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.
(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. _______
(See rule
7(1)
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)
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.