Manual for the Scrutiny of Central Excise Returns 2008

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10 Every six months, the Deputy/Assistant Commissioner in charge of the Division willscrutinize the returns of units paying annual PLA revenue in the range of Rs 1 crore toRs 5 crore. Wherever necessary, he shall requisition the concerned documents, includinginvoices and financial records, from the assessee and scrutinize. Along with hiscomments, this report shall be sent to the Commissioner latest by the 15th of themonth, following the month of such scrutiny.11. Similarly, every six months, the Additional/Joint Commissioner in charge of theDivision will scrutinize the returns of units paying annual PLA revenue of over Rs 5crore. Wherever necessary, he shall requisition the relevant documents, invoices andrecords to scrutinize the correctness of assessment. The Additional/Joint Commissionerwill submit a report on the number of returns scrutinized, along with hiscomments to the Commissioner latest by the 15th of the month of such scrutiny.12 In cases where the scrutiny does not reveal adequate reasons for the abnormal trendsnoticed in respect of a return, the Internal Audit Branch of the Commissionerate may bereferred to giving details of the abnormal trends and the findings of the scrutiny. Thismay also be done for cases where the returns of the same assessee repeatedly showabnormal trends.2.1.1 Processing Guidelines Issued by the Board for the Preliminary Scrutiny of Returns2.1.1A The Board’s guidelines provide a checklist for preliminary scrutiny of ER1 and ER3returns (see Annexe 2.1). Action to be taken in respect of each of the preliminary scrutinychecks specified for all returns is provided. Action indicated in the columns against each itemin the checklist must be carried out. A compendium of processing guidelines, specificallywith reference to the checklist in Annexe 2.1, is provided:1. Registration No.: May be indicated and matched with the Assessee Master.2. Name of the Assessee: Must match with the name given in the registration application.3. Do the registration number and the name of the assessee match the records available inthe Range?Yes/NoAction if answer is No: The actual registration number must be obtained from theAssessee Master and the number corrected in consultation with the assessee.4. Are all the relevant columns in the return duly filled up? Yes/NoAction if answer is No: Return must be sent back to the assessee and the columnscompleted.5. Are all the CETSH numbers mentioned in the return prima-facie valid, that is, do theyexist in the First Schedule?Yes/NoAction if answer is No: The return must be sent back to the assessee and the invalidCETSH number or incorrect CETSH number corrected.6. Are the rate(s) of duty prima-facie correct, with reference to the 8-digit classification(s)and description of goods provided in the return?Yes/NoMANUAL FOR THE SCRUTINY OF CENTRAL EXCISE RETURNS 2008 13
Action if answer is No: Must be sent back to the assessee and corrected.7. In case any of the products appearing in the return attracted different rates of dutywithin the same month, are such details separately mentioned?Yes/NoAction if answer is No: Must be sent back to the assessee and corrected.8. Are the notification number(s), date(s), and serial numbers shown in the return primafaciecorrect, with reference to the 8-digit classification(s) and description(s) of goodsshown in the return?Yes/NoAction if answer is No: Must be sent back to the assessee and corrected.9. Are there any conditions prescribed in any of the exemption notifications claimed bythe assessee? If so, are they prima-facie satisfied?Yes/NoAction if answer is No: Remarks on conditions satisfied may be indicated. In caseconditions are not satisfied fully, duty must be demanded through a notice.10. Are the duties/amounts due and payable correctly calculated with reference to therate(s) of duty and assessable value(s) shown in the return?Yes/NoAction if answer is No: Arithmetical mistakes may be correctly indicated and aDeficiency Memo issued to make good the shortfall in duty payable.11. In case the rate of duty is specific, is the amount of duty payable correctly calculatedwith reference to the quantity of goods cleared and the applicable rate as shown in thereturn?Yes/NoAction if answer is No: Arithmetical mistakes may be correctly indicated, and aDeficiency Memo issued, to make good the shortfall in duty payable.12. Do the debits made from the credit account and the current account add up to the ‘totalduty paid’ as shown in the return?Yes/NoAction if answer is No: Arithmetical mistakes may be correctly indicated and aDeficiency Memo issued, to make good the shortfall in duty payable.13. Have copies of challans through which duty was paid been submitted with the return?Yes/NoAction if answer is No: Copies of challan may be obtained.14. Does the opening balance of CENVAT credit indicated in the return tally with theclosing balance indicated in the return for the previous month/quarter? Yes/NoAction if answer is No: Reasons for inconsistency may be indicated and reconciliationin consultation with the assessee may be undertaken.15. Is the (opening balance + total credit availed) – (credit utilized for payment of duty ongoods + credit utilized when inputs or capital goods are removed as such + creditutilized for payment of duty on services) = closing balance of CENVAT credit?Yes/No14 MANUAL FOR THE SCRUTINY OF CENTRAL EXCISE RETURNS 2008
Page 3 and 4: 2 MANUAL FOR THE SCRUTINY OF CENTRA
Page 5: 3.1.3 When is a Return Marked for R
Page 8 and 9: Chapter 1: Introduction tothe Retur
Page 10 and 11: Select units could be chosen depend
Page 12 and 13: Chapter 2: Policy Guidelines2A In t
Page 16: Action if answer is No: Reconciliat
Page 19 and 20: ANNEXE 2.1: CHECKLIST FOR THE PRELI
Page 21: ANNEXE 2.2: CHECKLIST FOR SELECTION
Page 25 and 26: (Continued from previous page)Type
Page 27 and 28: (Continued from previous page)Code
Page 29 and 30: 3.1.4A Once these returns are ident
Page 31 and 32: discussed in Chapter 3. Chapter 4 l
Page 33 and 34: 4.2.1 Checklist for Scrutiny of ER
Page 35 and 36: ANNEXE 4.1 CHECKLIST FOR ER1 AND ER
Page 37 and 38: (Continued from previous page)S.no.
Page 53: (Continued from previous page)S.no.

Manual for the Scrutiny of Central Excise Returns 2008

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