HSNS Rules · Rule 12
Rule 12 — Cess payable to be calculated
Checked 27 Jul 2026Current rule package
Rule in 2 Minutes
Rule 12 implements the HSNS Cess Act within the 2026 machine/process-based levy framework.
Current official text / amendment package
12. Cess payable to be calculated. – (1) The cess payable for a particular month shall be calculated 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 case of addition or installation or removal or uninstallation of a machine in the factory during the month, for the
purpose of calculating cess under sub-rule (1), the number of machines installed for the month shall be taken as the
maximum number of machines installed on any day during the month.
Amendment control: 02/2026-HSNS Cess inserts the maximum-rated-speed formula S=(R/G)×n into Rule 12(2).
Practical implementation
- Identify the enabling HSNS Act section and factual trigger.
- Use the prescribed HSNS form/portal workflow where the Rule requires it.
- Retain machine/process, declaration, payment, return or officer evidence relevant to the Rule.
- Check First/Second Amendment Rules for the current wording before using a principal-rule copy.
Practical Q&A
Can Rule 12 be applied without the Act?
No. The Rule operates under section 35 and the relevant enabling provisions of the HSNS Act; the Act controls if there is any inconsistency.