1. The Audit Commissionerate comprises of the following sections:
(i) Planning and coordination section:
To schedule and to provide support in conduct of Monitoring Committee Meetings (MCM); to maintain and to keep
a copy of assessee master file and update it in coordination with the audit groups of circles; to maintain
records/registers; to submit reports; to look after formation/constitution of audit groups; deployment of officers,
matching skills with audit requirement; to maintain database of officers’ profile; to monitor training needs of
officers; to plan the audit schedule in such a way as to make optimum use of available resources and ensuring
proper desk review before commencement of audit etc.
(ii) Administration, Personnel & Vigilance section:
To look after administrative matters, transfer, leave, allowances, budgetary grants, vigilance matters etc.
(iii) Technical section:
To attend to draft show cause notices, audit follow up, court cases, and maintain Board’s circulars, instructions
(iv) Risk Management and Quality Assurance section:
To attend to risk based selection of units, use of third party source of information, to maintain Audit database of
units to be audited, to identify themes/issues for audit, to evaluate and scrutinize working papers and to look
after the work related to performance appraisal and quality assurance etc., and to implement the risk based
selection advisory received from DG (Audit) and carrying out selection of units after applying local risk
Actual conduct of audit and subsequent follow up till the logical conclusions of the audit objections approved in
MCM by issuance of SCN up to AC/DC level , forwarding of draft SCN of the competency level of above AC/DC
along with relied upon documents or by recovery. In case of non-metro cities and in cases where Circles are
situated at a distance from Headquarters, one stationary MIS group will look after the work relating to Planning
Constitution and Functions of an Audit Commissionerate:
I. To ensure selection of assesses/taxpayers, to be audited during the year, on the basis of risk assessment in consultation with the Directorate of Audit, after applying local risk factors.
II. To approve the Desk Review and Audit Plan, in respect of top 5 assesses/taxpayers of each audit circle mentioned in the Annual Plan for audit coverage, after ensuring that all the steps have been completed and review of a few draft plans approved by the ADC/JC to ensure quality of audit.
III. To hold either circle-wise (or any number of circles together as deemed necessary), Monitoring Committee Meeting (MCM), once a month to take decision about the acceptability of all audit objections and to determine as to whether larger period is inviolable in respect of the accepted objections.
IV. To ensure that MCM is held by using the offline Audit Report Utility and no paper based audit report is prepared. Also to ensure that after the MCM, each Audit Report Utility is uploaded in ACES
V. To liase with DG (Systems) to ensure that EDW data and ACES data is available to the auditors
VI. To ensure that requisite follow-up action i.e. recovery, issue of show cause notice is taken.
VII. To review audit performance and to take steps for improvement.
VIII.To take remedial measures based on the report of audit group on performance appraisal and quality assurance.
IX. To review the performance and participation of the Additional/ Joint Commissioner and Deputy/ Assistant Commissioner of audit circles.
X. To interact with the major assesses/trade associations, to obtain feedback on the audit system.
XI. To assess the training needs of the auditors and organize training programmes.
XII. To submit periodical reports to various formations including Zonal ADG (Audit) or Director General (Audit) as prescribed from time to time.
XIII.To order special audit in terms of Section 14AA of the Central Excise Act, 1944, and Section 72A of the Finance Act, 1994, on his own or on the basis of a reference received from the Executive Commissioner.
XIV.To send a list containing details of show cause notices issued by the Audit Commissionerate (including Circles), during the month, to each of the Executive Commissionerates, on monthly basis.
XV.To ensure CAAP audits are conducted in respect of assesses/taxpayers maintaining records in electronic formats.
XVI.In cases where further investigation is required, the matter may be forwarded to the Executive Commissionerates with a self-contained note for further investigation and necessary action like recording statements under summons etc.,
Role of senior officers of Audit Commissionerate
I. Co-ordination, planning and overall management of the audit sections and circles including supervision of work relating to theme based audit, audit of MLUs/MLSPs etc.
II. To approve the desk review and audit plan, in respect of all the large and medium units, other than the top 5 units that are to be approved by the Commissioner, after ensuring that all the steps have been completed.
III. To review audit plans approved by the Deputy/Assistant Commissioners of circles, in respect of small units.
IV. To interact with large assesses/taxpayers at the time of audit in order to share major audit findings and compliance issues.
V. To organize training programmes for auditors.
VI. To review the follow-up action.
VII. To make correspondence with Executive Commissionerate for follow up of pending audit Paras admitted in writing.
VIII.To ensure selection of units for audit as per the risk based list received from DG (Audit) and to provide justification for tweaking the lists.
IX. To ensure that the Audit Report Utility is used in MCM and the reports are uploaded in ACES and no paper based audit reports are prepared
X. To ensure scrutiny of NIL DARs in the audit circle
2.2 Additional / Joint Commissioner
To supervise the work relating to the respective sections of Headquarters viz., Planning and Co-ordination Section, Administration, Personnel and Vigilance Section, Technical Section and Risk Management and Quality Assurance Section and theme audit. To ensure that the Audit Report Utility is used in MCM and the reports are uploaded in ACES and no paper based audit reports are prepared
2.3 Deputy/Assistant Commissioners in-charge of Sections of Audit Commissionerate Headquarters
I. Co-ordination, planning and overall management of the audit circle.
II. To monitor maintenance of assessee master files and registers.
III. To approve the desk review and audit plan, in
IV. To interact with assessees/taxpayers at the time of audit in order to share major audit findings and compliance
V. To issue show cause notices answerable to Deputy/ Assistant Commissioner of the Executive Commissionerate
under intimation to Audit Commissionerate Hqrs.
VI. To prepare and forward draft show cause notices, answerable to Joint/Additional Commissioner and
Commissioner, to Audit Commissionerate Headquarters.
VII. To approve and issue draft audit reports before attending the MCM meeting.
VIII.To issue final audit reports after approval in the MCM meeting.
2.4. Deputy/Assistant Commissioners in-charge of Circles:
Auditor means ‘a Central Excise officer entrusted with the responsibility of conducting an audit’.
3.1. Role of the auditor
While conducting audit, the auditor is required to carry out his duties with utmost sincerity, integrity and diligence. The auditor has immense responsibility in detection of non-compliance, procedural irregularities and leakage of revenue due to deliberate action or ignorance on the part of the assessee/taxpayer. At the same time, the auditor keeps in view, the prevalent trade practices, the economic realities as also the industry and business environment in which the assessee/taxpayer operates. Therefore, the auditor takes a balanced and rational approach while conducting the audit. Besides, the auditor is expected to play a key role in promoting voluntary compliance by the assessees/taxpayers. During the course of the audit, if certain technical infractions, without any revenue implications, arising due to bona fide oversight or ignorance of the assessee/taxpayer, are noticed, the assessee/taxpayer is guided for immediate correction. Such cases are also mentioned in working papers. The auditor should also apprise the assessee/taxpayer of the provisions of the Central Excise Act, 1944 and Finance Act 1994 relating to applicability of interest and encourages him to take advantage of those provisions in order to avoid disputes and litigation. The auditor apprises the assessee/tax payer of the provisions of Section 11A (1) (b) [Section 11 AC (1) (c)] of the Central Excise Act, 1944/Section 73(3) (Section 78(1)) of the Finance Act, 1994 and encourages the assessee/tax payer to make payment of the duty/tax dues before issue of show cause notice.
3. Definition of Auditor
3.1.1 The audit process is transparent and all the findings should be intimated to the assessee/taxpayer in writing and an opportunity is given to the assessee/taxpayer to give his explanation before an objection is finalised and consequential action is initiated.
3.1.2 The auditor should take into account the explanation from the assessee/taxpayer regarding all points of dispute, before taking the final view. If necessary, the auditor should contact his supervising Assistant/Deputy Commissioner to ensure that the views taken by him are consistent with the law and the latest instructions.
3.1.3 An auditor is responsible for conduct of audit and endeavours to take a final view on all issues raised by him during that audit. The auditor documents all of his audit findings in the working papers so that a record of steps leading to an audit point is available. The working papers for each of the step of audit are filled in as soon as that step is completed.
3.2.1 The objective of the Central Excise Department is to collect correct amount of duties/taxes levied under the Central Excise/Service Tax Law in a cost effective, responsive, fair and transparent manner and also to maintain public confidence in the system of tax collection. This is reflected in the auditor’s conduct and attitude. The auditor is bear in mind that he is one of the critical channels of communication between the department and the assessee/taxpayer after the liberalisation of procedural controls.
3.2.2 The auditor establishes and maintains a good professional relationship with the assessee/taxpayer. The auditor recognises the rights of the assessee/taxpayer, such as, the right to impartial, uniform and transparent application of law and the right to be treated with courtesy and consideration. The auditor explains that the tax compliant assessees/taxpayers stand to gain from such an audit in as much as: -
i. they will be better equipped to comply with the Laws and the relevant Procedures;
ii. the preparation of prescribed returns and self-assessment of Central Excise duties and Service Tax will be focussed better, correct and complete;
iii. the scrutiny of business accounts and returns submitted to various agencies, made in the course of audit will remove any deficiencies in their accounting and internal control systems;
iv. disputes and proceedings against them would be substantially reduced or even eliminated
3.2.3 Confidentiality maintained in respect of sensitive and confidential information furnished to an auditor during the course of audit. All records submitted to the audit parties in an electronic or manual format, are used only for verification of levy of excise duty/service tax or for verification of the tax compliance. These are not used for any other purposes without the written consent of the assessee. The confidentiality is maintained to secure the trust and co-operation of the assessee/taxpayer
3.2. Dealing with the public
The cadre wise powers and duties are listed below:
1. Commissioner of Central Excise, Audit- I
The Commissioner is the Head of the Commissionerate. He/she has Executive powers of audit targeted month wise every year. The Commissionerate is subject to inspection by the CBEC, Chief Commissioner, Directorate of Inspection and Accountant General. The Commissioner is also responsible for the proper conduct of the Officers working in the Commissionerate by exercising the powers conferred with him/her.
2. Additional/Joint Commissioner of Central Excise:
An Officer in the rank of Joint Commissioner of Central Excise is deployed in thesees Commissionerate, designated as Joint Commissioner (P & V). In addition, he/shee supervises and has control over the following Sections that report to her/him.
i. Planning and coordination section
ii. Administration, Personnel and Vigilance section
iii. Technical section
iv. Risk Management and Quality Assurance section
PROCEDURE FOLLOWED IN THE DECISION MAKING PROCESS, INCLUDING CHANNELS OF SUPERVISION AND ACCOUNTABILITY:
DECISION MAKING PROCESS:
A case/issue/matter is seen at the inward Tapal stage by an Officer not below the Rank of Superintendent of Central Excise. It is assigned to the concerned internal branch/Officer who takes up for examination and processing. The issue, facts, provisions of law with suggested solution are proposed after due process by the Superintendent of Central Excise / Administrative Officer assisted in the work by respective staff; the pros and cons are weighed by an in depth study of the relevant provisions of law including case laws. Detailed File Notes are drawn and put up to the concerned Officer for his decision/direction. In certain cases, where the issue involved is beyond the scope of the written Rules, Sections, like Policy matter or issue requiring amendment to law, the matter is brought to the notice of the Central Board of Excise and Customs, New Delhi through the Chief Commissioner of Central Excise for clarification / decision. All decisions taken are communicated to the concerned parties.
CHANNELS OF SUPERVISION:
The first Supervisory Officer is the Superintendent / Administrative Officer and the highest Supervisory Officer is Principal Commissioner. The overall Control / Supervisory power is vested with the Principal Commissioner. All the work done at the Commissionerate level is subject to inspection by the Assistant/ Deputy Commissioner, Joint Commissioner, Addl. Commissioner, Principal Commissioner, Chief Commissioner, CBEC, and Directorate of Inspection and Accountant General, as the case may be.
All Officers from Group - D the lowest rank of sepoy to the highest rank of Commissioner is accountable for the responsibility entrusted to him/her.
POWERS AND DUTIES OF OFFICERS AND EMPLOYEES
All Officers from Group - D the lowest rank of sepoy to the highest rank of Commissioner is accountable for the responsibility entrusted to him/her.
