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TMI BlogMODES OF RECOVERYX X X X Extracts X X X X X X X X Extracts X X X X ..... Board or Corporation or a company owned or controlled, wholly or partly, by the Central Government or a State Government or the Government of a Union territory or a local authority. (iv) Proper officer for recovery through deduction from any money owed is the concerned Deputy Commissioner /Assistant Commissioner. (II) Recovery by detaining & sale of goods belonging to the defaulting taxpayer under the control of proper officer or such other specified officer: (i) As per Section 79(1)(b) of the CGST Act, 2017, the Proper Officer may recover or may ask any other Specified Officer to recover the amount payable by detaining and selling any goods belonging to the defaulting taxpayer, which are under the control of the Proper Officer or the Specified Officer. (ii) Rule 144 of the CGST Rules, 2017 lays down the procedure to be followed by the Proper Officer, viz., the Deputy/Assistant Commissioner, for recovery of dues by sale of goods belonging to taxpayer under his control. (iii) The Proper Officer shall prepare an inventory and estimate the market value of such goods and proceed to sell only so much of the goods as may be required for recovering the amount payable along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of fifteen days may be reduced. The said goods or conveyance shall be sold through the process of auction, including e-auction after issuing notice in FORM GST DRC-10. The procedure and safeguards are same as in respect of the goods. (xi) If any appeal has been filed by the concerned person then the proceedings for recovery of penalty by sale of goods or conveyance detained or seized in transit shall be deemed to be stayed. However, this provision shall not be applicable in respect of goods of perishable or hazardous nature. (III) Recovery from third person: (i) As per Section 79(1)(c) of the CGST Act, 2017, the Proper Officer, viz., the Deputy/Assistant Commissioner, may issue a notice in writing to any other person from whom money is due or may become due to the defaulting taxpayer or who holds or may subsequently hold money for or on account of such defaulting taxpayer, asking to pay to the Government the money becoming due or being held, within the time specified in the notice. (ii) The procedure has been prescribed in Rule 145 of the CGST Rules, 2017. (iii) The proper officer may serve a notice in FORM GST DRC-13 to the third person mentioned above, directing him to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayable to the defaulting taxpayer in the execution of a decree of a Civil Court for the payment of money or for sale in the enforcement of a mortgage or charge, the Proper Officer, viz., the Deputy or Assistant Commissioner shall send a request in FORM GST DRC-15 to the said court and the court shall, subject to the provisions of the Code of Civil Procedure, 1908 (5 of 1908), execute the attached decree and credit the net proceeds for settlement of the amount recoverable. (V) Recovery through sale of movable or immovable property: (i) As per provisions of Section 79(1)(d) of the CGST Act, 2017, the Proper Officer, viz., the Deputy or Assistant Commissioner may distrain any movable or immovable property belonging to or under the control of the defaulting taxpayer and detain the same until the amount payable is paid. In case any part of the amount payable or of the cost of the distress or keeping of the property, remains unpaid within the specified period then he may proceed to sell the said property and the sale proceeds may be appropriated against the amount payable and the costs, including cost of sale remaining unpaid. Balance or surplus amount, if any, shall be refunded to su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised with regard to the attachment or distraint of any property on the ground that such property is not liable to such attachment or distraint, the Proper Officer shall investigate the claim or objection and may postpone the sale for time being. (x) The person making the claim or objection must adduce evidence to show that on the date of the order he had some interest in, or was in possession of, the property in question under attachment or distraint. (Rule 147(9) of CGST Rules, 2017) (xi) On investigation if the Proper Officer is satisfied that the reason stated in the claim or objection is correct and such property was not in the possession of the defaulter taxpayer or of any other person on his behalf or if in his possession it was not on his own account or as his own property but on account of trust or partly on his own account and partly on account of some other person, then he (Proper Officer) shall issue an order releasing the property, wholly or to such extent as he deems fit, from attachment or distraint. (Rule 147(10) of CGST Rules, 2017) (xii) If the Proper Officer is satisfied that the property was in the possession of the defaulter as his own property and not on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possession of the defaulter, except for property deposited in or in the custody of any Court. The Rule provides that such property in debt shall be attached by a written order in FORM GST DRC-16, prohibiting, the creditor of dept from recovering the debt and the debtor from making payment. In the case of a share, the person in whose name the share may be standing shall be prohibited from transferring the same or receiving any dividend thereon. In the case of any other movable property, the person in possession of the same shall be prohibited from giving it to the defaulter, until the receipt of a further order from the Proper Officer. A copy of the order shall be affixed on some conspicuous part of the office of the Proper Officer and another copy shall be sent to the debtor or to the registered address of the share corporation or to the person in possession of the property, as the case may be. The aforesaid debtor may pay the amount of his debt to the Proper Officer, and such payment shall be deemed as paid to the defaulter taxpayer. (xxi) Rule 152 of the CGST Rules, 2017 provides that if the property to be attached is in the custody of any court or Public Officer, the Proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s business. The said Collector or the said officer, on receipt of such certificate, shall proceed to recover the amount specified thereunder, as if it were an arrear of land revenue. (VII) Recovery through court: Section 79(1)(f) of the CGST Act, 2017 read with Rule 156 of the CGST Rules, 2017 prescribe that the Proper Officer, viz., the Deputy or Assistant Commissioner, file an application in FORM GST DRC-19 to the appropriate Magistrate and the Magistrate shall proceed to recover from such person the amount specified thereunder, as if it were a fine imposed under the Code of Criminal Procedure, 1973. (VIII) Recovery through surety: Section 79(2) of CGST Act, 2017 read with Rule 157 of the CGST Rules, 2017 prescribe that where the terms of any bond or other instrument executed under the CGST Act, 2017 or any rules or regulations made thereunder provide that any amount due under such instrument should be recovered in the manner laid down in Section 79(1) of the CGST Act, 2017, then the Proper Officer may recover the amount from the person standing as surety for the amount due from the defaulter taxpayer/person, as if he was the defaulter. (IX) Recovery of CGST Dues by Proper ..... X X X X Extracts X X X X X X X X Extracts X X X X
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