Section 14AA: Special Audit for Suspected Abnormal or Fraudulent Duty Credit by Manufacturers Explained
Section 14AA of the Central Excise Act, 1944, empowers the Principal Commissioner or Commissioner of Central Excise to mandate a special audit if they suspect that the credit of duty availed or utilized by a manufacturer is abnormal or fraudulent. This audit, conducted by a nominated cost or chartered accountant, must be completed within a specified timeframe. The manufacturer is entitled to a hearing regarding the audit findings before any proceedings. The section clarifies the definitions of "cost accountant" and "chartered accountant" as per respective Acts. The audit is valid even if other audits have been conducted under different laws.
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