Visits of Central Excise Officers (Service Tax Cell) to the premises of assessee for conducting Audit - Service Tax - 42-CE/Service Tax/TECH/BOL/97

Attention is invited to this Comm tte Trade Notice No. 52/CE/TECH/BOL/ST/94, dated 21-7-1994 ( Circular No. 1/1/94, dated 29-6-1994 ) [See under 1994 (72) E.L.T. T28] under which it was decided that no visits should be made by the Central Excise Officers to the premises of the assessees of service tax for carrying out any routine checks. Feedbacks have since been received from field formations regarding visits by the Central Excise Officers to the premises of assessees of service tax for carrying out any routine checks and audit by the internal audit wing of Central Excise department to ascertain whether the assessee is functioning in conformity with the law. The issue is being considered for some time past and it has been decided that - (i) Visit for purposes of verification of mistake under Sec. 74 of Finance Act, 1994 may be conducted by the Service Tax Cell with prior approval of the Commissioner (Central Excise) once in every two years; (ii) Audit of accounts/records relating to Telephone, insurance and stock brokers shall be conducted once a year; (iii) For auditing accounts/records of stock brokers the following norms may be applied : (a) Stock brokers who pay Service Tax not exceeding Rs. five lakh per annum - 10% of such registered stock brokers shall be selected and 10% selective check of their documents be conducted. (b) Stock brokers who pay service tax exceeding Rs. five lakhs but not exceeding Rs. fifty lakhs per annum 20% of such stock brokers shall be selected and 10% selective check of their documents be conducted. (c) Stock brokers who pay service tax exceeding Rs. fifty lakhs per annum - 50% of such brokers shall be selected and 20% selective check of their documents be conducted. The trade notice No. 52/CE/TECH/BOL/ST/94, dated 21-7-1994 stands modified to the above extent.