Oct 9, 2012

HC notice to Centre, state on gutka ban

PATNA: The Patna high court on Monday directed the Union and state governments to give replies to a writ petition challenging the ban on sale of gutka in Bihar on the ground that when the Union government is levying 60% excise duty on sale of gutka in the entire country, its sale could not be banned in Bihar.
A single bench of Justice Jayanandan Singh issued directives to the Union cabinet secretary and finance secretary, Food Safety Authority of India (FSAI) and the state government to file counter affidavits to the petition of gutka manufacturer, Rajat Industries Limited, in four weeks.
The petitioner's counsel, Prabhat Ranjan Dwivedi, submitted that the Union government had taken a policy decision under a central law to impose central excise duty on sale of gutka, declaring this to be a tobacco product under the provision of Cigarette and Other Tobacco Product Act, 2003. In 2012-13, excise duty on sale of gutka has been raised from 45% to 60%. Gutka is the only commodity on which excise duty is levied not on the basis of actual production but on the basis of production capacity, the counsel added.
Despite these provisions of the Union government, Bihar government had imposed a ban on production, packaging and sale of gutka in the state on the plea that it had done this on the direction of FSAI. The FSAI has declared that gutka is a not a food product. Despite this, the state government has banned the production and sale of gutka under the Food Safety and Standard Act, 2003. On the other hand, the Union government treats gutka as a product containing tobacco under the provision of Cigarette and Other Tobacco Product Act, 2006, the petitioner's counsel added.
He also submitted that the Indian Constitution does not provide for a situation under which a commodity can be produced legally in one state while its production and sale is banned in another state. This act of the state government affected the petitioner's right to do business anywhere in the country under the same condition, the counsel added.

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