The Central Government has officially notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Amendment Rules, 2026. These rules have been issued under sub-sections (2) and (3) of section 3A of the Central Excise Act, 1944. The amendment came into force on 1 February 2026.

The notification updates the existing Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines Rules, 2026. The main aim is to bring clarity, uniformity, and transparency in the calculation of machine capacity and excise duty. The changes focus on machine speed, machine design, and official declaration forms.

New Formula Introduced for Machine Speed Calculation

A major change has been made in Rule 5 through the insertion of a clear explanation. The amendment introduces a standard formula to calculate the maximum rated speed of a packing machine. The speed will now be calculated based on:

• RPM of the main rotary motor
• Overall gear ratio
• Number of funnels in horizontal machines
• Number of cups in vertical machines

This formula sets a uniform method for measuring pouch production per minute. It reduces confusion and disputes during inspections and duty assessments. The move ensures fair calculation of excise duty across all tobacco packaging units.

Key Terminology Updated for Horizontal and Vertical Machines

The amendment also updates Rule 6(2). The earlier reference to “tracks” has been replaced with clear terms. The rule now uses:

• Funnels for horizontal machines
• Cups for vertical machines

This change aligns the rules with the actual machine design used to manufacture chewing tobacco and gutkha. It helps manufacturers, officers, and engineers apply the law correctly without ambiguity.

Changes Made in Statutory Declaration Forms

Several important changes have been made in FORM CE DEC-01 and FORM CE CCE-01. These forms are used for capacity declaration and certification. The amendments include:

• Replacement of the word “tracks” with “cups”
• Use of the term “cup or funnel” at relevant places
• Introduction of calculation references
• Updated speed calculation formats for monthly and daily capacity
• Correction of the year from 2025 to 2026 in the certification sections

Instructions for Chartered Engineers have also been revised. Capacity calculation now clearly depends on capacity per cup or funnel multiplied by the number of cups or funnels.

Impact on Compliance and Excise Administration

These amendments strengthen compliance with the Central Excise Tobacco Rules. Clear definitions and formulas reduce errors, improve reporting accuracy, and support smoother audits. Manufacturers of chewing tobacco, jarda scented tobacco, and gutkha must update internal records and declarations from 1 February 2026.

The amendment promotes transparency, standard enforcement, and better revenue protection while keeping the compliance process simple and predictable.