AUDITS UNDER CENTRAL EXCISE

     (I) Valuation Audit under section 14A  :  In cases of disputes related to value declared by manufacturers , section 14 A empowers the Excise Department to conduct special Audit. The important provisions are-

• Audit to be directed by AC/DC if value is not properly declared by the assessee
• Nominated Cost/ Chartered Accountant has to submit Audit Report to Central Excise Officer within a period not exceeding 180 days including extensions ,from the date on which the manufacturer received direction for Audit.
• Accounts to be audited even if they have been already audited under any other law
• Opportunity to the assessee of being heard;
• The expenses of such Audit shall be borne by the department.

            (II)Excise Audit 2000’:

Excise Audit 2000 is a modern, transparent and interactive method of audit wherein the auditor proceeds with audit fully conversant with the business of the assessee. On his part, the assessee is given full opportunity to explain his stand in any particular manner so that matters are resolved in full appreciation of legal position hence it is also known as Participative Audit.