TaxTMI 
TaxTMI 
Health Security se National Security Cess Rules, 2026.
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....ly assigned to them in the Act. 3. Appointment and jurisdiction of officers. - (1) The Board may, by order, appoint such officer as it thinks fit to be a proper officer who shall be entrusted with such powers or assigned with such functions as may be specified thereunder. (2) The Board may, by order, specify the jurisdiction of a Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, Commissioner, or Commissioner (Appeals), or Commissioner (Audit) for the purposes of the Act and the rules made thereunder. (3) A proper officer may exercise the powers and discharge the duties conferred or imposed under the Act or these rules on any other officer who is subordinate to him. CHAPTER II REGISTRATION 4. Application for registration. - (1) Every taxable person liable to be registered under section 8 of the Act shall apply for registration by submitting the FORM HSNS REG-01 on the Portal along with the documents specified in the said form: Provided that where a taxable person owns, possesses, leases or controls machines installed in more than one factory, a separate application in FORM HSNS REG-01 shall be submitted for each such factory. (2) Upon ....
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....ubmit an application for revocation of cancellation within thirty days from the date of receipt of the cancellation order under rule 7. (2) Where the proper officer is satisfied that sufficient grounds exist, he shall revoke the cancellation within thirty days of the receipt of such application and the applicant shall be informed accordingly. (3) Where the proper officer is not satisfied with the application filed under sub-rule (1), he shall provide the applicant a reasonable opportunity of being heard, and after considering the representation, if any, furnished by the applicant, he shall either revoke the cancellation or reject the application and the applicant shall be informed accordingly. CHAPTER III DECLARATION 9. Declaration to be filed by registered person. - (1) Every registered person shall file a declaration as required under section 9 of the Act in FORM HSNS DEC-01 on the Portal within seven days of the grant of registration. (2) In case of any change in the parameters relevant for the computation of cess, or in case of installation, addition or commencement of any machine or process, the registered person shall file a fresh declaration within fifteen ....
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....as per the amount of cess per machine or manual process unit specified in Schedule II of the Act: Provided that in the case of a newly registered person, the cess payable for the first month shall be calculated on a pro-rata basis, having regard to the total number of days in that month and the number of days commencing from the date of installation of the machine or the start of the manual process unit, as the case may be, and such cess shall be paid within five days of such installation or start. (2) For the purpose of calculating the cess under sub-rule (1), the maximum rated speed of a machine shall be taken as the maximum speed achievable by the machine, as declared in FORM HSNS DEC-01 and as confirmed by the proper officer, irrespective of the actual operating speed at which that machine is used to manufacture or produce the specified goods of any weight. (3) Where a machine is used to manufacture or produce specified goods of different weights during a month, the cess payable for that machine for that month shall be calculated with reference to the maximum weight of pouch or tin or container manufactured or produced as specified in Schedule II of the Act. (4) In ....
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.... the registered person intimates the proper officer at least three working days before the non-operation of an installed machine or manual process unit for any continuous period of fifteen days or more, requesting the sealing of the machine or closure of manual process unit, as the case may be; (b) the packing machine or manual process unit is sealed by the proper officer within three working days from the date of receipt of intimation in such a manner that it cannot be operated; (c) no manufacturing activity for the specified goods is undertaken on the said machine or by the manual process unit, as the case may be, during the period of sealing. (2) Any registered person eligible for abatement under sub-rule (1), shall claim such abatement by submitting an application to the proper officer on or before the 20th day of the month succeeding the period for which the abatement is claimed. (3) The proper officer shall, upon verification of the claim submitted under sub-rule (2), issue an order, within fifteen days of the submission of such application, allowing the abatement of the cess liability for each month covered by the period of non-operation of the machin....
