Scrutiny of Central Excise Returns by Proper Officers – CBEC Instructions
The CBEC has issued instructions on scrutiny of returns. These guidelines seek to explain the contents of the Return Scrutiny Manual , which has been prepared and is now being circulated to all the field formations vide this circular. Board is circulating the manual on 11th May. We had carried details about the Manual in DDT 1106 on 08.05.2009. How did we get it even before the Departmental officers? From the ADB . In that DDT it was mentioned, “Incidentally these manuals have not been made available to the people who they were meant for – the Departmental officers. DDT contacted at least a hundred officers from various parts of the country at various levels – not one of them had heard about these manuals. We got them from ADB.”
Now what was available with the ADB and the rest of the world about what a Central Excise Superintendent has to do, is made available to the Superintendent also by the kind Board.
The gist of the instructions:
1. The returns would be received by the Superintendent of Central Excise who is the proper officer under sub rule (1) of Rule 12 to scrutinize the return. The Inspectors posted in the Range would assist him in this task.
2. The scrutiny of the return is required to be carried out in two stages, viz., (i) the scrutiny of the return and (ii) scrutiny of assessment.
3. In the preliminary scrutiny (to be called the ‘scrutiny of return'), all returns would be scrutinized as per the checklist given in Annexure-1 to this Circular. [No such Annexure found with the Circular]
4. This would involve checking the correctness of the information furnished, the timeliness of payment of duty and the timeliness of filing the return. For example, whether the 8-digit CETSH exists, and if so, whether the rate of duty is correctly mentioned. It would also involve checking the arithmetical accuracy of information contained in the return e.g. duty payment or the break-up of duty paid in cash and through CENVAT credit. Verification of the correctness of the provisional assessment order in respect of the assessee would also form part of the mandate of preliminary scrutiny. After the checklist at Annexure-1 has been executed, it should be completed and duly signed by the Superintendent. Wherever any discrepancies/deficiencies are noticed, it shall be the responsibility of the Range Superintendent to take appropriate action including safeguarding the revenue.
5. As soon as the Automation of Central Excise and Service Tax (ACES) project is implemented, preliminary scrutiny would be done by the system.[This is only a vision]
6. The second stage scrutiny called the ‘scrutiny of assessment' would be confined to returns selected on the basis of mini risk parameters, which are given in Annexure-II [again missing annexure]
7. Once the ACES project is implemented, the returns would be selected automatically by the system and list in descending order of risk would be forwarded every month to the Commissionerate for final selection. It would be the responsibility of the jurisdictional Joint/Additional Commissioner to decide on the number of returns to be taken up for detailed scrutiny by the Ranges keeping in mind the availability of administrative resources which can deliver quality scrutiny.
The field officers should carefully go through the Return Scrutiny Manual and follow the scheme of verification provided in the Manual. AMEN.
CBEC Circular NO. 887/05/ 2009- CX ., Dated: May 11, 2009