Accounting procedure approved by C.G.A. regarding Consumer Welfare Fund - Regarding - Central Excise - 313/03/90-CX. 10 (Pt. II)

Accounting procedure approved by C.G.A. regarding Consumer Welfare Fund - Regarding F. No. 313/03/90-CX. 10 (Pt. II) Dated 17-1-1992 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Accounting procedure approved by C.G.A. regarding Consumer Welfare Fund - Regarding. A Consumer Welfare Fund has been established in the Public Account of India, wherein the amount of duty of excise or, as the case may be, the duty of customs, which is not refundable to the manufacturer or importer or the buyer, or any other monies received for the purposes of the Fund, will be credited, in accordance with the provisions of Central Excise and Customs Law (Amendment) Act, 1991. The Fund will be utilised by the Central Government for the welfare of the consumers, in accordance with the rules framed in this behalf, under the said Act. 2. The accounting and budgetary arrangements for the transactions in respect of fund have been considered in consultation with the Controller General of Accounts and Comptroller General of Accounts and Comptroller Auditor-General of India and the procedure prescribed in this regard is as follows : (i) In the Public Account of India, the 'Consumer Welfare Fund' (CWF) may be opened as a distinct minor head below major head '8229 - Development and Welfare Funds', under sub-section 'Reserve Funds not bearing interest'. (ii) The amounts to be transferred to the CWF (referred to in the preceding sub-para), as provided under the Act do not constitute expenditure but in the nature of refund of revenue. These are to be taken out of (tax) revenue where these stand credited by debit to sub-head 'Deduct Refunds-Amount transferred to Consumer Welfare Fund', below the relevant minor heads under major heads 0037 - Custom's or '0038-Union Excise Duties', as the case may be. (iii) The expenditure to be met out of the CWF will be as per normal practice treated initially as expenditure from the Consolidated Fund of India to be accounted for under a distinct minor head 'Consumer Welfare Fund', under major head '3456-Civil Supplies'. This head will accommodate the direct expenditure of the government, including expenditure of union territories without legislature (Delhi, Chandigarh, etc.) and grants-in-aid to autonomous bodies and institutions Grant assistance to be provided to State and Union Territory Governments, out of CWF, may be classified under relevant sub-major and minor heads below major heads 3601-Grants-in-aid to State Government's and '3602-Grants-in-aid to Union Territory Government's as the case may be. (iv) The expenditure debited to the heads mentioned in the preceding sub-paragraphs will be simultaneously recovered from the CWF. The debits to CWF (under major head 8229'), on this accounts, may be adjusted by per-contra credit to sub-head 'Deduct-Amount', met from Consumer Welfare Fund' to be opened under minor head 'Transfer from reserve funds' below major heads namely, 3456, 3601 and 3602, as the case may be whereunder the expenditure has been debited earlier. In the Demands for Grants the provision will be made on a gross basis, the recoveries being shown "below the Line". 3. The Consumer Welfare Fund will be maintained in the books of the Ministry of Civil Supplies P.D. by the Controller of Accounts of that Ministry. The transfers to the Fund, in the Public Account of India, will be effected by the CA (Civil Supplies). The procedure to be followed in this regard will be as under : (i) The Pay Accounts Officer attached to each Central Excise Customs Collectorate will be designated to handle the transactions relating to refunds referred to in sub-para 2(ii) above, on the Department of Revenue's side. (ii) The authorities concerned under the Central Excise Act and the Customs Act, who are authorised to make refund of duties in respect of the amounts referred to in sub-para 2(ii) above, will not draw cheque/demand draft for the purpose but will issue a sanction in respect of the amounts falling due for refunds to the Pay Accounts Officer of the Collectorate, designated for the purpose. The PAO will collect the sanctions received by him in a month and draw a consolidated cheque/draft in favour of the Controller of Accounts, Ministry of Civil Supplies P.D., Krishi Bhawan, New Delhi under intimation to the Chief Controller of Accounts, Central Board of Excise Customs, Indraprastha Estate, New Delhi and debit the payment to the sub-head 'Deduct Refunds-Amount transferred to Consumer Welfare Fund' under the relevant receipt major and minor heads of account. (iii) These payments to the Controller of Accounts (Civil Supplies), for transfer to the CWF, may be made by the designated Pay Accounts Officers once every month, by the 10th of the month. (iv) On receipt of the cheques/drafts the CA (Civil Supplies) will put through necessary adjustments crediting the amounts to the CWF under major head '8229'. Every month after the close of the account, the CA will render a statement to the CCA (CBEC) indicating transfer to the CWF effected by him during the month, date-wise. The CCA (Excise Customs) will on the basis of the information available for transfer to the CWF have been duly transferred to the Fund by the CA (Civil Supplies). (v) The Controller of Accounts (Civil Supplies) will report monthly, for monitoring purposes, to the Department of Revenues the actual expenditure incurred on the intended purpose by the Ministry. 4. The expenditure to be met out of the Fund, as cleared by the Committee constituted for the purpose and finally approved for inclusion in the Budget, will be provided under the relevant functional major head, etc., in the Demands for grants of the Ministry of Civil Supplies P.D. The Statement of Budget Estimates in respect of these items of expenditure (with recoveries from the CWF) will be furnished to Budget Division by the Ministry of Civil Supplies P.D.s will invariably ensure that there is adequate credit balance in the CWF for covering the expenditure. 5. While furnishing to Budget Division the detailed estimates of tax revenue coming under major heads '0037' and '0038' CBEC will also indicate the amount that is included in the sub-heads "Deduct Refunds" which is not likely to be paid to the tax payers but which will be credited to CWF. A copy of this estimate of likely credit to CWF will also be sent to the Controller of Accounts, Ministry of Civil Supplies P.D. 6. The Controller of Accounts (CS) will include the receipts and outgoings in respect of the CWF in the consolidated estimates of Public accounts transactions of the Ministry of Civil Supplies P.D., which are to be furnished to Budget Division for inclusion in the Budget (cf. Budget Circular 1992-93). The outgoings will be equal to the provisions made for specified purposes in the Expenditure Budget (Demand for Grants). 7. The accounting and budgetary arrangements set out above will come into force with immediate effect.