The Sales Tax Recovery Rules

GOVERNMENT OF PAKISTAN

CENTRAL BOARD OF REVENUE

***

Islamabad, the 23rd November, 1992

NOTIFICATION

(SALES TAX)

S.R.O. 1178(I)/92._ In exercise of the powers conferred by Section 50 and Section 48 of the Sales Tax Act, 1990, 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 Sales Tax 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 Sales Tax Act, 1990;

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

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

(iv) "Demand Note" means a note received by the Sales Tax Recovery Officer from the referring authority
specifying the details regarding the defaulter and the Government dues;

(v) " execution" means steps taken for the recovery of Government dues under these rules in pursuance of a
demand note;

(vi) "Government dues" means recoverable amounts of sales tax, additional tax, surcharge or any other tax,
duty or other levy being collected, in the same manner as sales tax is collected, an adjudged penalty or
fine or any amount unpaid which may be payable under any bond guarantee or instrument executed
under the Act or such other laws or the rules made there under and against the recovery of which there
is no bar or valid stay order from the competent court;

(vii) "Immovable property" means a property which cannot be taken into custody for removal without
physically knocking it down.

(viii) "Movable property" means a property which can be taken into custody for removal without physically
knocking it down and includes currency and coin, shares, documents and instruments;

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

(x) "Recovery Officer" means an officer of the Central Excise department notified to be the appropriate
officer under Section 11 of the Act;

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

(xii) "Share" means share in a corporation and private limited or public limited company and includes stock,
debenture stock, debentures or bonds. (xiii) "offices" means the offices of referring authority and
recovery officer;
(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. Omitted.

(4) Initiation of recovery action.— (1) On expiry of thirty days from the date on which the Government dues are adjudged, the referring authority shall deduct the amount from any money owing to the person from whom such amount is recoverable and which may be at the disposal or in the control of such officer.

(2) In case the government dues are not fully recovered under sub-rule (1), the referring authority may:

(a) serve a notice to the customs, central excise, sales tax or income tax officers in the form as set out in
Annex-III to deduct the Government dues from any money owing to the defaulter which may be under
their control; and a copy of such notice shall be endorsed to the defaulter;

(b) require by notice in writing, any person or organization who holds, or may subsequently hold, any
money for or on account of the defaulter, to pay to such officer the amount specified in the notice;

(c) require, by notice in writing, the customs officers to stop the clearance of any goods imported by the
defaulter; and

(d) attach the bank accounts of the defaulter.

5. Stoppage of clearances and sealing of business premises.-- (1) In case the government dues are not recovered in the manner prescribed in rule 4, the referring authority shall serve upon the defaulter a notice as set out in Annex IV, informing him that removal of any goods from his business premises shall be stopped with effect from the date specified in the notice till such time the dues are paid or recovered in full:

Provided that if the government dues still remain unpaid, the referring authority shall seal the business
premises of the defaulter till such time the dues are paid or recovered in full.
(2) If the referring authority 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 property, as shall be liable to attachment in the process of recovery, and that the realization of government dues in consequence 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, execution of the notice by ignoring the specified time limit. (3) The referring authority may, if he deems fit, publish such notice as mentioned in sub-rule (1) or rule 4, in one or more newspapers circulated in the district of normal residence of the defaulter. 6. Demand Note. -- In the event of failure of recovery measures taken by the referring authority under rule 4 and rule 5 the referring authority, shall issue a demand note, in the form set out in Annex 1, to the Recovery Officer, specifying therein the details of government dues meant for recovery and shall also certify that the formalities under clauses (a), (b), (c), (ca), (d) and (f) of sub-section (1) of section 48 of the Act have been completed and there exists no bar or stay order against the proposed recovery. 7. Attachment and sale of property. -- The recovery officer, on receipt of demand note, shall serve upon the defaulter a notice as set out in Annex V and his movable and immovable property shall stand attached arid subsequently shall be sold if the recovery is not otherwise effected. 8. Master Registers to be maintained by the referring authority and the Recovery Officer.-- (1) The referring authority and the recovery officer shall maintain master registers in the form set out in Annex II and every notice, order and demand note shall be entered in this register serially, and they shall authenticate all entries by affixing their signatures; and seal. (2) The referring authority and the recovery officer shall exchange their information for completion of corresponding entries in the master registers of both offices in the form of a monthly return which shall be the exact replica of Annex II, after filling the respective columns by the concerned office. 9. Power to require information to be furnished. -- The referring authority for the recovery officer may, by requisition in writing, require any person or organisation, whether registered under the Act or otherwise, to furnish any information, required for the proceedings under these rules. 10. Mode of service of notice.-- All notices or orders served under these Rules, unless otherwise specifically provided, shall be served --

