GOVERNMENT OF PAKISTAN

CENTRAL BOARD OF REVENUE

 

Islamabad, the 2nd July, 1992

 

NOTIFICATION

 

(CUSTOMS)

 

                S.R.O.677(I)/92.- In exercise of the powers conferred by sub-section (5) of section 202 and section 219 of the Customs Act, 1969 (IV of 1969), the Central Board of Revenue is pleased to make the following rules, namely:-

 

1.             Short title and commencement.- (1) These rules may be called the Customs Recovery Rules, 1992.

 

                (2)         They shall come into force at once.

 

2.             Definitions.- (1) In these rules, unless there is anything repugnant in the subject or context,-

 

                (i)            "Act"  means the Customs Act, 1969 (IV of 1969);

                (ii)           "Attachment Officer" means an officer, not below the rank of Principal Appraiser or Superintendent of Customs, authorised by the appropriate offcier to perform any of the functions under these rules;

                (iii)          "Annex" means an annex to these rules;

                (iv)          "defaulter" means a person mentioned in the demand note, who has failed to discharge his liabilities in payment of Government dues;

                (v)           "demand note" means a note received by the Recovery Officer from the referring authority specifying the details regarding the defaulter and the Government dues;

                (vi)          "execution" means steps taken for the recovery of arrears under these rules in pursuance of a demand ` 

                                notice;

                (vii)         "Government dues" means any recoverable amount of customs duty or any tax, duty or other levy being collected in the same manner as customs-duty, an adjudged penalty or fine or any amount unpaid which may be payable under any bond or instrument executed under the Act or such other law or the rules made thereunder;

                (viii)        "immovable property" means a property which cannot be taken into custody for removal without physically knocking it down;

                (ix)          "receiver" means a person appointed by the Recovery Officer to manage, run and account for any attached business or          property;

                (x)           "Recovery Officer" means an officer of customs, notified to be the appropriate officer under sub-section                               (1) of section 202 of the Act;

                (xi)          "referring authority" means an officer, not below the rank of Assistant Collector of Customs, desiring to recover Government dues through Recovery Officer; and

                (xii)         "share" means share in a corporation and private limited company and includes stock, debenture stock, debentures or bonds.

 

                (2)           All other expressions used but not defined in these rules shall have the same meanings as are assigned to them in the Act.

 

3.             Government dues to be referred for recovery.- All Government dues shall be referred to the Recovery Officer for recovery if the referring authority is satisfied that these are not recoverable in any other manner or on the expiry of thirty days from the date such dues were adjudged to be final.

 

4.             Demand note.- Where it is decided to make recovery of Government dues under section 202 of the Act, the referring authority shall issue a demand note in the form set out in Annex-I to the Recovery Officer, specifying therein the details of Government dues, certifying that all other formalities under the Act have been completed and there exists no bar or stay order against the proposed recovery.

 

5.             Master register to be maintained by the Recovery Officer.- (1) The Recovery Officer shall maintain a master register, in the form set out in Annex-II wherein every demand note received by the Recovery Officer shall be entered in consecutive numbers.

 

                (2)           The Recovery Officer shall authenticate all entries by affixing his signatures.

 

6.             Power to require information to be furnished.- The Recovery Officer may, by a requisition in writing,  require any person or organization to furnish any information required for the proceedings under these rules.

                                                                                                                                                                                                               

 

7.             Recovery through Government authorities.- (1) The Recovery Officer shall cause recovery of Government dues to be made in terms of sub-section (1) of section 202 of the Act by serving a notice to the Customs, Central Excise and Sales Tax authorities in Annex-III to deduct the Government dues from any money or to detain and sell any goods, belonging to the defaulter which are under their control.

 

                (2)           The sale of goods under sub-rule (1) shall be governed by the Registration of Auctioneers and Auction Procedure Rules, 1980, issued vide Notification No. SRO. 1228(I)/80, dated the first December, 1980.

 

                (3)           A copy of the notice sent to the Customs, Central Excise or Sales Tax authorities shall be endorsed to the defaulter.

 

                (4)           After issue of the notice and subject to the provisions of sub-rule (2) of rule 8, no further proceedings shall be initiated until thirty days from the date of issue of the notice.

 

8.             Initiation of recovery proceedings.- (1) If the Government dues are not recoverable in the manner specified in rule 7, the Recovery Officer shall serve upon the defaulter a notice in Annex-IV requiring him to pay the dues under sub-section (2) of section 202 of the Act and intimating that in case of default steps would be taken to realize the amount under these rules.

 

                (2)           If the Recovery Officer is satisfied that the defaulter is likely to conceal, remove or dispose of the whole or any part of such of his movable or immovable propery, as would be liable to attachment in the process of recovery, and that the realization of Government dues in consequence shall be delayed or obstructed, he may at any time after the issue of the notice under sub-rule (1) direct, for reasons to be recorded in writing, for attachment of the whole or any part of such property.

 

                (3)           The Recovery Officer may, if he deems fit, publish notice under sub-rule (1) in one or more newspapers circulated in district of ordinarily place of residence of the defaulter.

 

                (4)           The immovable and movable properties of the defaulter shall stand attached in the name of the Federal Government on the expiry of time limit specified in the notice if the payment of government dues is not made within time.

 

9.             Mode of service of notice.- All notices or orders served under these rules, unless otherwise specifically provided, shall be served-

 

                (i)            by tendering the notices or orders or sending by registered post to the person for whom it is intended or to his agent, at his last known addresses; or

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

                (ii)           if the notice cannot be served in the manner as provided in clause (i), by affixing it on the notices board in the office of the Recovery Officer.

 

10.           Disposal of proceeds of execution.- (1) Whenever Government dues are realized, by sale or otherwise, in execution of notice of recovery, they shall be disposed of in the same manner provided in section 201 of the Act.

 

11.           Determination of disputes.- Except as otherwise expressly provided in the Act or these rules, any question arising between the referring authority and the defaulter or their representatives, relating to the execution of a notice, discharge or satisfaction of a demand note duly issued under these rules, or relating to the confirmation or setting aside by an order under these rules of a sale held in execution of such notice, shall be determined by Recovery Officer, before whom such question arises.

 

12.           Exemption from attachment.- The following shall not be liable to attachment or sale under these rules, namely:-

 

                (i)            The necessary wearing apparel, cooking vessels, beds and bedding of the defaulter, his wife and children, and such personal ornaments, as, in accordance with religious usage, cannot be parted with  by any women;

                (ii)           tools of artisan, and, where the defaulter is an agriculturist, his implements of husbandry and such cattle and seed grain as may,                                              in the opinion of the Recovery Officer, be necessary to enable him to earn his livelihood as such;

                (iii)          books of account;

                (iv)          a mere right to sue for damages;

                (v)           any right of personal service;                                  

                (vi)          stipends and gratuities allowed to a pensioner of a Government or payable out of any service, family pension fund notified in the Official Gazette by the Federal Government or a Provincial Government in this behalf, and political pensions;

                (vii)         the wages of laborers and domestic servants, whether payable in money or in kind;

                (viii)        salary to the extent of first hundred rupees and one half of the remainder:

 

                                Provided that where such salary is the salary of a servant of the Government or a servant of a railway or local authority, and the whole or any part of the portion of such salary liable to attachment has been under attachment, whether continuously oriented mittently for a total period of twenty-four months, such portion shall be exempt from attachment until the expiry of a further period of twelve months and, where such attachment has been made in execution of one and the same notice, shall be finally exempt from attachment in execution of that notice;

               

               

 

                (ix)          the pay and allowances of persons to whom the Pakistan Army Act, 1952 (XXXIX of 1952), applies, or of persons other than Commissioned Officers to whom the Pakistan Navy Ordinance, 1961 (XXXV of 1961), applies;

                (x)           all compulsory deposits and other sums in or derived from any fund to which the Provident Funds Act, 1925 (XIX of 1925), for the time being applies in so far as they are declared by the said Act not to be liable to attachment;

                (xi)          any allowance forming part of the emoluments of any servant of the Government or of any servant of a railway or local authority which the appropriate Government may, by notification in the official Gazette, declare to be exempt from attachment, and any subsistence grant or allowance made to any such servant while under suspension;

                (xii)         an expectancy of succession by survivorship or other merely contingent or possible right or interest; and

                (xiii)        a right to future maintenance.

 

Explanation 1.-  The particulars mentioned in clause (vii), (viii), (ix), (x) and (xii) are exempt from attachment or sale whether before or after they are actually payable, and in the case of salary other than the salary of a servant of a Government or a servant of a railway or a local authority the attachable portion thereof is exempt from attachment until is actually payable.

 

Explanation 2.- In  clauses (vii) and (viii), "wages" and "salary" means the total monthly emoluments, excluding any           allowance declared exempt from attachment under the provisions of clause (xi), derived by a person from his employment whether on duty or on leave.

 

Explanation 3.- In clause (xi), "appropriate Government" means-

 

                (i)            as respects any person in the service of the Federal Government, or any servant of Railway Board, a  cantonment authority or of the port authority of a major port, the Federal Government; and

                (ii)           as respects any person in the service of a Provincial Government or servant of any local authority, the Provincial Government concerned.

 

13.           Objections and investigation thereof.- (1)  When any objection is raised to the attachment or sale of any property in execution of a notice on the ground that such property is not liable to such attachment or sale, the Recovery Officer shall proceed to investigate into it.

 

                (2)           If the Recovery Officer is satisfied that the objection is raised to delay the proceedings, he shall reject the objection, summarily.

                (3)           Pending investigation, the Recovery Officer may adjourn recovery proceedings upon such terms, as to security or otherwise, as he may deem fit.

                (4)           The objector shall produce evidence to prove the legitimacy of the objection, failing which the Recovery Officer shall reject the                 objection.

 

14.           Removal of attachment on satisfaction or cancellation of a demand note.- Where the amount due is paid to the Recovery Officer or the demand note is cancelled, the attachment shall be deemed to be withdrawn and the withdrawal shall, if the defaulter so desires, be proclaimed at his expense, and a copy of the proclamation shall be affixed in the manner provided by these rules for a proclamation of sale of immovable property.

 

15.           Officer entitled to attach and sell.- (1) The attachment and sale of movable and immovable property may be made by such officer as the Recovery Officer may direct in each case of recovery.

 

16.           Adjournment or stoppage of sale.- (1) The Recovery Officer may adjourn any sale proceedings to a specified day and hour; and an officer conducting any sale proceedings may adjourn such proceedings to a specified day and hour by recording his reasons for such adjournment.

 

                (2)           Every sale shall be stopped if, before the lot is knocked down, the amount due is tendered to the officer conducting the sale, or  proof is given to his satisfaction that the amount has been paid to the Recovery Officer who ordered the sale.

 

17.           Defaulter not to mortgage, etc., any property.- Where a  notice has been served on a defaulter under rule 8, the defaulter or his representative in interest shall not sell, mortgage, change, lease or otherwise deal with any property belonging to him except with the permission of the Recovery Officer.

 

18.           Prohibition against bidding or purchase by officer.- No officer or other person having any duty to perform in connection with any sale under these rules shall, either directly or indirectly, bid for, acquire or attempt to acquire any interest in the property sold.

 

19.           Assistance for action.- (1) An officer authorized to attach or sell any property or charged with any duty to be performed under these rules may take alongwith him a contingent of customs staff and Sepoy, armed or otherwise, for any assistance he may require in the performance of his duties.

 

(2)                 In addition to the force specified in sub-rule (1), such officer may apply to the officer-in-charge of the nearest police station for such assistance as may be necessary in the discharge of his duty.

(3)                  

PART-II

ATTACHMENT AND SALE OF MOVABLE PROPERTY                                                                                                                                                                                                                                                           

 

20.           Warrant of attachment.-  Where any movable property is to be attached, the Recovery Officer shall furnish a warrant, in the form prescribed in Annex-V, to the attachment officer, in writing and signed with his name alongwith official seal, specifying therein the name of the defaulter and the amount to be realized.

 

21.                  Service of copy of warrant.-  The attachment officer shall cause a copy of the warrant to be served on the defaulter.

 

22.           Attachment.- If, after service of copy of the warrant, the amount is not paid forthwith, the officer shall proceed to attach the movable property of the defaulter:

 

                Provided that the standing crops or agricultural produce lying in the field or stored in or near the dwelling house of the defaulter or stored on the land owned, leased or cultivated by the defaulter, which represents the agricultural produce of the land owned, leased or cultivated by the defaulter, shall not be attached.

 

23.           Attachment to be made by actual seizure.- Where the property to be attached is movable property in the possession of the defaulter the attachment shall be made by actual seizure and the officer shall be responsible for due custody thereof.

 

24.           Seizure after personal search.- (1) The attachment officer, if he has reasons to believe that any person is carrying goods liable to seizure or any document relating thereto, may cause search to be made of such person.

 

                (2)           When attachment officer is about to search any person, he shall inform such person about his right to be taken to an officer of customs, not  below the rank of Assistant Collector of Customs, or magistrate, and if such person so desires, the attachment officer shall take him without unnecessary delay to the nearest officer of customs or magistrate before searching him and the officer of customs or the magistrate before            whom such person is brought shall, if he sees no reasonable ground for search, forthwith discharge the person and record reasons for doing so, or otherwise may direct that such search be made:

                                                                                                                                                                                                                                                                                  Provided that before making a search, the attachment officer shall call upon two or more persons to attend and witness the search and may issue an order in writing to them or any of them so to do, and the search shall be made in the presence of such persons and a list of all things seized in the course of such search shall be prepared by attachment officer and signed by witnesses.

 

                Provided further that a female shall not be searched except by a female.

 

25.           Entry into building or premises.- (1) The attachment officer may break open any inner or outer door or window of any building on reasonable grounds to believe that such building or premises contains movable property liable to seizure.

 

                (2)           The action under sub-rule (1) shall be taken when admission to such building or premises is not given and the officer has notified his authority and intention of breaking open.

 

                (3)           The officer proceeding under sub-rule (1) shall give all reasonable opportunity to women, if any, of the building or premises to withdraw therefrom.

 

                (4)           The attachment officer shall, after seizure of movable property, call upon two or more persons to attend and witness the process and an inventory of all things seized in the process shall be prepared by him and be signed by the witness.

 

26.           Seizure between sunrise and sunset.- Attachment by seizure shall be made after sunrise and before sun-set and not otherwise.

 

27.           Seizure not to be excessive.- The attachment by seizure shall not be excessive, that is to say, the property attached shall be as nearly as possible proportionate to the amount specified in the warrant.

 

28.           Attachment of movable property which cannot be removed due to certain reasons.- Where it is not practicable to seize any movable property, the attachment officer may serve on the owner of goods or any person holding them on his behalf an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of the Recovery Officer:

 

                Provided that the attachment officer shall inform the Recovery Officer of the reasons due to which the movable property could not be seized.

 

29.           Storage of seized movable property.- (1) All things, being movable property, seized for the purposes of attachment under these rules shall, without unnecessary delay, be delivered into the care of the officer of customs authorized to receive the same being the Incharge of state warehouse, unless otherwise specifically provided by the Act or rules made thereunder.

(2)                 If there be no such officer at hand, such things shall be carried to and deposited at the Custom House nearest to the place of seizure.

(3)                  

30.           Attachment of negotiable instruments.- When the property is a negotiable instrument not deposited in a court, nor in the custody of a public officer, the attachment shall be made by actual seizure, and the instrument shall be brought before the Recovery Officer and held subject to his orders.

 

31.           Attachment of property in custody of public officer.- Where the  property to be attached is in the custody of any public officer, the attachment shall be made by a notice to such officer requesting that such property and any interest or dividend becoming payable thereon may be held subject to the further orders of the Recovery Officer by whom the notice is issued.

 

32.           Attachment of share in movable property.- Where the property to be attached consists of the share or interest of the defaulter in movable property belonging to him and others as co-owners, the attachment shall be made by a notice to the defaulter prohibiting him from transferring such share or interst or subjecting the same to a charge in any manner.

 

33.           Attachment of property in partnership.-  (1) Where the property to be attached consists of an interest of the defaulter, being a partner, in the partnership property, the Recovery Officer may make an order charging the share of such partner in the partnership property and profits, with payment of the amount due under the notice, and may, by the same or subsequent order, appoint a receiver of the share of such partner in the profits, whether already declared or accruing, and of any other money which may become due to him in respect of the partnership, and direct maintenance of accounts and inquiries and make an order for the sale of such interest or such other order as the circumstances of the case may require.

 

                (2)           The other partners shall be at liberty at any time to redeem the interest charged or, in the case of a sale being directed, to purchase the same.

 

34.           Sale.-  (1) The Recovery Officer may direct that any movable property attached under these rules or such portion thereof as may seem necessary to satisfy the notice shall be sold.

 

                (2)           The sale may be made in one or more lots, as the Recovery Officer may consider desirable and, if the government dues to be realized by sale are satisfied by the sale of a portion of the property, the sale shall be only with respect to that portion of the property and the sale of the remaining shall be stopped.

 

35.           Proclamation of sale.-  (1) When any sale of movable property is ordered by the Recovery Officer, he shall issue a proclamation of the intended sale, specifying the time and place of sale and whether the sale is subject to confirmation or not.

