High Court of Karnataka13 July 2026

Dhariwal Industries (P.) Ltd. v. Union of India

For assessee

WRIT PETITION NOS. 3157, 4331, 100634, 100636, 100637, 100638, 100657 AND 200402 OF 2026 (T-RES)

The ruling in brief

Where pan masala manufacturers using pouch machines were subjected to a monthly machine-wise cess based on maximum rated capacity under a single slab up to 500 pouches per minute, and abatement was restricted to stoppages exceeding fifteen days, such levy disregarded actual production, ignored genuine shorter shutdowns, created arbitrary classifications and was declared unconstitutional being violative of Article 14.

Where pan masala manufacturers challenged legislative competence of Health Security se National Security Cess Act, 2025 for levying cess on machines/processes, since taxable event was possession or operation of machines and not supply of goods or services, Parliament had power under Article 246(1) and Entry 97 List I to impose such cess, but manner of execution violated Article 14, rendering Act and Rules void

Provisions considered

Section 4, read with section 5 of Health Security se National Security Cess Act, 2025 - Rule 15, read with rule 16 of Health Security se National Security Cess Rules, 2026 - Schedule II of Health Security se National Security Cess Act, 2025 - Article 14 of Constitution of India, 1950; Article 246(1), read with Article 246A and Article 271 of Constitution of India, 1950 - Entry 97 of List I of Seventh Schedule to Constitution of India, 1950 - Health Security se National Security Cess Act, 2025

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Dhariwal Industries (P.) Ltd. v. Union of India

The ruling in brief

Provisions considered

Dhariwal Industries (P.) Ltd. v. Union of India

The ruling in brief

Provisions considered

Read the full analysis

Read the full analysis

Jaiwanti v. Union of India

Jain Cement Udyog v. Union of India

Dhull Earth Movers Co. v. Union of India