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The Health Security se National Security Cess Act, 2025

Chapter VII INSPECTION, SEARCH AND SEIZURE

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Chapter VII INSPECTION, SEARCH AND SEIZURE

24. Power of inspection, search and seizure.

Statutory text
  1. (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. (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. (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. (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. (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. (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. (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. (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. (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. (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. (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. (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. (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. (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.

Chapter VII INSPECTION, SEARCH AND SEIZURE

25. Confiscation of specified goods or machine.

Statutory text
  1. (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. CORRIGENDA dated 16th December, 2025 then, all such goods or machines shall be liable to confiscation and the person shall be liable to penalty under section 18.
  2. (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. (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. (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. (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. (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. (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. (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.

Chapter VII INSPECTION, SEARCH AND SEIZURE

26. Power to arrest.

Statutory text
  1. (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. (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. (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.

Chapter VII INSPECTION, SEARCH AND SEIZURE

27. Recovery of amount due and assistance of officers.

Statutory text
  1. (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. (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. CORRIGENDA dated 16th December, 2025

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