Circular No. 399/32/98-CX dated 2/6/1998
Central Excise - Scrutiny of returns under self assessment - Instructions
Attention is invited to Board"s Circular No. 249/83/96-CX.6 dated 11.10.96 issued from
F.No. 206/01/96-CX.6 regarding introduction of self assessment. In these instructions
it was prescribed, inter alia, that Additional Commissioners/Deputy Commissioners
should scrutinise RT-12 returns of units paying annual revenue of Rs. 5 crores and
above. They would visit the Range Office and select at random at least one RT-12
return of each such unit for scrutiny by them once in every six months to check the
"various points.
2. The matter has been re-examined by the Board. It is observed that the number of
units paying revenue of Rs. 5 crores and above from P.L.A. is approximately 1000 and
they contribute about 72% of the total revenue in a year. The Board feels that there
should be involvement of senior officers in verification of scrutiny of assessment
done by the Range Officer. It has been, therefore, decided by the Board that the
Commissioner would henceforth assign the units paying revenue exceeding Rs. 5 crores
per annum from P.I ..A. to the Additional Commissioners/Deputy Commissioners by name
who will be responsible for verification of the correctness of scrutiny of returns
once in six months and Commissioner will monitor this work personally. It is further
desired by the Board that no Show Cause Notices should be issued to these units
without the approval of the concerned Additional Commissioner/Deputy Commissioner.
With these measures it is expected that there would be least chances of any short
assessment of duty/wrong availment of modvat credit.
3. The instructions in Circular No. 249/43/96-CX dated 11.10.96 stand modified to the
above effect only. Please ensure that these instructions are followed strictly.
4. A report regarding action taken in the matter may be submitted to the Board by
30.6.98.
Sd/-
(P.K. Sinha)
Under Secretary to the Government of India
F.No. 201/04/98-CX.6
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