You are on page 1of 50

COIMBATORE III DIVISION CENTRAL EXCISE

PROFORMA FOR

DIVISION INSPECTION
BY

SHRI r. GOPALSAMY, I.R.S,


ASSISTANT COMMISSIONER (Prev) COIMBATORE

Page | 1

INDEX
CENTRAL EXCISE
Sl.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 PART III PART IV PART V PART-II PART - I ADMINISTRATION FORMATION OF DIVISION STAFFS DETAILS TECHNICAL REVENUE DETAILS REVENUE ANALYSIS PLA VS CENVAT FOR THE LAST THREE YEARS MONTHWISE REVENUE PLA/CENVAT NUMBER OF UNITS/ASSESSEES TOP 20 UNITS/ASSESSEES DETAILED ANALYSIS OF TOP 20 UNITS TOP 10 COMMODITY CHAPTERWISE ANALYSIS OF TOP COMMODITIES COMMODITY-WISE ANALYSIS ARREARS OF REVENUE UNCONFIRMED DEMANDS CALL BOOK CASES INTERNAL AUDIT | CERA DEFAULTS IN PAYMENT OF DUTY STATEMENT REBATES | REFUNDS SCRUTINY OF RETURN DETAILED MANUAL SCRUTINY IMPLEMENTATION OF CC STANDING ORDERS ACCOUNTS, ESTABLISHMENT AND PERSONNEL GENERAL ANNEXURE I LIST OF UCD ANNEXURE II CALL BOOK CASES ANNEXURE III IAD PARAS ANNEXURE IV CERA PARAS ANNEXURE V LIST OF DEFAULTERS ANNEXURE VI REBATES & REFUNDS Page | 2 04-05 06 07 08 09 10 11-30 31 32-33 34-35 36 37 38 39 40 41 42 43 44 45-47 48 01 02-03 Contents Page Nos.

PART I - ADMINISTRATION

1. Last Inspection

By Shri S Subramanian, IRS, Commissioner of Central Excise, Coimbatore. .

2. Present Inspection

By Shri R. Gopalsamy, IRS, Assistant Commissioner (Prev), Hqrs. Office, Coimbatore.

3. Name of Officer-in-Charge & From when posted

Shri Anish Muraleedharan, IRS, Assistant Commissioner, Coimbatore III Division With effect from 03.12.2012.

FORMATION OF DIVISION

This division was formed in the year 1980. At present, the Divisional Office is housed at the Third floor of the building located at 1237 A & B (New No: 1441), Trichy Road, (Elgi Building), Coimbatore 641 018, which is sufficient and convenient for assessees as well as for the Departmental Officers. The Divisional offices of Coimbatore I, II, III and IV Divisions including Service Tax Wings are also located in the same building and Coimbatore-I Division is in charge of all the administrative and establishment affairs such as the maintenance, up-keeping, payment of electricity/water charges etc. Division III is in charge of the Administrative and Establishment affairs of Singapore Plaza which has 3 (Three) Ranges of Division-I, 2 (Two) Ranges of Division-II 2 (Two) Ranges of Division-III and 2 (Two) Ranges of Division-IV.

Page | 3

SANCTIONED STRENGTH AND WORKING STRENGTH OF VARIOUS CADRE S.NO 1 2 3 4 5 6 7 8 9 10 CADRE DEPUTY/ASST. COMMISSIONER ADMINISTRATIVE OFFICER SUPERINTENDENT INSPECTOR STENOGRAPHER DEPUTY OFFICE SUPDT SENIOR TAX ASSISTANT TAX ASSISTANT DRIVER HEAD HAVILDAR / HAVILDARS / SEPOY SANCTIONED STRENGTH 1 1 10 20 1 1 2 4 1 11 WORKING STRENGTH 1 1 15 24 0 1 2 2 0 9 VACANCY 0 0 +5 +4 -1 0 0 2 1 -2

Six Superintendents are working in excess in Service Tax Cell due to heavy workload particularly in the Division office and III B Range and 4 Inspectors are working in excess. It is requested to take up the matter in the Establishment Section for regularization of vacancies in the Superintendent and Inspector Cadres. The vacancies in various cadres may kindly be filled up for the smooth functioning of the Division.

Page | 4

6. Ranges of Coimbatore-III Division There are 5 Ranges in this Division. The sanctioned and working strength of Executive Officers of the Division and each Range is as shown below: Sl.No Name of Range/Cadre DIVISIONAL OFFICE Elgi Bldg. Trichy Road Superintendent Admn. officer Inspectors D.O.S. Sr. Tax Assistant Tax Assistant Sepoys RANGE III A: Superintendent Inspectors Sepoy RANGE III B: Superintendent Inspectors Sepoy RANGE III C: Superintendent Inspectors Sepoy RANGE III D: Superintendent Inspectors Sepoy RANGE III E: Superintendent Inspectors Sepoy SERVICE TAX CELL: Superintendent Inspectors Sepoy Sanctioned Strength 4 1 5 1 4 4 5 1 2 1 1 3 1 1 2 1 1 2 1 1 3 1 1 3 1 Working Strength 2 1 3 1 2 2 2 1 2 1 4 8 2 1 1 1 1 2 1 1 3 1 5 4 1 Vacancy

2 0 -2 2 2 3 +3 +3 1 +4 +1 -

2.

3.

4.

5.

6.

Page | 5

PART II TECHNICAL REVENUE DETAILS

REVENUE DETAILS
450 400 REVENUE (IN CRORE) 350 300 250 200 150 100 50 0 2009-10 2010-11 2011-12 YEARS Upto Feb 2011-12 Upto Feb 2012-13 TARGET FIXED GROSS PLA REFUND/REBATE NET PLA CENVAT

2009-10 TARGET FIXED GROSS PLA REFUND/REBATE PLA CENVAT TOTAL 81 63.73 13.96 49.77 178.68 228.45

2010-11 75 87.93 1.61 86.32 281.05 367.37

2011-12 103 120.35 17.26 103.09 336.07 439.16

Upto Feb 2011-12

Upto Feb 2012-13

121 87.90 10.61 77.29 333.39 410.68 115.38 13.49 101.89 407.20 509.09

This division keeping in mind the direction of Commissioner on Revenue Augmentation has made substantial stride during the month of March 2013. The Revenue Overdrive has resulted in achieving an amount of Rs.124.7 Crores (upto 30.03.2013). The details are furnished below:

Revenue upto 28.03.2013 Revenue on 29.03.2013 Revenue on 30.03.2013 Total Gross Revenue Rebate/ Refund 12-13 NET REVENUE

= Rs 127.24 CRORES = Rs 1.51 CRORES = Rs 9.44 CRORE = Rs 138.19 CRORES = Rs 13.49 CRORES = Rs 124.7 CRORES
Page | 6

The division has already exceeded the target of Rs.121 Crores. The expected revenue collection in PLA is likely to be around Rs.30 crores for March 2013 which is Rs.4.21 Crores higher than the collection during March 2012. The overall increase in net revenue collection during 2012-13 is around Rs.27 Crores which is 26% more when compare to the last fiscal year. Except for M/s. Elgi Equipments, Coimbatore which has recorded a negative growth of PLA, all other units have healthy and positive PLA growth which has contributed substantially to the revenue growth in this division. Though there is increase in the rate of duty to the tune of 20% when compare to the last fiscal, the revenue trend is about 26% despite severe power cut and general recession in the economy.

