INTRODUCTION - Central Excise and Service Tax Audit Manual - CBEC - Service Tax

CHAPTER 1 INTRODUCTION 1.1 Purpose: 1.1.1 The purpose of this manual is to outline the principles and policies of audits conducted under the Central Excise Act, 1944, the Finance Act, 1994 and the Rules made there under. Guidelines provided herein are intended to ensure that the audits of Central Excise and Service Tax assessees and taxpayers are carried out in a uniform, efficient and comprehensive manner, adhering to the stipulated principles and policies. 1.2 Scope: 1.2.1 The manual covers subjects that are related to principles, policies and special issues pertaining to conduct audit of Central Excise and Service Tax assessees and taxpayers. The manual does not deal with legal interpretations and rulings on Central Excise and Service Tax matters. 1.2.2 The manual does not contain answers to all the problems that may arise in the day-to-day audit work. In such cases, the auditor has to apply his mind, keeping in view the spirit of the principles and policies outlined in the manual. If needed, he may seek guidance from the supervisory officer. 1.3 Amendments 1.3.1 Future changes in the Central Excise Act, 1944 and the Finance Act, 1994 and the Rules made there under, administrative policies and procedures may require changes to this Manual. Experience gained during the conduct of audit would also necessitate periodic updating of the manual to maintain its utility. 1.3.2 The users are welcome to provide suggestions for the improvement of this Manual and to make its scheme and contents more useful. Suggestions may be forwarded to the Directorate General of Audit through the jurisdictional Principal Chief Commissioners/ Chief Commissioners. 1.3.3 Removal of difficulty Past guidelines and instructions on the subject stand modified to the extent they are in conflict with these guidelines. Difficulties faced, if any, in the implementation of above instructions may be brought to the notice of DG (Audit) at an early date. The Principal Chief Commissioners and Chief Commissioners are authorized to issue appropriate instructions, to be valid for temporary periods, to remove any difficulty in conduct of audits, which are important from the perspective of augmentation of revenue. 1.4 The Central Excise and Service Tax Audit Manual issues with the approval of the Board.