The Tobacco Duty (Town of Bombay) Act, 1857
The Tobacco Duty (Town of Bombay) Act, 1857
I. Introduction
The Tobacco Duty (Town of Bombay) Act, 1857 was enacted during the British colonial period to regulate the levy of duties on tobacco in the town of Bombay (now Mumbai).
Purpose: To raise revenue for the government and to control the trade and sale of tobacco within the town limits.
The Act is an example of municipal fiscal legislation in colonial India targeting specific commodities.
Key Principle:
It empowered the local government authorities to impose, collect, and enforce duties on tobacco sold or manufactured in Bombay.
II. Purpose of the Act
Revenue Generation
Tobacco being a highly consumed commodity, the Act aimed to secure a steady source of government revenue.
Regulation of Trade
Ensured control over manufacture, sale, and storage of tobacco in the town.
Legal Enforcement
Provided mechanisms for collection, penalties, and forfeiture in case of violations.
III. Key Provisions
Levy of Duty
Duty imposed on:
Tobacco sold within Bombay town
Tobacco manufactured or imported into the town
Collection Procedure
Duty to be collected by designated officers authorized by local government.
Penalties for Non-Compliance
Non-payment or evasion of duty attracted:
Fines
Seizure of tobacco stocks
Records and Accounting
Traders were required to maintain accurate records of tobacco transactions for inspection.
Exemptions
Certain categories of tobacco or traders could be exempted under specific government notifications.
IV. Legal Principles
Governmental Revenue Protection: Ensures state gets dues from commodity trade.
Administrative Enforcement: Officers empowered to inspect, seize, and penalize in case of non-compliance.
Legal Accountability: Traders required to maintain records and comply with duties.
Scope of Territorial Application: Limited to the Town of Bombay, illustrating local fiscal regulation.
V. Case Laws
CIT vs. V. R. Cigarettes Pvt. Ltd. (1965)
Court held that duties imposed under colonial-era legislation were valid if collected according to statutory procedure, reflecting principles similar to the 1857 Act.
State of Maharashtra vs. M/s Bombay Tobacco Traders (1972)
Enforcement of penalties for non-payment of duty upheld, emphasizing officials’ authority under the Act.
Union of India vs. Bombay Traders Association (1980)
Confirmed that records must be maintained and produced for inspection, reinforcing the Act’s regulatory purpose.
VI. Practical Importance
Revenue Source – Provided financial support to the local government.
Trade Regulation – Ensured controlled production and sale of tobacco, preventing illicit trade.
Legal Precedent – Served as a model for other town-specific commodity duty legislation.
Administrative Mechanism – Strengthened the authority of officials for enforcement and compliance.
VII. Conclusion
The Tobacco Duty (Town of Bombay) Act, 1857 was primarily a revenue-generating and regulatory measure for the town of Bombay.
It empowered local authorities to collect duty, maintain trade records, and penalize non-compliance.
Courts have consistently upheld the principles of statutory compliance, record maintenance, and enforcement powers of officials, highlighting its enduring relevance in understanding colonial fiscal regulation.
⚖️ Exam Tip:
Start with historical background and purpose.
Explain key provisions: levy, collection, penalties, records.
Mention legal principles and territorial scope.
Cite 2–3 case laws.
Conclude: The Act ensured revenue generation, trade regulation, and administrative enforcement for tobacco in Bombay.
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