[See sections 2(o), 4(1), 5 and 6] TABLE 1 Applicable to wholly or partly machine-based process

Amount of cess per month per machine (rupees in lakhs) Sl. No. Number of pouches or tins or containers per minute (Maximum rated speed of machine) Weight of the specified goods per pouch or tin or container (1) (2) (3) (4) 1. Up to 500 Up to 2.5 grams 101.00 Above 2.5 grams but below 10 grams 364.00 Above 10 grams 849.00 2. 501 to 1000 Up to 2.5 grams 202.00 Above 2.5 grams but below 10 grams 728.00 Above 10 grams 1698.00 3. 1001 to 1500 Up to 2.5 grams 303.00 Above 2.5 grams but below 10 grams 1092.00 Above 10 grams 2547 4. Above 1500 Up to 2.5 grams 101 x S/450 Above 2.5 grams but below 10 grams 364 x S/450 Above 10 grams 849 x S/450 TABLE 2 Applicable to wholly manual process Sl. No. Speed or capacity of Amount of cess per month (rupees in lakhs) Weight of the specified goods per pouch or tin orcontainer process (1) (2) (3) (4) 1. Any Any 11 Notes: (1) For the purposes of this Schedule, in Table 1 in column (4) of the table above, the term “S” represents maximum rated capacity of a machine. (2) For the purposes of this Schedule, where a packing machine contains multiple tracks or multiple packing lines and, in addition to packing the specified goods in pouches, performs any supplementary processes such as moulding, shaping or otherwise giving a definite form to the pouches for brand distinction or for prevention of counterfeiting, two such tracks or lines shall be deemed to constitute one individual packing machine for the purpose of calculating the cess liability. (3) The number of packing machines to be taken into account for computation of the cess specified in this Schedule shall be determined in accordance with the rules prescribed by the Central Government. STATEMENT OF OBJECTS AND REASONS It is proposed to levy the Health Security se National Security Cess to contribute towards twin purposes of enabling targeted utilisation for public health, as well as national security. The Health Security se National Security Cess Bill proposes to levy cess on the machines installed or processes undertaken by which the specified goods, namely, pan masala is manufactured or produced, whether manually or through hybrid processes. 2. The cess is linked to the production capacity of machines or other processes rather than the quantity actually produced of such specified goods. The Bill provides for taxable persons to self-declare all machines or processes for each factory or premises, and the cess would be calculated in the aggregate for each such location. The Bill also provides that proper officer may verify and recalibrate these declarations through prescribed mechanisms. Compliance is proposed to be ensured through technological and inspection-based monitoring. 3. The notes on clauses explain the various provisions contained in the Bill. 4. The Bill seeks to achieve the above objectives. NEW DELHI; NIRMALA SITHARAMAN. The 28th November, 2025.