Service Tax - Centralised Registration- AG’s Audit exists under Central Excise Act? - Instructions and press note issued
On Friday DDT 483 had covered this issue and mentioned about the new power given to CAG to audit Service Tax assessees. We understand that Service Tax assessees as well as departmental officers across the country are aghast at this most unwanted act of the Board. Now CAG’s audit will be all over the place manufacturing para after para of Audit objections and at the slightest drop of a para, the department is instructed to issue Show Cause Notices. You can expect thousands of Show Cause Notices in the next few years. Remember the outlandish issue of abatement for GTA that the AG had pointed out which resulted in thousands of Show Cause Notices floating around.
Consultants should be grateful to the Board for giving them a vast area to earn good money.
Now the Board instruction says there is a similar provision in the Central Excise Act. No, Sir; there is no such provision in the Central Excise Act passed by Parliament. There is such a provision only in the Central Excise Rules framed by the Board. So it is not Parliament but the Board which has given the power to the AG’s Audit to visit Central Excise assessees and now the Service Tax assessees.
Board’s F. No. dated November 3 , 2006.