Tax Book 2023

Recovery of Arrears and Refund Chapter- 08

d) Require by a notice in writing any person to stop clearance of imported goods or manufactured

goods or attach bank accounts;

e) Seal the business premises till such time the amount of tax is paid or recovered in full;

f) Attach and sell or sell without attachment any movable or immovable property of the registered

person from whom tax is due;

g) Recover such amount by attachment and sale of any movable or immovable property of the

guarantor, person, company, bank or financial institution where they fails to make payment

under such guarantee, bond or instrument.

Provided that the Commissioner shall not issue notice under this section or the rules made

there under for recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal

under section 45B in respect of the order under which the tax sought to be recovered has

become payable and the appeal has not been decided by the Commissioner (Appeals), subject

to the condition that 10% of the amount of tax due has been paid by the taxpayer.

1A. If any arrears of tax, default surcharge, penalty or any other amount which is adjudged or payable by
any person and becomes irrecoverable, the Board or any authorized officer, may write of the arrears
in the manner prescribed by the Board.

2. 
   

   The officer Inland Revenue shall have the same powers for the recovery of tax, penalty or any other
   demand raised under this Act a Civil Court has for the purpose of recovery of an amount due under a
   decree.

   
   


3. 
   

   The provision of sub-sections (1) and (2) shall mutatis mutandis apply regarding assistance in
   collection and recovery of taxes in pursuance of a request from a foreign jurisdiction under a tax
   treaty, bilateral or a multilateral convention, and inter-governmental agreement or similar agreement
   or mechanism.
   RECOVERY RULES

   
   

Application (Rule 70) These provisions shall apply to recoveries made u/s 48 recovery of arrears of the
Act.

Initiation of recovery action (Rule 71)

1. On expiry of 30 days from the date on which the Govt. 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, the referring authority may;

(a) Serve a notice to the sales Tax, custom, federal excise and income tax officers in the form as

set out in STR-16 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 a 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 custom officers to stop the clearance of any goods imported

by defaulter; and

(d) Attach the bank account of defaulter

Further if the concerned person request then the collector may recover the dues in such installments as he
may deem proper either before or after the initiation of recovery proceedings.

Further in case a registered person pays tax less than the due tax, the referring authority may directly
proceed to recover the remaining tax. He may, after serving a notice for the payment in 3 days, do so by
the attachment of the bank accounts of defaulter or through stoppage of clearance from the business
premises.

Stoppage of clearance and selling of business premises (Rule 72)