Circular No. 575/12/2001-CX, dated 2nd May 2001

Consolidation of Reports/Returns

Sub:

Consolidation of Reports/Returns sent to PAC Section of the Board & forwarding of list of pending Paras-

I am directed to say that the PAC(CX-7) Section of the Board receives at least 23 reports/returns (most of them monthly, some fortnightly, some quarterly, some yearly etc) from each of the sixty one Central Excise Commissionerates spread all over India. The details of these reports are given in Annexure A.

2.

It is felt that out of these 23 reports, 9 reports( is. nos. 14, 15 & 17 to 23 of Annexure A) can be totally dispensed with. Thus out of the reports listed at 81 nos. 14, to 23 or Annexure A the report covered by sl. no. 16 titled "Close monitoring of Audit objections/DAPs involving revenue of more than Rs.10 lakhs" will only continue with the modification that "Rs.10 lakhs" should be replaced by "Rs.50 lakhs", The remaining 13 reports (51 nos. 1 to 13 of Annexure A) can be combined into a single monthly/quarterly report.

3.

Every year after the Audit Report is presented before the Parliament and received in the Ministry, a report is sought from all Commissioners in prescribed proforma I(monthly) & II(quarterly)[as per Annexures B and C] to give the progress/ ATN in respect of each Audit Para. The report in Profoma I covers only those cases of the Commissionerate which are reported in the Audit Report. However Proforma II relates to objections detected in respect of other Commissionerates where similar short levy have been noticed in the reporting Commissionerate. This exercise is repeated every year for every new Audit Report. Right now the Board is getting progress reports of ATNs relating to the years right from 1986-87 to 1998-99 (i.e.13 years).

4.

It is proposed to combine all the separate reports in Proforma I (Annexure B) into a single monthly, report, where the Commissioners would give the progress of each Audit Para (indicating the year to which it relates) which has not yet been settled. In case there is no progress in respect of any Audit Para in a particular month, the covering letter of the report should mention this fact and the reports in Proforma I of the previous month should not be repeated. Report in Proforma I should cover only those DAP"s which have been converted to Audit Para and should clearly mention the corresponding A.P. No.

5.

Report in Proforma II(quarterly) should accompany the report in Proforma I, every quarter, and should be discontinued after the Audit Report or the C&AG for the subsequent year is received by the Commissionerate.

6.

In respect of the remaining 9 reports (sl. nos. 14, 15 & 17 to 23 of Annexure A) it is observed that some of them were required to be sent either to the DGI or to the Policy Section of the Board and only a copy was to be endorsed to the PAC(CX- 7) Section. None of these 9 reports need now be addressed or endorsed to the PAC Section of the Board. Copies meant for other formations (like the DGI etc) or different Sections of the Board should, however, continue to be sent to those offices.

7.

It is further brought to the notice of all Commissioners that the Board has compiled a list of Audit Paras (along with DAP Nos.) for the years upto 1998-99 which are pending settlement as on 30.4.2001. The list is enclosed as Annexure D. It is mentioned that, as on date, all Audit Paras upto the year 1991-92 have been settled. Henceforth Commissioners should send their combined monthly ATN"s in respect of only those Audit Paras (DAP"s) which are indicated in Annexure D. As and when these get settled further report on them should be discontinued.

8.

In respect of paras which have been settled the Commissioners should dispose of pending proceedings relying on Ministry"s stand on the para. In case they do not have a copy of Ministry"s final reply/ATN they should procure it from the office of the local A.G. In case this does not work out a gazetted officer along with a ministerial staff may be deputed to New Delhi to take photocopies from the relevant files of the Ministry. The officer should be willing to camp in Delhi for a few days. The Commissioner should also send an advance intimation of the officer"s scheduled date of arrival in New Delhi to the undersigned. Following factors should be kept in mind while disposing of pending show cause notices, provisional assessments etc related to settled CERA objections, namely:-

1. All DAP"s do not necessarily get converted to Audit paras and are therefore not all included in the CAG"s Audit Report for the corresponding year. In such cases Ministry does not monitor their disposal. Non-converted (or non-included) Draft Audit Paras should be disposed of through discussions at the level of the local/State A.G. The details of DAP"s which have been converted to Audit Paras can be ascertained from the key which accompanies each Audit Report of the C&AG.
   
   
2. There may be cases where the Ministry may have contested the objection at the DAP stage but subsequently when the DAP gets converted to Audit Para there may be a change in the stand of the Ministry because of new facts, interpretation or judicial pronouncements. Or conversely, initially Ministry may have admitted the objection but later revised its stand. As such reliance should be placed on the last ATN of the Ministry only and which forms the basis of the settlement intimation from C&AG.

9.

In respect of paras which stand settled efforts should now be made to dispose of all related cases of adjudication, provisional assessment etc.

10.

In respect of paras which are still pending settlement, as per the enclosed list, action should be taken as follows, as per existing instructions-

1. where Ministry has admitted the objection adjudication process should be completed on priority basis and details communicated to CX-7 section of the Board, C&AG will consider settlement of such paras only after the adjudication process is completed.
   
