The Health Security Se National Security Cess Act, 2025
Administered Ministry: Ministry of Finance / Department of Revenue
Section
Section 21 Cognizance of offences.
No Court shall take cognizance of any offence punishable under this Act or the rules made thereunder except with the previous sanction of the proper officer, not below the rank of Commissioner, and no court inferior to that of a Magistrate of the first class, shall try any such offence.
Section 22 Presumption of culpable mental state.
In any prosecution for an offence under this Actwhich requires a culpable mental state on the part of the accused, the Court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution.
Explanation.--- For the purposes of this section,---
(a) the expression "culpable mental state" includes intention, motive, knowledge of a fact, and belief in, or reason to believe, a fact;
(b) a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.
Explanation.--- For the purposes of this section,---
(a) the expression "culpable mental state" includes intention, motive, knowledge of a fact, and belief in, or reason to believe, a fact;
(b) a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.
Section 23 Compounding of offences.
(1) Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, any offence under this Act, not being an offence punishable with imprisonment only, or with imprisonment and also with fine, may, either before or after the institution of prosecution, be compounded by a proper officer, not below the rank of Commissioner, on payment, by the person accused of the offence, to the Central Government of such compounding amount in such manner as may be prescribed.
(2) The option of compounding shall not be available to a person---
(a) who has been allowed to compound once in respect of any of the offences specified in clauses (a) to (f) of sub-section (1) of section 18 and the offences which are relatable to the said specified offences;
(b) who has been allowed to compound once in respect of any offence, other than those in clause (a), under this Act, the cess exceeding one crore rupees;
(c) a person who has been accused of committing an offence under this Act which is also an offence under any other law for the time being in force;
(d) a person who has been convicted for an offence under this Act by a Court; and
(e) any other class of persons or offences, as may be prescribed.
(3) Any compounding shall be allowed only after making payment of cess, interest and penalty involved in such offences and shall not affect the proceedings, if any, instituted under any other law for the time being in force.
(4) The amount for compounding of offences under this section shall be such, as may be prescribed, subject to the minimum amount not being less than ten thousand rupees or fifty per cent. of the cess involved, whichever is higher, and the maximum amount not being less than thirty thousand rupees or one hundred and fifty per cent. of the cess, whichever is higher.
(5) On payment of such compounding amount as may be determined by the proper officer, no further proceedings shall be initiated under this Act against the accused person in respect of the same offence and any criminal proceedings, if already initiated in respect of the said offence, shall stand abated.
(2) The option of compounding shall not be available to a person---
(a) who has been allowed to compound once in respect of any of the offences specified in clauses (a) to (f) of sub-section (1) of section 18 and the offences which are relatable to the said specified offences;
(b) who has been allowed to compound once in respect of any offence, other than those in clause (a), under this Act, the cess exceeding one crore rupees;
(c) a person who has been accused of committing an offence under this Act which is also an offence under any other law for the time being in force;
(d) a person who has been convicted for an offence under this Act by a Court; and
(e) any other class of persons or offences, as may be prescribed.
(3) Any compounding shall be allowed only after making payment of cess, interest and penalty involved in such offences and shall not affect the proceedings, if any, instituted under any other law for the time being in force.
(4) The amount for compounding of offences under this section shall be such, as may be prescribed, subject to the minimum amount not being less than ten thousand rupees or fifty per cent. of the cess involved, whichever is higher, and the maximum amount not being less than thirty thousand rupees or one hundred and fifty per cent. of the cess, whichever is higher.
(5) On payment of such compounding amount as may be determined by the proper officer, no further proceedings shall be initiated under this Act against the accused person in respect of the same offence and any criminal proceedings, if already initiated in respect of the said offence, shall stand abated.
Section 24 Power of inspection, search and seizure.
(1) Where the proper officer, not below the rank of Joint Commissioner, has reasons to believe that any taxable person is manufacturing or producing the specified goods without complying with the provisions of this Act or the rules made thereunder, he may authorise, in writing, any officer not below the rank of Assistant Commissioner subordinate to him to inspect any places of business of the taxable person or warehouse or godown, where the specified goods so manufactured or produced are stored.
(2) Where the proper officer referred to in sub-section (1), either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that the specified goods or machines liable to confiscation or any documents or books or things, which in his opinion, shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise, in writing, any other proper officer to search and seize, or may himself search and seize such goods, machines, documents or books or things.
(3) Where it is not practicable to seize any such goods or machine, the proper officer, or any officer authorised by him, may serve on the owner or the custodian of such goods an order that he shall not remove, part with, or otherwise deal with such goods except with the previous permission of such officer.
(4) The documents or books or things so seized shall be retained by such officer only for so long as may be necessary for their examination and for any inquiry or proceedings under this Act.
(5) The documents, books or things referred to in sub-section (2) or any other documents, books or things produced by a taxable person or any other person, which have not been relied upon for the issue of notice under this Act or the rules made thereunder, shall be returned to such person within a period not exceeding thirty days of the issue of the said notice.
