Excise Audit 2000

This query is : Resolved

Ganesh (Querist)
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13 October 2007 Hello! Friends,

Recently Excise & Service Tax Auditors
Audited Records & Files of a company, who was a registered as dealer five years ago and their turnover is above 5 crores.
Excise Dept. was intimated writtenly before the Audit in the name of EA-2000. They've inspected on the same days what they written on Audit intimation.

They have inspected each and everthing and finally record some notes relating to Service Tax and Excise part was perfect.
After 10 days, they've called the Accounts in-charge of the company and issue a notice, which contains liability of service tax of Rs. 6.3 lakhs regarding transportation & freight. Here they charged 100% ST on transport & freight and some part was already paid by the customer (end user) of the company.

Then the company said we're ready to pay the liable tax, but the transport & freight is exclusive, which applies GTA abetment of 75% on the total amount, hence 25% was paid. Here the customer of the company, who is a manufactuerer, paid 100% service tax relating to tranport, but we've exclusive transport contract with the customer. Finally, we've paid 25% of the Notice issued by Audit Inspector. And paid challanas are also submitted. This was done 3 months back.
Till now the comapny was not received any Excise Audit Report regarding EA 2000.
And recently, when the company submitting Service Tax Return they've intimated all the particulers & payments in the return.

Now, what will the company do against this?

S.RAVICHANDRAN

S.RAVICHANDRAN (Expert)
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13 October 2007 As for Excise audit is concerned, they are not obligatory to send the audit report to the excise assessee.

The audit party would send the findings to the concerned jurisdictional Range Superintendent who, in turn, will issue show cause notice to the assessee asking why this violation of Law should not be penalised with tax,interest and penalty.

This is the normal procedure.

Since you have not heard anything from your Range Superintendent, it seems the audit party is satisfied with your compliance of their findings.