9911796707
TMI BlogPROVISIONAL ATTACHMENT TO PROTECT REVENUE IN CERTAIN CASESX X X X Extracts X X X X X X X X Extracts X X X X ..... d. (II) The provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the above said order. (III) The following guidelines have been prescribed by CBIC Vide Instructions No. CBEC-20/16/05/2021-GST/359, dated 23.02.2021, with regard to Provisional Attachment of Property- (i) There must be pendency of a proceeding against a defaulting taxpayer/person under sections mentioned in Section 83 of the CGST Act, 2017. (ii) The Commissioner must have formed the opinion that provisional attachment of the property belonging to the defaulting taxpayer/person is necessary for the purpose of protecting the interest of the Government Revenue. (iii) For forming an opinion under Section 83 of the CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FORM GST DRC-22, mentioning therein the details of property being attached. (ii) A copy of the order of attachment should be sent to the concerned Revenue authority or Transport Authority or Bank or the relevant authority to place encumbrance on the said movable or immovable property. The property, thus attached, shall be removed only on the written instructions from the commissioner. (iii) A copy of such attachment order should be provided to the said defaulting taxpayer/person so that objections, if any, can be made by him within the time frame prescribed under Rule 159 of the CGST Rules, 2017 in FORM GST DRC-22A. (iv) If the objection is filed, the Pr. Commissioner/Commissioner should provide a Personal hearing. (v) After considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble from the said defaulting taxpayer/person. (x) As the remedy of attachment being extraordinary, needs to be resorted to with utmost circumspection and with maximum care and caution. It normally should not be invoked in cases of technical nature and should be resorted to mainly in cases where there is an evasion of tax or where wrongful input tax credit is availed or utilized or wrongfully passed on. (V) Tyes of cases fit for provisional attachment: The following are some of the type of cases, where provisional attachment can be considered to be resorted to, subject to specific facts of the case: (i) Where taxable person has supplied any goods and/or services without issue of any invoice, with an intention to evade tax or issued any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson. This would mean that raw materials and inputs required for production of finished goods should not normally be attached by the Department. (vi) In cases where the movable property, including bank account, belonging to the defaulting taxpayer/person has been attached, such movable property may be released if he offers, in lieu of movable property, any other immovable property which is sufficient to protect the interest of revenue. It should be free from any subsisting charge, liens, mortgages or encumbrances, property tax fully paid up to date and not involved in any legal dispute. The defaulting taxpayer/person must produce the original title needs and other necessary information relating to the property, for the satisfaction of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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