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....TE. THE MONTHLY CESS LIABILITY FOR SUCH A MACHINE UNDER SL. NO. 2 OF SCHEDULE II OF THE ACT IS Rs. 2,02,00,000. THE MACHINE IS SEALED ON THE 20TH DAY OF JULY AND IS DESEALED ON THE 11TH DAY OF AUGUST. THE TOTAL PERIOD OF CONTINUOUS NON-OPERATION IS 21 DAYS (EXCEEDING FIFTEEN DAYS). THE APPLICATION FOR CLAIMING ABATEMENT MAY BE FILED BY THE REGISTERED PERSON BY 20TH SEPTEMBER (THE MONTH SUCCEEDING THE MONTH IN WHICH THE MACHINES WERE INOPERATIVE AND SEALED). The amount of abatement of cess shall be calculated as follows: - (i) Particulars of non-operation for July: Total number of days in the month (July) (N): 31 Number of continuous days in the month the machine was inoperative (D): 11 Amount of cess paid for the month for the machine (C): Rs. 2,02,00,000 (ii) Computation of Abatement Amount for July(A1): A1 = (2,02,00,000/31) x 11 = Rs. 71,67,742 (iii) Particulars of non-operation for August: Total number of days in the month (August) (N): 31 Number of continuous days in the month the machine was inoperative (D): 10 Amount of cess paid for the month for the machine (C): Rs. 2,02,00,000 (iv) Computation of Abat....
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....eration made to the machines that may impact their packing speed or capacity; (d) electricity bills issued by the distribution company; (e) record of receipts and consumption of principal raw materials and packing materials; (f) record of the daily production, clearance and closing stock of specified goods; (g) record of the generation and disposal of waste or scrap laminates; (h) balance sheet and profit and loss account for each financial year; and (i) bank statements reflecting payments for machine procurement. (2) All the records and documents under sub-rule (1) shall be retained for a period of twenty-four months from the end of the financial year to which such records or documents pertain: Provided that where an appeal, revision, or any other proceeding is pending before any Appellate Authority, Tribunal, or Court, the records of the subject matter of such proceeding shall be retained for a period of one year after the final disposal of such proceeding or for the period specified above, whichever is later. CHAPTER VIII COMPOUNDING OF OFFENCES 20. Procedure for compounding of offences. - (1) A registered pers....
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....nd Rupees or Fifty percent of the cess involved, whichever is higher 2 Offence specified under section 18(1)(i) of the Act 3 Offence specified under section 18(2) of the Act (5) Where the offences committed by the person fall under more than one category specified in the Table under sub-rule (4), the compounding amount, in such a case, shall be the amount determined for the offence for which a higher compounding amount has been specified. (6) The application shall not be allowed unless the cess, interest and penalty liable to be paid have been paid for the case for which the application has been made. (7) The applicant shall, within a period of thirty days from the date of the receipt of the order under sub-rule (3) allowing the compounding of offences, pay the compounding amount as ordered by the proper officer and shall furnish the proof of such payment to him. (8) In case the applicant fails to pay the compounding amount within the period specified in sub-rule (7), the order made under sub-rule (3) shall be vitiated and void. (9) An immunity granted to a person under sub-rule (3) may, at any time, be withdrawn by the proper officer, if he is satisfied ....
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.... to the appellant immediately by the appellate authority or an officer authorised by him in this behalf and the date of issue of the acknowledgment shall be considered as the date of filing of the appeal: Provided that where the self-certified copy of the decision or order is not submitted within a period of seven days from the date of filing of the appeal, the date of submission of such copy shall be considered as the date of filing of the appeal. Explanation.- For the purposes of this rule, the appeal shall be treated as filed only when the acknowledgement, indicating the appeal number, is issued. 24. Appeal to appellate authority. - (1) Any person aggrieved by any decision or order passed under the Act may appeal to the Commissioner (Appeals) within three months from the date on which the said decision or order is communicated to such person. (2) An officer directed under sub-section (2) of section 29 of the Act to appeal against any decision or order passed under this Act may appeal to the Commissioner (Appeals) within six months from the date of communication of the said decision or order. 25. Notice to person and order of revisional authority in case of revisio....
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.... proceedings before the adjudicating authority or, as the case may be, the appellate authority, except in the following circumstances, namely: - (a) where the adjudicating authority or, as the case may be, the appellate authority has refused to admit evidence which ought to have been admitted; or (b) where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the adjudicating authority or, as the case may be, the appellate authority; or (c) where the appellant was prevented by sufficient cause from producing before the adjudicating authority or, as the case may be, the appellate authority any evidence which is relevant to any ground of appeal; or (d) where the adjudicating authority or, as the case may be, the Appellate Authority has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal. (2) No evidence shall be admitted under sub-rule (1) unless the appellate authority or the Appellate Tribunal records in writing the reasons for its admission. (3) The appellate authority or the Appellate Tribunal....
