Excise and Service Tax audit by CERA, Central Excise

[Yatin Bhopi]

Dear expert

We have just received the letter from CERA audit Team for excise and service tax audit for last Three years. They have marked letter to our Excise Jurisdictional office and marked CC to us. From last 7-8 years there was no CERA audit conducted by department

Please go through below link about discussion on the subject matter.

https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=107253&kw=time-period-cera-audit&Search_text=cera%20audit

Please let me know whether can they do the audit legally?

Posts / Replies

[Ganeshan Kalyani]

Sir, the experts have discussed at length covering all aspects in the issue id referred by you. Thanks.

[KASTURI SETHI]

Audit will continue legally. Do not be victim of of 'the trap of words'. It is seen often High Court of any State strikes down CE Rules or Service Tax Rules. In spite of that the department continues as per law (Before being struck down) and thereafter, remedial measures are taken retrospectively. So get your audit conducted as usual. You will not get anything by challenging such letters of audit. No confrontation with the department is advised. This is practical advice.

Rest decision is yours.

[Ganeshan Kalyani]

Sir, during one of the audit I involved in, I observed that when assessee takes time in submitting the documents then the Auditor suspects the act of the assessee and as such the auditor insist to produce that document first. Therefore it is better not to create any such image by objecting audit unless out of law. Thanks.