CGST Rules – Central Goods and Services Tax Rules, 2017
Rule 144 – Recovery by sale of goods under the control of proper officer
(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.