Master Circular on Recovery and Write-Off of Arrears of Revenue

Arrears recovery: mandatory Tax Recovery Cells and time-bound enforcement, attachment and write-off procedures to secure overdue indirect taxes.

The Circular prescribes a consolidated framework for management of confirmed indirect tax and customs arrears, classifying arrears by litigation status and recoverability, mandating a dedicated Tax Recovery Cell in each Commissionerate, and detailing recovery remedies including appropriation of monies, attachment and sale of goods and property, garnishee proceedings, enforcement of bank guarantees, and recovery from successors. It requires proactive tracing of defaulters using departmental records, financial and registry databases, engagement with insolvency and recovery fora (IRP/NCLT/DRT/Official Liquidator), and imposes time-bound recovery actions and prescribed write-off procedures via committees and delegated authorities.