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TMI BlogInstructions regarding provisional attachment of property under section 73C of the Finance Act, 1994-reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner (DPPR) [email protected] Sir/Madam, Subject: - Instructions regarding provisional attachment of property under section 73C of the Finance Act, 1994-reg. Section 73C of the Finance Act, 1994 (hereinafter referred to as the Act) provides for provisional attachment of property for the purposes of protecting the interests of revenue during the pendency of any proceedings under section 73 or section 73A of the Act . 2. In this connection the following guidelines are issued to maintain uniformity in its implementation by field formations. (i) The proceedings for provisional attachment can be initiated only after issue of Show Cause Notice under section 73 or section 73A of the Act. (ii) During the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue of show cause notice. It may also be noted that appropriate disciplinary action shall be initiated against the officers who may be found to exercise the powers of provisional attachment of property frivolously and without sound reasons. [Recommendation of the Standing Committee on Finance (Fourteenth Lok Sabha) in its 27th Report.] (iv) The Commissioner of Central Excise, on receipt of proposal, or on his own, if he is satisfied that circumstances of the case justify provisional attachment, may serve a notice on the person on whom a notice is served under Section 73 or 73A of the Act, requiring such person to make submissions, in writing or in person or both, within fifteen days of serving of the notice as to why the property b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or provisional attachment of property:- (a) Provision of a taxable service without the cover of an invoice or any other document, as prescribed, and without payment of tax; (b) Provision of a taxable service without declaring the correct value for payment of service tax, where a portion of value of taxable service, in excess of invoice price, is received by him or on his behalf but not accounted for in the books of account. (c) Taking of CENVAT credit without the receipt of goods or services specified in the document based on which the said credit has been taken; (d) Taking of CENVAT credit on invoices or other documents which a person has reasons to believe as not genuine; (e) Issue of service tax invoice or any other document, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient to protect the intersts of revenue. It should also be ensured that such attachment does not hamper normal business of the assessees. This would mean that inputs required for provision of a service should not be attached by the department. (x) Attachment not to be excessive: Provisional attachment by arrest or distrain of the property shall not be excessive, that is to say, the property provisionally attached shall be of value as nearly as may be equivalent to that of the amount demanded in the proceedings under section 73 or section 73A of the Act. (xi) Attachment between Sunrise and Sunset: The provisional attachment of the property of the concerned person by arrest or distrain shall be made after sunrise and befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chment and sale for execution of a decree of a Civil Court shall be exempt from provisional attachment. (b) The decision of the Commissioner of Central Excise as to what property is so entitled to exemption shall be final. 3.Trade field formations may be informed suitably. 4. Hindi version will follow. Yours faithfully, (Ashima Bansal) Under Secretary to Government of India Copy to: 1. PPS to Chairman (CBEC) 2. PPS to Member (CBEC) (All) 3. Directorates-General/ Directorates under CBEC (All) 4. Sections under CBEC(All) - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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