To,

All Chief Commissioners of Customs,
All Chief Commissioners of Customs and Central Excise,
Commissioner (ICD),CBEC,
Commissioner (AS),CBEC,
Joint Secretary (DBK),CBEC,
Joint Secretary (Customs) CBEC.

Subject: - Action Taken Notes on the Recommendations of PAC (3^rd, 4^th and 6^thPara of 15^thReport of 15^th Lok Sabha).

The Public Account Committee vide the 3^rd, 4th and 6th paragraphs of its 15th Report (of the 15^thLok Sabha) has made certain important recommendations/observations that relate to prompt and proper handling of Audit Paras by the CBEC as well as by its field formations. For ease of reference the gist of the same is given below:-

(a) Timely submission of Action Taken Notes has nothing to do with the finality of the matter through the judicial process because what sought from the Ministry is the information on Action Taken by the Department on the Audit observation within a period of four months from the date of laying of the Audit Reports on the Table of the House. Accordingly, the PAC has recommended that notwithstanding the Court cases, Action Taken Notes must be forwarded within the prescribed period of four month. (Refer paragraph 3 of said Report)

(b) Department of Revenue should overhaul the concerned section/wing by inducting more manpower and machinery so as to comply with the mandatory requirement. The PAC has also recommended that the Department institutionalize half yearly meeting with the Office of C&AG at the level of Joint Secretary and above and quarterly meetings at the Director’s level to reconcile the quantum of pendency and also to settle the controversial/disputed issues, facts and figures etc. The PAC further recommended that the work of computerization of records and building of electronic database should be expedited to improve the monitoring and quick disposal/submission of Action Taken Notes by the Department. (Refer paragraph 4 of said Report).

(c) Necessary arrangements should be made to ensure submission of the Action Taken Notes on all the paragraphs of the Audit Reports of C&AG of India strictly within the stipulated period of four months. There should be a time bound mechanism to monitor and follow up of Audit paragraphs periodically even after furnishing the first Action Taken Note till the issue is settled. All the field formations of Ministry of Finance (Department of Revenue) should be suitably instructed to take appropriate action against the defaulters promptly and intimate the same to the Ministry and then to the C&AG without any delay. All the paragraphs related to earlier Reports should also be reviewed and a timeframe should be specified to finalize them. (Refer paragraph 6 of said Report)

2. In the aforestated background the Board has examined the present procedure of handling Audit Paras. Accordingly, in line with the recommendations of the PAC, a suitable procedure that ensures time bound and proper handling of Audit Paras and timely replies to C&AG has been devised. The Board desires that the said procedure shall be strictly complied with immediate effect with by all concerned viz. Customs sections of the Board and field formations. The revised procedure is as follows:-

(i) On receipt of the DAPs/Audit Paras and PAC Paras, the FTT section, CBEC shall send the same to the concerned Customs section in CBEC within a maximum period of 15 days.

(ii) The concerned Customs section, CBEC shall forward the received DAPs/Audit Paras and PAC Paras to concerned field formation within a maximum period of 15 days.

(iii) The concerned Commissioner shall ensure a reply is sent to the concerned Customs section, CBEC within a maximum period of one month from the date of receipt of the DAPs/Audit Paras and PAC Paras. The reply shall be sent in the prescribed proforma with each entry thereof completed.

(iv) The concerned Commissioners shall take appropriate action against the defaulters promptly and intimate the same to the Ministry without any delay.

(v) After receipt of the reply from the Commissionerate the concerned Customs section, CBEC shall prepare the ATN/ATR, notwithstanding the Court cases, and send the same to C&AG with approval of Member (Customs) within a maximum period of one month. The reply shall be sent in the prescribed proforma. Thus, the entire exercise of reply to C&AG should be completed within three months of receipt of the DAPs/Audit Paras and PAC Paras, so that clarification, if any, sought by C&AG can also be replied to within the stipulated time period of four month from the receipt of DAPs/Audit Paras and PAC Paras.

(vi) After vetting of the ATN/ATR by C&AG the concerned Customs section, CBEC shall send the same to the Hindi section within three days. Thereafter, the vetted ATN/ATR (15 copies in Hindi and 30 copies in English) shall be sent to Monitoring Cell within 15 days of receipt of C&AG letter confirming vetting.

(vii) Subsequent queries, if any, on Ministry’s comments/ATN shall be likewise promptly dealt with in consultation with concerned Commissionerate, if required, and replied to C&AG without delay.

(viii) Copies of approved ATNs/ATRs shall necessarily be sent by concerned Customs section, CBEC to FTT section.

(ix) Concerned JS/Commissioner shall monitor the disposal of the pending DAPs /Audit Para /PAC Para in each Customs section on fortnightly basis. The overall pendency of the Customs wing shall be monitored by JS (Customs), CBEC.

(x) With a view to reconcile pendency, resolve outstanding issues, and expedite disposal of outstanding ATN/ATR, Half yearly meeting at the level of JS (Customs) and quarterly meetings at the level of Director (Customs) shall be held with the Office of C&AG.

(xi) It is also desired that necessary action should be taken for computerization of records and building of electronic database, to improve the monitoring and quick disposal/submission of ATNs/ATRs by the Department. The sections/ wings dealing with the subject should also be overhauled by inducting more manpower.

3. These instructions may be brought to the notice of all the concerned officials for ensuring strict compliance.

4. These instructions are issued with the approval of Member (Customs).

(R.P.Singh)
(Director (Customs)


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