Issue Tracker-Excise

Perceived Risk

Risk Category

Sr. No.
Delay in Payment of Excise Duty/ Inaccurate High
computation of Duty/ Duty deposited in
wrong head.

1
Delay in Filling of Monthly Return/
inaccurate figures given in the return

High

Non maintenance of Stock Record (FP), PLA

Register, Cenvat Credit Register

High

Non Maintenance /Wrong Details of Raw

Material Purchased , Issued for production
Process, Closing Stock.

High

Wrong/Non availment of Cenvat Credit on

Raw Material Purchased , utilised on sale of
finished goods and closing balance.

High

Non maintenance/Wrong details of Capital

High
Goods purchased on which Excise duty
Credit will be cliamed in the term of Cenvat
Credit.
Wrong/Non availment of Cenvat Credit
High
availed on Purchase of capital goods on sale
of finished Goods and closing balance.

8
9

Delay in updation of RG 1

High

Wrong detail of Quantity etc of finished

goods and scrap in RG-1

High

Non filing of return of receipts of &

Consumption of "Principal Inputs"

High

goods sent on job work not returned within

180 days.

High

Annual Financial Statement

Medium

Annual Installed Capacity

Medium

Non payment of duty on sale of capital

goods after use

High

Wrong/Non availment of Cenvat Credit on

Input Services.

High

10

11

13

14

16
17

Key Control / Process

Requirement

Audit Steps
(Review & Observe)

Must be deposited
5th(Mannual)/6th(Electronically)
of following month. (Rate must
be of Date of Removal)

Tracking with the help of Challan

GAR.7 or Electronic Receipts in case
of duty deposited electronically.
Date of removal be checked by :
Stock register, Invoce Date ,
Outward Register and ERP Records.
Account Head w.r.t to Excise Manual.

Must be Deposited 10th of the

following month. [ER-1]
comparison of ER-1 with ERP
Records, stock register and TTs
issued by production
department.

Check whether the return filled

within the time limit or not. Inter
EOU Transfer to be checked for
Deemed Export point of view, Raw
materials input details must be
compared with ERP details.

Must be in prescribed form and

available for 5 years, First and
Last page duly authenticated
By assessee or on his behalf,
Production and Removal date
be there and PLA Register &
CCR Register duly prepared.

Check that whether the requirement

of Act in relation the documentation
Complied or not.

Must be in RG-23 A part I

Check the reconciliation of Raw

material purchased w.r.t to goods
received notes.

Must be in RG-23 A part II

Balance of register must be tallied

with books of Accounts. Tally the
entries with Invoices.

Must be in RG- 23 C Part I

Check RG-23C Part-1 with the

corresponding invoices and FAR.

Must be in RG- 23 C Part II

Check that use of Cenvat Credit

accounted properly.

RG-1 should be updated on

daily basis.
RG-1 should show the correct
picture of stock.

Randomly check the RG-1.

Check RG-1 with sale invoices and
production report.

Rule 9A(3) CCR 2004 Assesscee Check that compliance must be

Paying Total Excise Duty
ensured.
(PLA+CCR) Rs. 100 Lak and
above. AND manufacturing of
Specified Goods. Must be Filled
with in 10 days of following
month. [ER-6]
As per Rule 4 (5) & (6) goods
Check the control to ensure that the
sent to job worker as such or
goods are returning in 180 days and
partial processing should return otherwise duty is being paid timely.
within 180 days. Otherwise duty
will be paid.

As per Rule 12 of CER 2002

statement must be filled by 30
Nov.of the following Financial
year.[FORM ER-4]

Compliance must be ensured.

As per Rule 12 of CER 2002

statement must be filled by 30
Apr.of following financial year.
[FORM ER-7]

Compliance must be ensured.

Duty should be paid after

deducting 2.5% of duty for use
in each quarter.

To check the detail of sale of capital

goods and duty paid thereon.

Input Service Tax Register

To check the Input Service Tax

Detail.

Implication

Sample Size
(if required)

Interest @13% p.a will be charged on the

Outstanding Amount (From due date till date
of payment). Penalty May also be levied by
concerned authority.

Residual Penalty Rule 27 of Central

Excise Rules is a residual penalty, which is
that for breach of any excise rule, if no
penalty has been prescribed, the penalty
would be Rs. 5,000 plus confiscation of
goods in respect of which offence has
been committed. [The rule does not use
the word notification. Hence, it can be
argued that no penalty can be imposed for
violation of provision of any notification].

100%

As Given Above

100%

100%

100%

100%
100%

Inputs From
Manager

Observation

Remarks

100%

Penalty upto 5000/-

100%

Penalty upto 5000/-

100%

Recomondati Management
on
Action

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Medium

Low

Discussed

Not-Discussed