Section 14A of the Central Excise Act provides that:-
If at any stage of enquiry, investigation or any other proceedings before him, any Central Excise Officer not below the rank of an Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or determined by a manufacturer or any person, he may, with the previous approval of the Chief Commissioner of Central Excise, direct such manufacturer or such person to get the accounts of his factory, office, depots, distributors or any other place, as may be specified by the said Central Excise Officer, audited by a cost accountant, nominated by the Chief Commissioner of Central Excise in this behalf.
Section 14AA stipulates that:-
If the Commissioner of Central Excise has reason to believe that the credit of duty availed of or utilised under the rules made under this Act by a manufacturer of any excisable goods—
(a) is not within the normal limits having regard to the nature of the excisable goods produced or manufactured, the type of inputs used and other relevant factors, as he may deem appropriate;
(b) has been availed of or utilised by reason of fraud, collusion or any wilful mis -statement or suppression of facts,
he may direct such manufacturer to get the accounts of his factory, office, depot, distributor or any other place, as may be specified by him, audited by a cost accountant nominated by him.
Now Finance Bill 2009 has amended these provisions to include Chartered Accountants along with the Cost Accountants to do this Audit job.
Naturally the Cost Accountants are piqued. And they want a similar amendment in the Income Tax Act.
Section 288 of the Income Tax Act defines an accountant as:-
An “accountant” means a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949)
Now they want Cost Accountants also to be included in the Income Tax definition of `accountant’ .