Thursday, December 11, 2014

AMENDMENT FOR TRADE NOTICE OF AUDIT COMMISSIONERATE OF CENTRAL EXCISE ZONE I MUMBAI

      Ref   : CESA/90/2014
                                                                                                           Date : 11.12.2014

Shri. V. S. Krishnan,
Hon’ble Chief Commissioner
Central Excise Mumbai Zone I,
Mumbai

Respected Sir,

            Sub: -  Request for amendment in the Trade Notice No. 1/C.E.X(Audit)/
                        10.11.2014  of Audit Commissionerate under Central Excise
                        Mumbai Zone – I – reg.

            In the recent Cadre Restructuring and reorganization of the Commissionerates, a new Audit Commissionerate has been created and it will work like a full-fledged Commissionerate.  The powers of audit officers have also been expanded and the work of issuance of Show Cause notices after completion the audit, is also entrusted.  To sum-up, more responsibility to check the pilferage of revenue has been entrusted on audit and this will henceforth be a vital limb of the Department. 
Board vide Circular No. 985/09/2014-CX issued under F. No. 206/03/2014-CX.6 dated 22.09.2014, had given guidelines on the set up of new Audit Commissionerate and how Audit Commissionerate will work.   As per Para 3.5  of Board’s Circular, the Circles have to be formed on the basis of some Divisions of one Executive Commissionerate or of entire Executive Commissionerate and not on either Commodity or Service wise. Similarly Groups will be allotted the Audit of large, medium and small units for Auditing purpose. If it so require, some function Oriented Audit Groups can be created to conduct theme /issue based Audit in particular sectors and for that purpose the groups can be sent for Audit in the entire jurisdiction of Commissionerate for that limited purpose only and  not otherwise. It cannot be construed or interpreted that the entire formation of Audit Commissionerate will be either commodity or service wise. 
           Accordingly in Central Excise Zone – II the Chief Commissioner has set up an Audit Commissionerate in their zone and issued Trade notice bearing no:2/2014 dated 21.10.2014.
In Central Excise Zone I Mumbai, Central Excise Audit Commissionerate was formed and Trade Notice No. 1/C.E.X(Audit)/10.11.2014 was issued.  It is observed that the said Trade Notice is not in accordance with the Board’s circular dt. 22.09.2014.  The
Central Excise Audit Trade Notice was issued on the basis of classification of the commodity manufactured by the units.  Accordingly 8 circles have been created splitting the entire array of goods mentioned in the Tariff.   
Sir, all the Audit Commissionerates, have been formed as per Board’s instructions as mentioned above, except in Mumbai Central Excise Zone I.  The ground reality and difficulties are that the units are having manufacturing activity of several commodities.  Thus if the proposed practice is followed then for the same period for the same unit several Audit officers will visit for conducting Audit, which is not the intention of the Board and definitely it will cause inconvenience and harassment to the Trade. Also there will be duplication of work of furnishing information in the form of assessee profile and unnecessary piling of papers and waste of manpower as for the assessees manufacturing various commodities, the assesses will have to face two or three different Audit teams for the same period which will lead to very unpleasant situation between the assesses and Audit teams and the department as a whole.
Further, Sir, the officer, who is responsible for Auditing one commodity, will have to traverse the entire jurisdiction of the Central Excise Zone to complete Audit of the said commodity, which is beyond the capacity and capability of a group comprising of Two Superintendents and One Inspector. The jurisdiction of Central Excise Audit Commissionerate, extends from Mumbai to Badlapur, Murbad, Kasara, Wada and Dhanau.  The officers have to depend on State Transport for moving to many of these places.  The very purpose of quality and quantity Audit will be totally defeated. 
CESA therefore requests to kindly amend the Trade Notice as per the Boards’ instructions which will be conducive as well as convenient to execute.   
Thanking you,
Yours Sincerely,



(A.  K.SASMAL)
 GENERAL SECRETARY

Copy to:  Hon'ble ADG (Audit), Mumbai, with a request to enforce uniformity in implementation of Board's instructions in this regard.       

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