Section 202: Recovery of Government dues

9[202. Recovery of Government dues.- (1) When, under this Act or under any other law for the time being in force, which provides for any tax, duty or other levy being collected in the same manner as customs-duties are collected, a penalty is adjudged against, or notice or demand is served upon, any person calling for the payment of any amount unpaid which may be payable by way of penalty or by way of duty, tax or other levy or under any bond 10[,guarantee] or other instrument executed under this Act or such other law or the rules made there under, the appropriate officer- (a) may deduct or require any other officer of Customs, 49[or Inland Revenue] to deduct such amount from any money owing to such person which may be under the control of the Customs, 49[or Inland Revenue] authorities; or (b) if it cannot be so recovered, may recover, or may require any other officer of Customs, 49[or Inland Revenue] to recover, such amount by detaining and selling any goods belonging to such person which are under the control of the Customs, 49[or Inland Revenue] authorities 10a[:] 10a[Provided that notwithstanding anything contained in any other law for the time being in force, if a defaulter sells or transfers ownership of his assets, the defaulted amount of duty and taxes shall be the first charge on the business so transferred.] (2) If the amount cannot be recovered from such person in the manner provided in sub-section (1), the appropriate officer may serve upon the defaulter a notice in the prescribed form requiring him to pay the amount specified in the notice within such time as may be so specified. (3) If the amount referred to in the notice under sub-section (2) is not paid within the time specified therein or within the further time, if any, allowed by the appropriate officer, the appropriate officer may proceed to recover from the defaulter the said amount by one or more the following modes, namely:- (a) attachment and sale of any movable or immovable property of the defaulter; and 11[(b) may recover, or may require any other officer of Customs, 49[or Inland Revenue] to recover, if it cannot be so re-covered, such amount by detaining and selling an goods belonging to such person which are under the control of the Customs, 49[or Inland Revenue] authorities; or (a) may recover such amount by attachment and sale of any movable and immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, bank or financial institution fails to make payment under such guarantee, bond or instrument 12[; or] 13[(d) arrest of the defaulter and his detention in the prison for a period not exceeding fifteen days: Provided that this mode shall not be applied unless the period of limitation prescribed for filing appeal has expired, or an appeal is pending.] 14[(3A) A warrant of arrest issued against a defaulter in sub-section (3)(d) shall not be executed if the arrears due from him are paid or the defaulter furnished security to the satisfaction of appropriate officer. (3B) Any defaulter who under sub-section (3) is being kept under detention shall forthwith be set at liberty on the arrears due from him being paid.] (4) For the purposes of recovery of duty, or other levy under 15[sub- sections(1) and (3)], the appropriate officer shall have the same powers which, under the Code of Civil Procedure, 1908 (Act V of 1908), a civil court has for the purpose of the recovery of an amount due under a decree. (5) The Board may make rules regulating the procedure for recovery of duty, tax or other levy under this section and any other matter connected with or incidental to the operation of this section 14a[:] 14a[Provided that if any arrears which may be payable by way of duty, surcharge, fee, service charges, fine or penalty or any other amount which is adjudged or payable under any bond, guarantee or other instrument executed under this Act or the rules made thereunder, cannot be recovered, the Board or any officer not below the rank of Collector authorized by the Board, may for reasons to be recorded, write off the arrears in the manner as may be prescribed by rules.]

Effective date: 1969-03-03

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