Customs duties is usually paid through clearing agents. Their bills duty supported receipted Bills of Entry are, therefore, available for verification. If a payment has been made directly, the Bill of Entry relevant thereto together with the receipt should be inspected.
In the event of dispute where a provisional payment has been made, the amount determined as payable finally should be ascertained and any additional duty payable or refund of the amount paid in excess which is recoverable should be brought into account. In certain cases, drawback of customs duty is allowed, if goods are exported or deemed to be exported. The auditor should see that on export the refund of duty has been claimed.
Excise duty is levy on manufacture. The Liability for the Duty arises at the point of time at which manufacture is completed. Normally, excise duty is paid before the issue of excisable goods from the factory. To verify the payment of excise duties, the amount of duty paid must be checked with quantity of goods in respect of which the issue permits for the goods have been received. If, however, a triplicate copy of the challan is available in the file in respect of such payments, it will serve as an additional evidence of the duty having been paid.