(a) by tendering the notices or orders or sending by registered post or courier service, to the person for
whom these are intended or to his agent, at his last known address; or

(b) If the notice cannot be served in the manner as provided in clause (a), by affixing it on the notice board in
the office of the Recovery Officer. 11. Disposal of proceeds of execution.-- (1) Whenever Government dues are realised, by sale or otherwise, in execution of a notice of recovery. they shall be applied to the following purposes in their respective order, namely -- (a) first to pay the expenses of the sales;

(b) then to pay the freight or other charges, if any, payable in respect of goods, if notice of such charges
has been given to the person holding the goods in custody;

(c) then to pay the Government dues; and

(d) then to pay the charges due to the person holding such goods in custody. (2) After making all payments under sub-rule (1), the balance, if any, shall be paid to the owner of the goods, provided that he applies for it within six months of the sale of the goods or shows sufficient cause for not doing so. 12. Ruling regarding 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 or 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 the Recovery Officer, before whom such question arises. 13. Property liable to attachment and sale in execution.-- The following is liable to attachment and sale in execution of a notice, namely: lands, houses or other buildings, goods, bank notes, Government securities, bonds or other securities for money, cheques, bill, of exchange, hundies, promissory notes, shares in corporation and, save as hereinafter mentioned, all other saleable property, movable or immovable, belonging to the defaulter, or over which, or the profits of which, he has a disposing power which he may exercise for his own benefit, whether the same be held in the name of the defaulter or by another person in trust for him or on his behalf: Provided that the following particulars shall not be liable to attachment or sale, 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 agriculturalist, his implements of husbandry and such
cattle and seed grain as may. in opinion of the Recovery Officer, be necessary to enable him to earn his
livelihood as such;

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

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

(v) Salary to the extent of first hundred rupees and one half of the remainder;

(vi) all compulsory deposits and other sources 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;

(vii) any allowance forming part of the emoluments of any servant of the Government or local authority which
the Federal or Provincial 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;

(viii) any expectancy of succession by survivor-ship or other merely contingent or possible right or interest;
and

(ix) a right to future maintenance. 14. Objections and investigations, 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 sales, 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 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. 15. Removal of attachment on satisfaction of cancellation of a demand note.-- When the Government dues are 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 pro-claimed at his expense, and a copy of the proclamation shall he affixed in the manner provided by these Rules for a proclamation of sale of immovable property. 16. Officer entitled to attach and sell.-- 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. 17. 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 may adjourn any sale hereunder 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 of proof is given to his satisfaction that the amount has been paid to the Recovery Officer, who ordered the sale. 18. Defaulter not to interfere with attached property.-- Where a notice has been served on a defaulter under rule 8, the defaulter or his representative in interest shall not sell, mortgage, charge, lease or otherwise deal with any property belonging to him except with the permission of the Recovery Officer. 19. 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 being sold. 20. Assistance for action.-- (1) An officer authorised to attach or sell any property or charged with any duty to be performed may take along with him a contingent, of Sales Tax staff and sepoys, armed or otherwise, for any assistance he may require in the performance of his duties. (2) In addition to sub-rule (1), such officer may apply to the officer incharge of the nearest police station for such assistance as may be necessary in the discharge of his duties.

