Audit for closed unit

[venkat eswaran]

Dear All.

One of our unit closed in Dec-15 and RC was surrendered. The unit was started in Jul-14. Whether the audit will come for closed unit? All records to be kept at what period ?

For your valuable commends, Thanks in advance

Venkat

[Ganeshan Kalyani]

Sir the assessment is a deemed assessment in Central Excise. However the department may issue Notice in case of not involving fraud, collusion or suppression of facts etc., within a period of two years. And in case there is fraud, collusion or suppression of facts the department may issue notice within a period of 5 years. Hence it is advisable to keep the records intact upto to such period. Thanks.

[KASTURI SETHI]

A unit whose turnover is less than 60 lakhs they are not to be subjected to audit. However, if any unit under the doubtful category audit can be conducted. As opined by Sh.Ganeshan Kalyani, Sir. You are to wait for and keep the records intact for five years. Do not take initiative in this regard. Sometimes audit is conducted on random basis for SSI units.

AI Summary

Limitation periods for excise assessment: two-year standard bar, five-year if fraud; retain records accordingly. Assessment of a closed excise unit remains a deemed assessment; the department may issue notices within the ordinary limitation period unless fraud, collusion, or suppression of facts is involved, in which case an extended limitation period applies. Units below the small-scale turnover threshold are generally not subject to routine audit but may face audit if categorised as doubtful or selected randomly; records should be retained for the applicable limitation horizon.