(6) The officer authorised under sub-section (2) shall have the power to seal or break open the door of any factory or to break open any almirah, electronic device, box, receptacle in which the specified goods, accounts, registers or documents of the person are suspected to be concealed, where access to such factory, almirah, electronic devices, box or receptacle is denied.
(7) The person from whose custody any documents are seized under sub-section (2) shall be entitled to make copies thereof or take extracts therefrom in the presence of an authorised officer at such place and time as such officer may indicate in this behalf except where making such copies or taking such extracts may, in the opinion of the proper officer, prejudicially affect the investigation.
(8) The goods or machines so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed, or on payment of applicable cess, interest and penalty payable, as the case may be.
(9) Where any goods or machines are seized under sub-section (2) and no notice in respect thereof is given within six months of the seizure of such goods, such goods shall be returned to the person from whose possession they were seized.
(10) The period of six months specified in sub-section (7) may, on sufficient cause being shown, be extended by the proper officer for a further period not exceeding six months.
(11) The proper officer may, with the prior permission of the Board, having regard to the perishable nature of the specified goods, depreciation in its value or machines with the passage of time, constraints of storage space for such goods or machines or any other relevant considerations, may, as soon as may be after its seizure under sub-section (2), dispose of such goods or machines in such manner as may be prescribed.
(12) Where the specified goods or machines, being items specified under sub-section (11), have been seized by a proper officer, or any officer authorised by him under sub-section (2), he shall prepare an inventory of such goods or machines in such manner as may be prescribed.
(13) The provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023), relating to search and seizure, shall, so far as may be, apply to search and seizure under this section subject to the modification that sub-section (5) of section 185 of the said Sanhita shall have effect as if for the word "Magistrate", wherever it occurs, the word "Commissioner" were substituted.
(14) Where the proper officer has reasons to believe that any person has evaded or is attempting to evade the payment of any cess, he may, for reasons to be recorded in writing, seize the accounts, registers or documents of such person produced before him and shall grant a receipt for the same, and shall retain the same for so long as may be necessary in connection with any proceedings under this Act or the rules made thereunder for prosecution.
(2) Where the proper officer referred to in sub-section (1), either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that the specified goods or machines liable to confiscation or any documents or books or things, which in his opinion, shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise, in writing, any other proper officer to search and seize, or may himself search and seize such goods, machines, documents or books or things.
(3) Where it is not practicable to seize any such goods or machine, the proper officer, or any officer authorised by him, may serve on the owner or the custodian of such goods an order that he shall not remove, part with, or otherwise deal with such goods except with the previous permission of such officer.
(4) The documents or books or things so seized shall be retained by such officer only for so long as may be necessary for their examination and for any inquiry or proceedings under this Act.
(5) The documents, books or things referred to in sub-section (2) or any other documents, books or things produced by a taxable person or any other person, which have not been relied upon for the issue of notice under this Act or the rules made thereunder, shall be returned to such person within a period not exceeding thirty days of the issue of the said notice.
(6) The officer authorised under sub-section (2) shall have the power to seal or break open the door of any factory or to break open any almirah, electronic device, box, receptacle in which the specified goods, accounts, registers or documents of the person are suspected to be concealed, where access to such factory, almirah, electronic devices, box or receptacle is denied.
(7) The person from whose custody any documents are seized under sub-section (2) shall be entitled to make copies thereof or take extracts therefrom in the presence of an authorised officer at such place and time as such officer may indicate in this behalf except where making such copies or taking such extracts may, in the opinion of the proper officer, prejudicially affect the investigation.
(8) The goods or machines so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed, or on payment of applicable cess, interest and penalty payable, as the case may be.
(9) Where any goods or machines are seized under sub-section (2) and no notice in respect thereof is given within six months of the seizure of such goods, such goods shall be returned to the person from whose possession they were seized.
(10) The period of six months specified in sub-section (7) may, on sufficient cause being shown, be extended by the proper officer for a further period not exceeding six months.
(11) The proper officer may, with the prior permission of the Board, having regard to the perishable nature of the specified goods, depreciation in its value or machines with the passage of time, constraints of storage space for such goods or machines or any other relevant considerations, may, as soon as may be after its seizure under sub-section (2), dispose of such goods or machines in such manner as may be prescribed.
(12) Where the specified goods or machines, being items specified under sub-section (11), have been seized by a proper officer, or any officer authorised by him under sub-section (2), he shall prepare an inventory of such goods or machines in such manner as may be prescribed.
(13) The provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023), relating to search and seizure, shall, so far as may be, apply to search and seizure under this section subject to the modification that sub-section (5) of section 185 of the said Sanhita shall have effect as if for the word "Magistrate", wherever it occurs, the word "Commissioner" were substituted.
