Audit of the Service Tax assessees by the officers of Service Tax and Central Excise Commissionerates

Verification of records: statutory amendment authorises departmental audits to scrutinise service tax compliance and records.

An amendment to the rule-making power under section 94 authorises imposition of duties to furnish information, maintain records and prescribe their verification; invoking that power, the Government inserted rule 5A(2) to permit scrutiny of assessee records by an audit party deputed by the Commissioner. The circular treats statutory 'verification' as encompassing departmental audit to verify self-assessed service tax liabilities, distinguishes an earlier judicial invalidation by reference to the new statutory backing, and directs officers to carry out audits per departmental instructions.