Chapter - XVIII of CGST Rules, 2017
DEMANDS AND RECOVERY
RULE 144. Recovery by sale of goods under the control of proper officer (corresponding section 79)
(1) Where any amount due from a defaulter is to be recovered by selling goods
belonging to such person in accordance with the provisions of clause (b) of
sub-section (1) of section 79, the proper officer shall prepare an inventory and
estimate the market value of such goods and proceed to sell only so much of the
goods as may be required for recovering the amount payable along with the
administrative expenditure incurred on the recovery process.
(2) The said goods shall be sold through a process of auction, including
e-auction, for which a notice shall be issued in
FORM GST DRC-10 clearly
indicating the goods to be sold and the purpose of sale.
(3) The last day for submission of bid or the date of auction shall not be
earlier than fifteen days from the date of issue of the notice referred to in
sub-rule (2):
Provided that where the goods are of perishable or hazardous nature or where the
expenses of keeping them in custody are likely to exceed their value, the proper
officer may sell them forthwith.
(4) The proper officer may specify the amount of pre-bid deposit to be furnished
in the manner specified by such officer, to make the bidders eligible to
participate in the auction, which may be returned to the unsuccessful bidders,
forfeited in case the successful bidder fails to make the payment of the full
amount, as the case may be.
(5) The proper officer shall issue a notice to the successful bidder in
FORM GST
DRC-11 requiring him to make the payment within a period of fifteen days from
the date of auction. On payment of the full bid amount, the proper officer shall
transfer the possession of the said goods to the successful bidder and issue a
certificate in FORM GST DRC-12.
(6) Where the defaulter pays the amount under recovery, including any expenses
incurred on the process of recovery, before the issue of the notice under
sub-rule (2), the proper officer shall cancel the process of auction and release
the goods.
(7) The proper officer shall cancel the process and proceed for re-auction where
no bid is received or the auction is considered to be non-competitive due to
lack of adequate participation or due to low bids.