(Annexure to Circular No.905/25/2009-CX, dated 4.11.2009)

Most Immediate

F.No.9(3) 2009-IP

Governent of India

Ministry of Commerce & Industry

Department of Industrial Policy and Promotion

( Industrial Policy Section)

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                                                              Udyog Bhavan, New Delhi,

                                                                8th September, 2009.

OFFICE MEMORANDUM

 

Subject- Representation from Bharatiya Kisan Union forwarded by PM Office   –‘ issuance of licenses to manufacture cigarette   by the Central Excise Department illegally and discriminately’  regarding

  

           The undersigned is directed to refer to Central Board of Excise & Customs’ Office Memorandum No. 110/47/2009-CX.3 dated 26th August, 2009 on the subject mentioned above and to say that as per notification No. 477(E) dated 25.7.1991 Cigars and cigarettes of tobacco and manufactured tobacco substitutes is compulsory industrial licensable item which is as follows:

 

 24.02 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.

 

As per National Industrial classification Tobacco item is as follows:

 

160       1600:    manufacture of tobacco products [tobacco related products are also included while preliminary processing of tobacco leaves is classified in class 0111]

 

16001   Tobacco stemming, redrying etc. of tobacco leaf.

 

However, under Section 3© of the Industries (Development & Regulation) Act, 1951 ‘factory’ is defined as any industrial unit having 50/100 workers with/without the aid of power.  Units with less than 50/100 workers as defined therein do not appear within the purview  of ‘factory’ definition and therefore beyond the applicability of IDR Act, under which comes licensing.

S/d

(D.E. Richards)

Deputy Secretary to the Govt. of India

Tele.No. 23061987

To

O/o Central Board of Excise & Customs

(Shri Sushil Solanki, Commissioner (CX)

Room No. 154-B,

North Block

New Delhi