Officers of DG, Audit to be Central Excise officers – Why?
How are they authorised to visit HOs of assessees?
In on 13.06.2008, we had reported that the officers of the DG, Audit were appointed as Central Excise officers.
Why?
The CBE C explains:-
The audit of Multi Locational Units has been revamped in order to yield better results. MLU broadly refers to an assessee having factories at different places in which similar items are manufactured. As per the revised procedure, the zonal ADG ( Audit) has been authorised to obtain the consolidated Balance Sheet, Profit and Loss Statement and other financial documents of the company from the Head/ Corporate office for scrutiny. They have also been entrusted with the responsibility to clearly understand the role played by the Head office in the conduct of business by individual units, which requires the officers of the zonal unit to visit the said office. Further, the zonal unit is required to send out their staff to the said registered office/corporate office, in case the jurisdictional audit teams have identified certain issues that require any verification. Therefore, notification No. 28/2008- CE( NT) dated 05.06.2008 has been issued to empower the officers of Directorate General of Audit accordingly.
As pointed by us earlier, the DG, Audit officers have been visiting the Corporate offices of MLUs , which was perhaps illegal!
Even, now what is the authority for the DG, Audit or for that matter any Central Excise officer to visit the Head Office of an assessee? As per Rule 22 of the Central Excise Rules, the officers have access to the registered premises of an assessee. The registered premises are usually the factories and not the Head Offices. Under what authority can the Central Excise officers visit the Head Offices of the assessees without a warrant?
CBEC Circular No. 872/10/2008- C X ., Dated: June 17, 2008