Instruction No. 1 dt 30th May 24 regarding initiation of recovery proceeding before the normal 3 months period from date of service of order!

Instruction No. 1 dt 30th May 24 regarding initiation of recovery proceeding before the normal 3 months period from date of service of order!

Proviso to Sec. 78 gives power to proper officer to record reason in writing & ask taxable person for making payment within such period less than 3 months as specified, if it is expedient n interest of revenue.

The Instruction issued by @cbic_indiamentions the following in favour of Taxable Person :-

•  Jurisdictional DC/ACTO itself cannot initiate recovery proceedings before the normal period of 3 months in any circumstances. Matter need to placed before Principal Commissioner/ Commissioner.
• PC/C shall examine the reason/justification & if considered expedient in interest of revenue, shall record the reason in writing & ask taxable person make payment in less than 3 months.
• PC/C should provide specific reasons, clearly outlining the reasons for asking taxable person for early payment. Such reasons could include high risk to revenue such as closure of business in near future, impending insolvency etc.
• Reason to believe the apprehension of risk should be based on credible evidences, which may be kept on record.
• Such directions for early payment shall not be issued in MECHANICAL MANNER & to be only issued when interest of revenue to be safeguarded in specific circumstances

Link to Instruction No. 01/2024-GST:- https://taxinformation.cbic.gov.in/view-pdf/1000509/ENG/Instructions…