TIOL-DDT 163 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 163</font><br> 22 07 2005<br> Friday</b></font></p> <p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Central Excise - Assessments – forward march into past</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> As per Rule 12(3) of the Central Excise Rules, 2002, <br> <br> <i>The proper officer may on the basis of information contained in the return filed by the assessee under sub-rule (1), and after such further enquiry as he may consider necessary, scrutinize the correctness of the duty assessed by the assessee on the goods removed, in the manner to be prescribed by the Board.<br> </i><br> the Board is to prescribe the manner of scrutiny of the monthly return filed by the assessee and now the Board has come up with the instructions on how to scrutinize the returns. The highlights of the scheme are<br> <br> 1. All the returns shall be scrutinized by Superintendent to check the correctness of duty assessed. The Inspectors posted in the Range will assist him in carrying out the scrutiny.<br> <br> 2. The scrutiny would be carried out in two stages viz. the 'scrutiny of return' and scrutiny of assessment. Both the stages should be completed within three months of the date of receipt of the return.<br> <br> 3. In the preliminary stage (to be called the 'scrutiny of return) all returns shall be scrutinized as per the checklist in Annexure 1. This would involve checking whether the information contained in the return is complete, prima facie, valid and internally consistent. For example, whether the 8-digist 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. The preliminary scrutiny shall also include checking whether the assessment is consistent with the existing orders on a particular commodity or in respect of the concerned assessee. It should also be verified whether there is any provisional assessment order in respect of the assessee.<br> <br> 4. After the checklist at Annexure - I 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.<br> <br> 5. The preliminary scrutiny shall also involve checking and comparison of trends of payment of duty, production, clearance (for home consumption on payment of duty and under exemption and for exports), value, and CENVAT utilization to identify returns for detailed scrutiny.<br> <br> 6. The parameters on the basis of which returns would be selected for detailed scrutiny in the second stage are listed out in Annexure - 2 . Such selection has to be carefully made so that really sensitive units are selected. <br> <br> 7. In suitable cases, the proper officer may be required to call for documents/records for verification. In rare case, he may even be required to pay an assurance visit to the assessee's premises.<br> <br> 8. A register of scrutiny of assessment (in the form at Annexure - 3) should be maintained in the Range Office. The entries about the month or quarter to which the return pertains and the date of its receipt should be made immediately on the receipt of the return and the relevant columns for scrutiny should be filled up promptly after each stage of scrutiny. The concerned Deputy / Assistant Commissioner should ensure that the said register is regularly maintained and the scrutiny is carried out without delay.<br> <br> 9. A monthly report shall be submitted by each Range Superintendent to the jurisdictional Assistant / Deputy Commissioner of the division about the number of returns received and scrutinized in the proforma at Annexure - 4. The report should be submitted so as to reach the Assistant/Deputy Commissioner latest by the 15th of the month.<br> <br> 10. Every six months, the Deputy/Assistant Commissioner in charge of the Division will scrutinize the returns of units paying annual PLA revenue of Rs. 1 crore to 5 crores. Wherever necessary he shall requisition the connected documents including invoices and the records and scrutinize the correctness of assessment. A report of the number of returns scrutinized along with his comments shall be sent to the Commissioner latest by 15th of the month following the month of such scrutiny.<br> <br> 11. Similarly, every six months, the Additional / Joint Commissioner in charge of the Division will scrutinize the returns of units paying annual PLA revenue of more than Rs. 5 crores. <br> <br> 12. In case where the scrutiny doe snot reveal satisfactory reasons for the abnormal trends noticed in respect of a return, a reference may be made to the Internal Audit Branch of the Commissionerate giving details of the abnormal trends and the findings of the scrutiny. <br> <br> The Annexure 1 requires the Superintendent to answer some 24 questions and sign with his name and date. And this is sure to fix him if there is any problem later. If he crosses this stage, he has to go to Annexure -2 which requires him to choose a return for detailed scrutiny. And then he is required to maintain that register in Annexure 3 and submit a report in Annexure-4.<br> <br> So suddenly the Range Officer has become a very responsible officer. Will this absolve the assessee from the extended period of limitation? Certainly not. May be the Range posting is not going to be all that glamorous now. <br> <br> But where are we going? Board must be aware of a set of rules that existed not very long ago called the Central Excise Rules, 1944 and another antiquated document called BEM (Basic Excise Manual), which had all these provisions. In the Computers you have an option in WINDOWS to set your computer back to a date when it was working best and if Board has such an option may be they will choose 1.1.1967 for Central Excise procedures. <br> <br> CIRCULAR NO. 818/15/2005-CX, Dated : July 15, 2005 <br> <br> <b>( You may wonder why we are publishing this circular after nearly a week. The fact is even now this circular is not available with any one, not even the Board site)</b></font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#006633"><b>Customs – a good name to dupe the gullible</b></font></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> A housewife was arrested in Mumbai last week for cheating job seekers posing as a senior Customs officer. She posed as a senior Customs official and assured people jobs with Air-India’s Customs department. She operated from her residence at Amboli, Andheri (West) and charged anything between Rs 30,000 to a lakh for placement services. Immediately after her arrest, she complained of chest pain and is now under treatment at Cooper Hospital, Vile Parle.</font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#006633"><b>Back to basics</b></font></font></p> <p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><font color="#006633"><b><br> <img src="http://www.taxindiaonline.com/RC2/image/4ddt22july2005.jpg" width="274" height="350" align="left"> </b></font><b>This is Ms Mani Kumari, a former minister in the Andhra Pradesh Cabinet. Her husband was killed last year by the naxalites. Now she is back in action where she is most at home – in the agricultural field. May be this is what democracy is all about.</b></font></p> <p align="left"> </p> <p align="left"> </p> <p align="left"> </p> <p align="left"> </p> <p align="left"> </p> <p align="left"> </p> <p align="left"> </p> <p align="left"> </p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6666">Until Monday with more DDT<br> <br> Have a nice weekend. <br> <br> Mail your comments to</font></b> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>