TMI BlogPREPARATION OF AUDIT REPORT AND FOLLOW UPX X X X Extracts X X X X X X X X Extracts X X X X ..... e auditor would then discuss each of such issues with the assessee/taxpayer pointing out either non payment or procedural infractions. The initial views of assessee/taxpayer must be recorded in the verification document. The auditor should also apprise the assessee of the provisions relating to applicability of interest and encourage him to take advantage of those provisions in order to avoid disputes and litigation. 8.1.2 Where the assessee/taxpayer is in agreement with the short levy, as noticed, the auditor should explain the benefit available under Section 11A(2) of the Central Excise Act, 1944/Section 73(3) of the Finance Act,1994 as the case may be and use persuasion as a measure of recovery of dues along with interest, if any, p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing, preferably in soft form and hard copies should be avoided. 8.2.2 Monitoring Committee Meeting (MCM) should be convened by the Audit Commissionerate, to which the Executive Commissioner or his representative shall be invited to attend. The decision taken by the Audit Commissioner, with regard to settlement of audit objections after recovery of all dues or dropping of the unsustainable audit objections, shall be final. Approved audit objections, including those in which show cause notices are proposed to be issued, should be conveyed to the Executive Commissioner in the form of Minutes of the MCMs, who shall respond to these objections conveying his agreement/disagreement within 15 days of the receipt of the minutes of the MCM. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .5 The Planning and Co-ordination Sections of Audit Commissionerate and the MIS of the Audit Circles should make prompt entries in the Registers of Audit Planning and Audit Follow-up in prescribed format (details as in Annexure XII), at every stage, until the closure of the audit point either by issue of a show cause notice or by recovery of amounts due or by closure on merits/reconsideration. 8.3 Final Audit Report Based on the decision of the MCM, the draft audit report should be finalised within thirty days from the date of the meeting. The Planning and Co-ordination Sections of Audit Commissionerate shall upload the FAR using Audit Report Utility in ACES and issue FAR. A copy of the FAR, even if it is a NIL report, should be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of issuing the show cause notice. In some cases, show cause notices are answerable to Superintendents, then the concerned Superintendent of Audit Circle shall take necessary action for preparing and issuing such show cause notice under intimation to the Planning and Co-ordination Section / MIS Section of Headquarters. It is the responsibility of the Audit Commissionerate to pursue/persuade the assessee/taxpayer for payment of tax dues, especially on the paras admitted by the assessee/taxpayer. However, for any pending action i.e., recovery, especially on paras admitted in writing by the assessee/taxpayer, can be taken up with the jurisdictional Executive Commissionerate, for follow up. The issues relating to paras orally admitted should ..... X X X X Extracts X X X X X X X X Extracts X X X X
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