OFFENCES AND PENALTIESCentral

Section 19 of The Health Security Se National Security Cess Act, 2025

(1)Whoever commits or causes to commit and retains any benefit arising out of contraventions specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section 18 shall be punishable in cases where the amount of cess evaded or the amount of refund wrongly taken---
1. (a)exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years or with fine, or with both; or
2. (b)exceeds two hundred lakh rupees but does not exceed five hundred lakh rupees, with imprisonment for a term which may extend to three years or with fine, or with both; or
3. (c)exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees, with imprisonment for a term which may extend to one year or with fine, or with both.
(2)Whoever commits or causes to commit and retains any benefit arising out of contraventions specified in clause (f) or clause (i) of sub-section (1) of section 18, or abets the commission of an offence specified in the said sub-section, shall be punishable with imprisonment for a term which may extend to six months or with fine, or with both.
(3)Whoever, convicted for an offence under this section is again convicted for an offence under this section, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to five years or with fine, or with both.
(4)The Court may, for special and adequate reasons to be recorded in the judgment, sentence any person to imprisonment under sub-section (1) or sub-section (3), for a term less than six months.
(5)Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, all offences under this Act, except the offences referred to in sub-section (6) shall be non-cognizable and bailable.
(6)The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section 18 shall be cognizable and non-bailable.
(7)No person shall be prosecuted for any offence under this section except with the previous sanction of the proper officer, not below the rank of Commissioner.

Summary

The Health Security Se National Security Cess Act, 2025, includes provisions for punishment for certain contraventions.
It includes subsections (a) and (b) of sub-section (1) of section 18, and subsections (3) and (4) of subsection (1).
The act includes provisions on the amount of cess evaded or refund wrongly taken, and punishment for specific contravention.
The law also includes provisions related to the amount and duration of imprisonment for certain offences.

Practical examples

1Ramesh intentionally evades paying health cess worth six hundred lakh rupees. Since the amount exceeds five hundred lakh rupees, Ramesh is prosecuted under the national security cess law. If convicted, Ramesh can face prison for up to five years, a fine, or both.

2Kiran helps a company evade health tax and receives a share of the profits. Her offense of abetting tax evasion is prosecuted. Under the national security cess law, Kiran faces up to six months in prison, a fine, or both.

3Suresh is convicted of a second offense of tax evasion of fifty lakh rupees under this law. Even though the amount is small, since it is his second conviction under the Act, Suresh can face up to five years in prison.

FAQ

1. What is the prison term under Section 19 of the Health Security se National Security Cess Act, 2025 if the evaded tax exceeds five hundred lakh rupees?

Under Section 19 of the Health Security se National Security Cess Act, 2025, if the evaded tax exceeds five hundred lakh rupees, the offender faces imprisonment for a term that may extend to five years, or a fine, or both.

2. Are tax offenses under Section 19 of the national security cess law bailable?

Under Section 19 of the Health Security se National Security Cess Act, 2025, most offenses are bailable and non-cognizable, which means police need a warrant to arrest. However, offenses under clauses (a), (b), (c), and (d) of Section 18(1) are cognizable and non-bailable.

3. Whose permission is required to start a prosecution under Section 19 of the Health Security se National Security Cess Act, 2025?

Under Section 19 of the Health Security se National Security Cess Act, 2025, no person can be prosecuted without the previous sanction of a proper officer who is at least of the rank of a Commissioner.

4. What is the maximum punishment for a repeat tax offender under Section 19 of the Health Security se National Security Cess Act, 2025?

Under Section 19 of the Health Security se National Security Cess Act, 2025, a second or subsequent conviction can lead to imprisonment for a term that may extend to five years, or a fine, or both.

Test yourself

Q1.Under Section 19 of the Health Security se National Security Cess Act, 2025, what is the maximum prison sentence for evading cess of three hundred lakh rupees?

Q2.Under Section 19 of the Health Security se National Security Cess Act, 2025, who has the authority to sanction a prosecution?

Q3.Under Section 19 of the Health Security se National Security Cess Act, 2025, what is the default legal nature of most offenses under this law?

Q4.Under Section 19 of the Health Security se National Security Cess Act, 2025, what is the maximum prison sentence for failing to register when liable to do so?

Q5.Under Section 19 and Section 18 of the Health Security se National Security Cess Act, 2025, which of the following offenses is classified as cognizable and non-bailable?

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