The Peshawar High Court (PHC) in a verdict on Thursday declared imposing Federal Excise Duty (FED) on green leaves and hand-made tobacco as unlawful, ARY News reported.
The high court issued the verdict written by Justice Syed Arshad Ali.
The court ordered the release of 3,375 kilograms of tobacco belonging to the petitioner company, which had been seized by the authorities.
The high court bench in its decision said that excise duty could not be imposed on the tobacco without processing in the GLT unit.
“The excise duty could not be imposed until transforming of the green leaf’s processing by thrashing,” the court said in its judgment. “The process of separating tobacco leaves from stems could not be deemed as manufacturing,” the bench observed.
The PHC bench ordered the return of the seized tobacco stocks, vehicle, equipment and record to the litigant company.
The court also directed de-sealing the sealed building and machinery of the litigant firm.
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