Provisional Attachment under 11DDA

[Srivatsan Krishnamachari]

Dear Experts,

Please let me know, Can Central Excise officer issue for provisional attachment under section 11DDA along with the SCN. I mean, case is in the initial stage and SCN to be issued. If that person issues SCN, can he recommend immediately for Prov.attachment also, before we reply to SCN. In this circumstances, can we challenge the provisional attachment?.

Thanks in advance for your replies.

Regards

Srinivas

[Ganeshan Kalyani]

Principal of natural justice is maintained by the Department. You should get sufficient time to reply to the SCN to submit your contention.

[DR.MARIAPPAN GOVINDARAJAN]

He cannot do so.

[YAGAY andSUN]

Endorsing the views of both the experts on this issue.

[KASTURI SETHI]

Sh.Srivatsan Krishnamachari Ji,

Under Section 11 DDA, order for provisional attachment of property cannot be issued without issuance of SCN under Section 11D. Order for provisional attachment of property can be issued only after issuance of SCN. It has been clarified by Board vide Circular No.874/12/2008-CX dated 30.6.2008. See also serial no.7.11 of Circular No.224/37/2005-CX dated 24.12.2008. (Both are still in force). On this issue CESTAT decision reported as 2013(298)ELT/575/Tri. = 2012 (4) TMI 526 - CESTAT NEW DELHI (COMMISSIONER OF C. EX., DELHI-I Versus JAIN & COMPANY) Delhi is also relevant. Prior permission from Commissioner of C.Excise is an absolutely must

Provisional attachment of property during pendency of proceedings under Excise Section 11A or 11D

Circular No. 874/12/2008-CX., dated 30-6-2008

F.No. 201/51/2004-CX-6

Government of India

Ministry of Finance (Department of Revenue)

Central Board of Excise & Customs, New Delhi

Subject : Instructions regarding Section 11DDA of the Central Excise Act, 1944.

[Ganeshan Kalyani]

Thanks Kasturi Sir for such a detailed information. It enriched my knowledge. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Welcome Sir.

K.L.SETHI

AI Summary

Provisional attachment under Section 11DDA cannot be ordered without prior show cause notice and commissioner approval. Provisional attachment of property cannot be ordered without first issuing a show cause notice; prior permission from the Commissioner is a mandatory prerequisite under Board circular guidance and tribunal authority supports this requirement for attachments during excise proceedings.