RULE 94. Daily account of tobacco products manufactured

(1) Every manufacturer of excisable tobacco products including raw biri, whether loose, labelled or unlabelled, shall maintain proper records and shall enter in such account the following particulars, namely :-

(i) the weights, quantities and particulars of all tobacco and other materials and ingredients received by him for the purpose of being manufactured;

(ii) the weight and quantities thereof consumed in such manufacture;

(iii) the weight, quantities and particulars of tobacco, materials, ingredients, stalks, waste, and other refuse remaining after or caused by such manufacture;

(iv) the quantity of each product so produced;

(v) the quantity thereof made up into packets, wrapped, labelled and cleared from the factory, with the number of packets of each size or weight respectively.

(vi) receipt of raw biris from the contractors, sattedars or agents, quantity issued for grading or sorting, quantity of biris destroyed, quantity of tobacco recovered from damaged biris.

(2) Every assessee shall furnish to the proper officer, a list in duplicate, of all the records prepared or maintained by him for accounting of transactions in regard to receipt, purchase, manufacture, storage, sales or delivery of the goods including inputs and capital goods.

Explanation. -For the purposes of this rule, -

(i) the expression "records" shall include account, agreement, invoice, price-list, return, statement or any other source document, whether in writing or in any other form;

(ii) the expression "source documents" means all documents which form the basis of accounting of traI1sactions and include sales invoice, purchase invoice, journal voucher, delivery challan and debit or credit note.

(3) Where an assessee maintains or generates such records by using computer, such assessee shall submit the following information to the proper officer, namely :-

(i) documentation including policy and procedure manuals, instructions to record the flow and treatment of transactions through accounting system, from the stage of initiation to closure and storage;

(ii) account of the audit trail and inter-linkages including the source document, whether paper or electronic, and the financial accounts; and

(iii) record layout, data dictionary and explanation for codes used and total number of records in each field along with sample copies of documents and whenever changes are made in the aforesaid systems adopted by the assessee, he shall inform the proper officer and submit the relevant document.

(4) The assessee shall be responsible for keeping, maintaining, retaining, and safeguarding records.

(5) Every assessee shall, on demand make available to the Central Excise Officer or the audit party deputed by the Commissioner or the Comptroller and Auditor General of India, the following, namely: -

(i) The records maintained or prepared by him in terms of sub-rule (2); (ii) The cost audit reports, if any, under section 233B of the Companies Act, 1956 (1 of 1956);

(iii) The Income-tax audit report, if any, under section 44AB of Income-tax Act, 1961 (43 of 1961), for the scrutiny of the officer or audit party, as the case may be.

(6) Every assessee who is having more than one factory and maintains separate records in respect of every factory for the purpose of audit, then, he shall produce the said records for audit purposes.

(7) Where the Commissioner or the Comptroller and Auditor General of India decides to undertake the audit of the records of any assessee, the said assessee shall be given notice thereof at least fifteen days before the commencement of such audit. The audit party deputed for the purpose shall also call for in writing the records, which are required to be produced by the assessee, either before or during the course of audit.

(8) Every assessee, who maintains or generates his records by using computer, shall provide the required records in the form of tapes or floppies or cartridges or compact disk or any other media in an electronically readable format as specified by the Commissioner at the time of audit. The copies of records, so furnished, shall be duly authenticated by the assessee.

(9) All records submitted to audit party in electronic format shall be used only for verification of payment of duties of excise or for verification of compliance of the provisions of the Act or the rules made there under and shall not be used for any other purpose without the written consent of the assessee.

(10) Every assessee shall preserve the records including books of accounts and source documents and data in any electronic media, where any document is generated on computer, for five financial years immediately after the financial year to which the records pertain.