Excise Audit

1) excise audit is executed at manufacturer premises for 5 days , leaded by 2 inspectors, 2 supers and 1 AC

2) revenue reconcilation is most important factor during excise audit, so every entry in books of accounts must match the ER-1 and other excise records maintained, if any deviation is there, then it must be supported by documents.

3) input/output norms must be in standard theory, and if any deviation is found then it must be supported with reasonable facts with documentary evidence. 

4) all input credit taken on transporter copies, every transporter copy must be available for excise audit. 

5) audit party will chek service tax chapter too, ST-3 returns, and service tax applicable on GTA, or imnport of services. 

Please share some practical examples.

Dear Tanu & JMD

I am very much agree with Mr. U.S. Sharmaji. Apart from that I wish to share some more informations with you.

There are total two excise audits from excise point of view i.e.Departmental Audit under the purview of EA-2000 and CAG (CERA) Audit. Before starting of an audit each excise team will intimate you of their audit program. You have keep ready following documents .

1.Revenue Chart of last three years showing PLA/Cenvat Ratio 2.Organisation chart 3.Sales pattern of your company 4.Manufacturing Process 5.All Excise and Service tax returns with payment challans 6. Sales Records 7. Cenvat Records 8. Proof of Export 9. All excise intimations 9. List of records as declared by you as per Rule 22. 10.Daily Stock Register etc.

Further for your knowledge, I am enclosing a PDF file on subject of excise audit.

Hope this will clarify all your querry on Excise Audits.

Regards

Harendra SIngh Negi