Central Excise and Service Tax - Digital Signature and e-records · TIOL-DDT 2635

Central Excise and Service Tax - Digital Signature and e-records

By Vijay Kumar

THE Central Excise Rules were amended by Notification No. 8/2015-CENT to stipulate that:

1. The records may be preserved in electronic form and every page of the record so preserved shall be authenticated by means of a digital signature.
2. The Board may, by notification, specify the conditions, safeguards and procedure to be followed by an assessee preserving digitally signed records.
3. An invoice issued by a manufacturer may be authenticated by means of a digital signature:
Provided that where the duplicate copy of the invoice meant for transporter is digitally signed, a hard copy of the duplicate copy of the invoice meant for transporter and self attested by the manufacturer shall be used for transport of goods.
4. The Board may, by notification, specify the conditions, safeguards and procedure to be followed by an assessee using digitally signed invoice.

Similarly the Service Tax Rules were amended by Notification No. 5/2015-ST to stipulate that:

1. Records under this rule may be preserved in electronic form and every page of the record so preserved shall be authenticated by means of a digital signature.
2. The Board may, by notification, specify the conditions, safeguards and procedure to be followed by an assessee preserving digitally signed records.
3. Any invoice, bill or challan issued under rule 4A or consignment note issued under rule 4B may be authenticated by means of a digital signature.
4. The Board may, by notification, specify the conditions, safeguards and procedure to be followed by any person issuing digitally signed invoices.

If you want to maintain electronic records:

1. You will have to get a Class 2 or Class 3 digital signature Certificate duly issued by the Certifying Authority in India.
2. Before going electronic, you have to submit details of your name, digital signature, etc. to the DC/AC. If you are already using digital signature, this information must be submitted by 21 st July 2015.
3. Electronic records are to be maintained separately for each factory.
4. The Department can ask you for printouts of the electronic records and invoices. Pray, why? What are you going to do with the tons of printed paper? And your FM says he is going to save paper.
5. Backup of records in electronic form is to be maintained and preserved for a period of 5 years.

The digital language - confusing!

Regarding the printing of electronic records somebody has improved English. See the wording in the draft notification (see ) and the final notification.

Draft Notification	Final Notification
A Central Excise Officer, during an enquiry or investigation, may direct an assessee to furnish printouts of the electronic records and invoices during an investigation and may resume the documents and invoices under Section 14 of the Central Excise Act, 1944 after verifying the correctness of the same in electronic format. The print outs of such electronic records shall be signed by the assessee or any other person authorized by the assessee in this regard, if so requested by the Central Excise officer.	A Central Excise Officer, during an enquiry, investigation or audit, in accordance with the provisions of section 14 of the Central Excise Act, 1944 and as made applicable to Service Tax as per the provisions contained in section 83 of the Finance Act, 1994, may direct an assessee to furnish printouts of the records in electronic form and invoices and may resume printouts of such records and invoices after verifying the correctness of the same in electronic format; and after the printouts of such records in electronic form have been signed by the assessee or any other person authorised by the assessee in this regard, if so requested by such Central Excise Officer.

Draft Notification

Final Notification

A Central Excise Officer, during an enquiry or investigation, may direct an assessee to furnish printouts of the electronic records and invoices during an investigation and may resume the documents and invoices under Section 14 of the Central Excise Act, 1944 after verifying the correctness of the same in electronic format. The print outs of such electronic records shall be signed by the assessee or any other person authorized by the assessee in this regard, if so requested by the Central Excise officer.

A Central Excise Officer, during an enquiry, investigation or audit, in accordance with the provisions of section 14 of the Central Excise Act, 1944 and as made applicable to Service Tax as per the provisions contained in section 83 of the Finance Act, 1994, may direct an assessee to furnish printouts of the records in electronic form and invoices and may resume printouts of such records and invoices after verifying the correctness of the same in electronic format; and after the printouts of such records in electronic form have been signed by the assessee or any other person authorised by the assessee in this regard, if so requested by such Central Excise Officer.

There seems to some rule in babudom that drafting has to be done in the most complex and complicated language - then you try to understand what you have written, try to interpret it in the most unnatural way and blame it as the intention of the legislature.

Notification No. , Dated: July 06, 2015