Various Modes relating to Recovery of Tax
From the taxpayer’s point of view, this may mean a refund of tax. From the tax authorities’ point of view, it may mean the collection of the tax which is in arrears. Arrear tax may be recovered by any of the following modes:
Recovery of Tax by the Tax Recovery Officer:
In the case of default in the payment of tax by an assessee, the DCT may forward the case to the concerned Tax Recovery Officer (TRO) to recover the arrear tax specified in the certificate by one or more of the following modes, namely:
(a) Attachment and sale, or sale without attachment of any movable or immovable property of the assessee;
(b) An arrest of the assessee and his detention in prison;
(c) Appointment of a receiver for the management of the movable and immovable properties of the assessee.
Recovery of Tax through Collector of the District:
The DCT may forward the case of default by an assessee, to the collector of district in which the office of the DCT is situated or the district in which the assessee resides or owns property or carries on business or profession, certificate under his signature specifying the amount of arrears due from an assessee, and the collector, on receipts of each certificate, shall proceed to recover, from such assessee the amount specified therein as if it were an arrear of land revenue.
Recovery of Tax through Special Magistrates:
Without prejudice to the provisions of sections 142, the DCT may forward to a Magistrate of the First Class, specially empowered in this behalf by the Government, a certificate for recovery of tax and the Special Magistrate shall, on receipt of such certificate, proceed to recover from the assessee the amount specified therein as if it were an arrear of land revenue and the special Magistrate were a Collector of District.
Other Modes of Recovery:
In addition to the approaches mentioned above, the DCT may also recover the tax in the following manners:
For the purpose of recovery of tax payable by an assessee which is not disputed in appeal to an appellate forum, the DCT may, with the previous approval of the Commissioner, after giving the assessee an opportunity of being heard, stop movement of any goods and services from the business premises of such assessee and also shut down such business premises till the recovery of the tax referred to above or any satisfactory arrangement has been made for the recovery of such tax.
In this regard, the DCT may also issue a notice to any person from whom any money or goods is due or may become due to the assessee, or who holds or controls the receipt or disposal of, or may subsequently hold, or control the receipt or disposal of any money or goods belonging to or on account of the assessee to pay to the DCT the sum specified in the notice on or before the date.