Page | 7

MOVING TARGET , VIS--VIS ACTUAL REALISATION

MOVING TARGET VS REALISATION


140 REVENUE IN CRORES 120

100
80 60 40 20 0 TARGET MT ACHEIVED TARGET MT ACHEIVED 2011-12(UPTO FEB 12) FINANCIAL YEAR 2012-13(UPTO FEB 13)

2011-12 Upto Month 13-Feb (Target Rs.103 Crores) MOVING TARGET 89.69 ACTUALS 77.29 % w.r.t MT 86% MOVING TARGET 105.37

2012-13 (Target Rs.121 Crores) ACTUALS 101.89 % w.r.t MT 97%

INCREASE/DECREASE IN REVENUE PLA Upto Feb 2011-12 77.29 Upto Feb 2012-13 101.89 Increase/ Decrease 24.60 Increase/ Decrease (%) (+) 32%

Page | 8

PLA VS CENVAT FOR THE LAST THREE YEARS

PLA VS CENVAT FOR THE LAST THREE YEARS


450 400 350 300 250 200 150 100 50 0 2009-10 2010-11 2011-12 YEAR Upto Feb 2011-12 Upto Feb 2012-13 REVNEUE IN CRORE

TARGET FIXED Gross PLA CENVAT

YEAR 2009-10 2010-11 2011-12 Upto Feb 2011-12 Upto Feb 2012-13

TARGET FIXED 81 75 103 89.69 105.37

Gross PLA 63.73 87.93 120.35 87.90 115.38

CENVAT 178.68 281.05 336.07 333.39 407.20

TOTAL 242.41 368.98 456.42 421.29 522.58

Page | 9

MONTHWISE REVENUE PLA/CENVAT

MONTH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY TOTAL

2011-12 (IN CRORES) Gross PLA 6.81 7.67 8.67 7.45 7.33 7.89 8.20 8.60 8.32 8.76 8.19 87.90 CENVAT 34.28 31.25 27.87 28.90 30.05 29.60 27.26 27.88 34.66 32.42 29.21 333.39

2012-13 (IN CRORES) Gross PLA 8.49 8.54 11.03 11.89 9.51 9.87 10.83 11.89 11.28 10.57 11.47 115.38 CENVAT 33.99 35.23 38.43 35.39 37.32 34.78 38.76 37.42 36.74 39.87 39.27 407.20

Page | 10

NUMBER OF UNITS/ASSESSEES

NUMBER OF UNITS/ASSESSEE
400 350 300 250 200 150 100 50 0 NON SSI SSI TYPE EOU STP

NUMBER

2011-12 Upto Feb 2011-12 Upto Feb 2012-13

TOTAL NO. OF REGISTERED UNITS NON SSI SSI EOU STP TOTAL

2011-12 356 132 08 23 519

Upto Feb 2011-12

Upto Feb 2012-13

348 131 08 23 510

362 133 08 23 526

Page | 11

TOP 20 UNITS/ASSESSEES 2011-12 (Upto Feb)


PLA CEN

2009-10
Sl.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Assessee EVEREST INDUSTRIES LTD JANATICS INDIA (P) Ltd INDOSHELL MOULD LTD PLANT II LARSEN & TOUBRO LIMITED (Precision Manufacturing Facility) V GUARD INDUSTRIES LIMITED INDO SHELL MOULD LTD PLANT-1 ELGI EQUIPMENTS LIMITED LAKSHMI ELECTRICAL DRIVES LTD REVATHI CP EQUIPMENT LIMITED ELGI ULTRA INDUSTRIES LTD THIO CHEMI PRIVATE LIMITED INDO SHELL AUTOMOTIVE SYSTEMS INDIA PVT.LTD ATS ELGI LIMITED AUTO SHELL MOULDERS LTD KARPAGAM INDUSTRIES PVT LTD FYTOCARE CHEMICALS (PVT) LTD PC SONS CASTINGS PVT LTD FLOWSERVE INDIA CONTROLS PVT LTD INDO SHELL CAST PVT LIMITED LARSEN & TOUBRO LIMITED (Valve Manufacturing Unit) PLA 4.32 3.42 2.01 0.03 0.60 5.31 1.13 2.37 0.62 1.38 2.66 0.84 1.11 0.32 0.67 0.00 0.00 1.09 CEN 5.50 3.34 8.92 7.83 4.58 27.52 185.00 3.65 1.34 0.27 2.78 3.56 1.13 0.10 0.09 0.59 11.30 3.28 -

2010-11
PLA 9.02 4.30 3.22 0.00 1.18 0.71 8.30 1.41 2.48 0.64 1.81 3.18 1.76 2.63 0.84 1.02 0.82 0.00 1.71 0.00 CEN 7.06 5.86 12.80 0.49 7.50 4.89 47.73 3.64 4.01 2.07 0.27 4.28 4.92 1.61 0.16 0.02 0.98 13.35 5.98 7.11

2011-12
PLA 12.37 5.72 6.18 1.29 2.37 2.31 11.92 1.36 3.17 0.93 2.32 3.20 2.01 2.34 1.04 1.18 1.18 4.68 1.14 0.00 CEN 7.51 5.33 12.92 1.41 9.94 5.80 58.48 3.26 4.11 2.64 0.46 6.37 5.83 2.08 0.25 0.20 0.99 22.83 6.76 17.64

2012-13 (Upto Feb)


PLA CEN

11.11 4.99

6.94 4.97

14.64 6.07

9.42 7.00

5.28 13.48 1.29


2.03

5.35 12.74 5.26


4.22

1.39
8.75

2.34
15.60

0.87

3.94

3.23
3.22

8.48
50.84

4.56 41.62 1.42


2.12

1.18
3.17

3.06
2.99

3.52
3.81

0.95
2.00 2.79

2.13 0.39
6.02

2.98
2.87 2.84

5.33 0.62
5.60

1.71 2.06 0.66


0.98

5.42 1.89 0.13 0.18 0.90


19.39

2.02 1.59 1.20


1.20

6.82 2.38 0.19 0.18 0.71


16.13

1.12
0.29

1.17
0.10

0.43

2.39

0.09

3.08

0.00 13.84

0.00 20.76

Page | 12

DETAILED ANALYSIS OF TOP 20 UNITS:


1. EVEREST INDUSTRIES LTD (III D RANGE)

2009-10
PLA 4.32 CEN 5.50

2010-11
PLA 9.02 CEN 7.06

2011-12
PLA 12.37 CEN 7.51

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

11.11

6.94

14.64

9.42

3.53

2.48

Items Of Manufacture: Asbestos, Non-asbestos, Cement Sheets Inputs used : Cement , Asbestos fibre, PVA Fibres, Chemicals & Acronal Clearances : 1) Export: 2) Home consumption

Analysis
S.N
1

Conditions Market Situation

Reasons The Market for asbestos cement sheets has almost reached a saturation point and the market is sluggish. The current trend is not encouraging. As of now fresh orders are hard to come and the present clearances are just adequate to run our business. As regards projection for orders & sales, we are not foreseeing much improvement in the coming days from the present scenario. Power situation has not improved. The power situation is still highly precarious. As, there is no time schedule for power shutdown, we find it very hard to schedule our production. Our industry is severely affected by the power shortage. There is an increase in selling price as a result of price revision due to escalation of our overheads. Coupled with the upward revision in the duty structure w.e.f 16.03.2012, we ended up in paying more duty in the current FY than the previous year. As the present situation is not conducive for industrial development, there may not be much scope for improvement in production, removal and duty payment. Cash payment has increased due to the upward price revision and the upward revision of the duty structure by the Government. The unit is importing certain raw materials such as asbestose etc. As, Dollar has gained value over Rupee, they have more CENVAT credit in terms of CVD/ ACD. Hence there is an increased utilisation CENVAT credit than the previous FY.

Status of Order Booking

Power situation

Concreate reasons for increase/ decrease in Revenue.

Cash Payment/ CENVAT Credit ratio analysis

Page | 13

2. JANATICS INDIA (P) LTD (Range III D)

2009-10
PLA CEN

2010-11
PLA CEN

2011-12
PLA CEN

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

3.42 3.34 4.30 5.86 5.72 5.33 4.99 4.97 6.07 7.00 1.08 2.03 Items of Manufacture: Pneumatics products such as cylinders, valves, pressure guage, etc. Inputs used : Aluminium ingots, tube and rods. Clearances : 1) Export- increase drastically over the similar period last year. 2) Home consumption

Analysis
Sl. No. Information Reasons for increase/ decrease in cash payment during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the CENVAT Utilization during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the production during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the price of final product during the current year when compared to the corresponding period last year PLA utilisation is higher during the FY 2012-13 (upto feb) by Rs. 1.08 crore as compared to the FY 2011-12 (upto feb) Reason : Increase in rate of Duty, Incresed demand for the final product and thereby increase in domestic turnover by Rs 10.16 crores. Cenvat utilisation is higher during the FY 2012-13 (upto feb) by Rs 2.03 crore as compared to the FY 2011-12 (upto feb) Reason : Increase in Duty rate, More procurements in view of the increase in the Orders for the final product, exports shown a positive growth and the unit is not availing any rebate claim and hence resulting higher credit accumulation which is utilised for payment of duty. Production Qty is higher during the FY 2012-13 (upto Feb) by .12 crore units as compared to the FY 2011-12 (upto Feb) Reason : Increase in market demand. Their major products are pneumatic valves and parts etc which are useful in Textile industries and all other industries wherever air filling/pumping requires. The company has a monopolicy over the product and is highly moving.

