NCLAT: Can File Appeal against NCLT Order Initiating Insolvency Process against Personal Guarantors  ||  NCLAT: Assets Reflecting in Corporate Debtor’s Balance Sheet form Part of Liquidation Estate  ||  NCLAT: Adjudicating Authority Must Conduct Independent Assessment under IBC  ||  NCLAT: Can’t Preclude Financial Creditors from Filing Applic. in Case of Settlement Agreement Breach  ||  NCLT: Can’t Call Speculative Investment a 'Financial Debt' in Absence of Commercial Effect of Borrowi  ||  NCLAT: Committee of Creditors Within its Right to Resolve to Liquidate Go Airlines  ||  AP HC: Revealed Particulars of Invest. Not Adequately Substantiated Can Damage Reputation of Persons  ||  J&K HC: Administrative Officers Can’t Claim Seniority on Basis of Unfilled Vacancies  ||  Bombay High Court: One Needs to be Mindful of the Object Behind the Consumer Protection Act  ||  J&K HC: Can’t Put Accused under Prev. Detention Only because His Release Affects Public Confidence    

Instructions regarding provisional attachment of property under Section 73C of the Finance Act, 1994- (Ministry of Finance ) (27 Jul 2016)

MANU/DSTX/0050/2016

Service Tax

Recently, in a case of an assessee whose bank accounts were ordered to be attached without giving any opportunity to them, the Hon'ble Allahabad High Court after a detailed analysis of the legal provisions, observed, inter- alia, that the order directing attachment of the property without waiting for a reply to the show cause notice, and without giving any opportunity and without giving any notice, was in gross violation of Rule 3 of the Rules of 2008 read with paragraph 2 (iii) of the Circular dated 1st July, 2008. It was mandatory for the authority to issue a notice giving 15 days time to reply before attaching a property. The Hon'ble High Court further observed that since proceedings under Section 73 of the Act had been initiated and a show cause notice had already been issued to the petitioner, action for attachment could only have been initiated by the Commissioner and should not have been initiated by the Deputy Commissioner. The Court also directed that a certified copy of the order be sent to the Central Board of Excise & Customs, Department of Revenue, Ministry of Finance with specific instructions to issue a circular to all officers ensuring that the powers under Rule 3 should be exercised with utmost care and caution and should not be exercised frivolously.

On this issue, there are adequate safeguards in the law and same have been highlighted in the Circular dated 1.7.2008. The present situation has resulted only on account of non-compliance with respect to both. Chief Commissioners are requested to issue standing orders with respect to the observations of the Hon'ble Allahabad High Court and to also emphasize that non-compliance with legal provisions or administrative instructions will leave officers with no defence in legal proceedings arising out of such non-compliance.

Tags : ATTACHMENT   PROPERTY   INSTRUCTIONS  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved