Central Excise Law

Accounting-:

Accounts to be kept by assessee, Scrutiny of assessment return by officers with accounts-

1.Responsibility of the departmental officers is to scrutinize the self-assessment made by the assessee as reported in ER-1/2/3 returns and principal input-output co-relation annual return ER-5 (to be submitted by 30th April every year) and such monthly returns ER-6 (to be submitted by 10th of the following months) in the manner prescribed by the Board for verification of its correctness. The assessee shall make available to them all the required documents and records. Computerized project of CBEC i.e. Electronic Accounting System in Central Excise and Service Tax (EASIEST)[See 2006 (200) E.L.T.T-11] has come into force w.e.f 01.11.2006, based on 15 digits PAN based codes and location codes in order to facilitate the department to have duty/tax payment data transferred on line from banks to the Pay & Accounts Officer of the department.

2.The assesses are required to maintain private accounts on all important aspects (receipt, purchase, manufacture storage, sales or delivery of the goods including inputs and capital goods), including a Daily Stock Account (Rule 10 of the Central Excise Rules, 2002) and cenvat Account (Rule 9 of the Cenvat Credit Rules, 2004), authenticate the first and last page of each account, provide to the Range Officer Rules in duplicate a list of all the records, accounts and returns including all financial records and statements [Rule 22(2)], submit a monthly assessment-com-credit return to the Range Officer in respect of excisable goods manufactured in, and receipt of inputs and capital goods in, the unit in revised Form ER-1 (General/2(for export oriented units), alongwith PLA and TR-6 challans and monthly ER-6 principal input-output co-relation return, within ten days of close of the month (within 20 days of close of the quarter in Form ER-3 for SSI). Non-marketable defective goods are not required to be entered in statutory records—2011 (264) E.L.T. 323 (Uttarakhand). In the return, information about excisable goods manufactured by the assessee should be furnished based on the 6 digit sub-heading level of the CET and not on description of goods. Manufacturers of Pan Masala have to furnish in addition a statement based on purchase invoices for inputs and particulars and destination of buyers of Pan Masala and the quantity and value etc. of goods sold to each. The record should be preserved for 5 years after the close of financial to which the record relates. The record can also be kept electronically. In that case, print-outs (hard copies) should be taken out at the end of each month and kept in bound folders. All returns are required to be filed electronically from 01.10.2011 except assessee availing exemption under Notification No.49/2003-C.E. or No.50/2003-C.E., both dated 10.06.2003.