Excise Show-Cause Prompts Tisco To Seek Re-Audit

Tata Iron & Steel Co (Tisco), recently slapped with a show-cause notice from the central excise department for alleged duty evasion in excess of Rs 45 crore, will shortly be asking the department for a re-audit of the entire price invoicing. The notice pertains to the period between 1992-97.

According to sources it is felt that the entire allegation is unjustified as it has been made on the basis of faulty auditing by the department. "Excise duty payments, while auditing the price invoices in some instances, seem to have been left out. Errors in transcription are also believed to have been ignored," a source pointed out.

The company will soon write to the department on these, requesting it to undertake a thorough recheck of the auditing process and a fresh look at the case. The show-cause notice was received by the company about a fortnight ago. Tisco will therefore not be entitled to take recourse to the Kar Vivad Samadhan scheme, in force till the year-end, which provides amnesty against litigation in excise and income tax cases. It is believed that a recheck of the auditing process will substantially bring down the quantification.

The company's annual report for 1997-98 mentions that in respect of income tax, wealth tax, customs duty and excise duty, there were no amounts outstanding as on March 31, 1998, which have remained unpaid for more than six months from the date on which they became payable. In respect of sales tax collected or deemed to be collected, the report stated, there are no outstandings as on March 31, 1998, for a period of more than six months from the date on which they became payable except for collections which are refundable to customers because they have been made in excess or which have been made pending receipt of the relevant certificates from the customers.