 

                (2)           The proclamation shall be made in writing in Urdu, English and language of the district where sale is intended and shall be publicized by-

                                (i)            affixing at the notice board in the office of the Recovery Officer;

                                (ii)           affixing at such places as the Recovery Officer may direct; and

                                (iii)          publishing in one or more newspapers through auctioneer appointed under the Act and rules made thereunder.

 

36.           Sale after fifteen days.- Except where the property is perishable or when the expenses of keeping it in custody is likely to exceed its value, no sale of movable property under these rules shall, without the consent in writing of the defaulter, take place until after the expiry of at least fifteen days from the date on which a copy of proclamation of sale was affixed in the office of the Recovery Officer.

 

37.           Sale by public auction.- Sale by public auction shall be governed by the Registration of Auctioneers and Auction procedure Rules, 1980, issued Vide Notification No. S.R.O. 1228(I)/80, dated the 1st December, 1980.

 

38.           Sale by tender or sealed bids.- The Recovery Officer may, if he deems fit, order sale by tender or sealed bids.

 

39.           Preference for the co-owner.- Where the movable property to be sold is a share belonging to the defaulter and one or more co-owners, of whom one is such a co-owner, the bid of co-owner shall have preference in case the bid of such co-owner and some other person or persons is the same.

 

40.           Transfer of title.- On completion of sale proceedings, the Recovery Officer shall grant to the purchaser a certificate specifying therein the property purchased, the price paid and the name of the purchaser, and the sale shall thereupon become absolute.

 

41.           Irregularity not to vitiate sale.- Any error or irregularity in publishing or conducting the sale of movable property shall not vitiate the sale if the provisions of these rules have been substantially complied with.

 

42.           Negotiable instrument or share in a corporation.- Notwithstanding anything contained in these rules, where the property to be sold is a negotiable instrument or a share in a corporation, the Recovery Officer may, instead of directing the sale to be made by public auction, authorize the sale of such instrument or share through a broker.

 

43.           Order for payment of coin or currency notes to the referring authority.- Where the property attached is current coins or currency notes, the Recovery Officer may, at any time during the continuance of the attachment, direct that such coins or notes, or part thereof, sufficient to satisfy the demand note, be paid over to the referring authority.

 

PART-III

ATTACHMENT AND SALE OF IMMOVABLE PROPERTY

 

44.           Attachment of immovable property.- Attachment of the immovable property of the defaulter shall be made, by the Recovery Officer, by an order prohibiting the defaulter from transferring or subjecting the property to a charge in any manner and prohibiting all persons from taking any benefit under such transfer or charge.

 

45.           Service of order.- A copy of the order of attachment shall be served on the defaulter in the same manner as of service of notices laid down in rule 9 of these rules.

 

46.           Proclamation of attachment.- The order of attachment shall be proclaimed at some place on or adjacent to the property attached by affixing a copy of order of attachment at a conspicuous place and a copy of the order shall also be affixed at the notice board in the office of the Recovery Officer.

 

47.           Sale and proclamation of sale.- (1) The Recovery Officer may direct that any immovable property, which has been attached, or such portion thereof as may be necessary to satisfy the demand note, shall be sold.

 

                (2)           Where an immovable property is ordered to be sold, the Recovery Officer shall cause a proclamation to be made in the same manner as provided in rule 35 of these rules.

 

48.           Contents of proclamation of sale.- (1) A proclamation of sale of immovable property shall be drawn up after proclamation of attachment and shall specify the time and place of sale and also specify-

 

                                (i)            the location of property to be sold;

                                (ii)           as fairly and accurately as possible, the revenue or rent, if any, assessed upon the property or any part thereof; and

                                (iii)          the amount for the recovery of which the sale is ordered.

 

                (2)           The proclamation may also specify any other thing which the Recovery Officer considers material for a purchaser to know in order to judge the nature and value of the property.

 

49.           Time of sale.-  No sale of immovable property under these rules shall, without the consent in writng of the defaulter, take place until after the expiration of thirty days from the date on which copy of the proclamation of sale was affixed on the property or in the office of the Recovery Officer, whichever is later.

 

  50.         Sale to be public auction or tender.- (1) The sale shall be made by public auction or by tender to the highest bidder and shall be subject to confirmation by the Recovery Officer.

 

                (2)           If the sale is to be conducted through public auction, it shall be conducted by an auctioneer appointed under the provisions of the Registration of Auctioneers and Auction Procedure Rules, 1980.

 

51.           Deposit by purchaser and re-sale in default.- (1) On every sale of immovable property, the person declared to be the purchaser shall pay, immediately after such declaration, a deposit of twenty five percent of the amount of his purchase money to the officer conducting the sale; and in default of such deposit the property shall forthwith be re-sold.

 

                (2)           The full amount of purchase money payable shall be paid by the purchaser on or before the fifeenth day from the date of the sale of property.

 

52.           Procedure in default of payment.- (1)  In default of payment within the time specified in sub-rule (2) of rule 51, the deposit made under sub-rule (1) thereof shall be kept as deposit to be dealt with under rule 53.

 

                (2)           The immovable property shall be re-sold and the defaulting purchaser shall forfeit all claims to the property or to any part of the sum for which it may subsequently be sold.

 

53.           Amount recoverable from purchaser in default.- Any deficiency of price which may happen on a re-sale by reason of a purchaser's  default, including all expenses attending such re-sale, shall be recoverable from defaulting purchaser up to the maximum of deposit money and if there is any surplus after meeting the deficiency, the same shall be refunded to the defaulting purchaser.

 

54.           Authority to bid.- All persons bidding at a sale shall  be required to declare if they are bidding on their own behalf or on behalf of their principals and, in the latter case they shall be required to deposit their authority, and in default their bid shall be rejected.