   
2. where Ministry has not admitted the objection the related show cause notice should be kept in call book till further instructions of the Board (Circular No.385118198 -CX dated 30.3.98). Sometimes, even in respect of paras which have not been, admitted by the Ministry, the C&AG insists on adjudication. These cases are separately brought to the notice of the Commissioner for adjudicating the case on merits and reporting details.

11.

The receipt of this Circular may kindly be acknowledged.

Encl: As above

Sd/- (A.K.PRASAD) DIRECTOR(PAC)

F. NO: 240/49/2000 -CX 7

ANNEXURE A

REPORTS RECEIVED IN CX-7 SECTION OF CBEC

Sl No	Board"s letter no.	Subject	Frequency	Sent to who else
1.	233/2/88-CX7 dt 24.2.88	ATN on C&AG Report for the year 1986-87	Monthly	Nil
2.	233/2/89-CX7 dt 22.5.89	ATN on C&AG Report for the year 1987-88	-DO-	-do-
3.	232/1/90-CX7 dt 1.6.90	ATN on C&AG Report for the year 1988-89	-DO-	-do-
4.	233/1/91-CX7 dt 5.9.91	ATN on C&AG Report for the year 1989-90	-DO-	-do-
5.	233/1/92-CX7 dt 4.6.92	ATN on C&AG Report for the year 1990-91	-DO-	-do-
6.	233/1/93-CX7 dt 16.6.93	ATN on C&AG Report for the year 1991-92	-DO-	-do-
7.	233/1/94-CX7 dt 14.2.94	ATN on C&AG Report for the year 1992-93	-DO-	-do-
8.	233/1/95-CX7 dt 25.4.95	ATN on C&AG Report for the year 1993-94	-DO-	-do-
9.	233/1/96-CX7 dt 27.3.96	ATN on C&AG Report for the year 1994-95	-DO-	-do-
10.	233/1/97-CX7 dt 9.5.97	ATN on C&AG Report for the year 1995-96	-DO-	-do-
11.	233/1/98-CX7 dt 13.8.98	ATN on C&AG Report for the year 1996-97	-DO-	-do-
12.	233/1/99-CX7 dt 22.12.99	ATN on C&AG Report for the year 1997-98	-DO-	-do-
13.	233/1/2000-CX7 dt 22.5.2000	ATN on C&AG Report for the year 1998-99	-DO-	-do-
14.	232/6/82-CX7 dt 15.6.82	Revenue foregone as a result of export under bond	Annual	-do-
15.	232/53/83-CX7 dt 5.6.83	CEx amount remitted or abandoned	Annual	-do-
16.	232/430/87-CX7 dt 17.11.87	Close monitoring of Audit objections/DAPs involving revenue of more than Rs. 10 lakhs	Monthly (to continue)	-do-
17.	234/1/88-CX7 dt 27.9.88	Statement of revenue reconciliation	Monthly	PrCCA
18.	233/4/90-CX7 dt 18.5.90	ATN on Draft Review para on Refunds	Monthly	Nil
19.	381/8/88-Pt dt 20.11.91 of Dir(Audit) of DGI	Performance of Internal Audit Department	Monthly	Dir(Audit)
20.	240/12/95-CX7 dt 20.6.96	Report on position of pending ATN"s	Fortnightly	Nil
21.	238/1/96-CX7 dt 9.1.97	Provisional assessment cases	Monthly	DGI
22.	240/8/98-CX7 dt 8.1.99	ATN"s on AP"s pertaining to the period upto 31.3.93	Monthly	Nil
23.	240/8/98-CX7 dt 13.9.99	ATN"s in respect of 105th Report- fixation of responsibility	Monthly	Nil

(N.B. Sl nos. 1 to 13 combined into a single monthly report, sl nos. 14, 15 & 17 to 23 discontinued and sl no 16 continued but for objections above Rs 50 lakhs only)

ANNEXURE - B

PROFORMA - I

(MONTHLY)

ACTION TAKEN NOTES ON AUDIT REPORT 1997-98

---

(To be reported only for DAPs pertaining to the Commissionerate)

NAME OF THE COMMISSIONERATE : _______________________________ MONTH :__________________

1.	Audit Para No.	:
2.	Draft Audit Para No.	:
3.	Issue in brief	:
4.	Admitted /Not Admitted	:
5.	Remedial action taken (SCN/adjudication/recovery etc.)	:
6.	Revenue realised	:
7.	Remark	:

SIGNATURE OF THE COMMISSIONER

ANNEXURE - C

PROFORMA - II

(QUARTERLY)

ACTION TAKEN NOTES ON AUDIT REPORT 1998-99

---

(on the Draft Audit Paras pertaining to other Commissionerates)

NAME OF THE COMMISSIONERATE : ____________________________ FOR THE Q.E. :___________

1.	Audit Para No.	:
2.	Draft Audit Para No.	:
3.	Originating Commissionerate	:
4.	Issue in brief	:
5.	Whether similar lapses are noticed in the Commissionerate (Yes/No.)	:
6.	If yes, revenue involved.	:
7.	Remedial action taken (SCN issued/Revenue realised)	:
8.	Remark	:

SIGNATURE OF THE COMMISSIONER

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