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.

¹[Explanation.- For the purposes of this rule, “maximum rated speed” of the machine shall be calculated using the following formula, namely:-

S = (R/G) ×nS

Where:

S = Maximum rated speed of the machine in terms of number of pouches or tins or containers per minute

R = Revolutions per minute (RPM) rating of the main disc rotary motor of the machine that fills the pouches or tins or containers

G = Overall gear ratio of the gear assembly between the main disc rotary motor and the rotating drum of the machine

n = Number of funnels in a horizontal machine or number of cups in a vertical machine.]₁

(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.