Page 38 - GSTL_11th June 2020_Vol 37_Part 2

J46 GST LAW TIMES [ Vol. 37
cases where action under Section 11/11A of CEA, 1944 or Section 73
of the Finance Act, 1994 has been initiated/intended. These exploits
include cases where certificates to District Collector have been sent
with a request to collect this tax arrears as if it is an arrears from
Land revenue, cases where action under Section 87 of the Finance
Act, 1994 has been initiated/intended with a direction by notice in
writing, which require any other person from whom money is due
or may become due to such defaulter, or who holds or may subse-
quently hold money for or on account of such defaulter to pay to
the credit of the Central Government either forthwith upon the
money becoming due or being held or at or within the time speci-
fied in the notice, not being before the money becomes due or is
held, so much of the money as is sufficient to pay the amount due
from such defaulter or the whole of the money when it is equal to or
less than that amount and every person to whom a notice is issued
under this section shall be bound to comply with such notice. Apart
from above, unrestrained arrears will also include cases in which
letters have been sent to Anti-Evasion/DRI/FIU for identifying as-
sets ripe for liquidation, certificates to other Customs/Field for-
mations awaiting reply, awaiting sale of movable/immovable
property etc. In such cases recovery proceedings can be commenced
without any adversity or legal impediment.
(c) Fit for write-off :-
As per accepted conventional procedure for write-off, arrears of tax
demand can be considered for write-off which generally remained
irrecoverable for a reasonable period of time (for instance over three
years old) and have become “irrecoverable” due to following rea-
sons :
(i) the taxpayer has died, become insolvent, not traceable, left
India and no attachable assets;
(ii) the taxpayer company has gone into liquidation;
(iii) the taxpayer firm is dissolved and its business has discontin-
ued; and
(iv) in case when all the modes of recovery in accordance with the
rules laid down including the recourse to civil imprisonment
of the defaulter are exhausted and the arrears still remain.
The one note of extreme caution is that before recommending a case for write-off,
the concerned competent authority should satisfy itself as to whether adequate and
timely steps were taken for recovery in the case all types of recovery action have
been exhausted.
It is very pertinent to note that C.B.I. & C. had issued the following Cir-
culars detailed procedure and formalities required to be followed, drafts of no-
tice to be issued etc. under Customs, Central Excise and Service Tax era prescrib-
ing the guidelines for recovery process. These were time tested methods and are
very much relevant for the current GST regime also.

GST LAW TIMES  11th June 2020  38