FORM HSNS RET-01 — Monthly Return

FORM HSNS RET-01 on the Portal along with the documents specified in the said Form, on or before the 20th day of the succeeding month. (2) A registered person who has filed a return under sub-rule (1) may rectify any incorrect particulars or omission furnished in the said return, before the end of the calendar month in which the original return is filed: Provided that where such rectification results in a higher liability of cess than that declared in the original return, the registered person shall pay the differential amount of cess along with interest at the rate specified under section 17 of the Act, on or before the date of submission of such revised return. (3) Where a registered person fails to furnish a return by the due date, the proper officer shall issue a notice requiring such person to furnish such return within fifteen days of the receipt of the said notice. CHAPTER V CESS ABATEMENT AND COMPUTATION 15. Conditions for abatement. - (1) The abatement under sub-section (7) of section 5 of the Act shall be available when the following conditions are satisfied, namely:- (a) 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 machines or manual unit, which shall be adjusted against the cess liability payable for the month immediately following the month in which such order is issued: Provided that no order rejecting the claim of abatement, either in whole or in part, shall be passed unless the registered person has been given a reasonable opportunity of being heard. Explanation.- For the purposes of this rule, “installed machine” refers to an operational machine that has become non- operative during the period of abatement. 16. Quantification of abatement amount. - The amount of abatement for a month shall be calculated using the following formula: 𝐶 𝐴 =( )×𝐷 𝑁 Where: A = Amount of Abatement claimed C = Total Cess liability for the machine for the month N = Total number of days in the month D = Total number of continuous days the machine was inoperative in the month I LLUSTRATION 1: A REGISTERED PERSON IS ENGAGED IN THE MANUFACTURE OF SPECIFIED GOODS USING A HIGH - SPEED POUCH PACKING MACHINE WITH A PACKING SPEED OF 700 POUCHES OF 2.5 GRAMS PER MINUTE . T HE MONTHLY CESS LIABILITY FOR SUCH A MACHINE UNDER S L . N O . 2 OF S CHEDULE II OF THE A CT IS ₹ 2,02,00,000. T HE MACHINE REMAINS INOPERATIVE AND SEALED FROM THE 1 ST DAY OF S EPTEMBER TO THE 19 TH DAY OF S EPTEMBER ( BOTH DAYS INCLUSIVE ), AND THE MACHINE IS DE - SEALED ON THE 20 TH DAY OF S EPTEMBER . T HE APPLICATION FOR CLAIMING ABATEMENT MAY BE FILED BY THE REGISTERED PERSON BY 20 TH O CTOBER ( THE MONTH SUCCEEDING THE MONTH IN WHICH THE MACHINE WAS INOPERATIVE AND SEALED ). The amount of abatement of cess shall be calculated as follows: — (i) Particulars of non-operation: Total number of days in the month (September) (N): 30 Number of continuous days the machine was inoperative (D): 19 Amount of cess paid for the month for the machine (C): ₹ 2,02,00,000 (ii) Computation of Abatement Amount (A): 2,02,00,000 A=( ) × 19 = ₹ 1,27,93,333 [भाग II—खण्ड 3(i)] भारत का रािपत्र : असाधारण 37 (iii) Adjustment: The amount of ₹ 1,27,93,333 shall be allowed as an abatement by the proper officer in the order issued in say, October. The same shall be adjusted against the cess liability for November by the registered person. I LLUSTRATION 2: A REGISTERED PERSON IS ENGAGED IN THE MANUFACTURE OF SPECIFIED GOODS USING A HIGH - SPEED POUCH PACKING MACHINE WITH A PACKING SPEED OF 700 POUCHES OF 2.5 GRAMS PER MINUTE . T HE MONTHLY CESS LIABILITY FOR SUCH A MACHINE UNDER S L . N O . 2 OF S CHEDULE II OF THE A CT IS ₹ 2,02,00,000. T HE MACHINE IS SEALED ON THE 20 TH DAY OF J ULY AND IS DESEALED ON THE 11 TH DAY OF A UGUST . T HE TOTAL PERIOD OF CONTINUOUS NON - OPERATION IS 21 DAYS ( EXCEEDING FIFTEEN DAYS ). T HE APPLICATION FOR CLAIMING ABATEMENT MAY BE FILED BY THE REGISTERED PERSON BY 20 TH S EPTEMBER ( 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): ₹ 2,02,00,000 (ii) Computation of Abatement Amount for July(A1): 2,02,00,000 A1 = ( ) × 11 = ₹ 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): ₹ 2,02,00,000 (iv) Computation of Abatement Amount for August(A2): 2,02,00,000 A2 = ( ) × 10 = ₹ 65,16,129 (v) Adjustment: The amount of ₹ 1,36,83,871 (A1+A2) shall be allowed as an abatement by the proper officer in the order issued in say, October. The same shall be adjusted against the cess liability for November by the registered person. 