TaxTMI 
TaxTMI 
Formation of "Tax Recovery Cells (TRCs)" in NS-GEN, NS-I, NS-II, NS- III & NS-V Commissionerates of the Mumbai Customs Zone-II for recovery of Arrears.
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....81/02/2022-CX dated 19.01.2022 on Recovery and Write- Off of Arrears of Revenue. (ii) Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995. (iii) Circular No. 365/81/97-CX dated 15/12/97. (iv) Standing Order No.12/2022 dt 30.09.2022 issued by Commissioner, NS-I. (v) Standing Order No. 13/2025 dt 11.8.2025 issued by Commissioner, NS-I. 2. Definition of Arrears As per Board Circular No. 1081/02/2022-CX dated 19.01.2022, arrears refer to overdue payment of tax, interest, fine, or penalty that has been confirmed against a person and is payable to the Government exchequer. Such arrears arise as a consequence of: • Orders-in-Original passed by adjudicating authorities; • Orders passed by appellate for a such as Commissioner (Appeals), CESTAT; or • Orders of competent Courts of Law. However, amounts involved in cases under investigation, unconfirmed demands such as Show Cause Notices (including Call Book cases), and Orders-in-Original that have been set aside or remanded for de-novo adjudication by an appellate authority do not fall within the definition of arrears. ....
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....horities or orders passed by appellate fora or Courts. Immediately upon receipt of such orders, the confirmed demands shall be reflected as arrears in Table-C of the Tax Arrear Recovery Report (TAR) under the category "Where Appeal Period is Not Over" by the TRC in each Commissionerate. Similarly, Orders-in-Appeal confirming demands, earlier dropped, shall also be entered under the same category by the TRC. Upon receipt of appellate orders reconfirming demands, the existing category "Pending in Appeal" shall be changed to "Within Appeal Period". The Groups/Sections of each Commissionerate shall ensure that copies of orders passed by adjudicating authorities, appellate authorities, Tribunal and Courts are sent to TRC of the Commissionerate for further necessary action on the same. TRCs shall strictly monitor all confirmed Orders/Appellate Orders with respect to time limit prescribed for Appeal (for example 60 days for appeal in Commissioner (Appeal) and 90 days for appeal in CESTAT). As soon as the time limit is over with no appeal filed, the arrears become Recoverable Arrears and the same has to be included in the list of Recoverable Arrears to be maintained in TRC in each of....
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....s and the same has to be included in the list of Recoverable Arrears. (iii) The action check list as per referred Annexure - 'A' has to be placed in each of the Arrear File by the Tax Recovery Cell (TRC) to serve as a ready reckoner during the entire recovery process. 5 days from receipt of order to open e office file by TRC. Time limits to be closely monitored for correct reporting and action for recovery to be taken. 2. Details of the case to be recorded in the Checklist placed in the Arrear File (as given in Sr. No. 1 to 13 of Annexure - A). Further, the check list should be updated from time to time with each successive step taken for recovery. 10 days from receipt of order 3. (i) Letter to be issued to the defaulter including by e-mail, followed by one reminder after 7 days, to submit copy of appeal or proof of payment of dues. (ii) Also, letter to Customs Broker to be issued simultaneously to get the defaulter's (importer/exporter) KYC details. (Sr. No. 14 to 16 of Annexure - A) T+15 days (15 days) 4. (i) If appeal copy or arrear payment proof is not submitted, issue communication to officers of Customs i.e., TSK/Cash Sect....
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.... in Board Circular No. 1081/02/2022-CX dated 19.01.2022 to the Collector of District for recovery of the amount where the defaulter (importer/ exporter) owns any property or business u/s 142(1) (c) (i) of the Customs Act, 1962 and the Collector of District shall proceed to recover the said arrear as Land Revenue. (ii) In case the defaulter (importer / exporter) property are not located within the city limits of Mumbai, Thane or Raigad District, the Certificate under Appendix-I shall be sent to the jurisdictional Commissioner of Customs and GST for recovery of Arrears. (Sr. No.25 and 26 of Annexure -A) (iii) In case the defaulter (importer /exporter) property are located within the city limits of Mumbai, Thane or Raigad District, a letter shall be issued to the defaulter (importer/exporter) bringing to his or her notice the provisions of the Section 142 of the Customs Act, 1962 and the amount of arrears due, with direction to pay the said amount within 05 days of the receipt of the Notice. (Sr.No.27 of Annexure -A) T+126 to 150 days (25 days) 11. For identification of any movable or immovable property of the defaulter (importer/exporter), the Tax Recovery Cell (TRC) s....