 

55.           Application to set aside sale of immovable property.- (1) Where immovable property has been sold in execution of a notice, the defaulter, or any person whose interests are affected by the sale, may, at any time within thirty days from the date of the sale, apply to the Recovery Officer to set aside the sale on his depositing-

 

                 (i)           for payment to the referring authority, the amount specified in the proclamation of sale as that for the recovery of which sale was ordered with surcharge thereon at the rate of ten per cent per annum, calculated from the date of the proclamation of sale to the date when deposit is made; and

                 (ii)          for payment to the purchaser, as penalty, a sum equal to ten per cent of the purchase money.

 

                (2)           Where a person makes an application under rule 56 for setting aside sale of his immovable property, he shall not, unless he withdraws that application, be entitled to make an application under sub-rule (1).

 

56.           Application to set aside sale of immovable property on ground of non-service of proclamation or irregularity.- Where immovable property has been sold in execution of a demand note, the referring authority, the defaulter, or any other person whose interests are affected by the sale, may at any time within thirty days from the date of sale, apply to the Recovery Officer to set aside the sale on the ground that proclamation of attachment or sale was not made in the prescribed manner or on ground of a material irregularity in publishing or conducting the sale:

 

                Provided that-

                 (i)           no sale shall be set aside on any such grounds unless the Recovery Officer is satisfied, on the basis of evidence produced before him, that the applicant has sustained loss by such reasons; and

                 (ii)          an application made by a defaulter under this rule shall be disallowed unless he deposits the amount recover-able from him in execution of demand note.

57.           Setting aside of sale where defaulter has no salable interest.- At any time within thirty days of the sale, the purchaser may apply to the Recovery Officer to set aside the sale on the ground that the defaulter had no salable interest in the property sold.

 

58.           Confirmation of sale.- (1) Where no application is made for setting aside the sale under these rules or where such an application is made and disallowed by the Recovery Officer, he shall, if the full amount of purchase money is paid,  make an order confirming the sale and thereupon the sale become absolute.

 

                (2)           Where such application is made and allowed and where, in the case of an application made to set aside the sale on deposit of amount and penalty and surcharge, the deposit is made within thirty days of sale, the Recovery Officer shall set aside the sale:

 

                Provided that no such order shall be made unless notice of the application has been given to the persons likely to be affected thereby.

 

59.           Return of purchase money in certain cases.- Where a sale of immovable property is set aside, any money paid or deposited by the purchaser on account of the purchase, together with the penalty, if any, deposited for payment to the purchaser, shall be paid to the purchaser.

 

60.           Sale certificate.-  (1) Where a sale of immovable property has become absolute, the Recovery Officer shall grant a certificate specifying therein the property sold and the name of the person who at the time of sale was declared to be the purchaser.

 

                (2)           The certificate granted under sub-rule (1) shall also state the date on which the sale became absolute.

 

61.           Postponement of sale to enable defaulter to raise amount due under notice.- (1) Where an order or proclamation of sale of immovable property has been made and the defaulter satisfies the Recovery Officer that there are reasons to believe that amount of the note may be raised by mortgage or lease or private sale of such property, or some part thereof, or of any other movable or immovable property of the defaulter, the Recovery Officer may, on the application of the defaulter, postpone the sale on such terms and for such period as he thinks proper, to enable defaulter to raise the amount.

 

                (2)           In such a case, the Recovery Officer shall grant a certificate to the defaulter authorizing him, within a period to be mentioned therein and notwithstanding any thing contained in these rules, to make the proposed mortgage, lease, or sale:

 

                Provided that all money payable under such mortgage, lease or sale shall be paid, not to the defaulter, but to the Recovery Officer:

 

                Provided further that no mortgage, lease or sale under this rule shall become absolute until it has been confirmed by the Recovery Officer.

 

62.           Issue of fresh proclamation before re-sale.- Every re-sale of immovable property, in default of payment of purchase money within the period allowed for such payment, shall be made after the issue of a fresh proclamation in the same manner as provided for the proclamation of sale.

 

63.                 Bid of co-owner to have preference.- Where the property sold is a share of undivided immovable propoerty of two or more persons, of whom defaulter is a co-sharer, the bid of the co-sharer shall have preference in case the bid of such co-sharer and any other person or persons is the same.

 

PART-IV

APPOINTMENT OF RECEIVER

 

64.           Appointment of receiver for business.- (1) Where the property of defaulter consists of a running business, the Recovery Officer may attach such business and appoint a person as receiver to manage the business.

 

                (2)           Attachment of a business under this rule shall be made by an order prohibiting the defaulter from transferring or subjecting the business to a charge in any manner and prohibiting all persons from taking any benefit under such transfer or charge and intimating that the business has been attached under this rule.

                (3)           Proclamation of attachment under this rule shall be made in the same manner as is provided for proclamation of sale under  rule 35 of these rules.

                (4)           Where the Recovery Officer so directs, such order shall also be published in a newspaper.

 

65.           Appointment of receiver for immovable property.- Where immovable property is attached, the Recovery Officer may, instead of directing a sale of the property, appoint a person as receiver to manage such property.

 

66.           Qualification for receiver.- (1) Any person from general public may be appointed as receiver who has sufficient knowledge of the kind of business or the property for which he is to be appointed as receiver.

 

                (2)           Notwithstanding anything contained in sub-rule (1), any officer of Customs, Central Excise or Sales Tax, not below the rank of Principal  Appraiser or Superintendent, may be appointed as receiver of the attached business and property.

 

67.           Manner of working of reciver.- (1) Where it appears to the Recovery Officer to be just and convenient, he may by order-

 

                                (i)            remove any person from the possession or custody of an attached business or property;

                                (ii)           commit the same to the possession, custody or management of the receiver; and

                                (iii)          confer upon the receiver all such powers, as to bringing and defending suits and for the realization, management, protection, preservation and improvement of the property, the collection of the rents and profits thereof, the application and disposal of such rents and profits, and the execution of documents as the owner himself has, or such of those powers as the Recovery Officer thinks fit:

                                                                                                                                                                                                                                                                 

                                Provided that nothing in this rule shall authorise the Recovery Officer to remove from the possession or custody of business or property any person whom any party to the recovery proceedings has not a right to remove.

