Date 2-Jun-1998 Issuing Authority Central Excise
Circular Number 399/32/98 Authority Type Circular
Subject Self assessment

Circular No. 399/32/98-CX
dated 2/6/1998
F.No. 201/04/98-CX.6
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi
Subject:    Central Excise - Scrutiny of returns under self assessment - Instructions regarding.

        Attention is invited to Board's Circular No. 249/83/96-CX.6 dated 11.10.96 issued from F.No. 206/01/96-CX.6 regarding introduction of self assessment. In these instructions it was prescribed, inter alia, that Additional Commissioners/ Deputy Commissioners should scrutinise RT-12 returns of units paying annual revenue of Rs. 5 crores and above. They would visit the Range Office and select at random at least one T-12 return of each such unit for scrutiny by them once in every six months to check the various points.

2.    The matter has been re-examined by the Board. It is observed that the number of units paying revenue of Rs. 5 crores and above from P.L.A. is approximately 1000 and they contribute about 72% of the total revenue in a year. The Board feels that there should be involvement of senior officers in verification of scrutiny of assessment done by the Range Officer. It has been therefore, decided by the Board that the Commissioners would henceforth assign the units paying revenue exceeding Rs. 5 crores per annum from P.L.A.. be responsible for verification of the correctness of scrutiny of returns once in six months and Commissioner will monitor this work personally. It is further desired by the Board that no Show Cause Notice should be issued to these units without the approval of the concerned Additional Commissioner/ Deputy Commissioner. With these measures it is expected that there would be least chances of any short assessment of duty/ wrong availment of modvat credit.

3.    The instructions in Circular No. 249/43/96-CX dated 11.10.96 stand modified to the above effect only. Please ensure that these instructions are followed strictly.

4.    A report regarding action taken in the matter may be submitted to the Board by 30.6.98.

(P.K. Sinha)
Under Secretary to the Government of India

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