GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE & CUSTOMS
Circular No. 1004/11/2015-CX
dated 21.07.2015
To
The Principal Chief Commissioners/ Chief Commissioners of Central Excise (All)
The Principal Chief Commissioners/ Chief Commissioners of Central Excise and
Service Tax (All)
Sub: Instructions regarding Detailed Scrutiny of Central Excise Returns-reg.
Madam/ Sir,
In view of the self-assessment procedure wherein the assessee himself assesses
the duty liability, the responsibility of the departmental officers is to
scrutinise the assessment made for verification of its correctness. Return
scrutiny is the first line of verification carried out as soon as the tax return
is submitted by the assessee. A returns scrutiny process consists of two parts
viz. preliminary scrutiny and detailed scrutiny. While the preliminary scrutiny
system covers all the returns filed online, detailed scrutiny system covers a
few returns selected on the basis of identified risk parameters. In exercise of
powers conferred under sub-rule (3) of rule 12 of the Central Excise Rules,
2002, Board hereby lays down following guidelines for detailed scrutiny of
Central Excise Returns:
- Detailed Scrutiny of Central Excise returns should be conducted regularly
by the proper officers in the field following the procedure already prescribed.
Detailed scrutiny of a minimum of 2% and maximum of 5% of the total returns
received in a month shall be mandatorily performed by the proper officer.
- Selection of assessees by the Commissionerates for detailed scrutiny shall
be based on Risk score and procedure for using it, as forwarded by DG (Audit)
vide letter F. No. 381/20/2015 dated 18.05.2015. Chief Commissioners and
Commissioners shall also have powers to manually select returns for detailed
scrutiny using such criteria as deemed fit to further complement the list of
assessees selected on the basis of risk. After selection of units centrally,
month-wise detailed scrutiny plan should be laid down by the Commissionerate
headquarters for each Range, conveyed to the Range and monitored for compliance.
- As assessee who has been selected for audit in a given financial year shall
not be selected for detailed scrutiny. Further, once the return of an assessee
has been selected for detailed scrutiny, the return of the assesse should not be
selected again for the next 12 months for detailed scrutiny.
- Once an assessee has been selected for detailed scrutiny, most recent return
filed by that assesse should be used for conducting the detailed scrutiny.
During the course of detailed scrutiny of Central Excise returns by proper
officer, the documents and records of assessees, where necessary, may be called
for verification by proper officer.
- In Composite Ranges where there are both Central Excise and Service Tax assessees, the total number of Central Excise and Service Tax returns to be
taken up for detailed scrutiny shall be same as prescribed at para (i) above.
The ratio of returns for Service Tax & Central Excise to be scrutinised in a
composite range shall be in the ratio of the number of assessees registered as
Service Tax and Central Excise assessees respectively. For detailed scrutiny of
Service Tax returns, Board’s Circular No. 185/4/2015-Service Tax dated
30.06.2015 may be referred.
- On issues relating to difficulty, if any, in access of returns on ACES, DG
(Systems) shall be directly contacted/ appraised by the Chief Commissioner/
Commissioner concerned. Where the problem persists over a long period of time,
the same may be brought to the notice of the Board. In the interim, where
necessary, printouts of the return may be taken from ACES and detailed scrutiny
done manually using the printout.
- Past circulars/ manuals/ instructions on detailed scrutiny in conflict with
above instructions shall stand rescinded to the extent of the conflict.
2. Difficulty, if any, in implementation of the procedure may please be
brought to the notice of the Board. Hindi version would follow.
Yours faithfully,
(ROHAN)
Under Secretary (CX.6)
F. No. 206/15/2014-CX.6
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