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TMI BlogManner of scrutiny of ER-1 and ER-3 returns by the Proper Officer-regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... iny would be carried out in two stages viz. the 'scrutiny of return' and scrutiny of assessment. Both the stages should be completed within three months of the date of receipt of the return. 3. In the preliminary stage (to be called the 'scrutiny of return) all returns shall be scrutinized as per the checklist in Annexure 1 of this Circular. This would involve checking whether the information contained in the return is complete, prima facie, valid and internally consistent. For example, whether the 8-digist CETSH exists and if so whether the rate of duty is correctly mentioned. It would also involve checking the arithmetical accuracy of information contained in the return e.g. duty payment or the break-up of duty paid in cash and through C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... klist at Annexure-2 should be selected on priority over one that shows an abnormal trend only in respect of seven parameters. The results of the scrutiny should be recorded in the checklist proforma at Annexure-2 and duly signed by the Range Superintendent. A calculation sheet should also be annexed. The purpose or the details scrutiny to ascertain the correct reason for abnormal trends exhibited by the parameters. 7. In suitable cases, the proper officer may be required to call for documents/records for verification in terms of sub-rule (4) of Rule 12. In rare case, he may even be required to pay an assurance visit to the assessee's premises for which provisions exist in Rule 22 of Central Excise Rules, 2002. However, visits should b made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Joint Commissioner in charge of the Division will scrutinize the returns of units paying annual PLA revenue of more than Rs. 5 crores. Wherever necessary he shall requisition the connected documents including invoices and the records and scrutinize the correctness of assessment. A report of the number of returns scrutinized along with his comments shall be sent to the Commissioner latest by 15th of the month of such scrutiny. 12. In case where the scrutiny doe snot reveal satisfactory reasons for the abnormal trends noticed in respect of a return, a reference may be made to the Internal Audit Branch of the Commissionerate giving details of the abnormal trends and the findings of the scrutiny. Also in cases where the returns of the same ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable have been correctly calculated with reference to the rate(s) of duty and assessable value(s) shown in the return? : Yes/No 11. In case the rate of duty is specific, whether the amount of duty payable is correctly calculated with reference to the quantity of goods cleared and the applicable rate as shown in the return? : Yes/No 12. Whether the debits made from credit account and current account add up to the 'total duty paid' as shown in the return? 13. Whether copies of challans through which duty has been paid have been submitted with the return? : Yes/No 14. Whether the Opening Balance of CENVAT credit indicated in the return tallies with the Closing Balance indicated in the return for the previous month/Quarter? : Yes/No 15. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assification or applicability of effective rate passed by the adjudicating authority having effect on the rate of duty applicable to any product manufactured by the assessee? : Yes/No (v) If yes, whether the assessment is in accordance with the said order? : Yes/No (vi) If no, the reason for deviation : Yes/No 22. Audit Objections: (i) Is there any objection (IAD or CERA) relating to valuation or classification or rate of duty having recurring implications? : Yes/No (ii) If yes, whether protective demands have been issued as per the existing instruction? : Yes/No (23). Date of data entry of the return in the computer system cccccc 24. Whether appropriate action as been taken in respect of discrepancies/deficiencies noticed in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... response is 'Yes' Yes/No Name of the Superintendent Signature Date : ANNEXURE 3 I. Register of scrutiny and assessment of returns Financial Year __________________________ Range _______________________ Division _____________________ Commissionerate ____________________ II. Authority : Trade Notice __________ based on Board's Circular No. _______________ issued under F. No. _________ Date ___________. Name and Signature of Range Superintendent ________________________________________. III. INDEX Sr. No. Name of the assessee Page number (s) (1) (2) (3) IV. Page No .________ Name and address of the assessee ________________________________________________________________ ________________________________________ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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