Excise return -er-1

This query is : Resolved 

Guest (Querist)
07 November 2012

While filling online the Excise Return viz.ER -1, against the actual deposit of Rs. 55000 by mistake we have shown the amount as 50000 in the deposit column. As a result, there is a difference of Rs. 5000/- between the actual deposit and the balance shown in the said return.
How to rectify the above mistake in the Return?
Information is most urgently required by us.

Ms.Nirmala P.Rao (Expert)
08 November 2012

Dear Client,

As per ACES stated below, within three months of submission of your return, The concerned Central Excise Superintendent would consult you for correction of errors through review if the above Automated Central Excise and Service Tax System points out errors etc in Automated returns. Scrutiny of returns regarding compliance of Central Excise rules is the primary responsibvility of the Central Excise Officers, therefore they would ensure that you correctly submit your excise returns through their review of your returns within 3 months of your online submission. Hence don't worry. No penalty would be imposed on you for incorrect submission or errors as per the below given information and Central Excise Rules etc.

Report No. 25 of 2011-12 (Indirect Taxes – Central Excise and Service Tax)
4.1 Introduction
The CBEC introduced self assessment in respect of central excise in 1996 and
in respect of service tax in 2001. With the introduction of self assessment, the
department also provided for a strong compliance verification mechanism with
three important prongs—Scrutiny of Returns/ Assessments, Audit and Anti-
Evasion. The crucial role of scrutiny of assessments was highlighted in the
Report of the Task force on Indirect Taxes, 2002, which stated that "It is the
view that assessment should be the primary function of the Central Excise
Officers. Self assessment on the part of the taxpayer is only a facility and
cannot and must not be treated as a dilution of the statutory responsibility of
the Central Excise Officers in ensuring correctness of duty payment. No doubt
audit and anti-evasion have their roles to play, but assessment or confirmation
of assessment should remain the primary responsibility of the Central Excise
In the exercise of powers conferred under Rule 12(3) of Central Excise Rules,
2002 and Rule 5A of the Service Tax Rules, 1994, the Board has laid down
detailed guidelines for scrutiny of returns as contained in the two return
scrutiny manuals both for Central Excise returns (ER1 and ER3) and Service
Tax returns (ST3).The scrutiny of returns is in two stages: The purpose of
preliminary scrutiny of returns is to ensure arithmetic accuracy of the duty
computation, completeness (permanent account number, description of the
item, registration details of the unit etc) timeliness (timely submission of the
return and timely payment of duty) and identification of stop filers and non
filers. The detailed scrutiny of assessment is done for selected returns on the
basis of risk parameters to ensure the correctness of assessment (correctness of
classification, valuation and Cenvat credit). The preliminary scrutiny has been
largely automated through the Automation in Central Excise and Service Tax
(ACES) system and according to the Manual for Scrutiny of Service Tax
Returns, 2009 (Para 1.2B), this would release manpower for detailed manual
scrutiny which then would become the core function of the range.
4.2 Preliminary scrutiny
Before implementation of ACES system, all the returns received by the
Superintendent are to be scrutinized within three months of the date of receipt
of returns. Under ACES, filing of returns and preliminary scrutiny is done by
the system and discrepancies are marked for review and correction on an
observation sheet generated by the system. The returns marked for review are
to be validated in consultation with the assessee and re-entered into the

Ms.Nirmala P.Rao
Legal Expert

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