Advisory from The Institute of Cost Accountants of India
The members of the Institute are undertaking Valuation Audit under Section 14A of Central Excise Act,1944. The basic objective of the Section 14A is toensure correct determination of value for themanufacture of excisable goods produced or manufactured for correct realisation of revenue.
Consequent upon the Supreme Court judgment in the case of Commissioner of Central Excise, MumbaiVs. M/s Fiat India (P) Ltd. & ANR. dated 29th August, 2012, it has been observed that greater responsibilities have been thrown on the shoulders of the Cost Accountants in Practice while undertaking Special Audit under Section 14A of the Central Excise Act, 1944.
The members of the Institute are hereby advised totake into consideration the Compliance Report and the Cost Audit Report, if the product is covered under the Cost Audit, to ensure the correct determination of the value and thus fair assessment of revenue by the Excise Department.
Secretary (Acting)
Dated: 8th March, 2013
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I can not understand what Mr Kapil wanted to say but It is proved once agian that Cost audit can enhance the revenue of the Govt . That is why now all types of products are coming under Cost Audit wef from 01/01/2013 vide notification dated 06/11/2012
Fiat judgement is a disaster anyway. But no remedy till such time parliament reverse it which is extremelt doublful