Guwahati, June 13: The Gauhati High Court has restrained the Central Excise Department from recovering the refunded duties from two private tobacco companies. Responding to two writ petitions challenging the provision of the Finance Act, 2002, which seeks to take away the 10-year tax holiday for the tobacco related industries of the North Eastern region, Justice I A Ansari yesterday stayed recovery of tax benefits from the two companies.

The petitioners contended that the Central government having promised certain incentives by way of policy had retrospectively withdrawn the benefits as a result of which many tobacco related industries were going to be affected.

The court after considering the contentions posted the cases for further hearing on June 24 next.

Bureau Report