(14) Where the proper officer has reasons to believe that any person has evaded or is attempting to evade the payment of any cess, he may, for reasons to be recorded in writing, seize the accounts, registers or documents of such person produced before him and shall grant a receipt for the same, and shall retain the same for so long as may be necessary in connection with any proceedings under this Act or the rules made thereunder for prosecution.
Section 25 Confiscation of specified goods or machines.
(1) Where any taxable person---
(a) owns, operates or controls any machine installed or undertakes any process for the manufacture or production of the specified goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of cess; or
(b) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of *cess,
then, all such goods or machines shall be liable to confiscation and the person shall be liable to penalty under section 18.
then, all such goods or machines shall be liable to confiscation and the person shall be liable to penalty under section 18.
(2) Whenever confiscation of any such goods or machines are authorised by this Act, the officer adjudging it shall give to the owner of such goods or machines an option to pay in lieu of confiscation, such penalty as specified under sub-section (3) as the said officer thinks fit.
(3) The penalty leviable under sub-section (2) shall not exceed the market value of the specified goods or the machines confiscated, less the cess chargeable thereon.
(4) The aggregate of penalty under sub-section (2) and penalty leviable shall not be less than the penalty equal to two hundred per cent. of the cess payable on such goods.
(5) No order for confiscation of the specified goods or machines for imposition of penalty shall be issued without giving the person a reasonable opportunity of being heard.
(6) Where the specified goods or machines are confiscated under this Act, the title of such goods or machines shall thereupon vest in the Central Government.
(7) The proper officer who confiscates any goods or machine under this section shall take and hold possession of the things confiscated and every officer of police, on the requisition of such proper officer, shall assist him in taking and holding such possession.
(8) The proper officer may, after satisfying himself that the confiscated goods or machines are not required in any other proceedings under this Act and after giving reasonable time not exceeding a period of three months to pay the fine in lieu of such confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Central Government.
(a) owns, operates or controls any machine installed or undertakes any process for the manufacture or production of the specified goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of cess; or
(b) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of *cess,
then, all such goods or machines shall be liable to confiscation and the person shall be liable to penalty under section 18.
then, all such goods or machines shall be liable to confiscation and the person shall be liable to penalty under section 18.
(2) Whenever confiscation of any such goods or machines are authorised by this Act, the officer adjudging it shall give to the owner of such goods or machines an option to pay in lieu of confiscation, such penalty as specified under sub-section (3) as the said officer thinks fit.
(3) The penalty leviable under sub-section (2) shall not exceed the market value of the specified goods or the machines confiscated, less the cess chargeable thereon.
(4) The aggregate of penalty under sub-section (2) and penalty leviable shall not be less than the penalty equal to two hundred per cent. of the cess payable on such goods.
(5) No order for confiscation of the specified goods or machines for imposition of penalty shall be issued without giving the person a reasonable opportunity of being heard.
(6) Where the specified goods or machines are confiscated under this Act, the title of such goods or machines shall thereupon vest in the Central Government.
(7) The proper officer who confiscates any goods or machine under this section shall take and hold possession of the things confiscated and every officer of police, on the requisition of such proper officer, shall assist him in taking and holding such possession.
(8) The proper officer may, after satisfying himself that the confiscated goods or machines are not required in any other proceedings under this Act and after giving reasonable time not exceeding a period of three months to pay the fine in lieu of such confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Central Government.
* CORRIGENDA dated 16th December, 2025,
Section 26 Power to arrest.
(1) Where a proper officer, not below the rank of Commissioner, has reasons to believe that a person has committed any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section 18 which is punishable under the said sub-section or *sub-section (2) of the said section, he may, by order, authorise any other proper officer below him to arrest such person.
(2) Where a person is arrested under sub-section (1) for an offence specified under sub-section (5) of section 19, the officer authorised to arrest the person shall inform such person of the grounds of arrest and produce him before a Magistrate within twenty-four hours.
(3) Subject to the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023,---
(a) where a person is arrested under sub-section (1) for any offence specified under sub-section (5) of section 19, he shall be admitted to bail or in default of bail, be forwarded to the custody of the Magistrate;
(b) in the case of a non-cognizable and bailable offence, the proper officer not below the rank of Assistant Commissioner shall, for the purpose of releasing an arrested person on bail or otherwise, have the same powers and be subject to the same provisions as an officer-in-charge of a police station.
(2) Where a person is arrested under sub-section (1) for an offence specified under sub-section (5) of section 19, the officer authorised to arrest the person shall inform such person of the grounds of arrest and produce him before a Magistrate within twenty-four hours.
(3) Subject to the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023,---
(a) where a person is arrested under sub-section (1) for any offence specified under sub-section (5) of section 19, he shall be admitted to bail or in default of bail, be forwarded to the custody of the Magistrate;
(b) in the case of a non-cognizable and bailable offence, the proper officer not below the rank of Assistant Commissioner shall, for the purpose of releasing an arrested person on bail or otherwise, have the same powers and be subject to the same provisions as an officer-in-charge of a police station.