(iv) NORMS SET BY IT FOR THE DISCHARGE OF ITS FUNCTIONS
Norms for Audit:
All units paying revenue of more than 1 Crore are audited once in a year. Other units are audited depending on the nature of the product, revenue, and availability of man power.
(v) Rules, regulations, instructions, manuals and records, held by it or under its control or used by its employees for discharging its functions
a) Central Excise Act 1944
b) Customs Act 1962
c) Finance Act 1994(for Service Tax)
d) CBEC Manual of Supplementary instructions on Central Excise and Customs.
e) Circulars issued by the CBEC.
f) Instructions issued by the CBEC.
g) Notifications issued by the Ministry of Finance on Excise and Customs Matters.
h) Record of registrations
i) Record of revenue realized
j) Record of show cause notices issued
k) Record of audit objections raised
(vi) A statement of the categories of documents that are held by it or under its control:
a) Records of inspection and audit
b) Records of Vigilance matters
c) Records of Receipts and Expenditure Accounts
d) Records of Service Books
e) Records of Establishment matters
f) Records of Administration
g) Records of Stores & Stationery
h) Records of Welfare matters
i) Records of Audits conducted and discrepancies noted
(vii) The particulars of any arrangement that exists for consultation with, or representation by, the members of the Public in relation to the formulations of its policy or implementation thereof:
(viii) Statement of the boards, councils, committees and other bodies consisting of two or more persons constituted as its part or for the purpose of its advise, and as to whether meetings of those boards, councils, committees and other bodies are open to the public, or the minutes of such meetings are accessible for public.
(x) MONTHLY REMUNERATION RECEIVED BY EACH OF ITS OFFICERS AND EMPLOYEES, INCLUDING THE SYSTEM OF COMPENSATION AS PROVIDED IN ITS REGULATIONS:
The Officers and the employees in The Office of Commissioner of Central Excise (Hqrs. Chennai) are being paid monthly Remuneration in their respective Level-scale of pay as mentioned below and the allowances as applicable.
Sl.No Name of the Post LEVEL Scale of Pay
1 COMMISSIONER 14 144200-218200
2 ADDITIONAL COMMISSIONER 13 118500-214100
3 JOINT COMMISSIONER 12 78800 -209200
4 DEPUTY COMMISSIONER 11 67700 -208700
5 ASSISTANT COMMISSIONER 10 56100 -177500
6 SUPERINTENDENT OF CEx 8 47600-151100
7 ADMIN OFFICER/INSPECTOR OF CEx 7 44900-142400
8 EXECUTIVE ASSISTANT 6 35400 -112400
9 TAX ASSISTANT 4 25500-81100
10 LOWER DIVISION CLERK/HEAD HAVILDAR 2 19900-63200
11 HAVILDAR/MTS 1 18000-56900
(xii) The manner of execution of subsidy programmes, including the amounts allocated and the details of beneficiaries of such programmes:
There is no subsidy programme.
(xiii) Particulars of recipients of concessions, permits or authorizations granted by it:
There are no concessions, permits or authorizations available in generic sense of the term.
(xiv) Details in respect of the information, available to or held by it, reduced in an electronic form:
1. Revenue collection from each manufacturer
2. List of manufacturing units/ Audited unit
5. List of employees.
(xv) The particulars of facilities available to citizens for obtaining information, including the working hours of a library or reading room, if maintained for public use:
1. One library is maintained.
2. Any information, in general, can be obtained from Public Relation Officer of the Commissionerate. In case of non-routine matters, the same can be obtained from the concerned Supervisory Officer not lower in the rank of Assistant Commissioner of Central Excise and/or the Principal Commissioner of Central Excise.
(xvi) The names, designations and other particulars of the Public Information Officers:
Audit Hqr./circle : Audit I
Name of CPIO : Smt. Prameela Rose
Designation : Assistant Commissioner
Contact No : 044 26152944
E-mail id : A.firstname.lastname@example.org
Address : No.1775, Jawahar Lal Nehru Inner Ring Road
Anna Nagar West Extension, Chennai 600 101
(i) ORGANISATION, FUNCTIONS AND DUTIES
Name of the Organisation:
GST and Central Excise Audit - I Commissionerate, Chennai
Established in: 22nd June 2017
Organisational Structure of Audit - I Commissionerate