Central excise audits have always been considered as grinding and comprehensive for the assesses because of nature of duty and complicated legal structure. Audit audit of the central excise service tax assesses is being conducted as per norms prescribed by the departments audit manual based on ea 2000. A minimum of 15 days notice should be issued to the concerned assessee before commencing any audit. I government of india ministry of finance department of revenue central board of excise and customs. For detailed audit steps or audit procedures, parts ii and iii of this manual may be ref. Excise audit manual including ea 2000 january 2003 centax publications pvt. The actual auditing under ea 2000, will therefore, commence from 1st december 1999. It shall override excise manual of supplementary instructions to the extent of conflict. Audit by controller and auditor general audit by government on department termed as cera central excise receipts audit 3. Revised version of central excise audit manual and standard audit programme was drafted and launched with the approval of board in september,2003. Feb 21, 2007 the grievance of the appellants was that if the audit had already been made by the central excise audit party andor the audit party appointed by the comptroller and auditorgeneral of india in the current financial year namely 2000 2001, there was no scope of passing a direction for further audit at the instance of the commissioner, central.
Excise audit 2000 ea 2000 is a new system of audit initiated from 1st december 1999. Last year were facing ea2000 audit from excise commissioner office. Since 15 days notice will be given actual audit can take place earliest from 1st december 99. Ea 2000 audit pointed out the same and for the financial year 201112, appellant recalculated as well as deposited differential amount along with interest amounting to rs. This body of guidelines defines the excise audit 2000 ea 2000 processs to be strictly followed by practitioners across india. The clearances, manufacture records, cenvat, job work, returns, stock, valuation, registers and other all sought of records is a clear indication of the depth required to ensure a smooth and hassle free audit is taken by the assessee. Therefore, the entire audit process is regulated by the central excise audit manual ceam, which was first prepared in 1999, and thereafter, updated in 2001, 2003, and 2008. Day to day liaison work with central excise authority. Time limit for taking decisions are outlined in the central excise manual, the adjudication manual, audit manual etc. Aug 21, 20 central excise audits practical perspective for assessees.
And telling that this ea 2000 was applicable to dealers also from this year, where turnover is morethan 5 crores. The aggrieved citizens may submit their grievances online through cpgram portal for speedy and favorable redressal at or. Audit under central excise cera ea2000 audit means scrutiny of the records of the assesses and the verification of the actual process of receipt, storage, production and clearances of goods with a view to check whether the assessee is paying the central excise duty correctly and following the central excise procedures. The manual does not deal with legal interpretations and rulings on central excise and service tax matters.
Central excise facility of manufacturing or processing of export goods under claim of rebate of duty paid on inputs under notification no. On his part, the assessee is given full opportunity to explain his stand on any particular matter so that matters are resolved in full appreciation of legal position. Central excise revenue audit manual 23 and 24 5 mcqs books. For detailed audit steps or audit procedures, parts ii and iii of this manual may.
Ca dharmendra kondalkar senior manager international. Checklist for central excise compliance accounts knowledge hub. About the author author was member of icai capacity building committee 201011 and icai committee for direct taxes 201112 and can be reached at email email protected or on phone phone. Mar 12, 2017 cbec master circularshow cause notice adjudication and recovery. The below mentioned officers are hereby designated under the right to information act, 2005, pertaining to the jurisdiction of the audit ii pune commissionerate, mentioned against their names given below. A requirement of ea 2000 is that the auditors must be thorough in their knowledge of centr al excise law and procedures, notifications, instructions and circulars issued by the finance ministry and the judicial decisions on issues relating to central excise laws. First edition of service tax audit manual was prepared and released to field formations in october,2003. Tiol tax news, gst, income tax, service tax, customs. Where it is decided to undertake the audit of a registered person in. I only registered under service tax law as a service provider i am not a manufacturer or good import exporter i have no registration in central excise. Central excise manual, chapter15, introduction, procedure of. A central excise service tax audit cell headed by the jointaddl commissioner, functions under the overall supervision of the commissioner.
There is need of sop for conduct of audit by the executives and it should be notified to all stakeholders, so that there is transparency in place. Handling assessments and refund processes in excise. Each part provides explanatory notes and guidance note to facilitate personnel handling compliance. Preparation of monthly excise return er6, er 1, quarterly return under rule 7 of cenvat credit rules 2002, and maintenance of pla account, cenvat credit registers, and rg 23d part a,b and c. Ea 2000 audit is done by excise department every year.