II

III

IV

No price revision on final products made.

Page | 14

3.

INDOSHELL MOULD LTD PLANT II (Range III D)

2009-10
PLA 2.01 CEN 8.92

2010-11
PLA 3.22 CEN 12.80

2011-12
PLA 6.18 CEN 12.92

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

5.28

13.48

5.35

12.74

0.07

-0.74

Items of Manufacture: Castings and Cast articles of Iron. Inputs used : Pig Iron, MS scraps. (The inputs are procured locally). Clearances : 1) Export 2) Home consumption

Analysis
Sl. No. Information Reasons for increase/ decrease in cash payment during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the CENVAT Utilization during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the production during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the price of final product during the current year when compared to the corresponding period last year Higher PLA utilization during 2012-13 is Rs.5.35 Crores when compared to 2011-12 utilization of Rs.5.28 Crores reason: due to hike in duty from 10% to 12% on finished products Cenvat utilization during 2012-13 is Rs.12.74 when compared to 2011-12 utilization of Rs.13.48 crores reason: due to slow down in puchase of inputs export also reduced and the corresponding credit utilisation also reduced compared to the previous year. The party is paying duty through Cenvat account for export. There is significant decrease in production quantity due to short fall in customer's requirement No price revision for finished goods effected during 2012-13

II

III

IV

Page | 15

4. LARSEN & TOUBRO LTD- Precision Manufacturing Facility: 2009-10


PLA CEN -

2010-11
PLA 0.00 CEN 0.49

2011-12
PLA 1.29 CEN 1.41

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

1.29

1.39

5.26

2.34

3.97

0.95

Items of Manufacture: Arms & ammunition i.e parts of Akash missile & Brahmos missile. ( L&Tsupplies to Bharat Dynamics Ltd & Brahmos Aerospace Ltd ,DRDO & Nuclear Power Corpn on payment of duty, supply to BARC under exemption Notfn dated 10/97 dated 1.3.97). Inputs used : Stainless steel bars, forgings, plates, pipes. (The inputs are procured locally). Clearances : as above 1. Market Situtation: They are engaged in the manufacture of parts for Akash & Brahmos Missile and also Nuclear Reactors. As such, their sales revenue is very much dependant on orders from these two industries. 2. Order: The order position is good and they expect to get more orders for more components in the coming financial year. 3. Power Situtation: The erratic power supply is adding to the cost of their products. In house production is not hampered since they have captive power capacity. 5. Reasons for Increase and Decrease of Revenue: Their home clearance value has increased more than double from 19.67 crores (upto 02/2012) to 44.29 crores for the corresponding period of this year, which registers an increase of 125%. In tune with the increase in home clearances the receipt of inputs has increased which is reflected in the input CENVAT Credit availment going up from 0.76 Crores (upto 02/2012) to 1.78 crores for the corresponding period of this year, with an increase of 134%. The increase in credit availment for capital goods is only marginal to the tune of 18%. Due to the spurt in clearance value, the PLA revenue has also gone up substantially from 1.29 crores (upto 02/2012) to 5.26 crores for the corresponding period this year, an increase of 307%. Correspondingly, the CENVAT utilization has gone up from 1.39 crores (upto 02/2012) to 2.34 crores, an increase of 68% for this financial year. 6. PLA CENVAT Ratio Analysis: The increase in PLA payment is 3.97 crores compared to last year and PLA-CENVAT ratio is favourable and has gone up from 48:52 to 69:31

Page | 16

V.GUARD INDUSTRIES LTD ( III E Range)

2009-10
PLA 0.03 CEN 7.83

2010-11
PLA 1.18 CEN 7.50

2011-12
PLA 2.37 CEN 9.94

2011-12 (Upto Feb) 2012-13 (Upto Feb) "+/-"


PLA 2.03 CEN 8.75 PLA 4.22 CEN 15.60 PLA

"+/-"
CEN

2.19

6.85

(Kerala based)

Items of Manufacture: Insulated cables, Industrial Cables, Solar water heater system. Inputs used :Copper Rod, PVC Compound, master batch, aluminium wire, XLPE, Iron Strip, Stainless steel sheet, Aluminium Stucco sheet, Iso Cycanate, Polycol Empeyol (The inputs are procured locally mainly from M/s Hindusthan Copper Ltd). Clearances : 1) ExportNot much 2) Home consumption: Major 1. Market Situation: They are manufacturers of Insulated Cables, Industrial Cables and Solar Water Heat Systems. With the industrial activity picking up there is a good demand for their products. 2. Order: They have goods orders at present and the position expected to improve by middle of the next financial year. 3. Power Situation: The frequent shut down of the power supply is putting pressure on getting the products in the competitive environment. 4. Reasons for Increase and Decrease of Revenue: Due to favourable market conditions, their value of home clearances has gone up from 132.20 crores (upto 02/2012) to 198.79 crores for the corresponding period of this year, which registers an increase of 43%. In tune with these increase clearances their PLA payment has increased from 2.03 Crores (upto 02/2012) to 4.22 crores for the corresponding period of this year, with an increase of 108%. Correspondingly, the input CENVAT availment gone up from 8.26 crores (upto 02/2012) to 15.18 crores for the corresponding period this year, an increase of 84%, also their CENVAT utilization from 8.75 crores (upto 02/2012) to 15.60 crores, an increase of 78% for this financial year. 5. PLA CENVAT Ratio Analysis: The payment in PLA for the current financial year has increased by 2.19 crores and PLA-CENVAT ratio is favourable and has gone up from 19:81 to 21:79 for this year.

Page | 17

6. INDO SHELL MOULD PLANT I: (III D Range) 2009-10


PLA 0.60 CEN 4.58

2010-11
PLA 0.71 CEN 4.89

2011-12
PLA 2.31 CEN 5.80

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

0.87

3.94

3.23

8.48

2.36

4.54

Items of Manufacture: Castings and Cast articles of Iron. Inputs used : Pig Iron, MS scraps. (The inputs are procured locally).

Analysis
Sl. No. Information Reasons for increase/ decrease in cash payment during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the CENVAT Utilization during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the production during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the price of final product during the current year when compared to the corresponding period last year Pla utilization during 2012-13 is rs.1.06 crores when compared to 2011-12 utilization of rs.0.38 crores reason: due to hike in duty from 10% to 12% on finished products

II

Cenvat utilization during 2012-13 is rs.3.63 when compared to 2011-12 utilization of rs.2.99 crores reason: due to hike in duty from 10% to 12%on inputs
THERE IS NO SIGNIFICANT INCREASE IN PRODUCTION QUANTITY

III

IV

Price revision for finished goods effected during 2012-13 reason: due to increase in input cost

Page | 18

7. ELGI EQUIPMENTS LTD (Range IIIA) 2009-10


PLA CEN

2010-11
PLA CEN

2011-12
PLA CEN

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

5.31 27.52 8.30 47.73 11.92 58.48 3.22 50.84 4.56 41.62 -1.34 Items of Manufacture: Air compressors, borewell compressor pumps & screw Air compressors Inputs used : Engines, bearings,steel sheets. (The inputs are procured locally). Clearances : 1) Export: Substantial quantity of exports to Brazil & China. 2) Home consumption

9.22

M/s. Elgi Equipments Limited have established their warehouses in Brazil and Australia and are exporting their goods to these countries without payment of duty. As a result, Cenvat credit accumulation has proportionally increased and this has affected their payment in PLA. This scenario has further compounded the decline in their home clearances of rig compressors for which local competitors have increased.

The detail analysis of production/clearance, payment of duty in PLA/Cenvat, domestic/export clearances etc of M/s. Elgi Equipments Limited reveals the following: 1) There is a marginal increase (6%) in the production during 2012-13 (upto February) compared to the corresponding period of previous year. 2) Domestic clearances on payment of duty have decreased by 8% in 2012-13 over the corresponding period ibid. 3) Export and other exempted clearances viz., clearances to power project, defence and research institutions have increased by 20% in 2012-13 over the corresponding period ibid. 4) As regards revenue, payment in PLA in 2012-13(upto Feb) has decreased by 29% over the corresponding period of the previous year. In terms of actuals it has decreased from Rs.4.56 Crores to Rs.3.22 Crores. 5) Whereas the Cenvat utilization has increased from Rs.41.62 Crores in 2011-12(upto Feb) to Rs. 50.84 Crores in 2012-13 (upto Feb). In terms of percentage the increase is 22%. In the light of above, it could be seen that the excess utilization of Cenvat credit in the current year is attributed to the increase in export and exempted clearances viz., clearances to power project, defence and research institutions which has resulted in accumulation of more cenvat credit thereby affecting the payment in PLA by the assessee.

Page | 19

8. LAKSHMI ELECTRICAL DRIVES LTD: ( Range IIIB)


2009-10 PLA CEN 2010-11 PLA CEN 2011-12 PLA CEN 2011-12 (Upto Feb) PLA CEN 2012-13 (Upto Feb) PLA CEN "+/-" PLA "+/-" CEN

1.13 185.00 1.41 3.64 1.42 3.26

1.42

1.18

3.06

3.52

1.64

2.34

Items of Manufacture: Electric motor. Inputs used : Electrical components, coils, starters. (The inputs are procured mostly locally). Clearances : 1) Export: Substantial quantity of exports to China. 2) Home consumption Cenvat utilization: The procurement of inputs have increased but the proportional increase in the clearances have not been effected .The unit is not able to manufacture to its full capacity because they are having problem sourcing the minor components.

Page | 20

9. REVATHI CP EQUIPMENT LTD( III E Range) 2009-10


PLA 2.37 CEN 3.65

2010-11
PLA 2.48 CEN 4.01

2011-12
PLA 3.17 CEN 4.11

2011-12 (Upto Feb)


PLA 2.12 CEN 3.17

2012-13 (Upto Feb)


PLA 2.99 CEN 3.81

"+/-"
PLA

"+/-"
CEN

0.87

0.64

Headquarters: in Delhi Items of Manufacture: Drilling Rigs and Part. Inputs used : Under Carriage, Engine, compressors, Hydraulic Motors, Pump, control Panel Clearances : 1) Export: Substantial quantity of exports to Brazil & China.

1. Market Situtation: The assessee are manufacturing drills rigs and parts for mining industries. The market situation has not shown change so far and is depended on growth in these sectors. 1. Order: There is no increase in orders from their customers and demand is more or less same. 2. Power Situtation: The erratic power situation is bringing pressure to their products in the competitive environment. 3. Reasons for Increase and Decrease of Revenue: Their clearance for home consumption has increased only marginally from 50.97 Crores upto 02/2012 to 55 Crores for the same period this year which shows an increase of 7.91%. At the same time the export clearance has gone down for the same period from 5.03 Crores to 3.91 Crores, a decrease of 22.21%. In tune with their marginal increase in home clearance, input CENVAT Credit availment has increased marginally from 3.03 Crores to 3.74 Crores an increase of 23.56%. This has reflected in the CENVAT utilisation going up from 3.17 Crores to 3.81 Crores an increase of 23.56%. payment which is up by 87 Lakhs; to an increase of 41% . PLA CENVAT Ratio Analysis: Due to increase in the payment of PLA by 87 Lakhs, the PLA/CENVAT ratio from this financial year is favourable at 44:56 as compared to 40:60 during the same period last year. Again increase in the price of product has contributed to an increase of PLA

Page | 21

10.

ELGI ULTRA INDUSTRIES LTD: Range IIIB (Coimbatore based)

2009-10
PLA 0.62 CEN 1.34

2010-11
PLA 0.64 CEN 2.07

2011-12
PLA 0.93 CEN 2.64

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

0.95

2.13

2.98

5.33

2.03

3.20

Items of Manufacture:Wet grinders,mixer grinders,pressure cookers for domestic use Inputs used : Motors,steel drums,plastics etc. (The inputs are procured locally). Clearances : 1) Export: Less. 2) Home consumption : High Cenvat utilization:

Prior to January 2012 Elgi Ultra had one unit in IIIA &

one unit in IIIB which was merged to IIIB unit resulting in transfer of the cenvat credit in IIIA to the unit in IIIB.The unit has purchased raw materials taking into account the sale projection for six months for the sale of their cooker & mixies.Howeversince the sales did not match their projected target production has gone down resulting in huge inventories. Due to merger of another unit (which was previously functioning in another Range jurisdiction) with this unit , there is increase in CENVAT availment. And also due to increase in product Ranges and increase in production capacity , there is increase in CENVAT availment. their

Page | 22

11.

THIO CHEMI PVT LTD (III E Range)

2009-10
PLA 1.38 CEN 0.27

2010-11
PLA 1.81 CEN 0.27

2011-12
PLA 2.32 CEN 0.46

2011-12 (Upto Feb)


PLA 2.00 CEN

2012-13 (Upto Feb)


PLA 2.87 CEN

"+/-"
PLA

"+/-"
CEN

0.39

0.62

0.87

0.23

(Kerala based) Items of Manufacture: Wax block, Ratmaar, Aerosol, Spray, Insecticides, Herbal Products. Inputs used : PVC Sleeves, Carton, Ethylene Glycon, Precipitated Silica. (The inputs are procured locally). Clearances : 1) Export: No exports. 2) Home consumption: Only home consumption

1. Market Situtation: The product manufactured by the assessee is used for agriculture purposes and demand is dependent on the seasonal changes. 2. Order: The order position at present steady. 3. Power Situation: This industry is not power intensive. As such changes in power supply will not have only marginal impact on the production. 4. Reasons for Increase and Decrease of Revenue: The assessee clear their product to agriculture industry and due to seasonal changes in agriculture their sale value has increased from 22.96 crores upto 02/2012 to 28.13 crores for the same period this year registering a growth of 22%. The export clearance has also gone up from 0.16 crores upto 02/2012 to 0.19 crores for the same period registering a growth of 18% compare to last year. As regards to their utilization of CENVAT Credit, the same has increased from 0.38 crores upto 02/2012 to 0.62 crores for the same period in tune with the increased clearance for home consumption. The PLA payment is up from 2 crores upto 02/2012 to 2.86 crores for the same period an increase of 43%. 5. PLA CENVAT Ratio Analysis: The payment in PLA has increased by 0.86 crore in the current financial year and PLA-CENVAT ratio has marginally gone down from 83:17 upto 02/2012 to 82:18 for this year.

Page | 23

12.

INDO SHELL AUTOMOTIVE SYSTEMS INDIA PVT LTD (III E)

2009-10 PLA CEN

2010-11 PLA CEN

2011-12 PLA CEN

2011-12 (Upto Sep) PLA CEN

2012-13 (Upto Sep) PLA CEN

"+/" PLA

"+/" CEN

2.66

2.78

3.18

4.28

3.20

6.37

2.79

6.02

2.84

5.60

0.05

-0.42

Items of Manufacture: Casting and cast articles of iron.

Inputs used

: Pig iron, C.I Boring & M.S Scrap. (The inputs are procured locally). Clearances : 1) Export: Small quantity. 2) Home consumption majority 1. Market Situation: They are manufacturers of Castings and Cast Articles of Iron and mainly caters to automobile industry. The sales are subject to the fluctuations in the automobile market. 2. Order: They have good orders from the customers but due to lack of adequate power supply they are not in a position to execute their orders and has cut down their production by 30% approximately. 3. Power Situation: Being a casting unit continuous power supply is must to maintain the product quality and due to lack of adequate power supply they have cut their orders by 30% approximately. 4. Reasons for Increase and Decrease of Revenue: Due to severe power shortage faced by the industry, they have cut down their production by 30% which is reflected in the value of clearance for home consumption falling from 72.52 crores (upto 02/2012) to 63.88 crores for the corresponding period of this year, in a decrease of 12%. Further they have purchased capital machinery and as a result CENVAT Credit on capital products has increased from 0.79 crores (upto 02/2012) to 1.38 crores for the corresponding period of this year, with an increase of 75%. Due to reduction in inventory, the availment of input credit has marginally reduced from 5.91 crores (upto 02/2012) to 5.21 crores for the corresponding period this year, a decrease of 12%. This is also reflected in the reduced utilization of CENVAT Credit which has fallen from 6.02 crores (upto 02/2012) to 5.60 crores, with a downfall of 7% for this financial year. However, PLA payment has shown a marginal increase of 5 lakhs. 5. PLA CENVAT Ratio Analysis: The PLA-CENVAT ratio is favourable due to slight increase in PLA payment and is 33:68 to 44:66.

Page | 24

13. 2009-10
PLA 0.84 CEN 3.56

ATS ELGI LTD: (III D Range) 2010-11


PLA 1.76 CEN 4.92

2011-12
PLA 2.01 CEN 5.83

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

1.71

5.42

2.02

6.82

0.31

1.40

Items of Manufacture

: Reciprocating pumps, spray paint boots, heel aligner,

Inputs used

pump. : CR sheets, ER pipe and tube, ss plates.