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....ound, upon an enquiry into the matter, guilty of misconduct in connection with any proceedings under the Act, the Commissioner may, after providing him an opportunity of being heard, disqualify him from appearing as an authorised representative. CHAPTER XI MISCELLANEOUS 32. Penalty for contravention.- If it is found that the taxable person owns, operates or is in control of any machine or process for the purpose of manufacture or production of the specified goods without getting registered with the proper officer, then, the cess liability of such taxable person shall be determined on the basis of number of machines found available in the factory or presence of manual process unit, as the case may be, and unless evidence to the contrary is provided to the satisfaction of the proper officer, such machines or manual process unit shall be deemed to have been in operation, from 1st day of February, 2026, or the last two years whichever is later, for the purposes of rule 10 and dealt with accordingly. 33. Installation of Closed-Circuit Television system. - (1) Every registered person engaged in the manufacture of the specified goods shall install a functional Closed-Circuit T....
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....t No. Name of Premises/Building Road/Street/Lane City/District State/Union Territory [Drop Down] PIN Code Boundaries of the premises to be Registered (North/South/East/West) 2. Jurisdiction (Commissionerate/Division/Range) [Drop Down] 3. Nature of Possession of Premises Owned Leased Rented Consent Shared Owned Leased Rented Consent Shared 3. CATEGORIZATION OF TAXABLE ACTIVITY AS PER TABLE BELOW: Based on section 4 and Schedule II of the HSNS Cess Act, 2025 Table Sl. No. Description Input (1) (2) (3) 1. Category of taxable person __ Wholly or partly machine- based process (Table 1 of Schedule II of the Act) Wholly Manual Process (Table 2 of Schedule II of the Act) 2. Nature of control over machines/process Owner Lessee __ Operator/Controller Job Worker __ Wholly or partly machine- based process (Table 1 of Schedule II of the Act) Wholly Manual Process (Table 2 of Schedule II of the Act) Owner Lessee __ Operator/Controller Job Worker Description of specified goods _Pan Masala (2106 90 20) 3. Other Notified Goods (As per Schedule I) 4. DETAILS OF PROMOTER /PARTNERS / DIRE....
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....he packing machines installed at the above premises; or (ii) Undertake the manual process at the above premises; by which the Specified Goods (as defined in Schedule I of the Act) are manufactured or produced. 6. Nature of Possession of Premises/Machines: [Owned / Leased / Rented / Shared / Consent] 7. Date of Issue of RC : DD/MM/YYYY 8. Date from which the liability of payment of cess starts : DD/MM/YYYY 9. Jurisdiction Details: · Commissionerate : [Code - Name] · Division : [Code - Name] · Range : [Code - Name] Conditions: 1. This Registration Certificate is valid only for the premises and purposes specified in the application 2. The registration certificate is not transferable. 3. No corrections in the certificate will be valid unless the request for any correction/change is applied for and the same is acknowledged. 4. This certificate shall remain valid till the Registrant carries on the activity for which it has been issued or it is cancelled. 5. The grant of this certificate shall be without prejudice to the rights of any other person (s) over the registered premises or purpose to which such person may be lawfully entitled....
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....r of Funnels Konly for horizontal machines) Table B: Newly Added Machines (If applicable) Sl. No. Make Model No. Name of manufacturer No. Machine Date of purchase (only for vertical No. of tracks machines) Box Gear Ratio of the Machine (1) (2) (3) (4) (5) (6) (7) (8) Model No. Name of manufacturer (only for vertical No. of tracks machines) Box Gear Ratio of the Machine 1 2 Revolution Per Minute of main motor Number of Funnels (only for horizontal machines) Nature of Packing (e.g., Pouch, Tin, Container) Weight of packages that can be packed on the machine (in grams) Packing capacity of each track or Funnel (No. of packages which can be packed for a particular weight of package in a minute) Total packing capacity of the machine for a specific weight of package to be packed in a minute (Maxi mum Rated Speed) [7X13] or [10 X 13] Electricity consumption capacity (KWH) Registration No. of the machine (To be generated at the time of submission) Working status (Y/N) (9) (10) (11) (12) (13) (14) (15) (16) (17) Revolution Per Minute of main motor Number of Funnels (only for horizontal machines) 5. Change in details [For de....