Under the traditional conventional system of central excise audit, audit was done. Reconciliation of er 1 sales vs trail balance sheet. Introduction, information and procedure of excise audit 2000, procedure of excise. Caap manual 2009 central board of indirect taxes and customs. Concepts, exemptions, valuation, procedures documentation and records new system of department audit the revenue department has introduced a new system of central excise audit called ea 2000 using professional, financial, accounting. Adgaudit right to information central excise, chennai.
Auditor means a central excise officer entrusted with the responsibility of. May 02, 2016 ea 2000 is thus a participative audit. It outlines clearly, the standard processes to be followed while conducting an audit. Manual for the scrutiny of central excise returns 2008 3 contents preface 5 list of abbreviations 6 chapter 1. The actual auditing under ea2000, will therefore, commence from 1st december 1999.
Chartered accountant shall have the meaning assigned to it in section 21b of. Here we didnt observe that our sale turnover or purchase turnover or excise turnover. The essential philosophy of ea 2000 is that this audit is based on the scrutiny of business records of the assessee. Hi, i received a letter from servicetax gst department about conducting audit in my unit next month. Special audit by nominated cost accountant pertaining. Excise law to check compliance of procedures and also leakage of revenue. Handling a central excise service tax audit under ea 2000. Audit under central excise cera ea2000 how to handle audit.
Rule 101 of the central goods and service tax rules, 2017. Amit kumar manager account bic auto pvtltd linkedin. Central excise revenue audit manual chapters 20, 22, 23 and 24 5 mcqs books recommended. S ravi shankar, ca madhukar n hiregange the book is not only a conventional book on auditing but has approached the subject of excise audit from the legal standpoint apart from procedure and techniques of audit. Ea 2000 audit conducted by the departmental officers 2. Audit under central excise cera ea 2000 audit means scrutiny of the records of the assesses and the verification of the actual process of receipt, storage, production and clearances of goods with a view to check whether the assessee is paying the central excise duty correctly and following the central excise procedures. All assesses are subject to ea2000 audit as contained in new audit manual and. A central excise and service tax audit manual, 2015 was also issued by the directorate general of audit of the cbec in this regard. Central excise audits practical perspective for assessees. Audit under central excise cera ea2000 how to handle. Under caap, all or a part of audit could be completed using electronic records.
No doubt, audit and antievasion have their roles to play, but assessment or confirmation of assessment should remain the primary responsibility of the central excise officers. Resolution scheme, since ea 2000 was pending and demand was not quantified and communicated to ms chaturbhuj ltd on or before 30. Trained in auditing of electronic records, the central excise officers who shall conduct computer assisted audit shall use commercial and custom software on secure departmental computers for this purpose. Excise law times latest issues b customs 40 percent i. Assessee as a contractor had drawn tender scales on basis of pricing guidelines. Raja banerjee assistant manager ruia group limited linkedin. Rebate of excise duty paid on ingots and billets of nonalloy steel and hot rerolled products of nonalloy steel notified under section 3a of the central excise act, 1944 for the period from 1. Particulars required to be published central excise, chennai.
On his part, the assessee is given full opportunity to explain his. In that, they can audit last 5 years, where excise part was clear. Part c voluntary compliance of audit objections for voluntary compliance of the audit objections raised by the audit parties, there exists a provision under section 11a 2b of the central excise act wherein only applicable excise duty and interest can be paid on the spot and a letter seeking waiver of penaltyshow cause notice can be. This situation is covered us 125 1 e, since matter was subjected to an ea 2000 excise audit and ea 2000 was pending and demand was not quantified and communicated to ms. Consequent upon issueance of revised frequency norms prescribed for audit of service tax assessee by the director general audit, new delhi vide their letter f. Referencer customs central excise service tax caap. As per rule 223 of ce rules, assessee and 1st 2nd stage dealers a. The period of audit to be conducted under subsection 1 of section 65 shall be a financial year or part thereof or multiples thereof. Hence, the broad framework of ea2000, as currently laid down in ceam 2008, is referred to throughout this manual.
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