Manual for the Scrutiny of Central Excise Returns 2008

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(Continued from previous page)S.no.ActivityType of verification to be done/documents to be seenAgainst each item, record verificationstatus as ‘verified’ in thechecklist. In case of any observationrequiring action, mention it clearly(1)(2)(3)19. Nature of sale/ transfer Yes No If yes, Practice of valuationetc. verified.description followed by the assesseeof product(s)(a)(b)(c)(d)(e)(f)(g)(h)(i)Sale at the factory gateSale through the depot/distributors/consignmentagents/marketingintermediariesSale in retailRetail sale price(maximum) – Section 4AInter – plant transferCaptive consumptionClearance to UN andother aided projectsInputs received and jobwork doneCInputs/semi-processedmaterial sent for jobwork outsideKeeping the above sales pattern in mind the verification in the manner indicated belowmay be conducted19.1 Is the productmanufactured coveredunder Section 4 or Section4A of Central Excise Act1944? Under section 4A,is there any exemption forthe product under theWeights and Measures Actlike for OE supplies tobulk industrial consumers?Examine the Weights andMeasures Act with respect tothe product and ensurecorrectness of theexemption claimed withrespect to the Provisions ofthe Weights and MeasuresAct.Record the reasons for noneligibilityfor exemption ifso determined.(Continued on next page)MANUAL FOR THE SCRUTINY OF CENTRAL EXCISE RETURNS 2008 37
(Continued from previous page)S.no.ActivityType of verification to be done/documents to be seenAgainst each item, record verificationstatus as ‘verified’ in thechecklist. In case of any observationrequiring action, mention it clearly(1)(2)(3)19.2 Verify whether the goodshave been cleared on a‘sale’ basis.Get sample sales taxdocument to confirmwhether there was sale.In case there is no sale,valuation would have to bedetermined under theValuation Rules and thecorrect methodology mustbe adopted which may berecorded in this column19.3 Are any Orders underSection 37B or Boardinstructions are availablewith regard to the valuationof the product?• Specify the circularnumbers and date.• Check whether existingpractice of valuation is inconformity with Section37B orders.In case of non conformityrefer matter to AC/DC.19.4 In case of sale of goods,for delivery at any timeother than the date ofremoval, verify whetherassessment is doneCall for relevant sampleinvoices to ascertain thevalue at the time closest tothe time of removal forassessment.In case of any disagreement,record the action taken.Matter could be referred toaudit through AC/DC andthis fact may be recorded inthis column19.5 In case of sale of goodsfor delivery at a placeother than the factorygate verify whether thecorrect abatementtowards transportationis claimed.Call for sample invoicesand sample transportdocuments such as lorryreceipt to verify correctnessof abatement towardstransportation. In case ofequalized freight claimed asabatement, call for thecertificate issued by cost/chartered accountant. Incase of any doubt, call forthe documents from thetransporter.In case of any disagreement,record the action taken.Matter could be referred toaudit through AC/DC andthe same could be recordedas action taken in thiscolumn.(Continued on next page)38 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 14 and 15: 10 Every six months, the Deputy/Ass
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: (Continued from previous page)S.no.
Page 41 and 42: (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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