JAGANNATH AND OTHERS vs UNION OF INDIA

The Supreme Court upheld the validity of the excise duty imposed on tobacco in broken leaf form under Item 6 of entry 4(1) of the First Schedule to the Central Excise and Salt Act, 1944, stating that there was no unconstitutional discrimination as the two forms of tobacco were distinguishable based on their capability of use. The Court clarified that the tariff was not primarily based on the use of tobacco, and the distinction between whole leaf and broken leaf tobacco had a reasonable relation to the object of the tariff. The petitioners' challenge under Article 32 was therefore dismissed.