PART - II

ATTACHMENT AND SALE OF MOVABLE PROPERTY

21. Warrant of attachment.-- Where any movable property is to be attached, the Recovery Officer shall furnish a warrant, in the form prescribed in Annex-VI, to the attachment officer, in writing and signed with his name along with official seal, specifying therein the name of the defaulter and the Government dues to be realised. 22. Service of copy of warrant.-- (1) The attachment officer shall cause a copy of the warrant to be served on defaulter or his agent in person. (2) If service of a copy of warrant in terms of sub-rule (I) is not immediately possible, the same shall be considered to be served when affixed on the notice board in the office of the Recovery Officer. 23. 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 the 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 represent the
agricultural produce of the land owned, leased or cultivated by the defaulter, shall not be attached. 24. Property attached how to be dealt with.-- (1) Whether the property to be attached is movable property in the procession of the defaulter or in the procession of any other person on behalf of the defaulter, the attachment shall be made by actual seizure. (2) When anything is seized, the attachment officer, as soon as may be, inform in writing the person from whose possession the things are seized, of the grounds of such seizure. 25. Search how to be made.-- All searches shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (V of 1998). 26. Seizure after search of a building or premises.-- (1) The attachment officer, if he has reasons to believe that any movable property liable to seizure is hidden, concealed or stored in any building or premises, he may break open any inner or outer door or window of the building or premises in order to seize such movable property: Provided that the officer has notified his authority and intention of breaking open if admission is not given. He
shall, however, give all reasonable opportunity to women to withdraw. (2) The attachment officer shall, after seizure of moveable property, prepare an inventory of the property in the presence of two or more persons who shall witness the process and sign the inventory. 27. Seizure between sunrise and sunset.-- The attachment by seizures shall be made after sunrise and before sunset and not otherwise. 28. 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 recoverable Government dues. 29. 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 in his possession or charge an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission in writing of Recovery Officer: Provided that the attachment officer shall inform the Recovery Officer, in writing, of the reasons due to which
the movable property could not be seized. 30. Storage of seized movable property.-- (1) All things seized for the purposes of attachment under these Rules shall, without unnecessary delay, be delivered into the care of the officer of the Sales Tax authorised to receive the same (***), 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. 31. Attachment of negotiable instrument.-- When the property to be attached 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. 32. Attachment of property in custody of public officer.-- When 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. 33. Attachment of share in movable property.-- (1) Where the property to be attached consists of an 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 interest or subjecting the same to a charge in any manner. 34. Attachment of property in partnership.-- (1) Where the property 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 enquiries and make an order for the sale of such interest or may make 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. 35. 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 shall be made in one or more lots, as the Recovery Officer may consider desirable and, if the Government dues to be realised 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 property shall be stopped. 36. 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 therein the time, place and whether the sales is subject to confirmation or not. (2) The proclamation shall be made in writing in Urdu, English and language of the province where sale is intended and shall be publicised by -

(i) affixing a copy thereof at the notice board in the office of the Recovery Officer.
(ii) affixing copy thereof at such places as the Recovery Officer may direct; and
(iii) publishing the proclamation in one or more newspapers through auctioneer appointed udder the Act and
Rules made thereunder.

37. Sale after fifteen days.-- Except where the property is perishable or if the expenses of keeping it in custody is likely to exceed its value, no sale of movable property under these Rules shall be ordered without the consent, in writing, of the defaulter, 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. 38. Sale by public auction.-- Sale by public auction shall be governed by the provisions of Chapter V of Customs Rules, 2001. 39. Sale by tender or sealed bids.-- The Recovery Officer may, if he deems fit, order sale by tender or sealed bids. 40. Preference for the co-owner.-- Where the movable property to be sold is share belonging to the defaulter and one or more co-owners, and the bid of such co-owner and some other person is the same, the bid of co-owner shall have preference. 41. 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. 42. 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.

43. 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, authorise the sale of such instrument or share through a broker. 44. Order for payment of coin or currency notes to the referring authority.-- Where the property attached is currency 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, to be paid over to the referring authority.

PART III

ATTACHMENT AND SALE OF IMMOVABLE PROPERTY

45. 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.

46. 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 these Rules. 47. Proclamation of attachment.-- The order of attachment shall be proclaimed on or adjacent to the property attached by affixing a copy of order of attachment at a conspicuous place and a copy of the same shall also be affixed at the notice board in the office of the Recovery Officer. 48. Sale and proclamation of sale.-- (1) The Recovery Officer may direct that any immovable property, which has been attached, or such portion thereof, as tray be necessary to satisfy the demand note, shall be sold if the amount due is not otherwise recoverable. (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 36 of these Rules. 49. Contents of proclamation of sale.-- (1) A proclamation of sale of immovable property shall be drawn after proclamation of attachment and shall specify therein 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 Government due for the recovery of which the sale is ordered. (2) The proclamation may also specify any other thing which the Recovery Officer considered material for a purchaser to known in order to judge the nature and value of the property. 50. Time of sale.-- No sale of immovable property under these Rules shall, without consent in writing 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. 51. Sale to be by public auction or tender.-- The sale shall be made by public auction or tender and shall be subject to confirmation by the Recovery Officer. 52. 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 the declaration, a deposit of 25% 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 fifteenth day from the date of the sale of property. 53. Procedure in default of payment.-- (1) Default of payment within the time mentioned in sub-rule (2) of Rule 52, deposit made vide sub-rule (1) thereof shall be kept as deposit to be dealt with as mentioned in rule 54. (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 be subsequently sold. 54. Amount recoverable from purchaser in default.-- Any deficiency of price which may happen on a resale by reason of a purchaser's default including all expenses attending such resale, shall be recoverable from defaulting purchaser upto the maximum of deposit money and if there is any surplus, after meeting the deficiency, the same shall be refunded to the defaulting purchaser. 55. 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 later case, they shall be required to deposit their authority, and in default their bid shall be rejected. 56. 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 sale, apply to the Recovery Officer to set aside the sale on his depositing--

(i) for payment to the referring authority, the Government dues specified in the proclamation of sale as that
for the recovery of which sale was ordered with a 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 purchaser, a sum equal to ten per cent of the purchase money. (2) Where a person makes an application under rule 57 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). 57. 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 proclamation of sale was not made in the prescribed manner and he could not pay the Government dues or on ground of a material irregularity in publishing or conducting the same: Provided that - (i) no sale shall be set aside on any such ground unless the Recovery Officer is satisfied on the basis of
evidence produced before him that the applicant has sustained losses by such reasons; and
(ii) an application made by defaulter under this Rule shall be disallowed unless the deposits the amount
recoverable from him in execution of demand note.

58. Setting aside of sale where defaulter has no saleable 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 saleable interest in the property sold.

59. 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, the Recovery Officer shall, if the full amount of purchase money is paid, make an order confirming the sale and there upon the sale shall become absolute. (2) Where such application, is made and allowed and where, in case of an application 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
affected thereby. 60. 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 by him, shall be paid to the purchaser. 61. 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) Such certificate shall state the date on which the sale became absolute. 62. 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 can be raised by mortgage or lease or private sale of such property, or some part thereof, or of any other movable or immovable property, 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 case, the Recovery Officer shall grant a certificate to defaulter authorising 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.
63. 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. 64. Bid of co-owner to have preference.-- Where the property sold is a share of undivided immovable property of two or more persons, of whom defaulter is a co-sharer and the bid of the co-sharer and some other person is the same, the bid of the co-sharer shall have preference.
PART - IV

APPOINTMENT OF RECEIVER

65. Appointment of receiver for business.-- (1) Where the property of defaulter consist of a running business, the Recovery Officer may attach the 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 provided for proclamation of sale under Rule 36 of these Rules. (4) Where the Recovery Officer so directs, such order shall also be published in newspaper. 66. 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. 67. Qualification for receiver.-- (1) Any person from general public can be appointed as receiver upon having 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 or Senior Auditor, may be appointed as receiver of the attached business and property. 68. Manner of working of receiver.-- (1) Where it appears to the Recovery Officer to be just and convenient, he may order to:-

(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 realisation,
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 but a Government officer appointed as receiver shall not be entitled to such remuneration. (3) Every receiver appointed by the Recovery Officer, except Government officers, shall --

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

(ii) submit his accounts as such periods and in such forms 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 willful default or gross
negligence: Provided that the Government officer 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 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. 69. Withdrawal of management.-- The attachment and management under above rules may be withdrawn at any time at the discretion of the Recovery Officer, or if the Government dues are realised by receipt of such profits and rent or are otherwise paid.

PART - V
MISCELLANEOUS

70. Offences and penalties.- (1) All cases relating to confiscation of goods or imposition of penalty with reference to operation of these rules shall be adjudicated under Chapter VIII of the Act. 71. 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 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.

72. Omitted. 73. Recovery from surety.-- When any person has, under these Rules become surety for the amount due by the defaulter he may be proceeded against under these Rules as if he were the defaulter. 74. 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. 75. 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 subsequent to the attachment of such property and a certificate in respect thereof has been granted under rule 61, 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. 76. 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 61, 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. 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 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 satisfied 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, issued under rule 61, 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 investigating 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 lit pandate.-- Nothing in Rules 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 co-operation 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 documents is required to transfer a negotiable instrument or any share to purchaser under these Rules, such document shall be executed or endorsement shall be made by the Recovery Officer. 84. Form.-- Any notice, proclamation, certificate or order to be issued under these Rules shall be in such Form as the Central Board of Revenue may, from time to time, prescribe. In case the Central Board of Revenue has not prescribed any of such Forms, it shall be in such form as adopted by the Recovery Officer.
Annex-I
(See rule 6)
FORM OF DEMAND NOTE

C.No............................... Dated........................

