Provisional Attachment of property - Service Tax Practice Manual / Ready Reckoner - Service Tax

Provisional Attachment of property Section 73C has been inserted in the Act by the Finance Act, 2006 to empower the Central Excise officers to attach the property in the interest of the revenue. When a property be attached No attachment is possible, if no show cause notice has been issued. Attachment of the property can be made during the pendency of any proceeding under section 73 or section 73A , where show cause notice has been served. Property belonging to the person to whom show cause notice has been served can only be attached. Prior Approval of Commissioner is required Opinion of the Central Excise officer in the interest of revenue is source to attach the property. However, before attachment, prior approval of the Principal Commissioner of Central Excise or Commissioner of Central Excise must be obtained. Manner of Attachment Property shall be attached in the manner as may be prescribed. For this Service Tax (Provisional Attachment) Rules, 2008 have been notified to enable the department to provisionally attach the property of defaulters. Period of attachment Initial period of attachment is six months. However Chief Commissioner of Central Excise, for reasons to be recorded in writing, extend the period as he thinks fit, but total period of extension shall not be exceed two years in any case. Also see: Circular / Instruction 196/06/2016-ST - 27-7-2016