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TMI BlogGuidelines for provisional attachment of property under Section 83 of the CGST Act, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... adopted under the OGST Act and may be followed scrupulously. Yours faithfully, Special Commissioner CT & GST (Policy) CBEC-20/16/05/2021-GST/359 GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS GST POLICY WING New Delhi, dated: 23.02.2021 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) The Principal Director Generals Director Generals (All) Subject: Guidelines for provisional attachment of property under section 83 of the CGST Act, 2017 - Reg. I am directed to refer to the section 83 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "the Act"). This section provides for provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year from the date of the order made under sub-section (1)." 3.1.2 Perusal of the above provision of the law suggests that the followings grounds must exist for resorting to provisional attachment of property under the provisions of section 83 of the Act: (i) There must be pendency of a proceeding against a taxable person under the sections mentioned in section 83 of the Act. (ii) The Commissioner must have formed the opinion that provisional attachment of the property belonging to the taxable person is necessary for the purpose of protecting the interest of the Government revenue. 3.1.3 For forming an opinion under section 83, it is important that Commissioner must exercise due diligence and duly consider as well as carefully exami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty being attached. 3.2.2 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. 3.2.3 A copy of such attachment order shall be provided to the said taxable person as early as possible so that objections, if any, to the said attachment can be made by the taxable person within the time period prescribed under rule 159 of the CGST Rules. If such objection is filed by the taxable person, Commissioner should provide an opportunity of being heard to the person filing the objection. After consideri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed of and the amount recovered from such disposal of property shall be adjustable against the tax, interest, penalty, fee or any other amount payable by the taxable person. Further, the sale proceeds thus obtained must be deposited in the nearest Government Treasury or branch of any nationalised bank in fixed deposit and the receipt thereof must be retained for record, so that the same can be adjusted against the amount determined to be recoverable from the said taxable person. 3.3 Cases fit for provisional attachment of property 3.3.1 As mentioned above, the remedy of attachment being, by its very nature, extraordinary, needs to be resorted to with utmost circumspection and with maximum care and caution. It normally should not be invoked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the value of property attached provisionally is not excessive. The provisional attachment of property shall be to the extent it is required to protect the interest of revenue, that is to say, the value of attached property should be as near as possible to the estimated amount of pending revenue against such person. 3.4.2 More than one property may be attached in case value of one property is not sufficient to cover the estimated amount of pending revenue against such person. Further, different properties of the taxpayer can be attached at different points of time subject to the conditions specified in section 83 of the Act. 3.4.3 It may be noted that the provisional attachment can be made only of the property belonging to the taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in FORM GST DRC-23 for release of such property is made by the Commissioner. 3.6 Investigation and Adjudication As the provisional attachment of property is resorted to protect the interests of the revenue and may also affect the working capital of the taxable person, it may be endeavored that in all such cases, the investigation and adjudication are completed at the earliest, well within the period of attachment, so that the due liability of tax as well as interest, penalty etc. arising upon adjudication can be recovered from the said taxable person and the purpose of attachment is achieved. 3.7 Share in property Where the property to be provisionally attached consists of the share or interest of the concerned taxable person in proper ..... X X X X Extracts X X X X X X X X Extracts X X X X
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