Para 14.3.9 — CAM
Original Rule Text
14.3.9 MEMORANDUM OF ERRORS
14.3.9.1 In an ideal electronic environment there shall not be any discrepancies between Transaction data reported by bank in real time (and EOD) and the data reported by RBI in the credit notifications. However, there may be instances of following errors
(a) When banks have reported higher amount than RBI
(b) When banks have not reported or less reported the amount than RBI
14.3.9.2 In either instance, the Memorandum of Error is raised through the system/offline to RBI, Mumbai and on resolution of the same, the MoE is closed.
14.3.10 REFUND PAYMENTS OF CENTRAL EXCISE AND SERVICE TAX
14.3.10.1 The Competent Authority as per prescribed departmental procedure, sanctions claims for Refunds. The Divisional Officer issues a cheque payable at the nominated bank authorized for payments of Refunds. [Cheque-books are provided by Pr.Accounts Office to the Pay and Accounts Officers concerned who thereafter issued to the Divisional Officer/ Chief Accounts Officer of the Commissionerate on requisition.]
14.3.10.2 The cheques are honoured by the concerned bank branches (if in order) who will thereafter prepare separate payment scrolls (specifically marked Refunds, rebates and drawbacks) in the prescribed format Major Head-wise in respect of cheques issued for payment of refunds.
14.3.10.3 The Divisional Officer shall prepare a List of Payments (LOPs) on weekly basis i.e. 7th, 14th, 21st & 30th of every month under revenue account and send it to the PAO along with Paid Refund Vouchers directly. The accounting adjustment is made on the basis of the LOPs received from the Department and the images of paid cheques along with scrolls received from bank branch authorized for making refunds. This will be accounted for by the PAO under the concerned revenue head as deduct refunds/drawbacks.
14.4 CUSTOMS DUTY COLLECTION
14.4.1 There are various types of Custom locations across the country Like Air Cargo, Land Custom Stations (LCS), Inland Container Depot (ICD), Custom Houses etc. where custom duties are collected. Every Importer/ Exporter needs to declare his goods/ items in detail through Bill of entry at the Custom Location or at ICEGATE (a web portal hosting various services for Custom houses) if that custom location is having EDI (Electronic Data Interchange) system. If custom location doesn’t have EDI system then whole process of filling Bill of Entry, duty assessment, Challan generation, duty payment and delivery of goods is under manual process flow.
What This Means
In the electronic system for Central Excise and Service Tax, discrepancies between bank-reported amounts and RBI-reported amounts generate Memoranda of Error (MoE). If banks report a higher amount than RBI, or if banks have not reported or reported less than RBI, the system generates MoEs. These are resolved through communication with RBI Mumbai, after which the entries are closed. For refunds, the Divisional Officer sanctions claims and issues cheques, while PAOs prepare weekly Lists of Payments and do the accounting based on these lists and paid cheque images from banks.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Two types of MoE: Bank reports more than RBI, or Bank reports less/nothing compared to RBI
- 2MoEs raised through the system or offline to RBI Mumbai for resolution
- 3Refund claims sanctioned by Divisional Officer, paid via cheques on nominated bank branches
- 4PAO accounts for refunds based on weekly Lists of Payments and bank scroll images
- 5Refunds classified as deduct refunds/drawbacks under concerned revenue heads
Practical Example
RBI's e-scroll shows Rs 10 lakh settled for a Central Excise payment, but the authorized bank reported only Rs 8 lakh to ICEGATE. A Memorandum of Error is raised for the Rs 2 lakh difference. RBI Mumbai investigates with the bank, which discovers a reporting error in its EOD file. After correction, the MoE is closed and ARPIT's accounts are updated. Separately, a manufacturer's refund of Rs 50,000 is sanctioned by the Divisional Officer, who issues a cheque. The PAO records this refund as a deduction under the revenue head when the weekly List of Payments arrives.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What causes discrepancies between bank and RBI reported amounts?▼
How are Central Excise refunds accounted for?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.