It is felt that out of these 23 reports, 9 reports (sl nos 14, 15 & 17 to 23 of Annexure A) can be totally dispensed with. Thus out of the reports listed at sl nos 14 to 23 of Annexure A the report covered by sl no 16 titled "Close monitoring of Audit objections/DAPs involving revenue of more than Rs 10 lakhs" will only continue with the modification that " Rs 10 lakhs" should be replaced by "Rs 50 lakhs". The remaining 13 reports (sl nos 1 to 13 of Annexure A) can be combined into a single monthly/quarterly report.
Every year after the Audit Report is presented before the Parliament and received in the Ministry, a report is sought from all Commissioners in prescribed proforma I(monthly) & II(quarterly) [as per Annexures B and C] to give the progress/ATN in respect of each Audit Para. The report in Proforma I covers only those cases of the Commissionerate which are reported in the Audit Report. However Proforma II relates to objections detected in respect of other Commissionerates where similar short levy have been noticed in the reporting Commissionerate. This exercise is repeated every year for every new Audit Report. Right now the Board is getting progress reports of ATNs relating to the years right from 1986-87 to 1998-99 (i.e. 13 years).
It is proposed to combine all the separate reports in Proforma I (Annexure B) into a single monthly report, where the Commissioners would give the progress of each Audit Para (indicating the year to which it relates) which has not yet been settled. In case there is no progress in respect of any Audit Para in a particular month, the covering letter of the report should mention this fact and the reports in Proforma I of the previous month should not be repeated. Report in Proforma I should cover only those DAP"s which have been converted to Audit para and should clearly mention the corresponding A.P. No.
Report in Proforma II(quarterly) should accompany the report in Proforma I, every quarter, and should be discontinued after the Audit Report of the C & AG for the subsequent year is received by the Commissionerate.
In respect of the remaining 9 reports ( sl nos 14,15 & 17 to 23 of Annexure A) it is observed that some of them were required to be sent either to the DGI or to the Policy Section of the Board and only a copy was to be endorsed to the PAC (CX-7) Section. None of these 9 reports need now be addressed or endorsed to the PAC Section of the Board. Copies meant for other formations (like the DGI etc) or different Sections of the Board should, however, continue to be sent to those offices.
It is further brought to the notice of all Commissioners that the Board has compiled a list of Audit Paras (along with DAP Nos) for the years upto 1998-99 which are pending settlement as on 30.4.2001. The list is enclosed as Annexure D. It is mentioned that, as on date, all Audit Paras upto the year 1991-92 have been settled. Henceforth Commissioners should send their combined monthly ATN"s in respect of only those Audit Paras (DAP’s) which are indicated in Annexure D. As and when these get settled further report on them should be discontinued.
In respect of paras which have been settled the Commissioners should dispose of pending proceedings relying on Ministry’s stand on the para. In case they do not have a copy of Ministry’s final reply/ATN they should procure it from the office of the local A.G. In case this does not work out a gazetted officer along with a ministerial staff may be deputed to New Delhi to take photocopies from the relevant files of the Ministry. The officer should be willing to camp in Delhi for a few days. The Commissioner should also send an advance intimation of the officer’s scheduled date of arrival in New Delhi to the undersigned. Following factors should be kept in mind while disposing of pending show cause notices, provisional assessments etc related to settled CERA objections, namely:-
All DAP’s do not necessarily get converted to Audit paras and are therefore not all included in the CAG’s Audit Report for the corresponding year. In such cases Ministry does not monitor their disposal. Non-converted (or non-included) Draft Audit Paras should be disposed of through discussions at the level of the local/State A.G. The details of DAP’s which have been converted to Audit Paras can be ascertained from the key which accompanies each Audit Report of the C&AG.
There may be cases where the Ministry may have contested the objection at the DAP stage but subsequently when the DAP gets converted to Audit Para there may be a change in the stand of the Ministry because of new facts, interpretation or judicial pronouncements. Or conversely, initially Ministry may have admitted the objection but later revised its stand. As such reliance should be placed on the last ATN of the Ministry only and which forms the basis of the settlement intimation from C &AG.
In respect of paras which stand settled efforts should now be made to dispose of all related cases of adjudication, provisional assessment etc.
In respect of paras which are still pending settlement, as per the enclosed list action should be taken as follows, as per existing instructions:-
where Ministry has admitted the objection adjudication process should be completed on priority basis and details communicated to CX-7 section of the Board. C&AG will consider settlement of such paras only after the adjudication process is completed.
where Ministry has not admitted the objection the related show cause notice should be kept in call book till further instruction of the Board (Circular No.385/18/98-CX dated 30.3.98) Sometimes, even in respect of paras which have not been admitted by the Ministry, the C&AG insists on adjudication. These cases are separately brought to the notice of the Commissioner for adjudicating the case on merits and reporting details.
The receipt of this Circular may kindly be acknowledged.