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.... Arrears Where the aforementioned steps for recovery of arrears fail and also recovery is not possible due to non-availability of any property relatable to the defaulter (importer or exporter), the action for Write off of such irrecoverable arrears shall be taken. A proposal for write-off of irrecoverable arrears shall be submitted by the AC/DC of TRC in the prescribed format (attached as Annexure-C) to the Jurisdictional Principal Commissioner/Commissioner or Zonal Principal Chief Commissioner/Chief Commissioner depending on the amount of duty/tax proposed to be written off in accordance with Board Circular No. 1080/01/2022-CX dated 19.01.2022. The competent authority shall examine the proposal for write-off of arrears, and if prima-facie satisfied, shall place the case before the Committee constituted in terms of the Standing Order No. 13/2025 dated 11.08.2025 issued by Principal Commissioner of Customs, NS-I, JNCH. Further, upon approval, such cases may be intimated to Tax Recovery Cell (TRC) of the respective Commissionerate for appropriate action, including removal of the said arrears from the MPR. 14. Review Mechanism - To ensure compliance and adherence of the above- m....
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....ustoms Zone - II. (B. Sumidaa Devi) Commissioner of Customs NS-I, JNCH, Mumbai Customs Zone-II. ANNEXURE-A Sr. No. Checklist of data to be recorded and action to be taken Action by Tax Recovery Cell (TRC) 1 Date of Receipt of Documents i.e., the Copy of Order- In-Original along with proof of dispatch of O-I-O and opening of File. Data/Information to be recorded in e office file by Tax Recovery Cell (TRC) of each Commissionerates. 2 Details of the defaulter such as Name and Constitution, i.e., Company, partnership, or proprietorship. In case of partners/ proprietors/directors, record PAN, Aadhaar, Bank Details, Address, DIN, etc., as applicable. 3 IEC No. 4 Name of the Customs Broker/CHA, if any. 5 Order-in-Original No. and date. 6 Demand Notice No. and date. 7 No Appeal Filed Certificate No. and date. 8 Duty Amount Recoverable. 9 Fine Amount Recoverable 10 Penalty Amount Recoverable. 11 Interest Amount Recoverable. 12 Amount Recovered so far, if any. 13 Amount pending for Recovery. 14 Letters/e-mails issued to the defaulter, followed by one reminder after ....
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.... 19) Society office of the premises/ property Owned by the defaulter 24 Response received from the agencies to the Letters sent at Sr.No.23 above. 25 Date of issuance of Appendix-I to the District Magistrate. Further, if recovery is not made within 3 months; thereafter, Appendix-I issued to the concerned jurisdictional Commissionerate. 26 Date of Issuance of Appendix-I to Jurisdictional Commissionerate. 27 Date of issuance of letter to the defaulter bringing to its notice the provisions of Section 142 of the CustomsAct,1962 (in case the defaulter properties located within the city limits of Mumbai, Thane or Raigad District). 28 Date of Issuance of Appendix-II to the defaulter. 29 Date of visit to the known premises of the defaulter, indicating name of the officer, designation and any information received regarding unknown properties. 30 Field officer's remarks regarding visit to the known premises of the defaulter and report on the premises prior to write-off; visit note to be enclosed 31 File submitted for write-off, with the amount involved as on dat....
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.... etc. 7. Details of efforts made and result (outcome) thereof - (a) for realizing amounts from any money owed to the defaulter (b) for attachment and sale of goods belonging to the defaulter (c) for attachment and sale of goods belonging to the defaulter, under the control of Customs (d) w.r.t. certificate for recovery sent to the Distt. Collector of the district where the defaulter owns any property. (e) to detain/attach and sell the goods as per provisions of Section 142(i) C(ii) of Customs Act, 1962. (f) to attach/and sell the goods in the possession/custody of the transferee/successor in business under Section 11 of Central Excise Act, 1944/ Sec. 142 of Customs Act, 1962, Section 87 of Finance Act, 1994. (g) invoking the garnishee provisions (h) attachment of Bank account appropriation of Bank Guarantee/enforcement of bail - bond etc. (i) to ascertain the location of any moveable/ immoveable assets belonging to the defaulter through sources mentioned at para ....