Analysis
Sl. No.
I

Information Reasons for increase/ decrease in cash payment during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the CENVAT Utilization during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the production during the current year upto month when compared to the corresponding period last year. Reasons for increase/ decrease in the price of final product during the current year when compared to the corresponding period last year Increase of 18% comparing corresponding period of last year in PLA payments due to increase in price of final product. Increase of 26% comparing corresponding period of last year in CENVAT utilisation due to the below reasons: 1. increase of export clearances by 54% There is 8% decrease in production Qty due to market sluggish in the automotive related products and numbe of car showrooms not increased upto the expected level Increase of 6% comparing corresponding period of last year in the production value due to raw material price and conversion cost increase.

II

III

IV

Page | 25

14. 2009-10
PLA 1.11 CEN 1.13

AUTO SHELL PERFECT MOULDERS LTD ( III D Range) 2010-11


PLA 2.63 CEN 1.61

2011-12
PLA 2.34 CEN 2.08

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

2.06

1.89

1.59

2.38

-0.47

0.49

Items of Manufacture: Iron castings Inputs used : Pig Irons Clearances : 1) Export2) Home consumption: Major Cenvat utilization: They are using induction furnace and severe power cut and power fluctuation has effected their production and there is slum in the sales. They have availed Cenvat credit of SACD on imported materials to the extendent of Rs.48 Lakhs approx.. Pertaining to the last three years, credit availed now resulting in sudden increase in Cenvat credit and thereby, its utilization.

1. MARKET SITUATION The market situation was worst condition. All industries market share was down trends. 2. STATUS OF ORDER BOOK There is no order improvement. Order was reduced 50% from existing level. 3. POWER SITUATION Daily power shutdown 8 to 12 hours. 4. CONCREATE REASONS FOR INCREASE / DECREASE IN REVENUE The reasons for power situation and market situation.

Page | 26

14.

KARPAGAM INDUSTRIES PVT LTD: Range IIID

2009-10
PLA 0.32 CEN 0.10

2010-11
PLA 0.84 CEN 0.16

2011-12
PLA 1.04 CEN 0.25

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

0.66

0.13

1.20

0.19

0.55

0.07

Items of Manufacture: Textiles machineries spares, Inputs used : CR sheets, Bright bar, wooden cloth. Clearances : 1) Export: Less. 2) Home consumption : High

Analysis
Sl. No. Conditions Reasons Our Company is a manufacturer of Textile Machinery spares. The market for textile machinery & spares is not growing over the last few years. As the demand for our products has diminished, we are not getting fresh orders from our regular customers. In veiw of the Global recesion, our overseas customers are hesitant to place fresh orders and hence our export turnover has shown a decrease over the same last year. There is no fresh Oder booking. Our Company is canvasing & taking efforts to win more orders for our survival. However, our DTA clearance has been improved a bith over the same last year. The power situation is very bad in our location for the past one year. The Government has regulated the power supply in view of the shortage in power generation and ineffect the power supply is available for use only to the extend of 12-16 Hrs. However, we are somehow managing the situation and we are not sure howlong we could prolong our survival. Eventhough our production and clearance for the current FY has been slightly dropped, our cash payments were up by arround 20%. The reason for being (i) the DTA sales has shown a marginal growth. (ii) The Cenvat utilisation has come down. (iii) The revision of the duty structure from 10.3% to 12.36%. Our CENVAT utilisation has been reduced to arroung 10% during the current FY. The reasons atributed are that we have switched over our rawmaterial procurement from large scale suppliers to small scale manufactures in view of the extended credit facility offerred by them. As such, we are not getting fresh credit on the raw-material purchase.

Market Situation

Status of Order Booking

Power situation

Concreate reasons for increase/ decrease in Revenue. Cash Payment/ CENVAT Credit ratio analysis

Page | 27

16. FYTOCARE CHEMICALS PVT LTD : Range III E 2009-10 2010-11 2011-12 2011-12 (Upto Feb) 2012-13 (Upto Feb) "+/-"
PLA 0.67 CEN 0.09 PLA 1.02 CEN 0.02 PLA 1.18 CEN 0.20 PLA 0.98 CEN PLA 1.20 CEN PLA

"+/-"
CEN

0.18

0.18

0.22

0.00

(Kerala based) Items of Manufacture: HIT Chalk, Hit Rat, Termidust, Wax Block, Cypermethrin. Inputs used :PVC Sleeve, Carton, Ethylene Glycol, Pouches. (The inputs are procured locally). Clearances : 1) Export: Minor 2) Home consumption: Majority Decrease in PLA : Market competition has led to reduced manufacture

1. Market Situation: The product manufactured by the assessee is used for agriculture purposes and demand is dependent on the seasonal changes. 2. Order: The order position at present steady. 3. Power Situation: This industry is not power intensive. As such changes in power supply will not have much impact on the production. 4. Reasons for Increase and Decrease of Revenue: Their value of home clearance has gone up from 10.04 Crore in 02/2012 to 11.13 Crore, an increase of 10% upto for the same period this year. However, goods cleared under exemption Viz, Insecticides and also their export clearance have also gone up. Export clearance is up from 0.38 Crores to 0.59 Crores and exempted clearances from 0.29 Crores to 0.31 Crores which have a negative impact of their revenue payment. Their CENVAT utilization has remained more or less the same, but the PLA has increased from 0.98 Crores to 1.20 Crores for the respective period, an increase of 18%. 5. PLA CENVAT Ratio Analysis: They have paid more duty in PLA to the tune of 0.22 Crores and the PLA/CENVAT ratio is favourable at 87:13 as compared to 85:15 for the same period during last year.

Page | 28

17. 2009-10
PLA 0.00

PC SONS CASTINGS PVT LTD: RANGE IIIE 2010-11


PLA 0.82 CEN 0.98

2011-12
PLA 1.18 CEN 0.99

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

CEN 0.59

1.12

0.90

1.17

0.71

0.05

-0.19

(Coimbatore based) Items of Manufacture: Inputs used manganese, magnesium, Clearances

Cast iron castings & cast iron machined castings. : C I Scrap , MS Scrap, Foundry Chemicals like Ferro Silicon, CPC Coke, Steel Shots, Copper Scrap & innoculants. : Home consumption

1. Market Situation: The assessee supplies automobile Equipments mainly to TAFE (Tractor & Agricultural Farm Equipments Ltd.), Rane Valves and also to CRI Pumps and other pump industry. 2. Order: Due to recession in automobile industry, the sales of castings for automible products have come down and also the sales pump industry.. 3. Power Situation: Due to erratic power supply position, they are unable to maintain quality for their products and hence they have reduced their production of casting for the current financial year. 4. Reasons for Increase and Decrease of Revenue: Due to frequent power shut down and quality problems arising as a consequence, the company have reduced their production of casting which is reflected in the lower value of sales which is gone down from 19.90 Crores upto 02/2012 to 15.24 Crores upto 02/2013, a decrease of 23%. Correspondingly, their availment of CNEVAT input has also gone down from 0.83 Crores to 0.69 Crores. This is also reflected in the lesser availment of CENVAT Credit of only 0.71 Crores upto 02/2013 as compared to 0.90 Crores during the same period last financial year. 5. PLA CENVAT Ratio Analysis: The assessee has paid more revenue in PLA to the tune of 5 Lakhs upto 02/2013 as compared to same period last year and hence the PLA/CENVAT ratio is favourable at 62:38 upto 02/2013 as compared to 55:45 during last financial year.

Page | 29

18. 2009-10
PLA 0.00

FLOWSERVE INDIA CONTROLS PVT LTD: (III E) 2010-11


PLA 0.00 CEN 13.35

2011-12
PLA 4.68 CEN 22.83

2011-12 (Upto Feb)


PLA 0.29 CEN 19.39

2012-13 (Upto Feb)


PLA 0.10 CEN 16.13

"+/-"
PLA

"+/-"
CEN

CEN 11.30

-0.19

-3.26

Items Of Manufacture: Pumps, Pump-parts, Pumps Accessories. Inputs used : Cast iron casting, impeller, motor, mechanical seals & others. Clearances : 1) Export: Substantial quantity of exports. 90% of the exports are to Middle East Countries & Germany.

