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.
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) 17 CHAPTER IV - SCRUTINY OF RETURNS 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 Officers". 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 system.