EXciseIssue Tracker-ExciseHighSr. No.Perceived RiskRisk CategoryKey Control / Process RequirementAudit Steps(Review & Observe)ImplicationSample Size (if required)Inputs From ManagerObservationRemarksRecomondationManagement ActionMedium1Delay in Payment of Excise Duty/ Inaccurate computation of Duty/ Duty deposited in wrong head.HighMust 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.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.Low2Delay in Filling of Monthly Return/ inaccurate figures given in the returnHighMust 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.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%3Non maintenance of Stock Record (FP), PLA Register, Cenvat Credit RegisterHighMust 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.As Given Above100%Discussed4Non Maintenance /Wrong Details of Raw Material Purchased , Issued for production Process, Closing Stock.HighMust be in RG-23 A part ICheck the reconciliation of Raw material purchased w.r.t to goods received notes.100%5Wrong/Non availment of Cenvat Credit on Raw Material Purchased , utilised on sale of finished goods and closing balance.HighMust be in RG-23 A part IIBalance of register must be tallied with books of Accounts. Tally the entries with Invoices.6Non maintenance/Wrong details of Capital Goods purchased on which Excise duty Credit will be cliamed in the term of Cenvat Credit.HighMust be in RG- 23 C Part ICheck RG-23C Part-1 with the corresponding invoices and FAR.100%7Wrong/Non availment of Cenvat Credit availed on Purchase of capital goods on sale of finished Goods and closing balance.HighMust be in RG- 23 C Part IICheck that use of Cenvat Credit accounted properly.8Delay in updation of RG 1HighRG-1 should be updated on daily basis.Randomly check the RG-1.100%9Wrong detail of Quantity etc of finished goods and scrap in RG-1HighRG-1 should show the correct picture of stock.Check RG-1 with sale invoices and production report.100%10Non filing of return of receipts of & Consumption of "Principal Inputs"HighRule 9A(3) CCR 2004 Assesscee Paying Total Excise Duty (PLA+CCR) Rs. 100 Lak and above. AND manufacturing of Specified Goods. Must be Filled with in 10 days of following month. [ER-6]Check that compliance must be ensured.11goods sent on job work not returned within 180 days.HighAs per Rule 4 (5) & (6) goods sent to job worker as such or partial processing should return within 180 days. Otherwise duty will be paid.Check the control to ensure that the goods are returning in 180 days and otherwise duty is being paid timely.100%13Annual Financial StatementMediumAs 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.Penalty upto 5000/-100%14Annual Installed CapacityMediumAs per Rule 12 of CER 2002 statement must be filled by 30 Apr.of following financial year.[FORM ER-7]Compliance must be ensured.Penalty upto 5000/-100%Not-Discussed16Non payment of duty on sale of capital goods after useHighDuty 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.17Wrong/Non availment of Cenvat Credit on Input Services.HighInput Service Tax RegisterTo check the Input Service Tax Detail.

Author:It can never be in Negative balace used only upto credit available.Assessee paid excise duty 100 or above