1. Market Situation: The assessee mainly supplies their products to Oil and Power Industry. Hence, the off take of their goods depended on the growth in these sectors. 1. Order: The company does not have very much order from domestic market but have good orders from export market. 2. Power Situation: The power situation is making an impact by way of the cost on their product. The deficiency in power supply is made up captive power generation in the factory. 3. Reasons for Increase and Decrease of Revenue: Since the demand for their goods from home market is not good at present and for this reason the value of clearance has fallen from 215 Crores upto 02/2012 to 167 Crores for the same period this year, a decrease of 23%. At the same time their value of export clearance has gone up substantially from 66.3 Crores upto 02/2012 to 185.58 Crores for the same period this year an increase of 176%. Due to increased production of export goods, their availment of CENVAT Credit on inputs and capital goods have arisen substantially this year which has a negative impact on revenue payment. Their PLA revenue payment is only against the cess to be paid for home clearance (since sufficient credit for cess payment not available in Cenvat account) and due to drop in domestic sales, the has gone down by 66% in this financial year. The impact of this shift in their clearance pattern from domestic clearance to export clearance has resulted in the CENVAT Credit balance shooting up from 1.58 Crores upto 02/2012 to 8.41 Crores for the same period for this year. 4. PLA CENVAT Ratio Analysis: Since the assessee has a huge CENVAT Credit balance of 8.41 Crores in their account, they have paid only the cess amount by way of cash in PLA. PLA to CENVAT ratio is down from 2:98 upto 02/2012 to 1:99 for the same period for this year.

Page | 30

19.

INDO SHELL CAST PVT LTD: RANGE IIID

2009-10 PLA CEN

2010-11 PLA CEN

2011-12 PLA CEN

2011-12 (Upto Sep) PLA CEN

2012-13 (Upto Sep) PLA CEN

"+/" PLA

"+/" CEN

1.09 3.28 1.71 5.98 1.14 6.76 0.43

2.39

0.09

3.08

-0.34

0.69

Items of Manufacture: Casting and cast articles of iron Inputs used : Pig iron and MS scraps Clearances :1) Export 2) Home consumption Cenvat utilization: Clearances to 100%EOU, SEZ units, CT-1 clearances contribute 47.5% and thereby result in the accumulation of Cenvat credit.

1. Market Situation: They are manufacturers of Castings and Cast Articles of Iron and mainly caterers to automobile industries. The sales are subject to the fluctuations in the auto industrial market. 2. Order: They have good orders from the customers but due to lack of adequate power supply they are not in a position to execute their orders and has cut down their production by 25% approximately. 3. Power Situation: Being a casting unit continuous power supply is must to maintain the product and due to lack of adequate power supply they have cut their orders by 25%. 4. Reasons for Increase and Decrease of Revenue: Due to the unfavourable power situation, there is a dip in the value of clearances that has gone down from 30.81 Crores (upto 02/2012) to 25.34 crores for the corresponding period of this year, a decrease of 18%. Further their duty exempted clearances under CT-3 has tremendously increased from 5.76 crores (upto 02/2012) to 15.15 crores for the corresponding period of this year, an increase of 163% which has an impact for the current revenue payment. Due to increase purchase of raw materials towards these clearances, their CENVAT availment has increased from 2.60 crores (upto 02/2012) to 3.06 crores for the corresponding period this year, an increase of 18%. Since their value of home clearances has gone down, their PLA payment has also affected and has fallen from 0.43 crores (upto 02/2012) to 0.09 crores, with a downfall of 79% for this financial year. The CENVAT availed amount towards the increase in input purchases has been adjusted against the CENVAT utilization which has gone up from 2.39 crores (upto 02/2012) to 3.08 crores for the corresponding period of this year, an increase of 29%. 5. PLA CENVAT Ratio Analysis: There is a decrease of payment in PLA by 34 Lakhs compared to last year and PLA-CENVAT ratio is has gone down from 15:85 to 3:97.

Page | 31

20.

Larson and Toubro (Valve Manufacturing Facility) III E.

2009-10
PLA CEN -

2010-11
PLA 0.00 CEN 7.11

2011-12
PLA 0.00 CEN 17.64

2011-12 (Upto Feb)


PLA CEN

2012-13 (Upto Feb)


PLA CEN

"+/-"
PLA

"+/-"
CEN

0.00

13.84

0.00

20.76

0.00

6.92

Items of Manufacture: Industrial Valves domestic use Inputs used : Alloy Castings. Clearances : 1)Export: 2) Home consumption : Cenvat utilization:High as they have high accumulation of capital goods the unit is new.

credit since

1. Market Situation: Their product are mainly cleared to Oil and Power Industries. With the increased expansion of these sectors, the demand for their products is likely to go up. They are expecting some big orders in the near future. 2. Order: The order inflow is good and they expect to execute orders in time. 3. Power Situation: The erratic power situation is impacting on their cost and with the easing of power situation the production is likely to increase. 4. Reasons for Increase and Decrease of Revenue: Their products are mainly Big Valves which are supplied to Oil & Power Industries for which exemption from duty is eligible. During the current financial year clearance of products eligible for duty exemption has increased by 603%. Further, there is an phenomenal increase in exports to the tune of 1459%. In tune with the above increased clearance of the products, their input purchases has increased which is reflected in the input credit availment, that has gone up from 1266 lakhs (upto 02/2012) to 2597 lakhs (upto 02/2013) which shows an increase of 205%. Further their purchase of capital goods has increased which is reflected by way of availment of capital goods credit which is up from 12 lakhs to 72 lakhs a growth of 532%. All there have an negative impact on their PLA payment. Though the clearance value has increased for current financial year by 121%, accumulation of CENVAT Credit due to above mentioned factors have its impact on the CENVAT Credit balance which has gone up from 201 Lakhs (upto 02/2012) to 851 Lakhs (upto 02/2013). 5. PLA CENVAT Ratio Analysis: The company has not paid any amount in PLA since there is a huge CENVAT Credit Balance to the tune of 8.51 Crores in their CENVAT account.

Page | 32

TOP 10 COMMODITY CHAPTERWISE CTH 4 Digit -7325 -6811 -8481 Description Other cast articles of iron or steel Articles of Abesto cement or cellulose fibre cement or the like Taps, cocks, valve and similar appliances for pipes, boiler shells , tanks, vats.. Insecticide, rodenticides, fungicides, herbicides, antisprouting Insulated wire, cable & other insulated electric conductors, optical fibre Other articles of aluminium. Air or Vacuum pumps, compressors and fans, ventilating or recycling hoods Auxiliary machinery for use with machines of heading 8444, 8445,8446 or 8447 Pumps for liquids with/without measuring devices, Liquid elevators Other moving, grading, levelling, scrapping, excavating, tamping.. Or boring machinery 2011-12 (upto Jan 2012) PLA 1548.85 1034.27 393.62 CENVAT 3713.66 628.579 2661.99 TOTAL 5262.52 1662.85 3055.61 2012-13 (upto Jan 2013) PLA 1454.63 1377.08 503.05 CENVAT 3655.93 852.36 3890.75 TOTAL 5110.56 2229.44 4393.80 "Incr/ Decr" in PLA -94.22 342.81 109.43 "Incr/ Decr" in CEN -57.73 223.78 1228.76

Sl. No. 1 2 3

-3808

296.91

53.40

350.32

405.76

80.34

486.10

108.85

26.93

5 6 7

-8544 -7616 -8414

203.73 279.45 486.48

1038.07 696.53 3681.50

1241.80 975.98 4167.98

397.29 389.36 354.40

1759.58 782.65 4133.87

2156.88 1172.01 4488.27

193.56 109.91 -132.08

721.51 86.12 452.37

8 9 10

-8448 -8413 -8430

280.02 169.12 104.65

284.35 3074.88 212.88

564.37 3244.00 317.54

319.66 296.66 243.95

259.53 3705.61 293.84

579.18 4002.27 537.79

39.64 127.54 139.29

-24.82 630.73 80.96

Page | 33

ANALYSIS OF TOP COMMODITIES


2009-10 1 84 - MACHINERY, MECHANICAL APPLICANCES AND PARTS THEREOF Janatics India, ATS Elgi, Karpagam Industries, Elgi Equipments Total PLA 3.42 0.84 0.32 5.31 9.89 CEN 3.34 3.56 0.1 27.52 34.52 2010-11 PLA 4.3 1.76 0.84 8.3 15.2 CEN 5.86 4.92 0.16 47.73 58.67 2011-12 PLA 5.72 2.01 1.04 11.92 20.69 CEN 5.33 5.83 0.25 58.48 69.89 2011-12(upto Feb) PLA 4.99 1.71 0.655 4.56 11.92 CEN 4.97 5.42 0.1297 41.62 52.14 2012-13 (Upto Feb) PLA 6.07 2.02 1.2024 3.22 12.51 CEN 7.00 6.82 0.1948 50.84 64.85 (in crores) "Incr/ Decr" in PLA 1.08 0.31 0.55 -1.34 0.60 "Incr/ Decr" in CEN 2.03 1.40 0.07 9.22 12.72

