Revenue Recovery falls under the Schedule VII of the state list. The phrase “revenue recovery” means the realization of sales tax arrears from the defaulter dealers under the Revenue Recovery Act. In this article, we will look at the Andhra Pradesh Revenue Recovery Act 1864. The Act has 66 Sections.
Important sections under the Act
- Section 28(i) of the Andhra Pradesh Value Added Tax (AP VAT) Act 2005i confers the powers of the Collector under the Act on the Deputy Commissioner to initiate all the proceedings.
- All Deputy Commercial Tax Officer shall, for Recovery of any amount due under this Act, have the powers of the Mandal Revenue Officer under the Andhra Pradesh Rent and Revenue Sales Act, 1839ii for the sale of property distrained for any amount due under the Act, subject to the control and superintendence of the Deputy Commissioner.
- Section 29 of the AP VAT Act gives the Commercial Taxes Department Officers the authority to issue a notice compelling any person who owes or may owe money to the defaulter to pay to the department.
- According to Section 26 of the AP VAT Act, any payment payable by a dealer is the first charge on the dealer’s property.
- The partners and directors of a Private Limited business are equally and severally liable for payment of arrears under sections 24(2) and 24(5) of the VAT Act.
- When a business is transferred, Section 30 of the AP VAT Act gives the government the authority to recover the tax.
Attachment of Movable properties
Section 8 provides rules for the seizure and sale of movable property. The details to be filled in Form No. 1 are as follows:
- Name and Address of the Defaulter.
- Period of Arrears
- Amount of Arrears due.
- The date on which arrears are due.
- Batta, Interest rate, and amount of interest to date.
- Date of distress.
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There must be a demand for writing. Mode of service is by various ways i.e., by serving them to the defaulter or by serving to the adult male member of his family or by fixing the outdoor of is the usual place of residence or by registered post. It is advisable to get the signature of two witnesses of locality while fixing.
Form No. II deals with the inventory of the attached property. Details to be filled in Form No. II are as follows:
- Name of articles.
- Estimated value.
- Amount of arrears due.
- The date of distress and copy are given to the defaulter.
- Name of the place.
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Attachment should be made only after sunrise. Attachment should be made before sunset. The distrainer shall transmit an inventory of property distrainer to the nearest public empowered to sell the distrained property. Articles exempted from distraint consist of necessary wearing appeals, cooking vessels, beds and Mangalasutras of Ladies and plows, one pair of plowing cattle, and seed grain. The attached articles should not be used.
Form No. III provides notice of sale of movable property. Details required to be filled in are as follows:
- Name and address of the defaulter.
- Schedule of property distrained with reliable market value.
- Place of auction.
- Time of auction.
- EMD payable by the bidders 5% of the value of the distraint property.
Procedure to be followed due notice is served
Before a sale can take place, fifteen days must pass from the date the notice is posted on the property. Notices should be posted on the office notice board as well as the offices of the C.C.T., D.C., and C.T.O.’s of other circles. It should be served to the distrainer property’s linked business dealers. Each lot of distrainer property should have its notice. Bidders should be enrolled in the auction. Every time a bid is placed, the amount of the bid should be recorded against each bidder. Before selling, the market should be consulted for a reliable market value. The goods that have
been seized will be sold to the highest bidder. Before products are delivered, D.C. shall validate the sale value. If the arrears are paid in full before the sale, the property shall be released.
Procedure for conducting the auction
Before the auction, the assets’ value must be determined, and it should be the upset price. Publication and distribution of pamphlets with auction information. Announcements should be made by a mike. Bidders must fill out the following proforma. Bidding Specifications Sl. No. Bidder’s Name and Address Enrollment No. Bid Amount First time, the second time, third time, fourth time, fifth time, sixth time, seventh time, For the third time, Age Profession, Sl. No., Name and Address of the Bidder IT PAN No., Telephone No., IT PAN No., IT PAN No., IT. The sale can be postponed to a later date if there is no bid or if the bid sum is insufficient. If no bids are received, the property may be purchased on the government’s behalf. Only in the open auction can a postponement be disclosed publicly. Setbacks should be documented. It is mandatory to state the reasons for setting aside of sale. The highest bidder who knocked down after the auction should pay 15% of the purchase price and the remainder within 30 days. If the buyer fails to pay on time, the item will be resold at his expense. Form No. 8 is a certificate of sale. For confirmation of sale, the Deputy Commercial Tax Officer should send the paperwork to the Deputy Commissioner. The deposit amount of purchase money should be returned to the auction purchaser if the sale is not verified. If the sale is confirmed after 30 days, the Deputy Commissioner should issue a certificate of sale. If the buyer so wants, a sale deed may be executed. Only the registration fee is waived. Stamp duty is due when the sale is registered.
If the defaulter at any time within 30 days from the date of sale deposits 5% of the purchase money and a sum equal to the arrears by making an application for setting aside of sale, the Deputy If the defaulter makes an application for setting aside of sale within 30 days of the date of sale and deposits 5% of the purchase money and a sum equal to the arrears, the Deputy Commissioner shall set aside the sale and return to the purchaser the purchase money deposited along with the 5% of the amount deposited by the defaulter. Section 38 regulates Form No.9, which deals with the register of lands sold. Proclamation of the purchased land is handled via Form No.10. The form includes the purchaser’s name and purchase date, as well as a declaration of the purchaser’s legal succession. Section 49 of the Act confers the power to issue an arrest warrant for the arrest of a defaulter or his surety, or both, not being female.
Claim petition before Debts Recovery Tribunal
If properties have already been attached by the recovery officer, claim petitions should be brought before the Debts Recovery Tribunal through a private advocate after the CCT has granted permission. If the case is still ongoing with the Official Liquidator, a claim petition in Form No. 66 should be filed.
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