Circular No 514/10/2000

circulars · 1944 · State unknown

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Parent: THE CENTRAL EXCISE ACT, 1944 (8b9c1d20fad0a6e59e6a2bcf99a6dea8c3f65936)

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Circular No 514/10/2000 FNO.206/10/99 Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs New Delhi, the 16 th February, 2000 Subject: Excise Audit Scheme (EA-2OOO)-further guidelines for Implementation ttis a directed to say that certain views have been expressed by various Commissionerates regarding implementation of the Excise Audit-2000 (EA-2OOO): The initial guidelines are contained in Board's Circular No. 491/57/99-CX.6 dated 28 thof October; 1999. The view of the Commissionerate are categories as follows:- 1_ Data management for Audit preparations; 2. Audit Report format; 3_ Total period of the Audit; 4_ Evaluation of the Audit Report through a scoring system; 5. System of institutionalised monitoring; 6_ Training; 7 . Availability of computer; and 8. Audit of units between Rs. crore and Rs. 5 crore revenue_ Assessee Profile (database) 1. The first view expressed was that data must be collected by all Commissionerates in a standardised format so that only absolutely essential information relevant for the conduct of audit is collected: This standardised collection would also facilitate maintenance of a computerised database al | over the country: In this connection; Standardised Format for Assessee's Profile has been devised to serve as a standard for collection of data relevant for Excise Audit-2O00, which is enclosed as Annexure-I. 1. In addition to this, it would be of advantage to the Department to know certain critical ratios relating to an assessee's factorylbusiness from the data available in the Balance Sheets (Annual Reports) of the assessee/Assessee's profile/Other Reports before the auditis contemplated. For example _ raw material cost: sale value, discount; sale, outward freight: sale, power consumption (units)

Rule TOC

1 · The first view expressed was that data must be collected by all Commissionerates in a standardised format so that only absolutely essential information relevant for the conduct of audit is collected: This standardised collection would also facilitate maintenance of a computerised database al | over the country: In this connection; Standardised Format for Assessee's Profile has been devised to serve as a standard for collection of data relevant for Excise Audit-2O00, which is enclosed as Annexure-I. 1. In addition to this, it would be of advantage to the Department to know certain critical ratios relating to an assessee's factorylbusiness from the data available in the Balance Sheets (Annual Reports) of the assessee/Assessee's profile/Other Reports before the auditis contemplated. For example _ raw material cost: sale value, discount; sale, outward freight: sale, power consumption (units): production quantity, change in profit: assessable value etc The officers of the Audit Wing may be trained to derive these ratios. These ratios, wherever possible, should be studied at the time of Desk Review 2 The Assessee's profile and the ratios will serve as a useful database for the conduct of 'Desk Review' which is the first step in the Audit Programme explained in both the Excise Audit Manual and the Standard Audit Programme. Needless to mention a comprehensive database would help in proper preparation for conduct of Audit:

10 · Itis learnt some of the Commissionerates have not been able to provide a computer to Audit Branch: This should be done priority basis. 11. Field formations may be suitably informed. Any difficulties noticed in this regard may be brought to the notice of the Director general (Anti-Evasion) immediately:

1 · . Name of the Assessee

2 · Registration Certificate No.

3 · New ECC No_

4 · General Details

5 · Commodity-wise details

6 · Major Input and Output in the Modvat declaration:

1 · Major itemlsub-heading declared as Capital Goods under Rule 57Q. 2. Major Audit Points:

10 · Marketing pattern; clearance pattern etc.

1 · Summary of major audit objections from the Working Paper:

2 · Suggestions for better compliance including systemic improvements and notifications in the legal arrangements: