PESHAWAR: The Peshawar High Court (PHC) has declared the imposition of Federal Excise Duty (FED) on green tobacco leaves and hand-made tobacco unlawful.
In a written verdict issued by Justice Syed Arshad Ali on Thursday, the court ruled that excise duty could not be imposed on tobacco before it underwent processing at a Green Leaf Threshing (GLT) unit. The bench observed that separating tobacco leaves from their stems did not constitute manufacturing.
The court ordered the release of 3,375 kilograms of tobacco seized from the petitioner company. It also directed the authorities to return the company’s seized tobacco stocks, vehicle, equipment and records, and to de-seal its building and machinery.