The seizure, on Friday 9 January 2015, involved sniffer dog Yoyo and uncovered 35 pouches of tobacco including Golden Virginia, Amber Leaf and Passchendaele, and 81 packets of cigarettes, including Marlboro, Palace, Business Club, Pect and Palace.
All were foreign labelled and discovered hidden under the counter on a shelf hidden by a shutter mechanism.
Lionel Barnard, West Sussex County Council’s Cabinet Member for Residents’ Services with responsibility for Trading Standards, said: "It is totally unacceptable for people to think they can get away with selling counterfeit goods.
"It is illegal and people will face the consequences.
"Those involved in dealing in illegal tobacco may be encouraging people to smoke by providing a cheap source.
"The detection dogs can find tobacco and cigarettes, even if hidden in the most unlikely of places.
"As well as a warning for those who choose to deal in illegal products, we want to provide a caution for those that buy illegal goods as they can be very dangerous.
"You don't always know what is in these products, which is putting your health even more at risk.”
Trading Standards is continuing its investigation into the shop. One arrest was made with Sussex Police.
The name of the shop is not being released at this stage.