What about Central Excise and Service Tax Audit?

By Vijay Kumar

NOBODY questions the power, privilege and prerogative of the CAG to audit the taxes flowing into the Consolidated Fund of India - maybe it is his duty to see that the taxes reach the coffers correctly - not a penny more, not a penny less.

And the Act empowers him:

to require that any accounts, books, papers and other documents which deal with or form the basis of or an otherwise relevant to the transactions to which his duties in respect of audit extend, shall be sent to such place as he may appoint for his inspection.

Now the quarrel is while I am required to send my records for his inspection to a place he appoints, can he become my unwelcome guest and say that the appointed place is my office or my bedroom?

So, the question is, can the CAG's Audit Teams visit the factories and premises of service providers for Central Excise and Service Tax Audit?

Several High Courts have already prima facie held that the CAG Audit teams or for that matter the Commissioner's Audit teams have no power to visit the premises of Central Excise and Service Tax assessees for audit.

Maybe this issue will also have to be decided by the Supreme Court eventually.

What really puts off people is not the Audit's power but its pelf.