Cigarette giant British American Tobacco Australia is seeking an urgent appeal to the High Court for access to legal advice it says will prove proposed plain packaging laws are flawed.
The full bench of the court refused BATA's appeal to order the release of the federal government document on Tuesday.
The company wanted a Department of Health document from 1995 that it claims advises against plain packaging of tobacco products.
Last month the federal government introduced legislation that will make it an offence to sell, supply, purchase, package or manufacture tobacco products for retail sale in anything other than plain packaging.
Under the new laws, tobacco products will be sold in dark brown, drab packaging from mid-2012.
But BATA says that all MPs voting on the Tobacco Plain Packaging Bill and contentious Trademarks Bill in parliament on Wednesday need to see the advice on the legality and constitutionality of the packaging.
Lawyers for BATA will "definitely" appeal the decision in the High Court as soon as possible, spokesman Scott McIntyre said.
He said there was no evidence the world-first introduction of plain packaging for
Monte Carlo cigarettes would reduce smoking rates.
Illegal tobacco, which currently occupies around 16 per cent of the Australian market, would increase its dominance if the laws were passed and have an impact of cigarette excise revenues, he said.
"When you make packs look exactly the same with the same colour it's going to make them easier to counterfeit," Mr McIntyre told AAP.
"The retailers won't be able to tell which ones are real and which ones are fakes."
Health Minister Nicola Roxon welcomed the court's decision.
"The government is pleased the Federal Court has recognised the public interest in protecting the confidentiality of legal advice to the government," Ms Roxon said in a statement.
"(But) we've always said that big tobacco will try and fight plain packaging tooth and nail, and we expect them to continue their desperate tactics."
Ms Roxon said while big tobacco companies were fighting to protect profits the commonwealth was fighting to protect lives.
Doctors and health groups have lauded the move to plain packaging, saying it will stand as one of Australia's greatest ever public health achievements.
The maximum penalty for breaching the laws will be $220,000 for an individual and $1.1 million for a body corporate.
By Edwina Scott, Michelle Draper and Julian Drape
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