2009-10 2 73 - ARTICLES OF IRON AND STEEL Auto Shell Moulders Indo Shell Mould Plant I Indo Shell Mould Plant I I PC Sons and Casting Total PLA 1.11 0.6 2.01 0 3.72 CEN 1.13 4.58 8.92 0.59 15.22

2010-11 PLA 2.63 0.71 3.22 0.82 7.38 CEN 1.61 4.89 12.8 0.98 20.28

2011-12 PLA 2.34 2.31 6.18 1.18 12.01 CEN 2.08 5.8 12.92 0.99 21.79

2011-12(upto Feb) PLA 2.06 0.87 5.28 1.12 9.33 CEN 1.89 3.94 13.48 0.9 20.21

2012-13 (Upto Feb) PLA 1.59 3.23 5.35 1.17 11.34 CEN 2.38 8.48 12.74 0.71 24.31

(in crores) "Incr/ Decr" in PLA -0.47 2.36 0.07 0.05 2.01 "Incr/ Decr" in CEN 0.49 4.54 -0.74 -0.19 4.10

Page | 34

TOP COMMODITIES - CENTRAL EXCISE 2009-10 3 68 - ARTICLES OF STONE,PLASTER, CEMENT,ASBESTOS, MICA OR SIMILAR Everest Industries PLA 4.32 2009-10 4 85 - ELECTRICAL ELECTRONIC MACHINERY AND EQUIPMENT Revathi Equipments V Guards Lakshmi Electrical Drives L & T LTD Precision Manufacturing Facility LARSEN & TOUBRO LIMITED (Valve Manufacturing Unit) Elgi Ultra Total PLA 2.37 0.03 1.13 0.62 1.78 CEN 3.65 7.83 185 1.34 194.17 CEN 5.5 2010-11 PLA 9.02 CEN 7.06 2011-12 PLA 12.37 CEN 7.51 2011-12(upto Feb) PLA 11.11 CEN 6.94 2012-13 (Upto Feb) PLA 14.64 CEN 9.42 (in crores) "Incr/ Decr" in PLA 3.53 "Incr/ Decr" in CEN 2.48

2010-11 PLA 2.48 1.18 1.41 0 0 0.64 3.23 CEN 4.01 7.5 3.64 0.49 7.11 2.07 20.81

2011-12 PLA 3.17 2.37 1.36 1.29 0 0.93 5.95 CEN 4.11 9.94 3.26 1.41 17.64 2.64 34.89

2011-12(upto Feb) PLA 2.12 2.03 1.42 1.29 0 0.95 7.81 CEN 3.17 8.75 1.18 1.39 13.84 2.13 30.46

2012-13 (Upto Feb) PLA 2.99 4.22 3.06 5.26 0 2.98 18.51 CEN 3.805 15.6 3.52 2.34 20.76 5.33 51.355

(in crores) "Incr/ Decr" in PLA 0.87 2.19 1.64 3.97 0.00 2.03 10.70 "Incr/ Decr" in CEN 0.64 6.85 2.34 0.95 6.92 3.20 20.90

2009-10 5 38 - MISCELLANEOUS CHEMICAL PRODUCTS Thio Chemicals PLA 1.38 CEN 0.27

2010-11 PLA 1.81 CEN 0.27

2011-12 PLA 2.32 CEN 0.46

2011-12(upto Feb) PLA 2.00 CEN 0.39

2012-13 (Upto Feb) PLA 2.87 CEN 0.62

(in crores) "Incr/ "Incr/ Decr" Decr" in PLA in CEN 0.87 0.23

Page | 35

COMMODITY-WISE ANALYSIS: ARTICLES OF IRON AND STEEL CH 73 The assessees of this division supply castings to automobile Equipment Units like TAFE (Tractor & Agricultural Farm Equipment Ltd.), Hero Honda, Rane Valves and also to Pumps industries. Due to recession in automobile and pumps industries, the sales of castings for automobile products have come down and also the sales pump industry. Due to erratic power supply position, they are unable to maintain quality for their products and hence they have reduced their production of casting for the current financial year. However, except for PC Sons and Casting, other major manufacturers have made more payment in PLA. ARTICLES OF STONE, PLASTER, CEMENT,ASBESTOS, MICA OR SIMILARCH 68 The Market for asbestos cement sheets has almost reached a saturation point and the market is sluggish. The current trend is not encouraging. As of now fresh orders are hard to come and the present clearances are just adequate to run their business. As regards projection for orders & sales, they are not foreseeing much improvement in the coming days from the present scenario. Power situation has not improved. The power situation is still highly precarious. As, there is no time schedule for power shutdown, they find it very hard to schedule their production. Their industry is severely affected by the power shortage. There is an increase in selling price as a result of price revision due to escalation of their overheads. Coupled with the upward revision in the duty structure w.e.f 16.03.2012, more payment of duty in the current FY than the previous year. As the present situation is not conducive for industrial development, there may not be much scope for improvement in production, removal and duty payment. Cash payment has increased due to the upward price revision and the upward revision of the duty structure by the Government. Imported raw materials such as asbestose etc. As, Dollar has gained value over Rupee, more CENVAT credit in terms of CVD/ ACD. Hence there is an increased utilisation CENVAT credit than the previous FY. MACHINERY, MECHANICAL APPLICANCES AND PARTS THEREOF CH 84 These products are doing well as there is increased demand for the final product and thereby increase in domestic turnover. Exports shown a positive growth resulting in higher credit accumulation which is utilised for payment of duty. Elgi Equipments, a major assessee has more in Cenvat due to credit accumulation on account of increased exports and other exempted clearances viz., clearances to power projects, research institution etc.

Page | 36

ELECTRICAL ELECTRONIC MACHINERY AND EQUIPMENT CH 85 The market situations appear to have improved and consequently more duty payments are being made despite erratic power situation. The exports of this commodities have registered a decline and domestic clearances have picked up resulting more payment in PLA and Cenvat. MISCELLANEOUS CHEMICAL PRODUCTS CH 38 The products manufactured are used for agriculture purposes and demand is dependent on the seasonal changes. This industry is not power intensive. As such changes in power supply will not have only marginal impact on the production. Due to changes in duty structure, the PLA payments and Cenvat availments have registered an increase.

Page | 37

ARREARS OF REVENUE (as on 28.02.2013)

Sl. No. 1 2 3 4 5 (i) (ii) (iii) (iv) (v) (vi) (vii) High Court Cestat Stayed Cestat non-stayed Commr (Appeals) Persuasive Action BIFR Official Liquidator

Category

No.

Amount (Lakhs)

8 23 13 12 No 6 9 4 99 2 0 24 Amount 9.06 33.54 2.82 169.93 17.11 0.00 81.34

30.93 855.49 488.18 135.23

Defaulters not traceable Unit defunct Units taken over by Banks Sec.11 certificate action Appeal Period Over

Sub-total Grand Total

144

313.79

56 200

1509.82 1823.61

Page | 38

UNCONFIRMED DEMANDS (ADJUDICATION PENDENCY) (IN ACTUALS)


Category Sec 11 A Case Cenvat Others Total No 10 0 2 12 Amount 3202565 0 214609 3417174 1-3 months 3 0 0 3 3-6 Month 7* 0 1* 8 6-9 Month 0 0 0 0 6-12 Month 0 0 0 0 More than 1 years 0 0 1* 1

* PH is over.

Page | 39

Amount 36 2958085.00 2 70459.00 1405998.00 727170.00 7 3 48 Cases in which Deptt. Has gone in appeal to appropriate authority Cases where injunction has been issued by SC/ HC/ Tribunal etc. Cases where audit objections are contested Cases where Board has specifically ordered the case to be kept in Call Book

No. of cases pending in

CALL BOOK CASES

(IN LAKHS) 29.58 0.70 14.06 7.27

Page | 40

TOTAL

5161712 51.62

INTERNAL AUDIT (AS ON 28.02.2013)


(IN LAKHS) OB No. 59 Amount 182.76 No. 0 RECEIPT Amount 0 No. 3 SETTLED Amount 3.54 No. 56 CB Amount 179.22

< 3 Months No. 16 Amount 34.57 No.

