Government of India
Ministry of Finance
Central Board of Excise & Customs, New Delhi
Subject: Participation of Additional/Deputy Commissioners in Internal Audit of Units paying duty over Rs. 5 crores annually or availing Modvat Credit over Rs. 1 crore – Reg.
I am directed to say that in the context of Self Assessment and Selective Audit Systems which are currently being followed in the Central Excise. It is imperative to have substantially increased participation of the senior officers in the work of audit. Test audit is also being undertaken on the basis of the New Draft Audit Manual and Draft Audit Programme. In this regard, attention is drawn to Parts (4) (iii) of Part-I of the Central Excise Audit Manual, the contents of which is reproduced below:-
“Factories which yield annual revenue of Rs. 5 crores and above or those availing MODVAT credit of Rs. 1 crore and above annually should be visited by the Additional Commissioner/ Dy. Commissioner when the audit of the factory be an audit party is in progress. In addition, suspected units manufacturing commodities with particularly intricate complexities etc. may also be visited by the Dy. Commissioner (Audit).”
2. The Commissioners should impress upon the Additional/Deputy Commissioner (Audit) to actively participate in auditing of large units and to ensure that audit of units paying revenue exceeding Rs. 5 crores per annum or units availing Modvat credit over Rs. 1 crore per annum should be done under their direct supervision.