Bill defines 'pan masala' as goods under tariff item 21069020

Who it concerns: Any person who owns, possesses, operates, manages, or controls machines or processes for manufacturing specified goods, including those acting through job-workers or hired labor. This applies regardless of whether the person is under a composition scheme or other tax concessions.

What the bill does

• Levy of a cess on machines installed or processes undertaken for manufacturing specified goods, in addition to other duties or taxes.
• Cess computation is based on machine speed (pouches/containers per minute), capacity, or weight of goods packed, as specified in Schedule II.
• Manual production without machines is subject to a fixed monthly cess amount per factory as per Schedule II.
• The Central Government may increase the cess amount up to twice the specified amount in special circumstances.
• Taxable persons must register with the proper officer and file declarations and returns.
• Provisions for scrutiny, assessment, audit, and access to business premises by officers.
• Penalties and punishments for contraventions, including offences by companies.
• Powers for inspection, search, seizure, confiscation of goods/machines, and arrest.
• Appeal hierarchy includes Appellate Authority, Appellate Tribunal (Customs, Excise and Service Tax Appellate Tribunal), High Court, and Supreme Court.

Also in the document

• The Bill explicitly defines 'pan masala' as goods falling under tariff item 21069020 of the Customs Tariff Act, 1975.
• The definition of 'machine' includes Form, Fill and Seal Machines and Profile Pouch Making Machines.
• Proceeds of the cess are credited to the Consolidated Fund of India and utilized for national security and public health after appropriation by Parliament.
• The Bill includes provisions for the power to arrest and confiscate specified goods or machines.