Levy and collection of National Calamity Contingent Duty (NCCD) --—- The petitioners sought for setting aside of the Notification No.3/2019 dated 06.07.2019, whereby Central Excise Duty has been levied on tobacco and tobacco products. Declaration that Section 136 of the Finance Act, 2001 under which there is levy and collection of National Calamity Contingent Duty (NCCD) as unconstitutional; sought for refund of the NCCD collected by the respondents with effect from 01.07.2017 and sought for quashing of SCN dated 29.09.2020. The court observed that the Legislature has a larger discretion in the matter of classification for the purpose of tax. The levy of NCCD which is for the purpose of discouraging consumption and relates to object associated with the levy cannot be described to be a classification without any basis. There are no grounds made out in the pleadings. The levy of tax is a product of legislative choice and on policy decisions which are the prerogative of the Executive and as laid down by the Apex Court in the case of VKC Footsteps, the Courts are not to readily enter into adjudication on such issues. The court further observed that in view of the guideline laid down by the Supreme Court, no case is made out for interference on the ground of the levy being hit by the law contained in Article 14.

Held that:- The Hon’ble High Court dismissed the petitions.