(1) Where any amount of value added tax or, where applicable, value added tax and supplementary duty levied, or charged of monetary penalty, or money demanded under an undertaking or any other document executed under this Act or any Rules, is due from any person, any value added tax officer, not below the rank of an Assistant Commissioner, in the manner provided by Rules,
(a) shall deduct the amount from the Officer himself or from, any officer of value added tax or Excise or Customs held under his control, when any of them owes money to the person from whom the money is recoverable;
(b) can notify in writing, any person from whom any money is due or may become due later on, to the person from whom the said money is due, to pay to the said officer within 15 days of receipt of the notice, the amount mentioned in the notice or issue an order to the bank, at which the account of the person from whom the said money is due is held, to freeze his account;
(bb) can order to stop payment of salaries and allowances of officials of the concerned bank responsible for any failure of the bank until the amount demanded in the notice under sub-section (4) has been recovered;
(c) can stop removal of any goods or rendering of service from the business premises of the said person or seize the transport (with or without goods) of the business firm until the said money is fully paid or collected;
(d) keep business premises of the said person under lock and key until the said money is fully paid or collected;
(dd) if any goods are perishable and about to be decomposed pending the proceedings under Sub-Sub-Section (c) and (d), an officer of Value Added Tax not below the rank of an Assistant Commissioner will be able to take necessary measures for selling the goods in open auction within shortest possible time, issuing notice to the registered person;
(e) can attach and sell or sell without attachment the movable or immovable property of the person from whom the money is due;
(f) can recover the money due, by seizure and sale of goods of the person from whom it is due, if the goods remain under the control of value added tax officer or customs officer;
(g) can realize the amount from the transferor of business if the money relates to business which has been transferred.
(1a) The concerned officer may keep under suspension the effectiveness of the registration of the person until the money due from him as mentioned in sub-section (1) has been collected fully or legally disposed of, and may direct the concerned authority to stop the clearance of any goods owned by such person, kept in sea port, airport or in any other customs station or warehouse under the Customs;
Explanation: In this sub-section `keeping the effectiveness of registration under suspension' shall also include the keeping of value added tax registration number (BIN) under lock in the computerized bill of entry processing system.
(2) If the said money can not be recovered from the said person in the manner prescribed in sub-section (1), the concerned officer shall issue a certificate with his signature, stating
C:\Documents and Settings\User1\Desktop\VAT Act (English Version).doc 06.01.11.doc Page 33 of 39
the amount recoverable to the person under obligation to pay the amount, and shall send it to the District collector under whose jurisdiction thee said person resides or owns any property or conducts any business and the Collector shall, on receipt of the certificate, proceeds to recover the amount specified in the certificate as a public demand or arrears of land revenue.
(3) The concerned value added tax officer may, at any time after sending a certificate under sub-section (2) to the District Collector with competent jurisdiction, amend or withdraw it or suspend the proceedings relating to the collection of the money specified in it or send a new certificate canceling the earlier one:
Provided that, where the concerned District Collector has either initiated the action to collect the money mentioned in the certificate or the money has been collected wholly or in part before the withdrawal of the certificate, the certificate shall be deemed as not being withdrawn.
(4) If the concerned person or the bank authority fails to comply with the directives given in the notice served under clause (b) of sub-section (1), the amount specified in the said notice shall be treated as arrear of revenue due form such person or from the bank and shall be collected as an arrear of revenue.
(5) The concerned value added tax officer may, at any time, rectify the amount of money as demanded under clause (b) of sub-section (1), or extend the time for its payment or amend or cancel the notice issued or direct to suspend the proceedings of collection of money.