‘Bidi’ classifiable as ‘Tobacco and Tobacco Products’: Orissa HC upholds Levy under Entry Tax Act [Read Order]

A division bench of the Orissa High Court comprising Chief Justice S Muralidhar and Justice R.K Pattanaik has held that the product “Bidi” is classifiable as “Tobacco and Tobacco Products” for the purpose of levying entry tax under the Orissa Entry Tax Act, 1999.

The Petitioner Assessee, M/s Patel Brothers & Co, is a manufacturer of Bidis. The question before the division bench was whether the product is included within the entry “Tobacco and Tobacco products” in item 16 of the Schedule under the OET Act.

Before the High Court, the Petitioner contended that since the entry does not specifically mention ‘bidi’ it would not fall within the scope of the above entry.

Mr. Mishra learned Sr. Standing Counsel on the other hand, argued that the expression ‘tobacco products’ is wide enough to include ‘bidi’ which is nothing, but tobacco inserted in Kendu leaves and smoked in the rural countryside.

Upholding the Tribunal order, the High Court observed that “Although learned counsel for the Petitioner sought to contend that under Entry 31 ‘cigarette and lighter’ is a separate item and therefore unless there is a separate entry for ‘bidi’ it would not be amenable to entry tax in terms of the OET Act, the Court is unable to agree with the above contention. The expression ‘tobacco and tobacco products’ is wide enough to include ‘bidi’ and therefore, the Tribunal has not committed any legal error in coming to the conclusion as aforementioned.”

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