Cbec To Audit All Units Paying Rs 1-Crore Plus Duty

The Central Board of Excise and Customs (CBEC) has decided to conduct yearly audit on all the units paying Rs 1 crore or more excise duty in a financial year, instead of the selective audit. It will help improve compliance, sources said.

The board has asked the commissioners to ensure coverage of all the units paying Rs 1 crore or above excise duty by the end of the financial year.

The audit of units paying excise duty between Rs 10 lakh and Rs 1 crore in a financial year will now be done once in two years.

The selection of units in this category will be prioritised by taking into account various risk factors, they said.

 

The units to be audited first will be those assigned the highest risk due to the risk-prone nature of a commodity, exemptions or partial exemptions or conditional exemptions of duty, trade pattern relating to valuation, trend in CENVAT availment and revenue trends or any such factor specified by the directorate-general (Audit).

The board, sources said, will further analyse the outcome of audit of these units and the methodologies of selection based on