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Act35
Enacted 2025

The Health Security Se National Security Cess Act, 2025

In force 39 sections Finance

An Act to augment the resources for meeting expenditure on national security and for public health, and to *levy a cess for the said purposes on the machines installed or other processes undertaken by which specified goods are manufactured or produced and for matters connected therewith or incidental thereto.

Act 35 of 2025 Enacted 15 Dec 2025 In force 01 Feb 2026 Department Department of Revenue

Administered by. Ministry of Finance, Department of Revenue · Other Acts of 2025

Preamble

THE HEALTH SECURITY SE NATIONAL SECURITY CESS ACT, 2025

ACT NO. 35 OF 2025

[15th December, 2025.]

An Act to augment the resources for meeting expenditure on national security and for public health, and to * levy a cess for the said purposes on the machines installed or other processes undertaken by which specified goods are manufactured or produced and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Seventy-sixth Year of the Republic of India as follows:---

What this Act covers

Summary of Health Security se National Security Cess Act, 2025

The Act establishes a comprehensive framework for the assessment, collection, administration, recovery, and enforcement of the cess while ensuring compliance through registration, returns, audits, penalties, and appeals.

Key Provisions

1. Levy and Collection of Cess

• Imposition of Cess: A cess is levied on specified goods manufactured or produced through machines or other prescribed processes.

• Specified Goods: Initially applies to pan masala and may be extended to other goods as notified by the Central Government.

2. Registration and Compliance

• Mandatory Registration: Persons manufacturing specified goods must register under the Act.

• Returns and Self-Assessment: Manufacturers are required to self-assess the cess, file periodic returns, and pay the cess within the prescribed time.

3. Assessment and Recovery

• Verification and Audit: Authorities may inspect records, conduct audits, and verify the correctness of returns and cess payments.

• Recovery of Dues: Provides for recovery of unpaid cess along with applicable interest and penalties.

4. Government Powers

• Rule-Making Authority: Empowers the Central Government to make rules regarding the levy, collection, administration, and enforcement of the cess.

• Administration: Authorises designated officers to administer the Act and ensure effective implementation.

Sections

Type to filter. 39 sections.

  1. 1Short title, extent and commencement
  2. 2Definitions
  3. 3Taxable person
  4. 4Levy and collection of cess
  5. 5Manner of computation of cess
  6. 6Power of Central Government to increase amount of cess in special circumstances
  7. 7Purpose of levy of cess
  8. 8Registration, cancellation and revocation
  9. 9Declaration to be filed by taxable person
  10. 10Payment of cess and returns
  11. 11Scrutiny and assessments
  12. 12Audit
  13. 13Power to summon persons to give evidence and produce documents
  14. 14Access to business premises
  15. 15Officers to assist proper officers
  16. 16Determination of cess not paid or short paid or erroneously refunded
  17. 17Interest payable on delay in payment of cess
  18. 18Penalty for certain contraventions
  19. 19Punishment for certain contraventions
  20. 20Offences by companies
  21. 21Cognizance of offences
  22. 22Presumption of culpable mental state
  23. 23Compounding of offences
  24. 24Power of inspection, search and seizure
  25. 25Confiscation of specified goods or machines
  26. 26Power to arrest
  27. 27Recovery of amount due and assistance of officers
  28. 28Revision
  29. 29Appeals to appellate authority
  30. 30Appeals to Appellate Tribunal
  31. 31Appearance by authorised representative
  32. 32Appeal to High Court
  33. 33Appeals to Supreme Court
  34. 34Power of Central Government to amend Schedule I
  35. 35Power to make rules
  36. 36Laying before Parliament
  37. 37Effect of amendments, etc., of rules, notifications or orders
  38. 38Protection of action taken in good faith
  39. 39Power to remove difficulties

Legislative history

Legislative History: The Health Security Se National Security Cess Act, 2025 Source: Official Record of Parliament, India Code, and Ministry of Finance Act Title - The Health Security Se National Security Cess Act, 2025 Act Number- Act No. 37 of 2025 Act ID (India Code) - 202537 Presidential Assent date- December 15, 2025 Enforcement Date - February 01, 2025 Nodal Ministry - Ministry of Finance Precedent & Historical Rationale ● Dedicated Capacity-Based Special Levy: Introduces a specialized capacity-based excise cess on the manufacturing machinery installed and processes undertaken for specified sin goods (initially pan masala), decoupling taxation from simple output volumes to curb tax evasion. ● Targeted Earmarking for National Security & Public Health: Establishes a dedicated statutory mechanism where collected proceeds flow into the Consolidated Fund of India to build a reliable funding stream specifically allocated toward public health infrastructure and national security capabilities. Parliamentary Trajectory & Enactment ● Formulation: Introduced by the Ministry of Finance to establish a transparent, rules-based capacity levy on high-yield goods to support national strategic priorities. ● Parliamentary Passage: Introduced in the Lok Sabha on December 1, 2025; passed by the Lok Sabha on December 5, 2025; and passed by the Rajya Sabha on December 8, 2025. ● Presidential Assent: Received the assent of the President of India on December 15, 2025. ● Enforcement: Enforced on February 01, 2026.

Schedules

This Act has 2 schedules. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.

Related Acts

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 39 sections of this Act has its own page. This page is not a substitute for legal advice.