vs. Union of India - [2026] 182 taxmann.com 328 (Gujarat)

Judiciary and Counsel Details

  • Bhargav D. Karia & Pranav Trivedi, JJ.
  • Mihir Joshi, Sr. Adv., Anandodaya S Mishra, Digant M Popat & Anand Nainawati for the Petitioner.
  • Ms Hetvi H Sancheti, Ankit Shah, Maunil Yajnik, Tirth Nayak, Neel P Pakhani & C.B. Gupta for the Respondent.

Facts of the Case

The petitioner was a manufacturer and distributor of chewing tobacco, selling the product in retail pouches after repacking from bulk packages. It was submitted that the tobacco leaves were merely dried, cleaned, sieved, sized, and cut without addition of any other material and contended that such product should be classified under Tariff Heading 2401 2090 as ‘unmanufactured tobacco’. It was contended that repacking into retail pouches complied with Section 7(4) and 7(5) of the Cigarettes and Other Tobacco Products (Prohibition Of Advertisement And Regulation Of Trade And Commerce, Production, Supply And Administration) Act, 2003. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that chewing tobacco manufactured and sold in retail pouches after repacking bulk packages falls within Tariff Heading 2403 9910 under sub-heading ‘chewing tobacco’ and not under Tariff Heading 2401 2090 as ‘unmanufactured tobacco’. The Court observed that the process adopted by the petitioner, including drying, cleaning, sieving, sizing, and cutting, amounted to ‘production’ under Section 3(p) of COPTA, 2003, which includes packing and repacking of tobacco products. Consequently, the petitioner’s product would attract GST at 28%, Compensation Cess at 160%, Excise Duty at 0.5%, and National Calamity Contingency Duty at 25%.

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied