Rule 147 of CGST Rules -Recovery by sale of movable or immovable property

Rule 147 of CGST Rules -Recovery by sale of movable or immovable property

(updated as on 15.11.2017)

(1) The proper officer shallprepare a list of movable and immovable property belonging to the defaulter, estimate theirvalue as per the prevalent market price and issue an order of attachment or distraint and a notice for sale in FORM GST DRC- 16 prohibiting any transaction with regard to suchmovable and immovable property as may be required for the recovery of the amount due: Provided that the attachment of any property in a debt not secured by a negotiableinstrument, a share in a corporation, or other movable property not in the possession of thedefaulter except for property deposited in, or in the custody of any Court, shall be attachedin the manner provided in rule 151. (2) The proper officer shall send a copy of the order of attachment or distraint to theconcerned Revenue Authority or Transport Authority or any such Authority to placeencumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the proper officer to that effect. (3) Where the property subject to the attachment or distraint under sub-rule (1) is

(a)an immovable property, the order of attachment or distraint shall be affixed onthe said property and shall remain affixed till the confirmation of sale;

(b) a movable property, the proper officer shall seize the said property in accordancewith the provisions of chapter XIV of the Act and the custody of the said propertyshall either be taken by the proper officer himself or an officer authorised by him.

(4) The property attached or distrained shall be sold through auction, including e-auction, forwhich a notice shall be issued in FORM GST DRC- 17 clearly indicating the property to besold and the purpose of sale. (5) Notwithstanding anything contained in the provision of this Chapter, where the propertyto be sold is a negotiable instrument or a share in a corporation, the proper officer may,instead of selling it by public auction, sell such instrument or a share through a broker andthe said broker shall deposit to the Government so much of the proceeds of such sale,reduced by his commission, as may be required for the discharge of the amount underrecovery and pay the amount remaining, if any, to the owner of such instrument or a share. (6) The proper officer may specify the amount of pre-bid deposit to be furnished in themanner specified by such officer, to make the bidders eligible to participate in the auction,which may be returned to the unsuccessful bidders or, forfeited in case the successful bidderfails to make the payment of the full amount, as the case may be. (7) The last day for the submission of the bid or the date of the auction shall not be earlierthan fifteen days from the date of issue of the notice referred to in sub-rule (4): Provided that where the goods are of perishable or hazardous nature or where theexpenses of keeping them in custody are likely to exceed their value, the proper officer maysell them forthwith. (8) Where any claim is preferred or any objection is raised with regard to the attachment ordistraint of any property on the ground that such property is not liable to such attachment ordistraint, the proper officer shall investigate the claim or objection and may postpone thesale for such time as he may deem fit. (9) The person making the claim or objection must adduce evidence to show that on the dateof the order issued under sub-rule (1) he had some interest in, or was in possession of, theproperty in question under attachment or distraint. (10) Where, upon investigation, the proper officer is satisfied that, for the reason stated inthe claim or objection, such property was not, on the said date, in the possession of thedefaulter or of any other person on his behalf or that, being in the possession of the defaulteron the said date, it was in his possession, not on his own account or as his own property, buton account of or in trust for any other person, or partly on his own account and partly onaccount of some other person, the proper officer shall make an order releasing the property,wholly or to such extent as he thinks fit, from attachment or distraint. (11) Where the proper officer is satisfied that the property was, on the said date, in thepossession of the defaulter as his own property and not on account of any other person, orwas in the possession of some other person in trust for him, or in the occupancy of a tenantor other person paying rent to him, the proper officer shall reject the claim and proceed withthe process of sale through auction. (12) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11requiring him to make the payment within a period of fifteen days from the date of suchnotice and after the said payment is made, he shall issue a certificate in FORM GST DRC-12specifying the details of the property, date of transfer, the details of the bidder and theamount paid and upon issuance of such certificate, the rights, title and interest in theproperty shall be deemed to be transferred to such bidder: Provided that where the highest bid is made by more than one person and one of themis a co-owner of the property, he shall be deemed to be the successful bidder. (13) Any amount, including stamp duty, tax or fee payable in respect of the transfer of theproperty specified in sub-rule (12), shall be paid to the Government by the person to whomthe title in such property is transferred. (14) Where the defaulter pays the amount under recovery, including any expenses incurredon the process of recovery, before the issue of the notice under sub-rule (4), the properofficer shall cancel the process of auction and release the goods. (15) The proper officer shall cancel the process and proceed for re-auction where no bid isreceived or the auction is considered to be non-competitive due to lack of adequateparticipation or due to low bids.

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CHAPTER - XVIII

DEMANDS AND RECOVERY

Chapter XVIIIof CGST Rules,2017 consists of twenty rules relating to Demand & Recovery Rulesunder the GST regime. All this rules are available for your ready reference. Rule 142 :Notice and order for demand of amounts payable under the Act Rule 143 :Recovery by deduction from any money owed Rule 144 :Recovery by sale of goods under the control of proper officer Rule 145 :Recovery from a third person Rule 146 :Recovery through execution of a decree, etc. Rule 147 :Recovery by sale of movable or immovable property Rule 148 : Prohibition against bidding or purchase by officer Rule 149 :Prohibition against sale on holidays Rule 150 :Assistance by police Rule 151 :Attachment of debts and shares, etc. Rule 152 :Attachment of property in custody of courts or Public Officer Rule 153 :Attachment of interest in partnership Rule 154 :Disposal of proceeds of sale of goods and movable or immovable property Rule 155 :Recovery through land revenue authority Rule 156 :Recovery through court Rule 157 :Recovery from surety Rule 158 :Payment of tax and other amounts in installments Rule 159 :Provisional attachment of property Rule 160 :Recovery from company in liquidation Rule 161 :Continuation of certain recovery proceedings