Provisional attachment to protect revenue in certain cases [Section 73C] :

(1) Provisional attachment of property to protect revenue: During the pendency of any proceeding under section 73 or section 73A, the Central Excise Officer may provisionally attach any property belonging to the person on whom notice is served under section 73(1) or section 73A(3), as the case may be, in the prescribed manner subject to the following conditions:-

(i) Central Excise officer is of the opinion that the attachment is necessary for the purpose of protecting the interests of revenue, and

(ii) A previous approval of the Principal Commissioner/Commissioner of Central Excise, by order in writing, has been obtained [Sub-section (1)].

(2) Time period of attachment: Such an attachment can be done for a period of 6 months. This period will commence from the date of the order made under sub-section (1) [Subsection (2)].

Extended period of attachment: This period may be extended by the Principal Chief Commissioner/Chief Commissioner of Central Excise by such further period or periods as he thinks fit. The reasons for such an extension shall be recorded in writing. It is to be noted that the total period of extension in any case shall not exceed 2 years [Proviso to sub-section (2)].

CBEC has issued certain guidelines for provisional attachment of the property under service tax vide Circular No. 103/06/2008 ST dated 01.07.2008. They are similar to the guidelines issued in respect of provisional attachment of property in excise laws [Refer Chapter 8: Demand, Adjudication and Offences of Section A of this Study Material for the said guidelines].