 

                (2)           The Recovery Officer may by general or special order, fix the amount to be paid as remuneration for the services of the receiver. Provided that the Government officers appointed as receivers shall not be entitled to such remuneration.

                (3)           Every receiver, not being a Government officer, shall-

 

                 (i)           furnish such security, if any, as the Recovery Officer thinks fit, to account duly for what he shall receive in respect of the business or property;

                (ii)           submit his accounts at such periods and in such form as the Recovery Officer directs;

                (iii)          pay the amount due from him as the Recovery Officer directs; and

                (iv)          be responsible for any loss occasioned to the business or property by his wilful default or gross negligence:

 

                                Provided that the government officers appointed as receiver shall furnish all such information as desired by the Recovery Officer regarding the progress of recovery alongwith accounts of proceeds after such intervals as may be                                                           prescribed by the Recovery Officer.

                                                                                                                                                                                                                                                                                                                                                                 

                (4)           The profits, or rents and profits, of such business or property shall, after deducting the expenses of management, be adjusted towards discharge of the Government dues, and the balance, if any, shall be paid to the defaulter.

 

68.           Withdrawal of management.- The attachment and management under these rules may be withdrawn at any time at the discretion of the Recovery Officer, or if the Government dues are realized by receipt of such profits and rents or are otherwise paid.

PART-V

MISCELLANEOUS

 

69.           Application of Chapter XVIII of the Act.- Provisions of Chapter XVIII of the Act shall be followed if any arrests are to be made in pursuance of the provisions of these rules.

 

 

70.           Continuance of proceedings.- (1) No proceedings shall cease to be in force by reason of the death of the defaulter.

 

                (2)           If, at any time before or after the issue of a demand note to the Recovery Officer, the defaulter dies, the proceedings under these rules may, except arrest and detention, be continued against the legal heirs of the defaulter who shall be liable to pay, out of the properties left by the deceased defaulter to the extent to which the properties are capable of meeting the outstanding Government  dues, and provisions of these rules shall apply as if the legal heirs were the defaulter.

 

71.           Review.- Any order passed under these rules may, after a notice to all persons interested, be reviewed by the officer who made the order, or by his successor in office, on account of any mistake apparent from the record.

 

72.           Recovery from surety.- Where any person has, under these rules, become surety for the amount due by the defaulter and the defaulter fails to pay the dues, such surety may be proceeded against under these rules as if he were the defaulter.

 

73.           Receipt to be given.- If any amount is received by any officer or other person in pursuance of these rules, he shall issue receipt of the amount so received.

 

74.           Delivery of property in occupancy of defaulter.- Where the immovable property sold is in the occupancy of the defaulter or of some person on his behalf or of some person claiming under a title created by the defaulter subsequently to the attachment of such property and a certificate in respect thereof has been granted under rule 60 of these rules, the Recovery Officer shall, on the application of the purchaser, order delivery to be made by putting such purchaser or any person whom he may appoint to receive such delivery on his behalf, in possession of the property, and, if need be, by removing any person who refuses to vacate the same.

 

75.           Delivery of property in occupancy of tenant.- Where the immovable property sold is in the occupancy of a tenant or other person entitled to occupy the same and a certificate in respect thereof has been granted under rule 60 of these rules, the Recovery Officer shall, on the application of the purchaser, order delivery to be made by affixing a copy of the certificate of sale at some conspicuous place on the property, and proclaiming to the occupant that the interest of the defaulter has been transferred to the purchaser.

 

76.           Resistance or obstruction of possession of immovable property.- (1) Where the holder of a certificate granted under rule 60 of these rules or the purchaser of any such property sold in execution of a demand note is resisted or obstructed by any person in obtaining possession of the property, he may make an application to the Recovery Officer, complaining of such resistance or obstruction.

 

77.           Resistance or obstruction by defaulter.- Where the Recovery Officer is satisfied that resistance or obstruction was occasioned without any just cause by the defaulter or by any person at his instigation, he shall direct that the applicant be put into the possession of the property, and where the applicant is still resisted or obstructed in obtaining possession, the Recovery Officer may also, at the instance of the applicant, order the use of force.

 

78.           Resistance or obstruction by a bonafide claimant.-  Where the Recovery Officer is satisifed that the resistance or obstruction was occasioned by any person other than the defaulter, claiming in good faith to be in possession of the property on his own account or on account of some person other than the defaulter, the Recovery Officer shall make an order dismissing the application.

 

79.           Dispossession by certificate holder or purchaser.- (1) Where any person other than defaulter is dispossessed of immovable property by the holder of a certificate for the possession of such property or, where such property has been sold in execution of demand note, by the purchaser thereof, he may make an application to the Recovery Officer, complaining of such dispossession.

                (2)           The Recovery Officer shall fix a day for investigation the matter and shall summon the party against whom the application is made to appear and answer the same.

80.           Bonafide claimant to be restored to possession.- When the Recovery Officer is satisfied that the applicant was in the possession of the property on his own account or on account of some person other than defaulter, he shall direct that the applicant be put into possession of the property.

 

81.           Rules not applicable to transferee lite pandente. - Nothing in rule 78 and 79 shall apply to resistance or obstruction in execution of a certificate for the possession of a property by a person to whom the defaulter has transferred the property after the institution of proceedings in which the order was passed or to the dispossession of any such person.

 

82.           Delivery of moveable property, debts and share.-  (1) Where the property sold is moveable property of which actual seizure has been made, it shall be delivered to the purchaser.

 

                (2)           Where the property sold is moveable property in the possession of some person other than the defaulter, the delivery thereof to the purchaser shall be made by giving notice to the person in possession prohibiting him from delivering possession of the property to any person except the purchaser.

                (3)           Where the property sold is a debt not secured by a negotiable instrument or is a share in a corporation, the delivery thereof shall be made by a written order of the Recovery Officer prohibiting the creditor from receiving the debt or any interest thereon, and the debtor from making payment thereof to any one except the purchaser, or prohibiting the person in whose name the share may be standing from making any transfer of the share to any person except the purchaser, or receiving payment of any dividend or interest thereon, and the manager, secretary, or other proper officer of the corporation from permitting any such transfer or making any such payment to any person except the purchaser.

 

83.           Execution of documents and endorsement of negotiable instruments.- Where any endorsement or execution of document is required to transfer a negotiable instrument or any share to a purchaser under these rules, such document shall be executed or endorsement shall be made by the Recovery Officer.

 

84.           Form.- (1) Any notice, proclamation, certificate or order to be issued under these rules shall be in such from as the Central Board of Revenue may, from time to time, specify.

 

(2)                 Until a form referred to in sub-rule (1) is specified by the Central Board of Revenue, the Recovery Officer may issue the notices, proclamations or certificates in the manner as he may deem fit in the circumstances of each case.

 

Annex I

(See rule 4)

FORM OF DEMAND NOTE

C.No._____________________

 

                Subject:                    ___________________________________________

                References:              ___________________________________________

                                                (e.g. Order in Original No; Bank Guarantee No;  Insurance Guarantee No; etc.)

                Whereas a sum of Rs.__________ (Rupees ______________________________ only) as Government dues is outstanding and needs to be recovered from the following;

 

                                                M/s                                                          ___________________________________

                                                Address                                                    ___________________________________

                                                Phone No.                                                               ___________________________________

                                                N.T.N. No.                                              ___________________________________

                                                CCI&E,s Import/Export Reg.No.                             ___________________________________

                                                Known properties                                    ___________________________________

 

2.             The above mentioned Government dues are on account of customs duties and other levies collected in the same manner as that of customs duties and details are mentioned in attached schedule. It is certified that all other formalities under the Act and rules made thereunder have been completed and there exists no bar or stay order against recovery. You are, therefore, requested to recover the above mentioned Government dues in terms of section 202 of the Customs Act, 1969 (IV of 1969), and rules made thereunder. Government dues may be remitted to the undersigned as soon as the same are recovered.

 

                                                                                                                                                (Name)

                                                                                                                                Assistant Collector of Customs

                                                                                                                                ________________________

                                                                                                                Seal         

                                                                                                                                ________________________

To,          The Recovery Officer

SCHEDULE

____________________________________________________________________________________________________________________________________________________________________________1___________2__________3______

1.             Sr.No.

2.             File No.

3.             Customs Duties

4.             Regulatory Duty

5.             Sales Tax

6.             Import Surcharge

7.             Iqra Surcharge

8.             Central Excise Duty

9.             Agricultural Cess

10.           Cotton Cess

11.           Penal Surcharge

12.           Licence Fee

13.           Amendment Fee

14.           Devlopment Surcharge

15.           Storage Charges

16.           Establishment Charges

17.           Fines

18.           Personal Penalties

19.           Other       (i)

                                (ii)

                                (iii)                                                                         

                                                                                                                                                                Annex II

                                                                                                                                                                (See rule 5)                                                        

                                                                                FORM OF MASTER REGISTER                                          

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

1.             Sr. No. _____________________________________________________________________________________

2.             Defaulters Name, Address and Phone No. _________________________________________________________

3.             Referring authority ___________________________________________________________________________

4.             (i)   No, date of issue and date of receipt of demand Note _____________________________________________

                (ii)   Reference Nos. __________________________________________________________________________

5.             Details of Government dues ___________________________________________________________________

                (i)            Customs duties                                         Rs. _________ (Rupees ____________________ only)

                (ii)           Regulatory duties                                      Rs. _________ (Rupees ____________________ only)

                (iii)          Sales Tax                                                 Rs. _________ (Rupees ____________________ only)

                (iv)          Import Surcharge                                     Rs. _________ (Rupees ____________________ only)

                        (v)            Iqra Surcharge                                             Rs. _________ (Rupees ____________________ only)

                (vi)           Central Excise duty                                      Rs. _________ (Rupees ____________________ only)

                (vii)          Agricultural cess                                          Rs. _________ (Rupees ____________________ only)

                (viii)         Cotton cess                                                                Rs. _________ (Rupees ____________________ only)

                (ix)           Penal Surcharge                                           Rs. _________ (Rupees ____________________ only)

                (x)            License Fee                                                Rs. _________ (Rupees ____________________ only)

                (xi)           Amendment Fee                                          Rs. _________ (Rupees ____________________ only)

                (xii)          Development Surcharge                                Rs. _________ (Rupees ____________________ only)

                (xiii)         Storage charges                                           Rs. _________ (Rupees ____________________ only)

                (xiv)          Establishment charges                                  Rs. _________ (Rupees ____________________ only)

                (xv)           Fines                                                         Rs. _________ (Rupees ____________________ only)

                (xvi)          Personal penalties                                        Rs. _________ (Rupees ____________________ only)

                (xvii)         Other         i)                                              Rs. _________ (Rupees ____________________ only)

                                                ii)                                             Rs. _________ (Rupees ____________________ only)

                (xviii)        Total                                                         Rs.   ________  (Rupees    __________________ only)

 

6.             Date of issue of notice under rule 7 ______________________________________________________________

7.             Date of issue of notice under rule 8 _______________________________________________________________

8.             Known properties of the defaulter

                (i)             Movable ___________________________________________________________________________

                (ii)            Immovable ________________________________________________________________________

9.             Name and designation of attachment officer ______________________________________________________

10.            Details of movable properties attached.

                (i)             _______________________________________________________________________________

