Provisional attachment of property under service tax
Meaning of provisional attachment – provisional attachment means temporary seizure of possessions or assts or property until a decision is made by the courts regarding given issues.
The provisional attachment of property shall be to the extent which requires to the protect of the interest of revenue. So the value of property attached should be equivalent to the amount of pending revenue.
Procedure for provisional attachment of property.-
- If the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, is satisfied that it is necessary or expedient, for the purpose of protecting the interest of revenue, during the pendency of any proceeding under section 73 or section 73A of the Act, to attach provisionally any property belonging to a person on whom a notice has been served under sub-section (1) of section 73 or sub-section (3) of section 73A of the Act, shall after due verification of the facts, and the circumstances of the case, forward a proposal for provisional attachment of property of such person, to the Commissioner of Central Excise, in the format annexed to these rules.
- The Commissioner of Central Excise, on receipt of proposal as specified in sub-rule (1), or on his own, if he is satisfied that circumstances of case justify provisional attachment, may cause service of a notice on such person for provisional attachment, with reasons for initiating action under these rules and the details of property to be attached provisionally, giving opportunity to such person to make submissions in this regard, within fifteen days of service of such notice.
- Upon consideration of submissions made by such person, in writing or in person or both, the Commissioner of Central Excise may pass an order in writing to attach provisionally any property belonging to such person except no such order shall be issued to attach the personal property of Proprietor or Partners or Directors.
The property that can be attached–
- Any immovable property
- Movable property belonging to such person shall be attached only if the immovable property available for attachment is not sufficient to protect the interest of revenue.
Obligations of person whose property has been attached provisionally
Where a property has been provisionally attached, the said person or his representative shall not mortgage, lease, transfer, deliver or deal with the attached property in any manner except with the previous approval of the Commissioner of Central Excise.
Period for which order of provisional attachment of property remains in force-
Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the service of the order passed under sub-rule (3) of rule 3.
Provided that the Chief Commissioner of Central Excise may, for reasons to be recorded in writing, extend the aforesaid period by such further period as he thinks fit, provides that the total period of extension shall not in any case exceed two years.
Every such provisional attachment shall cease to have effect when the said person pays the pending revenue along with interest thereon.