Amirkhan Amanollah, director of the company K200 Ltd, was rumbled at his Bargain World shop in Bailey Street, Oswestry, when a trading standards officer from Shropshire Council attended to make safety checks on toys he was selling.
Shrewsbury Crown Court heard that the officer approached the till area where there was a box containing tobacco products. Among the counterfeit items Amanollah had were 99 packets of Richmond cigarettes, 129 packets of Lambert and Butler cigarettes and seven pouches of Amber Leaf tobacco, altogether worth around £1,400.
He was also selling unsafe toys including "Battleground" sets, a fishing game and a "smoke train" set.
Amanollah told the officer he was the sole director of K200 Ltd and that he was responsible for the day-to-day running of the shop.
When asked who he bought the tobacco products from, he told the officer it was from a man, but he refused to provide a name.
Amanollah, of Longsight, Manchester, pleaded guilty on behalf of himself and K200 Ltd to three charges of possessing goods with a false trademark for sale and three charges of supplying goods prohibited by safety regulations.
The shop had only been open for three months when he was caught. Amanollah now makes his living as a delivery driver.
Judge David Hale told Amanollah that he had made "a very stupid decision" to buy and sell the cigarettes and tobacco.
Amanollah was handed a 12-month community order, which includes unpaid work. His company was fined £4,500.