* CORRIGENDA dated 16th December, 2025.
Section 27 Recovery of amount due and assistance of officers.
(1) Any amount due under this Act (including any interest or penalty) from any taxable person may be recovered in the same manner as an arrear of land revenue.
(2) All officers of police, central tax and customs and all officers of the Central Government and the State Government engaged in the collection of land revenue, and all village officers are hereby empowered and required to assist the proper officer in the execution of this Act.
(2) All officers of police, central tax and customs and all officers of the Central Government and the State Government engaged in the collection of land revenue, and all village officers are hereby empowered and required to assist the proper officer in the execution of this Act.
Section 28 Revision.
(1) The revisional authority, not below the rank of a Commissioner, authorised in this behalf, by an order of the Board, may, on his own motion, or upon information received by him, call for and examine the record of any proceedings, and if he considers that any order passed under this Act by any officer subordinate to him is erroneous insofar as it is prejudicial to the interest of revenue, or is illegal or improper, or has not taken into account certain material facts, whether available at the time of issuance of the said order or not, or in consequence of an observation by the Comptroller and Auditor-General of India, he may, if necessary, stay the operation of such order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said order.
(2) The revisional authority shall not exercise any power under sub-section (1), if---
(a) the order has been subject to an appeal under section 29 or section 30; or
(b) the period specified under sub-section (1) of section 29 has not yet expired or more than two years have expired after the passing of the order sought to be revised; or
(c) the order has already been taken up for revision under this section at an earlier stage; or
(d) the order was passed in exercise of the powers under sub-section (1).
(3) The revisional authority may pass an order under sub-section (1) on any point which has not been raised and decided in an appeal referred to in clause (a) of sub-section (2), before the expiry of a period of one year from the date of the order in such appeal or before the expiry of a period of two years referred to in clause (b) of that sub-section, whichever is later.
(4) Every order passed in a revision under sub-section (1) shall, subject to the provisions of section 30 or section 32 or section 33, be final and binding on the parties.
(5) If the order subject to revision under sub-section (1) involves an issue on which the Appellate Tribunal or the High Court has given its decision in some other proceedings and an appeal to the High Court or the Supreme Court against such decision of the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal and the date of the decision of the High Court, or the date of the decision of the High Court and the date of the decision of the Supreme Court, shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2) where proceedings for revision have been initiated by way of issue of a notice under this section.
(6) Where the issuance of an order under sub-section (1) is stayed by the order of a Court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2).
(7) For the purposes of this section, the expression "record" shall include all records relating to any proceedings under this Act available at the time of examination by the revisional authority.
(2) The revisional authority shall not exercise any power under sub-section (1), if---
(a) the order has been subject to an appeal under section 29 or section 30; or
(b) the period specified under sub-section (1) of section 29 has not yet expired or more than two years have expired after the passing of the order sought to be revised; or
(c) the order has already been taken up for revision under this section at an earlier stage; or
(d) the order was passed in exercise of the powers under sub-section (1).
(3) The revisional authority may pass an order under sub-section (1) on any point which has not been raised and decided in an appeal referred to in clause (a) of sub-section (2), before the expiry of a period of one year from the date of the order in such appeal or before the expiry of a period of two years referred to in clause (b) of that sub-section, whichever is later.
(4) Every order passed in a revision under sub-section (1) shall, subject to the provisions of section 30 or section 32 or section 33, be final and binding on the parties.
(5) If the order subject to revision under sub-section (1) involves an issue on which the Appellate Tribunal or the High Court has given its decision in some other proceedings and an appeal to the High Court or the Supreme Court against such decision of the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal and the date of the decision of the High Court, or the date of the decision of the High Court and the date of the decision of the Supreme Court, shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2) where proceedings for revision have been initiated by way of issue of a notice under this section.
(6) Where the issuance of an order under sub-section (1) is stayed by the order of a Court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2).
(7) For the purposes of this section, the expression "record" shall include all records relating to any proceedings under this Act available at the time of examination by the revisional authority.
Section 29 Appeals to appellate authority.
(1) Any taxable person aggrieved by any order of the adjudicating authority may, within a period of three months from the date of receipt of the order appealed against by such person, appeal to such appellate authority, not below the rank of a Commissioner, authorised in this behalf, by an order of the Board, in such form and manner, as may be prescribed.
(2) The proper officer, not below the rank of Commissioner, may on his own motion, call for and examine the record of any proceedings in which an adjudicating authority has passed any order under this Act, for the purpose of satisfying himself as to the legality or propriety of the such order and may, by order, direct any officer subordinate to him to apply to the appellate authority within six months from the date of communication of the order of the adjudicating authority for the determination of such points arising out of the said decision or order as may be specified by such proper officer in his order.
