HSNS Rules · Rule 32
Rule 32 — Penalty for contravention
Checked 27 Jul 2026Current rule package
Rule in 2 Minutes
Rule 32 implements the HSNS Cess Act within the 2026 machine/process-based levy framework.
Current official text / amendment package
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.
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 32 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.