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.... 3. [ ] Layout plan of the factory indicating machine locations 4. [ ] Other Department Intimation Declaration 5. [ ] Others: 10. Verification I, (Name of Authorised Signatory), son/daughter of hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom. I understand that any false declaration is liable for penal action under Chapter VI of the Health Security se National Security Cess Act, 2025. Place: Date: Name: Designation: FORM HSNS CE-01 [See rule 10] Certificate of Chartered Engineer 1. Details of the taxable person as per Table below: Table 1. HSNS Registration No. 2. Legal Name 3. Trade Name 4. Address of Factory 2. Details of machines examined ,as per Table below: (To be filled by the Chartered Engineer after physical verification of the machines installed at the factory premises) Table Sl. No . Make / Model Name of Manufacturer Machine No. (Serial No.) Machine Reg. No. (If already assigned by System) No. of Tracks Box Gear Ratio of the Machine (1) (2) (3) (4) (5) (6) (7) 1 2 3 Revolu....
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....Code Accounting Code Type Amount HSNS CESS INTEREST PENALTY Total Amount [Auto Calc] Total challan amount (in words): Note: Separate Fields for Interest & Penalty to be included. FORM HSNS RET-01 [See rule 14(1)] Monthly return for payment of Health Security se National Security Cess 1. Basic information as per Table below: Table Sl. No. HSNS Registration No. Particulars (1) (2) (3) 1. Legal Name 2. Trade Name 3. GSTIN 4. Return Period Month: Year: 5. Date of Filing 2. Details of cess payable for the month (Machine-based) as per the Table below: (Relevant for computation of cess under section 5(2) read with Table I of Schedule II of the Act) Note: The cess is calculated based on the maximum rated speed and weight of the specified goods (e.g., Pan Masala) as declared in Form HSNSDEC-I. Table Sl. No. Machine Registration Machine Status Applicable Monthly Cess Rate (As per Schedule II) (Rs.) Total Cess Payable (Rs.) No. JA dropdown box containing registered No. of machines will be shown in the rows] Working Status for the Month (Yes/No) Date of Sealing [DD/MM/YYYY] Date of Desealing [DD/MM/YYYY] (1) (2) (3) (4) (5)....
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....etails in the Table should be for the return period. · Machine Registration No: Select the unique Machine ID generated in Form HSNSDEC-I (Declaration Form). · Applicable Rate: Refer to Schedule II of the Act. Determine the applicable tax slab based on the machine's Maximum Rated Speed and the Weight of the pouch/tin/container. · Date of Sealing/Desealing: Enter specific dates only if the machine was sealed or de-sealed by the proper officer during the return period. 3. Abatement Claim (Table in Sl. No. 4A & 4B): Use this section to report abatement amounts that are being adjusted in the return period. Example: If you are filing the return for the month of October 2026, you will mention the details of the abatement order received in September. The period of abatement shall be as specified in the abatement order which may be July/August. 4. The abated amount should be adjusted/subtracted from the amount of cess payable for the return period. The same shall be specified in the table in Sl. No. 5 (row No. 3) Example: If you are filing the return for the month of October 2026, you will mention the details of the abatement order received in September. The pe....
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....OF these presents have been signed on the day hereinbefore written by the obligor(s). Signature(s) of obligor(s). Date: Place: Witnesses: (1) Name and Address: Signature: (2) Name and Address: Signature: Accepted by me this. day of (designation of officer) for and on behalf of the President of India. (month) ·(year) (Signature of the Proper Officer) Form HSNS APL 01 (see rule 23) Form of appeal to the appellate authority under section 29 of the Act 1. No .. of .20. 2. Name and address of the appellant. 3. Designation and address of the officer passing the decision or order appealed against and the date of the decision or order. 4. Date of communication of the decision or order appealed against to the appellant. 5. Address to which notices may be sent to the appellant. 6. (i) Description and classification of specified goods (ii) Period of dispute (iii) Amount of cess, if any, demanded for the period mentioned in item (ii) (iv) Amount of abatement/refund if any claimed for the period mentioned in item (i) (v) Amount of fine imposed. (vi) Amount of penalty imposed (vii) Market value of seized goods. ....