The Peshawar High Court (PHC) has declared the imposition of Federal Excise Duty (FED) on green leaves and hand-made tobacco unlawful, in a verdict delivered on Thursday.
The verdict was written by Justice Syed Arshad Ali. The court ordered the release of 3,375 kilograms of tobacco belonging to the petitioner company, which authorities had seized.
Court says duty requires processing at GLT unit
The bench said excise duty could not be imposed on the tobacco without processing in the GLT unit. The court stated that duty could not be imposed “until transforming of the green leaf’s processing by thrashing” takes place.
The bench also observed that separating tobacco leaves from stems “could not be deemed as manufacturing.”
Seized stock, vehicle and sealed premises addressed
The bench ordered the seized stocks, vehicle, equipment and records returned to the company. It also directed that the sealed building and machinery of the firm be de-sealed.
