Rule 22 - Penalty for contraventions, etc.

Unregistered unit pouch manufacturing: duty based on packing machines and pouch retail price; confiscation and penalties upheld.

Contravention of the rules by a manufacturer producing or removing notified goods renders such goods liable to confiscation and makes the manufacturer liable to a penalty not exceeding the duty leviable on the notified goods concerned, subject to section 11AC of the Act. Where goods are manufactured in or cleared from an unregistered unit, duty liability must be determined based on the number of packing machines available at the premises and the retail sale price of pouches made using those machines, with the machines deemed (unless rebutted to the satisfaction of the jurisdictional Deputy/Assistant Commissioner) to have operated from 1 February 2026 or the last five years, whichever is later, for purposes of rule 6. Failure to furnish recorded CCTV footage within 48 hours attracts penalty under the Act.