17. Desealing and resumption of operation. - The registered person shall intimate the proper officer three working days before the date from which he intends to resume operation on the sealed machine or closed manual process unit, as the case may be, which shall then be desealed under the physical supervision of the proper officer. CHAPTER VI AUDIT 18. Audit. - (1) The period of audit to be conducted under sub-section (1) of section 12 of the Act shall be a financial year or part thereof or multiples thereof. (2) Where it is decided to undertake the audit of a registered person, the proper officer shall inform such person by way of a notice not less than fifteen days prior to the conduct of the audit. (3) The proper officer authorised to conduct audit of the records specified under sub-rule (1) of rule 19 and the books of account of the registered person shall, with the assistance of the team of officers and officials accompanying him, verify the documents on the basis of which the books of account are maintained and the returns and declarations furnished under the provisions of the Act and the rules made thereunder, and other relevant issues and record the observations in his audit notes. (4) The proper officer may inform the registered person of the discrepancies noticed, if any, as observed in the audit and such person may file his reply and the proper officer shall finalise the findings of the audit after due consideration of the reply filed. CHAPTER VII ACCOUNTS AND RECORDS 19. Maintenance of records- (1)Every registered person shall keep and maintain, in addition to the particulars mentioned in sub-section (2) of section 14, the following records and documents at the factory where the manufacture of specified goods is carried out, namely:- (a) purchase invoices, bills of entry, or delivery challans in respect of all packing machines installed in the factory; (b) lease agreements or rent deeds where machines are obtained on lease or hire; (c) records of any modification, repair or alteration 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 person may, either before or after the institution of prosecution, make an application in accordance with section 23 of the Act to the proper officer for compounding of an offence. (2) On receipt of the application, the proper officer shall call for a report from the concerned officer with reference to the particulars furnished in the application, or any other information, which may be considered relevant for the examination of such application. (3) The proper officer, after taking into account the contents of the said application, may, by order, either allow the application and grant him immunity from prosecution or reject such application within ninety days from the receipt of the application: Provided that the application shall not be rejected unless an opportunity has been given to the applicant to be heard and the grounds of such rejection are mentioned in the order. (4) Where the application has been allowed under sub-rule (3), the proper officer shall pass an order, specifying the compounding amount which shall be determined as per the Tables below, namely:- TABLE A Sl. Offence Compounding amount Compounding amount if Compounding amount if No. if offence is punishable offence is punishable offence is punishable under clause (a) of sub- under clause (b) of sub- under clause (c) of sub- section (1) of section 19 section (1) of section 19 section (1) of section 19 (1) (2) (3) (4) (5) 1 Offence specified Up to seventy-five per Up to sixty per cent. of the under section fifty per cent. of the cent. of the amount of amount of cess evaded or 18(1)(a) of the Act amount of cess evaded or cess evaded or the the amount of refund of [भाग II—खण्ड 3(i)] भारत का रािपत्र : असाधारण 39 2 Offence specified amount of refund of cess cess wrongly taken, the amount of refund of under section wrongly taken, subject to subject to minimum of cess wrongly taken. 18(1)(b) of the Act minimum of fifty per fifty per cent. of such cent. of such amount of amount of cess evaded or 3 Offence specified cess evaded or the the amount of refund of under section amount of cess wrongly taken. 18(1)(c) of the Act abatement/refund of cess 4 Offence specified wrongly taken. under section 18(1)(d) of the Act TABLE B Sl. Offence Compounding Amount No. (1) (2) (3) 1 Offence specified under section 18(1)(f) of the Act 2 Offence specified under section Ten Thousand Rupees or Fifty percent of the cess involved, whichever is higher 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 that such person had, in the course of the compounding proceedings, concealed any particulars or had given false evidence, and thereupon such person may be tried for the offence with respect to which immunity was granted or for any other offence that appears to have been committed by him in connection with the compounding proceedings and the provisions the Act shall apply as if no such immunity had been granted. CHAPTER IX SEIZURE OF GOODS 21. Bond and security for release of seized goods or machines. - (1) The goods or packing machines seized under section 24 of the Act may be released on a provisional basis upon execution of a bond for the value of such goods or machines in