                (ii)            __________________________________________________________________________________

                (iii)           _________________________________________________________________________________

11.            Date of proclamation of attachment of immovable properties ___________________________________________

12.            Details of immovable properties attached_______________________________________

                (i)______________________________________________________________________________

                (ii) _______________________________________________________________________________________

                (iii)           ________________________________________________________________________________

 

13.            Date of appointment of receiver, name of receiver and details of business or properties.

                (i)             __________________________________________________________________________________

                (ii)            ___________________________________________________________________________________________

14.            Date of sale of properties and their details ______________________________________________________

                                                                                                                                                                                                                                                                             

15.            Amount of sale proceed or amount of profits alongwith mode of receipt.                 ____________________________________________________________________________________________16.  Disposal of sale proceeds ______________________________________________________________________

17.            Date of recovery and details of Government dues show in column 5 recovered alongwith the manner of recovery. _______

 

Annexure III

(See rule 7(1)

 

FORM OF NOTICE TO CUSTOMS, CENTRAL EXCISE AND SALES TAX AUTHORITIES

 

C.No.                                                                                                                                        Date:

 

Notice under sub-section (1) of section 202 of the Customs Act,, 1969 (IV of 1969).

 

                                Subject: _______________________________________________

 

                Whereas, Government dues amounting to Rs. ______ (Rupees _______________ only), are outstanding against M/s _______________ (CCI&E,s Import/Export Registration No. ________ and NTN No. _________________________) which they have failed to pay so far.

 

2.             Now, therefore, in exercise of the powers conferred by sub-section (1) of section 202 of the Customs Act, 1969 (IV of 1969), I do hereby require, all Customs Central Excise and Sales Tax authorities, that with immediate effect and till further orders:-

                (a)             to deduct the aforesaid amount from any money owing to the said M/s ________________ which may be under the control of respective authorities; and                                                                                                                                                                                                                                                                          

                (b)            to recover the aforesaid amount by detaining and selling and goods belonging to said M/s ___________________ which              come under the control of respective authorities.

 

3.             The Government dues so recovered should be sent to the undersigned immediately.

                                                                                                                                                Recovery Officer,

 

                                                                                                Seal          ________________________________

To,           (i)             M/s _____________________ (defaulter)

                (ii)            M/s _____________________  (Clearing agent or representative)

                (iii)           All other concerned.

 

                                                                                                                                                                Annex IV                                                                                                                                                                                                         (See rule 8(1)

 

FORM OF NOTICE OF RECOVERY AND ATTACHMENT

 

C.No. __________________________                                                                  Date: _______________

 

Notice for Recovery under sub-section (2) and (3) of section 202 of the Customs Act, 1969.

 

Subject: __________________________________________

 

                Whereas Government dues amounting to Rs.___________ (Rupees ______________ only) are recoverable from you (M/s____________) on account of ____________________ ;

 

2.             And whereas you have failed to deposit the above said Government dues recoverable from you and no recovery could be made in terms of sub-section (1) of section 202 of the Customs Act, 1969 (IV of 1969);

 

 

3.             And whereas it is believed that the outstanding Government dues cannot be recovered from you in the manner so far followed;

 

4.             Now, therefore, you (M/s ____________________ ) are hereby served with this notice in terms of sub-section (2) of section 202 of the Customs Act, 1969 (IV of 1969), to pay the amount within fifteen days from the date of service of this notice, failing which following proceedings under sub-section (3) of section 202 of the Customs Act, 1969 (IV of 1969), will be initiated without any further notice:-

 

                (a)            attachment and sale of immovable property; and

                (b)            appointment of receiver for the management of the movable or immovable property.

                                                                                                                                                                                                                                                                                                               

5.             You (M/s _________________) are also directed not to directly or indirectly, sell mortgage, charge, lease or otherwise deal with all movable and immovable property belonging to you except with the permission of the undersigned.

 

6.             You (M/s _________________) are also informed that all your movable and immovable properties shall stand attached on the expiry of 15 days of the service of this notice.

 

7.             You are also informed that the attached properties can be seized and sold under the Customs Recovery Rules, 1992 or a receiver can be appointed to manage them. To avoid such a situation it shall be in your own interest to pay the Government dues as early as possible.

 

                                                                                                                                                (Name)

                                                                                                                                                Recovery Officer

                                                                                                                                ____________________________

                                                                                                                Seal          ____________________________

To,          (1)           M/s __________________________________________

                (2)           M/s __________________________________ (Agent)                                               

                                ______________________________________________

                (3)           Other concerned) ______________________________

 

Annex V

(See rule 20)

FORM OF WARRANT OF ATTACHMENT

 

C.No. __________________                                                                  Date ____________________________

 

                Subject: ______________________________________

 

                Whereas Mr. ______________________ (Designation _________________ ), has been appointed as attachment officer in terms of Customs

Recovery Rules, 1992, to attach the movable properties of M/s ________________________________ for the recovery of outstanding Government                                                                 (Name and address)

dues amounting to Rs. ____________ (Rupees ________________________ only), recoverable from the above mentioned defaulter.

 

                Therefore, Mr. ________________ (Designation ________), is hereby directed to seize the movable properties belonging to the defaulter while observing the provisions of the Customs Recovery Rules, 1992, save exceptions as provided under the above said Rules. He is also directed to report to the undersigned about the completion of attachment formalities as soon as these are completed.

 

                                                                                                                                                Recovery Officer

                                                                                                                                                                                          
                                                                                                                              __________________________

                                                                                                Seal          ____________________________

 

To,

                (i)            The attachment officer

                                ____________________________

                                alongwith a copy to be served on the defaulter or his agent.

 

                (ii)           Notice Board.

 

                                                                                                                                                ( KHAN SARWAR )

                                                                                                                                                Second Secretary(AS)

 

 

 

 

C.No.1/43-AS/91.