Health Security Se National Security Cess Rules, 2026
Chapter VIII - COMPOUNDING OF OFFENCES
Rule 20 - Procedure for compounding of offences
20. Procedure for compounding of offences. -
(1) A registered person may, either before or after the institution of prosecution, make an application in accordance with section 23 of the Act to the proper officer for compounding of an offence.
(2) On receipt of the application, the proper officer shall call for a report from the concerned officer with reference to the particulars furnished in the application, or any other information, which may be considered relevant for the examination of such application.
(3) The proper officer, after taking into account the contents of the said application, may, by order, either allow the application and grant him immunity from prosecution or reject such application within ninety days from the receipt of the application: Provided that the application shall not be rejected unless an opportunity has been given to the applicant to be heard and the grounds of such rejection are mentioned in the order.
(4) Where the application has been allowed under sub-rule (3), the proper officer shall pass an order, specifying the compounding amount which shall be determined as per the Tables below, namely:-
TABLE A
|
Sl. No. |
Offence |
Compounding amount if offence is punishable under clause (a) of subsection (1) of section 19 |
Compounding amount if offence is punishable under clause (b) of subsection (1) of section 19 |
Compounding amount if offence is punishable under clause (c) of subsection (1) of section 19 |
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
1 |
Offence specified under section 18(1)(a) of the Act |
Up to seventy-five per cent. of the amount of cess evaded or the amount of refund of cess wrongly taken, subject to minimum of fifty per cent. of such amount of cess evaded or the amount of abatement/refund of cess wrongly taken. |
Up to sixty per cent. of the amount of cess evaded or the amount of refund of cess wrongly taken, subject to minimum of fifty per cent. of such amount of cess evaded or the amount of refund of cess wrongly taken. |
fifty per cent. of the amount of cess evaded or the amount of refund of cess wrongly taken. |
|
2 |
Offence specified under section 18(1)(b) of the Act |
|||
|
3 |
Offence specified under section 18(1)(c) of the Act |
|||
|
4 |
Offence specified under section 18(1)(d) of the Act |
TABLE B
|
Sl. No. |
Offence |
Compounding Amount |
|
(1) |
(2) |
(3) |
|
1 |
Offence specified under section 18(1)(f) of the Act |
Ten Thousand Rupees or Fifty percent of the cess involved, whichever is higher |
|
2 |
Offence specified under section 18(1)(i) of the Act |
|
|
3 |
Offence specified under section 18(2) of the Act |
(6) The application shall not be allowed unless the cess, interest and penalty liable to be paid have been paid for the case for which the application has been made.
(7) The applicant shall, within a period of thirty days from the date of the receipt of the order under sub-rule (3) allowing the compounding of offences, pay the compounding amount as ordered by the proper officer and shall furnish the proof of such payment to him.
(8) In case the applicant fails to pay the compounding amount within the period specified in sub-rule (7), the order made under sub-rule (3) shall be vitiated and void.
(9) An immunity granted to a person under sub-rule (3) may, at any time, be withdrawn by the proper officer, if he is satisfied that such person had, in the course of the compounding proceedings, concealed any particulars or had given false evidence, and thereupon such person may be tried for the offence with respect to which immunity was granted or for any other offence that appears to have been committed by him in connection with the compounding proceedings and the provisions the Act shall apply as if no such immunity had been granted.
Act
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THE HEALTH SECURITY SE NATIONAL SECURITY CESS ACT, 2025
