Recovery Proceedings u/s 79 Can Be Initiated Before 3 Months Only in Exceptional Cases, Detailed Instructions Issued by CBIC
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 3 June, 2024
Latest from Taxmann
Instruction No. 01/2024-GST dated May 30th, 2024
The CBIC has observed that some field formations are initiating recovery proceedings before the stipulated 3-month period without explicit orders for early payment. Consequently, the CBIC has issued detailed guidelines for the CGST field formations for initiating recovery proceedings before the specified period of 3 months from the date of service of order. The CBIC has clarified that such recovery before the specified time period can be initiated only in exceptional cases.
Also, the Jurisdictional Principal Commissioner/ Commissioner shall examine the reasons provided. If he considers that it is expedient in the interest of the revenue to recover the amount before the 3 months’ time period, they must record the reasons in writing. Thereafter, he may issue the directions to the concerned taxable person and send the copy of such directions to the Jurisdictional Deputy or Assistant Commissioner. It is further clarified that there must be specific reasons clearly outlining the circumstances prompting such early action. Such reasons could include:
- High risk to revenue involved in waiting till the completing of three months
- Concerned taxable person may close their business operations in near future
- Possibility of default by the taxable person due to his declining financial conditions or impeding insolvency
- There are chances that proceedings may be initiated under IBC Act
Click Here To Read The Full Instruction
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
