List Advisory Apr'12

7/31/2019 List Advisory Apr'12

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AGENDA FOR MMCM TO BE HELD ON 27.04.2012

ADVISORY PARA1. Audit Group (IAP) No : II

2. Unit SL No :

3. Name of the Unit : M/s.Kadevi Engineering ltd, Sy no.146 &147Anki Reddy Palli Village, Kesara Mandal,

R.R Dist. Pin 501 301.

3.(A)

Products ManufacturedM S Angles, Chennels, Tower Parts,Hardware( Nuts&Bolts) & DG Sets

4. Range/Division : Ghatkesar Range /G Division

5. Para Code No :

6. Period of audit : 08/2010 to 12/2011.

7. Date of Audit : 14.02.2012 to 16.02.20128.Para Sl No. :

9. Gist of audit objection : II. Advisory Note:

Assesses have cleared tower parts from M/s. Kadevi Industries ltd, Sy no.146 &

147Anki Reddy Palli Village, Kesara Mandal, R.R Dist unit to M/s. Kadevi Industries

ltd, E.C, Kushaiguda unit on stock transfer basis and valuation adopted as per invoice

is 110% of the cost. However the CAS-4 certificate was not produced even after

issuance of spot memo dt16.02.2012. JDO may be advised to ensure that the

assesses adopted the valuation as per the CAS 4 certificate and the same may be

intimated to this office.

10. Revenue involved :

11. Asseesees stand if any :

12. JAC/JRO compliance, if any:

13. Decision taken in MMCM :


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AGENDA FOR MMCM TO BE HELD ON 27.04.2012ADVISORY PARAS

1 . Audit Group (IAP) No : II

2. Unit SL No :

3. Name of the Unit : M/s. Nile Ltd, I D A , Nacharam, Near Tisco,Hyderabad. Pin 500 076

3.(A)

Products ManufacturedGlass lined Equipment

4. Range/Division : Nacharam II Range / Division H

5. Para Code No :

6. Period of audit : 01/2010 to 11/2011

7. Date of Audit : 29.02.2012 to 02.03.20128.Para Sl No. :

9. Gist of audit objection : ADVISORY NOTE

It is observed by the Audit that assesses have been replacing the defective partsof the already cleared final products to their customers at free of cost within thewarranty period after payment of duty under Central Excise Invoice. It is

understood that assesses have been adopting approximate value for the saidreplacement parts. It is also observed that no price break up is available in theoriginal Invoice and the purchase Order to determine the actual price of the freereplacement parts. In view of the above, it appears that the value adopted for freereplacement parts is not correct and there is a possibility of short payment of dutydue to under valuation. As there is no sale involved in the free replacement ofdefective parts within the warranty period, the assessable value may be arrived atby cost construction method and duty shall be discharged on such arrived costafter adding notional profit on the strength of CAS-4 certificate issued by the costAccountant Hence, assesses were advised to produce the details of all suchclearances during the Audit period and CAS-4 certificates for all such clearances

and pay any differential duty arises immediately vide Spot Memo issued on2.03.2012. Assesses have informed the Audit that it would take some time toobtain the CAS-4 certificate from a Cost Accountant and would submit the sameas soon as they obtain it.

Similarly assesses are doing repairs of already cleared reactors within warrantyperiod free of cost which they are clearing on Delivery Challan. At the time ofAudit they said that only minor repairs were done at free of cost, but, could notproduce any details of repairs carried on.

In view of the above the jurisdictional Ac may follow up with the assesses and takenecessary action in this regard.





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13. Decision taken in MMCM :AGENDA FOR MMCM TO BE HELD ON 27.04.2012

ADVISORY PARAS

1. Audit Group (IAP) No : II

2. Unit SL No :

3. Name of the Unit : M/s. Sizoll Chemicals Pvt Ltd,Plot no.112, Phase - II, I D A,Cherlapally, R.R Dist..

3.(A)

Products ManufacturedPaper Chemicals

4. Range/Division : Cherlapally Range / Division I

5. Para Code No : OR 13

6. Period of audit : 01/2007 to 12/2011

7. Date of Audit : 28.02.12, 06.03.12 & 07.03.12

8.Para Sl No. :

9. Gist of audit objection : Advisory Note :

The assesses are not maintaining the R.G 1 register. The same may be asked to

maintain the Register under intimation to this office.




13. Decision taken in MMCM :


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List Advisory Apr'12

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