SUBJECT:___________________________________

REFERENCE:________________________________

(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 ................................................................................
Sales Tax ................................................................................
Registration No ........................................................................
N.T.N. No ................................................................................
CI & E'S Import/Export Reg. No..................................................
Known properties ......................................................................

2. The above mentioned Government dues are on account of Sales Tax and other levies under the Sales Tax Act, 1990. It is certified that all other formalities under the Act and rules made thereunder have been completed as follows, and there exists no bar or stay order against recovery: (a) Action taken under clause (a) of sub section 48 of the Sales Tax....................... (b) Action taken under clause (b) of sub section 48 of the Sales Tax....................... (c) Action taken under clause (c) (ca) of sub section 48 of the Sales Tax....................... (d) Action taken under clause (d) of sub section 48 of the Sales Tax....................... You are, therefore, requested to recover the above mentioned Government dues in terms of section 48 of the Sales Tax, 1990 and rules made thereunder. The Government dues may be remitted to the undersigned as soon as the same are recovered. Referring Authority

(Name) Assistant Collector of Sales Tax Seal ........................ To, The Sales Tax Recovery Officer, ........................................... ...........................................

SCHEDULE

_________________________________________________________________________________
Description Amount
_________________________________________________________________________________ 1. Serial No.
2. File No.
3. Central Excise Duty Rs............ (Rupees ........................ only)
4. Sales Tax Rs............ (Rupees ........................ only)
5. Additional Sales Tax Rs............ (Rupees ........................ only)
6. Surcharge Rs............ (Rupees ........................ only)
7. Customs duty Rs............ (Rupees ........................ only)
8. Fines Rs............ (Rupees ........................ only)
9. Penalties Rs............ (Rupees ........................ only)
10. Personal penalty Rs............ (Rupees ........................ only)
11. Penal Surcharge Rs............ (Rupees ........................ only)
12. Licence Fee Rs............ (Rupees ........................ only)
13. Income Tax Rs............ (Rupees ........................ only)
14. Others Rs............ (Rupees ........................ only)
(i) Rs............ (Rupees ........................ only)
(ii) Rs............ (Rupees ........................ only)
(iii) Rs............ (Rupees ........................ only)
(iv) Rs............ (Rupees ........................ only) Total ...........................................................

Annex-II
(See rule 8)

FORM OF MASTER REGISTER

1. Sr. No.............................................................................................................. 2. Defaulters Name, address and phone No............................................................. ........................................................................................................................ 3. Referring authority............................................................................................. 4. (i) No. and date of issue and date of receipt demand note.....................................

.......................................................................................................................

(ii) Reference Nos.............................................................................................. 5. Details of Government dues................................................................................... (i) Central Excise Duty Rs............ (Rupees ........................ only)
(ii) Sales Tax Rs............ (Rupees ........................ only)
(iii) Additional Sales Tax Rs............ (Rupees ........................ only)
(iv) Surcharge Rs............ (Rupees ........................ only)
(v) Customs duty Rs............ (Rupees ........................ only)
(vi) Fines Rs............ (Rupees ........................ only)
(vii) Penalties Rs............ (Rupees ........................ only)
(viii) Personal penalty Rs............ (Rupees ........................ only)
(ix) Penal Surcharge Rs............ (Rupees ........................ only)
(x) Licence Fee Rs............ (Rupees ........................ only)
(xi) Income Tax Rs............ (Rupees ........................ only)
(xii) Others (i) Rs............ (Rupees ........................ only)
(ii) Rs............ (Rupees ........................ only)
(iii) Rs............ (Rupees ........................ only)
(iv) Rs............ (Rupees ........................ only)
Total (xii) .......................................................................................... 6. Date of issue of notice under rule 4 ........................................................................ 7. Date of issue of notice under rule 5 ........................................................................ 8. Date of issue of notice and action taken under rule 7 ............................................... 9. Known properties of the defaulter.

(i) Movable .......................................................................................................
(ii) Immovable .................................................................................................... 10. Name and designation of attachment officer ........................................................... 11. Details of movable properties attached.................................................................... (i) .......................................................................................................... (ii) ........................................................................................................... (iii) ...........................................................................................................

12. Date of proclamation of attachment of immovable properties........................................

13. Details of immovable properties attached. (i) .................................................................................... (ii) ................................................................................... (iii) ..................................................................................

14. Date of appointment of receiver, name of receiver and details of business or properties. (i) ..................................................................................... (ii) .....................................................................................

15. Date of sales of properties and their details ...................................................................................................................... ......................................................................................................................

16. Amount of sale proceed or amount of profits alongwith mode of receipt. ...................................................................................................................... ...................................................................................................................... 17. Disposal of sale proceeds ...................................................................................................................... ...................................................................................................................... 18. Date of recovery and details of Government dues shown in column recovered alongwith the manner of recovery alongwith the manner of recovery.

Annex-III
(See rule 4(3))
FORM OF NOTICE TO SALES TAX, CUSTOMS AND CENTRAL EXCISE AUTHORITIES

C.No................................. Dated........................... SUBJECT : ............................................................................................................. WHEREAS, Government dues amounting to Rs ....................... (Rupees .................................. only), are outstanding against M/s ................................................ Sales Tax Registration No . ...................................... (Name and Complete Address) Which they have failed to pay so far. 2. Now, THEREFORE, in exercise of the powers conferred by clause (a) of sub section (1) of section 48 of the Sales Tax Act, 1990, I do hereby require, Customs, Central Excise, Sales Tax and Income 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) the Government dues so recovered should be sent to the undersigned immediately.


Referring Authority


(Name)

Assistant Collector of Sales Tax ............................................ Seal...................................... To, (i) M/s....................................................................................... (defaulter). (ii) M/s........................................................ (clearing agent or representative). (iii) ................................................................................ All other concerned. Annex-IV
(Sec rule 5)
FORM OF NOTICE OF RECOVERY

C.No....................................... Dated...................... SUBJECT:- Notice for Recovery under section 48 of the Sales Tax Act, 1990. 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 it is believed that the outstanding Government dues cannot be recovered from you in the manner so far followed; 3. Now, THEREFORE, you (M/s ...................................................................) are hereby served with this notice in terms of section 48 of the Sales Tax Act, 1990 to pay the amount within fifteen days from the date of service of this notice, failing which following proceedings under section 48 of the Sales Tax Act, 1990 will be initiated without any further notice: - Removal of goods from your business premises shall be stopped and the business premises sealed after
fifteen days of issue of this notice till such time the amount of tax is paid or recovered in full. 4. 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. Referring Authority (Name)
Assistant Collector of Sales Tax ............................................ Seal...................................... To, (i) M/s....................................................................................... (defaulter). (ii) M/s........................................................ (clearing agent or representative). (iii) ................................................................................ All other concerned.

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Annex-V
See (Rule 7))

FORM OF NOTICE RECOVERY AND ATTACHMENT

Subject: Notice for recovery under Section 48 of the Sales Tax Act, 1990. WHEREAS, Government dues amounting to Rs......................... (Rupees............................. ...................................only) are recoverable from 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 Section 48 of the Sales Tax Act, 1990. 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 Section 48 of the Sales Tax Act, 1990 to pay the amount within fifteen days from the date of service of this notice, failing which following proceedings under Section 48 of the Sales Tax Act, 1990 and the rules made thereunder shall be initiated without any further notice:- (a) attachment and sale of moveable and 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 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. Such attached properties can be seized/sold under Sales Tax Recovery Rules, 1992 (SRO 1178(I)/92, dated 23rd November, 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 within fifteen days from the date of service of this Notice. Name: Sales Tax Recovery Officer

Seal ....................................

To,
(1) M/s................................... ................................... ...................................
(2) M/s................................... (Agent) ................................... ..................................
(3) M/s .................................. (other concerned) .................................. ..................................

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Annex-VI
(See Rule 21)
FORM OF WARRANT OF ATTACHMENT


C. No............................... Date ............................... Subject: __________________________________________ WHEREAS Mr. .................................................... (Designation) ............................ has been appointed as attachment officer in terms of Sales Tax Recovery Rules, 1992 to attach the movable properties of M/s............................................. for the recovery of outstanding Government 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 Sales Tax 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.


Name:
Sales Tax Recovery Officer ..................................................
..................................................
Seal .............................................. To, (i) The Attachment Officer
..................................................

.................................................. alongwith a copy to be seined on the defaulter or his agent. (ii) Notice Board.