GST Jamku AIProvisional attachment to protect revenue in certain cases.
Section 83(1)
Where, after the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue it is necessary so to do, he may, by order in writing, attach provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner as may be prescribed.
According to Section 83(1), if the Commissioner believes that provisional attachment is essential to protect government revenue, they have the authority to issue a written order for the provisional attachment of any property. This includes bank accounts and is applicable to the taxable person or any individual specified in sub-section (1A) of section 122.
Purpose of Provisional Attachment The primary purpose of provisional attachment is to ensure that the government's revenue is secure during ongoing legal proceedings. It acts as a precautionary measure to prevent any potential loss of revenue that may occur if the taxable person or specified individual disposes of their property before the conclusion of the legal process.
Method of Provisional Attachment The manner in which the provisional attachment is carried out is prescribed by the relevant regulations. The Commissioner has the discretion to determine the appropriate method for attaching the property to effectively protect the government's interests.
Conclusion Provisional attachment, as specified in Section 83(1), serves as a tool for the Commissioner to safeguard government revenue during legal proceedings. It reflects the commitment to ensure that the interests of the government are protected, especially in cases where there is a risk of potential loss of revenue. The provision emphasizes the need for a swift and effective response to secure the financial interests of the government.
Section 83(2)
Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1).
In some cases, there is a provision for a temporary seizure to safeguard revenue. This is outlined in Section 83(2) of the relevant legislation.
Provisional Attachment Conditions
When a provisional attachment is made under this section, it is important to note that its effect is not permanent. According to the law, this attachment will automatically expire after one year from the date when the order was issued under sub-section (1).
Conclusion
The purpose of this provisional attachment is to provide a temporary measure for revenue protection. It is a time-limited action, ensuring that it does not extend beyond one year from the initial order. This legal provision strikes a balance between safeguarding revenue and respecting the rights of the involved parties.