CHAPTER 6
RECORDS AND RETURNS
Part-III
Electronic maintenance of records and preparation of
Returns and documents1. Procedure1.1 Any person may electronically maintain or generate all or any of the records,returns, invoices and other documents prescribed under the rules made under CentralExcise Act, 1944, using a computer, in electronically readable format. No specificpermission from the Central Excise Department is required for this purpose. Such person isalso not required to give any intimation to the Department.
1.2 The Range Office, however, will record in “Scrutiny Register” or any other recordindicating a person’s profile, the fact that such person is electronically maintainingrecords or generating returns, invoices or other documents, using computer.
1.3 The records can be kept on any electronic media, such as hard disk ofcomputers, floppies, CDs or tapes and preserved.
1.4 The records, returns and documents should be in electronically readable format.This also means that a person who uses computerized system to generate records/booksof accounts, returns etc., must keep the electronic record, even when a hard copy iskept.
1.5 The printouts (hard copies) of records and documents must be taken out at theend of each month and kept in bound folders, separately for each type of record,return, documents etc.
1.6 The person should ensure that proper back-up records are also maintained andpreserved so that in the event of destruction due to unavoidable accidents or naturalcauses, the information can be restored within reasonable period of time. All suchrecords, returns, invoices and other documents (both electronic and hard copy,including back-ups) shall be preserved for a period of five years (counted from the firstday of the financial year following the financial year to which a record, return, invoice ordocument pertain).
1.7 It shall be incumbent upon a person (who maintains electronic records, returns,documents etc.) to produce, on demand, the relevant records, returns or documents, inhard copy and/or in the form of tapes or floppies or cartridges or compact disk or anyother media in an electronically readable format (duly authenticated by the assessee),documentation including policy and procedure manuals, instructions to record the flowand treatment of transactions through accounting system, from the stage of initiation toclosure and storage to the Central Excise Officers, or the Audit parties deputed by theCommissioner or the Comptroller and Auditor General of India. Such records, returns,invoices or other documents will be produced pertaining to such period (subject to theperiod of preservation) as may be requested including the daily entries in electronicformat relating to the current month for which the printouts are not taken out.
1.8 He shall also provide account of the audit trail and inter-linkages including thesource document, whether paper or electronic, and the financial accounts recordlayout, data dictionary and explanation for codes used and total number of records ineach field alongwith sample copies of documents. Whenever changes are made in theaforesaid systems adopted by the assessee, he shall inform the Central Excise Officersand submit the relevant document.
1.9 In case any person is found to be misusing this facility or not providing access tothe information or if there are any other cogent reasons, the Assistant Commissioner orthe Deputy Commissioner of Central Excise may, after recording such reasons and aftertaking into consideration the explanation tendered by the person, regarding thediscrepancies, if any, prohibit a person from electronically maintaining or generating anyrecords, returns, invoices or other documents using computer and inform the immediatesuperior officer.
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