(1) If during the course of an inquiry in any proceedings including any inspection or search in relation to the business of any person or dealer under this Act, where some amount of tax evasion in suspected, and the Commissioner has reason to believe on the basis of material on record that for the purpose of protecting the interest of the revenue it is necessary so to do, then he may, notwithstanding anything contained in any law for the time being in force or any contract to the contrary, attach provisionally, by order in writing, any money due or which may become due to such person or dealer from any other person or any money which any other person holds or may subsequently hold for or on account of such person or dealer:

Provided that the Commissioner shall specify in his order the amount of money to which the order applies:

Provided further that the Commissioner may, by an order, revoke such order, if the dealer furnishes to the Commissioner, a bank guarantee, in such time, for such period as may be specified, in the said order.

(2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of service of the order issued under subsection (1):

Provided that the Commissioner may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he may think fit. However that the total period of extension shall not in any case exceed two years.

(3) The powers under this section shall be exercised by the Commissioner himself or the Additional Commissioner having jurisdiction over the zone or, as the case may be, by any Deputy Commissioner to whom the Commissioner has delegated such powers by a notification published in the official Gazette.

(4) Where an order under sub section (1) is served upon any person, provisionally attaching any money, there such person shall be personally liable so long as the attachment order is not revoked or has not ceased to have effect, to pay to the Commissioner, the amount of money so attached.

(5) If the said person or the dealer makes an application in the prescribed form to the Commissioner within fifteen days of the date of service of the order specified in sub-section (1) or the order extending the period under sub-section (2), as the case may be, then the Commissioner, after affording such person or dealer a reasonable opportunity of being heard, and having regard to the circumstances of the case, may confirm, modify or revoke the order.

(6) An appeal against any order passed under sub-section (5) shall lie with the Appellate Board and all other provisions of section 46 shall apply accordingly.