Government of India
Ministry of Finance
(Department of Revenue), New Delhi
Subject : Action taken on the recommendations contained in 98th Report of the PAC on para 2.22 of the Report of the C. & A. G. of India for the year ended 31.3.1993 relating to Union Excise duties- System defects in the working of Chief Accounting Officers.
It has been brought to the notice of the Board that the different practices are followed by the Commissionerates regarding verification of refund vouchers & re-concilitation of refunds sanctioned in respect of Central Excise Duties.
2. It has been reported that pre-audit of refund over Rs. 5 lakhs and post – audit of refunds claims are being handled by the Internal Audit Department is some Commissionerates and that in these Commissionerates the verification of refund vouchers and the re-conciliation of refunds is not being attended to by the Chief Accounts Officers though in the other Commissionerates, the same is being done by the Chief Accounts Officers.
3. Pre-audit of refund exceeding the amount of Rs. 5 lakhs was laid down in Board”s Circular No. 33/90-CX.9 dated 13.9.1990 only with a view to check improper sanction & payment of refunds involving huge amounts. This Circular did not dispense with the verification of the refund vouchers and the re-conciliation of refunds by the Chief Account Officers.
4. In view of above, this is reiterated that irrespective of the pre-audit/ post-audit of the refunds by the Internal Audit, the verification & re-conciliation of refund vouchers shall continue to be done by the Chief Accounts Officers.