(3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application to the appellate authority, such application shall be dealt with by the appellate authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application.
(4) Every appeal under this section shall be verified in such manner, as may be prescribed.
(5) No appeal shall be filed under sub-section (1), unless the appellant has paid---
(a)in full, such part of the amount of cess, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and
(b) a sum equal to ten per cent. of the remaining amount of cess in dispute arising from the said order, subject to a maximum of twenty-five crore rupees, in relation to which the appeal has been filed.
(6) Where the appellant has paid the amount under sub-section (5), the recovery proceedings for the balance amount shall be deemed to be stayed.
(7) The appellate authority shall give the appellant a reasonable opportunity of being heard.
(8) The appellate authority may, if sufficient cause is shown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing.
(9) After the receipt of any appeal under this section, the appellate authority shall, after giving the appellant a reasonable opportunity of being heard in the matter and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the order appealed against but shall not refer the case back to the adjudicating authority that passed the said order.
(10) The order of the appellate authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision.
(11) The appellate authority shall, where it is possible to do so, hear and decide every appeal within a period of six months from the date on which it is filed.
(2) The proper officer, not below the rank of Commissioner, may on his own motion, call for and examine the record of any proceedings in which an adjudicating authority has passed any order under this Act, for the purpose of satisfying himself as to the legality or propriety of the such order and may, by order, direct any officer subordinate to him to apply to the appellate authority within six months from the date of communication of the order of the adjudicating authority for the determination of such points arising out of the said decision or order as may be specified by such proper officer in his order.
(3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application to the appellate authority, such application shall be dealt with by the appellate authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application.
(4) Every appeal under this section shall be verified in such manner, as may be prescribed.
(5) No appeal shall be filed under sub-section (1), unless the appellant has paid---
(a)in full, such part of the amount of cess, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and
(b) a sum equal to ten per cent. of the remaining amount of cess in dispute arising from the said order, subject to a maximum of twenty-five crore rupees, in relation to which the appeal has been filed.
(6) Where the appellant has paid the amount under sub-section (5), the recovery proceedings for the balance amount shall be deemed to be stayed.
(7) The appellate authority shall give the appellant a reasonable opportunity of being heard.
(8) The appellate authority may, if sufficient cause is shown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing.
(9) After the receipt of any appeal under this section, the appellate authority shall, after giving the appellant a reasonable opportunity of being heard in the matter and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the order appealed against but shall not refer the case back to the adjudicating authority that passed the said order.
(10) The order of the appellate authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision.
(11) The appellate authority shall, where it is possible to do so, hear and decide every appeal within a period of six months from the date on which it is filed.
Section 30 Appeals to Appellate Tribunal.
(1) Any person aggrieved by an order of the appellate authority or revisional authority, may appeal to the Appellate Tribunal against such order in such form and manner, as may be prescribed, within a period of three months from the date of receipt of such order sought to be appealed against by him or by the proper officer, or, as the case may be.
(2) The Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the order appealed against, or may refer the case back to the proper officer who passed such order with such directions as it may think fit, for a fresh adjudication, after taking additional evidence, if necessary.
(3) The Appellate Tribunal may, at any time within a period of six months from the date of such order, with a view to rectify any mistake or error apparent on the face of the record or for any other sufficient reason, amend any order passed by it under sub-section (1) and shall make such amendments if the mistake is brought to its notice by the proper officer or the other party to the appeal.
(4) An amendment made under sub-section (3) which has the effect of enhancing an assessment or reducing a refund, or otherwise increasing the liability of the other party, shall not be made under this sub-section, unless the Appellate Tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard.
(5) The Appellate Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of three years from the date on which such appeal is filed.
(6) The Appellate Tribunal shall send a copy of every order passed under this section to the proper officer and the other party to the appeal.
(7) The provisions of sub-sections (1), (2), (5) and (6) of section 129C of the Customs Act, 1962 (52 of 1962), shall apply to the Appellate Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Customs Act, 1962.
(8) The President or any other member of the Appellate Tribunal authorised in this behalf by the President may, sitting singly, dispose of any case which has been allotted to the Bench of which he is a member, where the amount of cess or fine or penalty involved, does not exceed fifty lakh rupees.
(2) The Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the order appealed against, or may refer the case back to the proper officer who passed such order with such directions as it may think fit, for a fresh adjudication, after taking additional evidence, if necessary.
(3) The Appellate Tribunal may, at any time within a period of six months from the date of such order, with a view to rectify any mistake or error apparent on the face of the record or for any other sufficient reason, amend any order passed by it under sub-section (1) and shall make such amendments if the mistake is brought to its notice by the proper officer or the other party to the appeal.
(4) An amendment made under sub-section (3) which has the effect of enhancing an assessment or reducing a refund, or otherwise increasing the liability of the other party, shall not be made under this sub-section, unless the Appellate Tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard.
(5) The Appellate Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of three years from the date on which such appeal is filed.
(6) The Appellate Tribunal shall send a copy of every order passed under this section to the proper officer and the other party to the appeal.
(7) The provisions of sub-sections (1), (2), (5) and (6) of section 129C of the Customs Act, 1962 (52 of 1962), shall apply to the Appellate Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Customs Act, 1962.
(8) The President or any other member of the Appellate Tribunal authorised in this behalf by the President may, sitting singly, dispose of any case which has been allotted to the Bench of which he is a member, where the amount of cess or fine or penalty involved, does not exceed fifty lakh rupees.
Section 31 Appearance by authorised representative.
(1) Any person who is entitled or required to appear before an adjudicating authority or a revisional authority or the Appellate Tribunal in connection with any proceedings under this Act, otherwise than when required under this Act to appear personally for examination on oath or affirmation, may, subject to the other provisions of this section, appear by an authorised representative.
(2) For the purposes of this section, "authorised representative" means a person authorised by the person referred to in sub-section (1) to appear on his behalf, being---
(a) his relative or regular employee; or
(b) any legal practitioner who is entitled to practise in any Civil Court in India; or
(c) any person who has acquired such qualifications, as may be prescribed, for this purpose.
(2) For the purposes of this section, "authorised representative" means a person authorised by the person referred to in sub-section (1) to appear on his behalf, being---
(a) his relative or regular employee; or
(b) any legal practitioner who is entitled to practise in any Civil Court in India; or
(c) any person who has acquired such qualifications, as may be prescribed, for this purpose.
Section 32 Appeal to High Court.
(1) Any person aggrieved by an order passed by the Appellate Tribunal may file an appeal to the High Court and the High Court may admit such appeal, if it is satisfied that the case involves a substantial question of law.
(2) An appeal under sub-section (1) shall be filed within a period of one hundred and eighty days from the date of receipt of the order appealed against by the aggrieved person and it shall be in such form and verified in such manner, as may be prescribed.
(3) Irrespective of sub-section (2), the High Court may entertain an appeal after the expiry of the period specified in the said sub-section, if it is satisfied that there was sufficient cause for not filing the appeal within such period.
(4) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question and the appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question.
(5) The High Court may, for reasons to be recorded in writing, hear the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.
(6) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit.
(7) The High Court may determine any issue, which---
(a) has not been determined by the Appellate Tribunal; or
(b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law referred to in sub-section (4).
(8) Where an appeal has been filed before the High Court, it shall be heard by a Bench of not less than two Judges of the High Court, and shall be decided in accordance with the opinion of such Judges or of the majority, if any, of such Judges.
(9) Where the High Court delivers a judgment in an appeal filed before it under this section, effect shall be given to such judgment by either side on the basis of a certified copy of the judgment.
(10) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.
(2) An appeal under sub-section (1) shall be filed within a period of one hundred and eighty days from the date of receipt of the order appealed against by the aggrieved person and it shall be in such form and verified in such manner, as may be prescribed.
(3) Irrespective of sub-section (2), the High Court may entertain an appeal after the expiry of the period specified in the said sub-section, if it is satisfied that there was sufficient cause for not filing the appeal within such period.
(4) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question and the appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question.
(5) The High Court may, for reasons to be recorded in writing, hear the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.
(6) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit.
(7) The High Court may determine any issue, which---
(a) has not been determined by the Appellate Tribunal; or
(b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law referred to in sub-section (4).
(8) Where an appeal has been filed before the High Court, it shall be heard by a Bench of not less than two Judges of the High Court, and shall be decided in accordance with the opinion of such Judges or of the majority, if any, of such Judges.
(9) Where the High Court delivers a judgment in an appeal filed before it under this section, effect shall be given to such judgment by either side on the basis of a certified copy of the judgment.
(10) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.
Section 33 Appeals to Supreme Court.
(1) An appeal shall lie to the Supreme Court---
(a) from any order passed by the High Court; or
(b) from any judgment or order passed by the High Court in an appeal made under section 32 in any case which, on its own motion or on an application made by or on behalf of the party aggrieved, immediately after passing of the judgment or order, the High Court certifies to be a fit one for appeal to the Supreme Court.
(2) The provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under this section as they apply in the case of appeals from decrees of a High Court.
(3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court by either side on the basis of a certified copy of the said order.
(a) from any order passed by the High Court; or
(b) from any judgment or order passed by the High Court in an appeal made under section 32 in any case which, on its own motion or on an application made by or on behalf of the party aggrieved, immediately after passing of the judgment or order, the High Court certifies to be a fit one for appeal to the Supreme Court.
(2) The provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under this section as they apply in the case of appeals from decrees of a High Court.
(3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court by either side on the basis of a certified copy of the said order.
Section 34 Power of Central Government to amend Schedule I.
(1) The Central Government may, if it is of the opinion that it is expedient or necessary in the public interest so to do, by notification, add to Schedule I any goods and on any such notification being issued, the said Schedule shall be deemed to be amended accordingly.
(2) Every notification issued under sub-section (1) shall, as soon as possible after it is issued, be laid before each House of Parliament.
(2) Every notification issued under sub-section (1) shall, as soon as possible after it is issued, be laid before each House of Parliament.
Section 35 Power to make rules.
(1) The Central Government shall, by notification, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:---
(a) the abatement or other conditions subject to which the cess determined shall be payable under sub-section (6) of section 5;
(b) the conditions subject to which the cess shall be abated due to non-operation under sub-section (7) of section 5;
(c) the activities, schemes and programmes for national defence and security or public health for which the cess may be utilised under sub-section (3) of section 7;
(d) the form and manner of registration by a taxable person with the jurisdictional proper officer under sub-section (1) of section 8;
(e) the manner and the period within which the proper officer may cancel a registration under sub-section (2) of section 8;
(f) the form, manner and conditions subject to which taxable person may apply for revocation of cancellation of registration and the manner and the period within which the proper officer may decide upon the application for revocation of cancellation of registration under sub-section (5) of section 8;
(g) the form, manner and period within which self-declaration shall be furnished by the taxable person and the other technical or operational particulars to be contained in the said declaration under sub-section (1) of section 9;
(h) the period, form and manner for furnishing a revised declaration, for any change in the relevant parameters, by the taxable person under sub-section (2) of section 9;
(i) the form, manner and period within which the proper officer shall do the calibration, verification or confirmation of the declaration filed by the taxable person under sub-section (4) of section 9;
(j) the oversight, monitoring or verification mechanism to be complied with by the taxable person under sub-section (6) of section 9;
(k) the manner for collection of cess from taxable person under sub-section (1), and the form, manner, the period within which and the conditions and restrictions subject to which return shall be furnished by the taxable person under sub-section (2), of section 10;
(l) the form and manner of rectification of omission or incorrect particulars filled in the return by a taxable person under sub-section (4) of section 10;
(m) the form and manner of the notice issued by the proper officer to a taxable person who fails to furnish the return within the specified time under sub-section (5) of section 10;
(n) the manner of information to the taxable person of the discrepancies noticed in his return by the proper officer under sub-section (1) of section 11;
(o) the period, frequency and manner of audit to be undertaken by the proper officer under subsection (1), and the manner in which the taxable person shall be informed of the said audit under sub-section (3), of section 12;
(p) the manner of declaration of preparation or maintenance of records to the proper officer by the taxable person under clause (a) of sub-section (2) of section 14;
(q) the manner of calculation of interest under sub-section (2) of section 17;
(r) the manner of compounding of offences by the proper officer under sub-section (1), and the offences or class of persons to whom compounding shall not be available under clause (e) of subsection (2), of section 23;
(s) the amount for compounding of offences under sub-section (4) of section 23;
(t) the manner and quantum for execution of bonds or furnishing of security for release of seized goods or machines on provisional basis under sub-section (8) of section 24;
(u) the manner of disposal of goods or machines seized by the proper officer under sub-section (11), and the manner of preparation of inventory of the seized goods under sub-section (12), of section 24;
(v) the form and manner of preferring appeal to the appellate authority under sub-section (1), and the manner of verification of such appeal under sub-section (4), of section 29;
(w) the form and manner of preferring appeal to the Appellate Tribunal under sub-section (1) of section 30;
(x) the qualifications for a person for becoming an authorised representative under clause (c) of sub-section (2) of section 31;
(y) the form for appeals preferred by the aggrieved person before the High Court and the manner of verification of such appeal under sub-section (2) of section 32;
(z) any other matter which is to be or in respect of which provision is to be made, by rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:---
(a) the abatement or other conditions subject to which the cess determined shall be payable under sub-section (6) of section 5;
(b) the conditions subject to which the cess shall be abated due to non-operation under sub-section (7) of section 5;
(c) the activities, schemes and programmes for national defence and security or public health for which the cess may be utilised under sub-section (3) of section 7;
(d) the form and manner of registration by a taxable person with the jurisdictional proper officer under sub-section (1) of section 8;
(e) the manner and the period within which the proper officer may cancel a registration under sub-section (2) of section 8;
(f) the form, manner and conditions subject to which taxable person may apply for revocation of cancellation of registration and the manner and the period within which the proper officer may decide upon the application for revocation of cancellation of registration under sub-section (5) of section 8;
(g) the form, manner and period within which self-declaration shall be furnished by the taxable person and the other technical or operational particulars to be contained in the said declaration under sub-section (1) of section 9;
(h) the period, form and manner for furnishing a revised declaration, for any change in the relevant parameters, by the taxable person under sub-section (2) of section 9;
(i) the form, manner and period within which the proper officer shall do the calibration, verification or confirmation of the declaration filed by the taxable person under sub-section (4) of section 9;
(j) the oversight, monitoring or verification mechanism to be complied with by the taxable person under sub-section (6) of section 9;
(k) the manner for collection of cess from taxable person under sub-section (1), and the form, manner, the period within which and the conditions and restrictions subject to which return shall be furnished by the taxable person under sub-section (2), of section 10;
(l) the form and manner of rectification of omission or incorrect particulars filled in the return by a taxable person under sub-section (4) of section 10;
(m) the form and manner of the notice issued by the proper officer to a taxable person who fails to furnish the return within the specified time under sub-section (5) of section 10;
(n) the manner of information to the taxable person of the discrepancies noticed in his return by the proper officer under sub-section (1) of section 11;
(o) the period, frequency and manner of audit to be undertaken by the proper officer under subsection (1), and the manner in which the taxable person shall be informed of the said audit under sub-section (3), of section 12;
(p) the manner of declaration of preparation or maintenance of records to the proper officer by the taxable person under clause (a) of sub-section (2) of section 14;
(q) the manner of calculation of interest under sub-section (2) of section 17;
(r) the manner of compounding of offences by the proper officer under sub-section (1), and the offences or class of persons to whom compounding shall not be available under clause (e) of subsection (2), of section 23;
(s) the amount for compounding of offences under sub-section (4) of section 23;
(t) the manner and quantum for execution of bonds or furnishing of security for release of seized goods or machines on provisional basis under sub-section (8) of section 24;
(u) the manner of disposal of goods or machines seized by the proper officer under sub-section (11), and the manner of preparation of inventory of the seized goods under sub-section (12), of section 24;
(v) the form and manner of preferring appeal to the appellate authority under sub-section (1), and the manner of verification of such appeal under sub-section (4), of section 29;
(w) the form and manner of preferring appeal to the Appellate Tribunal under sub-section (1) of section 30;
(x) the qualifications for a person for becoming an authorised representative under clause (c) of sub-section (2) of section 31;
(y) the form for appeals preferred by the aggrieved person before the High Court and the manner of verification of such appeal under sub-section (2) of section 32;
(z) any other matter which is to be or in respect of which provision is to be made, by rules for carrying out the provisions of this Act.
Section 36 Laying before Parliament.
Every rule made and every notification issued under this Act shall be laid, as soon as may be after it is made or issued, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in such rule or notification, or both Houses agree that the rule should not be made or notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.
Section 37 Effect of amendments, etc., of rules, notifications or orders.
Where any rule, notification or order made or issued under this Act or any notification or order issued under such rule, is amended, repealed, superseded or rescinded, then, unless a different intention appears, such amendment, repeal, supersession or rescinding shall not---
(a) revive anything not in force or existing at the time at which the amendment, repeal, supersession or rescinding takes effect; or
(b) affect the previous operation of any rule, notification or order so amended, repealed, superseded or rescinded or anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation or liability acquired, accrued or incurred under any rule, notification or order so amended, repealed, superseded or rescinded; or
(d) affect any penalty, forfeiture or punishment incurred in respect of any offence committed under or in violation of any rule, notification or order so amended, repealed, superseded or rescinded; or
(e) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid,
and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if the rule, notification or order, as the case may be, had not been amended, repealed, superseded or rescinded.
(a) revive anything not in force or existing at the time at which the amendment, repeal, supersession or rescinding takes effect; or
(b) affect the previous operation of any rule, notification or order so amended, repealed, superseded or rescinded or anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation or liability acquired, accrued or incurred under any rule, notification or order so amended, repealed, superseded or rescinded; or
(d) affect any penalty, forfeiture or punishment incurred in respect of any offence committed under or in violation of any rule, notification or order so amended, repealed, superseded or rescinded; or
(e) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid,
and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if the rule, notification or order, as the case may be, had not been amended, repealed, superseded or rescinded.
Section 38 Protection of action taken in good faith.
(1) No suit, prosecution or other legal proceeding shall lie against the Central Government or any officer of the Central Government for anything which is in good faith done or intended to be done, in pursuance of this Act or any rule made thereunder.
(2) No proceeding, other than a suit, shall be commenced against the Central Government or any officer of the Central Government for anything done or purported to have been done in pursuance of this Act or any rule made thereunder, without giving the Central Government or such officer a month’s previous notice in writing of the intended proceeding and of the cause thereof or after the expiration of three months from the accrual of such cause.
(2) No proceeding, other than a suit, shall be commenced against the Central Government or any officer of the Central Government for anything done or purported to have been done in pursuance of this Act or any rule made thereunder, without giving the Central Government or such officer a month’s previous notice in writing of the intended proceeding and of the cause thereof or after the expiration of three months from the accrual of such cause.
Section 39 Power to remove difficulties.
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty.
(2) No order shall be made under this section after the expiry of five years from the commencement of this Act.
(3) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.
(2) No order shall be made under this section after the expiry of five years from the commencement of this Act.
(3) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.