3-6 Months Amount 0 0

6-12 Months No. 18 Amount 60.23 No. 22

>1 Yrs Amount 84.42

CERA (AS ON 28.02.2013)


(IN LAKHS) OB No. 69 Amount 1040.63 No. 0 RECEIPT Amount 0 No. 3 SETTLED Amount 524.71 No. 66 CB Amount 515.92

< 3 Months No. 15 Amount 13.55 No.

3-6 Months Amount 22.60

6-12 Months No. 18 Amount 9.93 No. 18

>1 Yrs Amount 469.83

15

Page | 41

DEFAULT IN PAYMENT OF DUTY STATEMENT (AS ON 31.03.2013)

(Rs.in Actuals) Opening Balance No. Duty Interest Receipts No. Duty Interest No. 20 1832403 1177315 0 0 0 8 Realisation Within one month Duty 4390227 Beyond one month Amount 1968666 Int. 0 8 972582 1210310 Closing Balance No. Duty Interest

Interest No. 67124 4

0 to 3 Months No. 0 Amount 0

3-6 Months Int No. Amount 0 1 0 Int 308166 No. 0

6-12 Months Amount 0 Int 0

Over 1 Year No. Amount 7 972582

TOTAL Interest 1210310

Interest No. Amount 902144 8 972582

Page | 42

REBATES (AS ON 31.03.2013)


REBATE (IN LAKHS) OB No. Amount No. RECEIPT Amount DISPOSAL No. Amount No. CB Amount

132

596.48

32

161.33

0.00

164

757.81

BREAK UP (IN LAKHS) 0-3 MONTHS No. Amount 3-6 MONTHS No. Amount 6-12 MONTHS No. Amount No. > 1 YR Amount

164

757.81

0.00

0.00

0.00

REFUNDS (AS ON 31.03.2013)


REFUND (IN LAKHS) OB No. Amount No. RECEIPT Amount No. DISPOSAL Amount No. CB Amount

9.42

0.00

0.00

9.42

BREAK UP (IN LAKHS) 0-3 MONTHS No. Amount 3-6 MONTHS No. Amount 6-12 MONTHS No. Amount No. > 1 YR Amount

9.42

0.00

0.00

0.00

Page | 43

SCRUTINY OF RETURN (28.02.2013)


SL. NO. 1 2 3 4 5 6 7 8 9 10 11 MONTH Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 TOTAL OB 9189 9530 9828 10123 10512 10610 10579 10769 11067 11188 11343 114740 RECIEPT 393 378 392 420 380 414 386 422 422 453 426 4489 REVIEWED 52 80 97 30 282 445 196 124 301 298 260 2169 CB 9530 9828 10123 10512 10610 10579 10769 11067 11188 11343 11509 117063 RECOVERIES MADE 0 0 0 202675 5890 1702000 56032 0 1123366 0 0 3089969

Page | 44

DETAILED MANUAL SCRUTINY


MONTH MARKED FOR DETAILED MANUAL SCRUTINY DETAILED MANUAL SCRUTINY COMPLETED DETAILED MANUAL SCRUTINY PENDING AMOUNT RECOVERED % COMPLETED

SEP 2012. OCT 2012. NOV 2012. DEC 2012. JAN 2013. FEB 2013.

43 38 32 31 41 34

26 17 12 9 4 4

17 21 20 22 41 30

2779592 201972 511478 18271 0 0

60% 45% 38% 29% 10%

12%

Page | 45

IMPLEMENTATION OF CC STANDING ORDERS STANDING ORDERS STANDING ORDER NO.01/2012 Issue of invoice under Rule 11. STANDING ORDER NO.02/2012 Maintenance of Assesees Information Masters STANDING ORDER NO.03/2012 Detailed Return Scrutiny STANDING ORDER NO.04/2012 Submission of Preliminary Report for monitoring of preventive cases. STANDING ORDER NO.05/2012 Prospective implementation of QuasiJudicial Orders in Recurring Issues. STANDING ORDER NO.06/2012 Handing Over of Charge COMPLIANCE STATUS ROs have been directed to verify the invoices issued by the assessees on regular basis and report any deviation from the standing order. The Assessee Information master has been prepared and sent to the Head Office. List of units for detailed scrutiny are selected and sent to the range on monthly basis

N.A

No such situation has arisen in Central Excise matters.

Being scrupulously followed

Page | 46

PART III ACCOUNTS, ESTABLISHMENT AND PERSONNEL 1) VACANCY POSITION : From the sanctioned strength/working strength details given above, it could be seen that there is 1 vacancy in the cadre of Stenographer and 2 vacancies in the cadre of Senior Tax Assistant and 2 vacancies in the Group D cadre. The vacancy position in the cadres of Steno/Senior Tax Assistant and Group C-Non-executive cadres is felt very much in the Range and Divisional office, and hence it is requested that these posts may be filled up at the earliest. 2(a). ARRANGEMENT FOR BRINGING CASH FROM TREASURY: Cash is drawn from State Bank of India, Main Branch, Coimbatore. Since no Departmental Vehicle is provided, Auto rickshaw is being used to bring cash from Bank. So far there is no problem in the arrangements made for bringing cash. 2(b). EXECUTION OF BOND/SECURITY BY CASHIER: Since there is no specific posting of a Cashier, the Senior Tax Assistants are allocated the handling cash work on rotation basis and hence no fidelity bond is being maintained. 2(c). STRONG SAFE: Available in the Divisional office. Duplicate Key Register is maintained in this Division and the same is being verified annually. 3. CASH BOOK & REGISTERS OF UDP: Maintained. Entries relating to the transaction have been made upto

date. The Register of Undisbursed payment amount is maintained. 4. BILLS REGISTER AND RECORD OF RECOVERIES: Maintained upto date. 5. CONTINGENT REGISTER : Maintained.

Page | 47

6.

CLAIMS REGISTER: A) B) C) D) E) F) G) T.A. Claim Register : Medical Claim Register : O.T. Claim Register : T.A and Transfer T.A Advance Register LTC Register Festival Advance Register GPF Advance Register : : : Maintained. Maintained. Maintained. Maintained. Maintained. Maintained. Maintained.

7.

REGISTER OF AUDIT OBJECTION : Each audit note is dealt with in separate files.

8.

REGISTER OF REWARDS: No rewards sanctioned at this end and hence no register maintained. Details of rewards sanctioned from Hqrs are entered in the service books of the officers concerned.

9.

DESPATCH REGISTER: Maintained. The Service Stamp accounts are maintained.

10. REGISTER OF PERISHABLE STORES: Register maintained. Purchased articles are entered in the register. 11. REGISTER OF SECURITIES: No separate register is maintained. Presently there is no bond has been furnished for handling of cash. 12. DEAD STOCK REGISTER: The Prescribed register is maintained. Annual verification of Dead Stock Articles for the year 2012 has been done on 31.12.2012 by Shri. N. Chandrasekar, Superintendent, Cbe III Division, and the stock is found to be correct.

Page | 48

13. DISBURSEMENT OF PAY AND ALLOWANCE: Pay and Allowances are credited by e-payment mode and the same is drawn by the Officers at the end of the month through ATM of Indian Bank, Trichy Road, Coimbatore and now is being carried out by epayment mode by the PAO, Coimbatore directly from the Treasury branch of SBI to the individual accounts. 14. INCREMENT REGISTER: The increment register has been maintained properly giving the details such as present pay, date of next increment, pay after sanctioning the increment, etc. Maintained. 15. SERVICE BOOK AND SERVICE ROLLS: All leave entries, service entries, increment entries and all relevant entries have been made. Maintained.

Page | 49

PART IV GENERAL

1)

Stationery Register:

There is no separate allotment for purchase of

stationery items. The expenditure towards purchase of stationery items is met from office expenses allotment. 2) Articles of Uniforms: The uniform allowances for the Group C

(Gazetted, Non-Gazetted and Non-executive officers) are being drawn and paid on the due date as per orders. Book of the officers concerned. 3) 4) Dak: Separate register for IC and OC are being maintained. Representation received from staff: Representation received from staff are attended or submitted to the Hqrs. in time. 5) Use of Hindi: All name Boards of Gazetted Officers are written Entries were made in the Service

bilingually and the office seals are also made in Hindi and English. 6) Any other items of interest: Nil

Page | 50