Circular No. 437/03/99-Central Excise

dated 20/1/1999

F.No. 206/03/99-CX.6
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi

Subject: Central Excise – Increased and optimal utilisation of the services of Assistant Directors (Cost) – Regarding –


With the introduction of Selective Audit, it is imperative to provide professional edge and necessary expertise to the Internal Audit System of the Commissionerates to ensure a systematic, scientific and in-depth auditing. The new Audit Manual, the New Audit System and the concept of “Audit Protocol” are at advanced stages of formulation/ development for being incorporated in the functioning of Central Excise Department. It has been envisaged that under an “Audit Protocol” a unit will be audited by the AD (Cost) wherever they are posted or their services are available. In this changed scenario, the services of Assistant Director (Cost) must be utilised to the maximum to make the Selective Audit System more effective. It has, however, been noted that there are many Commissionerates with whom no AD(Cost) is posted.

2. In view of the above, the following decisions have been taken by the Board:

1. The Assistant Director (Cost) should be usefully involved in the conduct of internal audit, especially in the auditing of major multi-locational units or units/assessees who pay Central Excise duty exceeding Rs. 5 crores or whose who pay Central Excise duty exceeding Rs. 5 crores or whose records and transactions are of complex nature or where the regular Audit Team finds that the professional help is necessary; and

2. The services of an Assistant Director (Cost) can be utilised by other Commissionerates within the zone of a Chief Commissioner, with whom no AD(Cost) is posted, may send his requisition specifying the reasons and approximate period for the services of AD(Cost), to the Chief Commissioner of the zone. The Chief Commissioner will allot the services of AD(Cost) for a reasonable period in consultation with the Commissioner with whom the AD (Cost) is posted. The latter will spare a minimum of 7 working days in a month for sharing of the services of AD(Cost) with other Commissionerates of a zone.

(P.K. Sinha)
Under Secretary (CX.6)

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