Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has issued Instruction No. 01/2026 dated February 10, 2026, laying down a comprehensive Standard Operating Procedure (SOP) for verifying declarations filed by manufacturers under the newly introduced HSNS Cess and Capacity Determination framework. The SOP provides a structured mechanism for the verification of machinery used in the production of pan masala, chewing tobacco, jarda scented tobacco, and gutkha, marking a crucial step toward pl
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FAQ :
The SOP provides a structured procedure for verifying declarations filed by manufacturers under the HSNS Cess and Capacity Determination framework, aiming to plug revenue leakages and ensure transparency in capacity-based taxation.
The Quality Council of India (QCI) has been engaged as a technical partner to assist tax authorities in verifying machine specifications such as RPM, gear ratios, and the number of funnels.
Manufacturers must ensure the availability of machines, relevant technical documents, and access to personnel for the inspection.
Yes, mandatory videography of the entire verification process is required, and these recordings must be preserved by tax authorities.
Yes, all machines, including sealed and non-operational ones, must be declared and verified. They will be temporarily de-sealed for inspection and resealed afterwards.
The SOP standardises verification procedures nationwide, aims to reduce tax evasion through under-reporting of capacity, brings technical precision to tax administration, and enhances transparency through videographed inspections.
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