AI Drafter 
TaxTMI 
TaxTMI 
THE FIFTH SCHEDULE - PROCEDURE FOR RECOVERY OF TAX
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....all, upon assumption of jurisdiction under sub-section (8) of section 220, cause to be served upon the defaulter a notice requiring thedefaulter to pay the amount specified in the certificate within fifteen days from the date of service of the notice. (2) The notice under sub-rule (1) shall also intimate to the defaulter that steps would be taken to realize the amount under this Schedule, if he defaults to make payment within the time specified therein. When certificate may be executed. 3. (1) No step in execution of a certificate shall be taken until the period of fifteen days has elapsed since the date of the service of the notice required by the preceding rule. (2) However, the Tax Recovery Officer may attach the whole, or any part, of the movable property of the defaulter, as would be liable to attachment in execution of a decree of a civil court, within the said period of fifteen days if,- (a) he is satisfied, for reasons to be recorded in writing, that the defaulter is likely to conceal, remove or dispose of the whole, or any part, of the movable property; and (b) the realization of the amount of the....
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....) Where immovable property is sold in execution of a certificate, and such sale has become absolute, the purchaser's right, title and interest shall be deemed to have vested in him from the time when the property is sold, and not from the time when the sale becomes absolute. Suit against purchaser not maintainable on ground of purchase being made on behalf of plaintiff. 7. (1) No suit shall be maintained against any person claiming title under a purchase certified by the Tax Recovery Officer in the manner laid down in this Schedule, on the ground that the purchase was made on behalf of the plaintiff or on behalf of some one through whom the plaintiff claims. (2) Nothing in this section shall bar a suit to obtain a declaration that the name of any purchaser certified as aforesaid was inserted in the certificate fraudulently or without the consent of the real purchaser, or interfere with the right of a third person to proceed against that property, though ostensibly sold to the certified purchaser, on the ground that it is liable to satisfy a claim of such third person against the real owner. Disposal of proceeds of execution. 8. (1) Whenever assets are realised by sal....
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....ecessarily delayed. (3) Where the property to which the claim or objection applies has been advertised for sale, the Tax Recovery Officer, ordering the sale, may postpone it pending the investigation of the claim or objection, upon such terms as to security or otherwise as the Tax Recovery Officer shall deem fit. (4) The claimant, or objector, must adduce evidence to show that he had some interest in, or was possessed of, the property in question- (a) (in the case of immovable property) at the date of the service of the notice issued under this Schedule to pay the arrears, or (b) (in the case of movable property) at the date of the attachment. (5) The Tax Recovery Officer shall make an order releasing the property, wholly or to such extent as he thinks fit, from attachment or sale if, upon the said investigation, he is satisfied that, for the reason stated in the claim or objection, such property- (a) was not, at the said date, in the possession of the defaulter or of some person in trust for him; (b) was not in the occupancy of a tenant or other person paying re....
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....cedure provided by this Schedule. (2) However, such application shall not be entertained, if it is filed after the end of fifteenth day from the date of resale. Adjournment or stoppage of sale. 15. (1) The Tax Recovery Officer may, in his discretion, adjourn any sale hereunder to a specified day and hour; and the officer conducting any such sale may, in his discretion, adjourn the sale, recording his reasons for such adjournment : (2) However, if the sale is made in, or within the precincts of, the office of the Tax Recovery Officer, no such adjournment shall be made without the leave of the Tax Recovery Officer. (3) Where a sale of immovable property is adjourned under sub-rule (1) for a longer period than one calendar month, a fresh proclamation of sale under this Schedule shall be made unless the defaulter consents to waive it. (4) Every sale shall be stopped if, before the lot is knocked down, the arrears and costs (including the costs of the sale) are tendered to the officer conducting the sale, or proof is given to his satisfaction that the amount of such arrears and costs has been paid to the Tax Recovery Officer who ordered the sale. Private alien....
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....ded in this Schedule, when any movable property is to be attached, the officer shall be furnished by the Tax Recovery Officer (or other officer empowered by him in that behalf) a warrant in writing and signed with his name specifying the name of the defaulter and the amount to be realized. Service of copy of warrant. 22. The officer shall cause a copy of the warrant to be served on the defaulter. Attachment. 23. If, after service of the copy of the warrant, the amount is not paid forthwith, the officer shall proceed to attach the movable property of the defaulter. Property in defaulter's possession. 24. (1) Where the property to be attached is movable property (other than agricultural produce) in the possession of the defaulter, the attachment shall be made by actual seizure, and the officer shall keep the property in his own custody or the custody of one of his subordinates and shall be responsible for due custody thereof: (2) The officer referred in sub-rule (1) may sell the property seized at once, if- (a) the property seized is subject to speedy and natural decay; or (b) the expense of keeping the seiz....
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....order for the attachment of a growing crop has been made at a considerable time before the crop is likely to be fit to be cut or gathered, the Tax Recovery Officer may suspend the execution of the order for such time as he thinks fit, and may, in his discretion, make a further order prohibiting the removal of the crop pending the execution of the order of attachment. (6) A growing crop which from its nature does not admit of being stored shall not be attached under this rule at any time less than twenty days before the time at which it is likely to be fit to be cut or gathered. Debts and shares, etc. 27. (1) In the case of a debt not secured by a negotiable instrument, a share in a corporation or other movable property not in the possession of the defaulter except property deposited in, or in the custody of, any court, the attachment shall be made by a written order prohibiting,- (a) in the case of the debt-the creditor from recovering the debt and the debtor from making payment thereof until the further order of the Tax Recovery Officer; (b) in the case of the share-the person in whose name the share may be standing ....
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....of the First Schedule to the Code of Civil Procedure, 1908, and the provisions of the said rule shall, for the purposes of this rule, apply subject to such modifications as may be necessary. Attachment of negotiable instrument. 31. Where the property is a negotiable instrument not deposited in a court nor in the custody of a public officer, the attachment shall be made by actual seizure, and the instrument shall be brought before the Tax Recovery Officer and held subject to his orders. Attachment of property in custody of court or public officer. 32. (1) Where the property to be attached is in the custody of any court or public officer, the attachment shall be made by a notice to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held subject to the further orders of the Tax Recovery Officer by whom the notice is issued. (2) Where the property is in the custody of a court, any question of title or priority arising between the Tax Recovery Officer and any other person, not being the defaulter, claiming to be interested in such property by virtue of any assignment, attachment or otherwise, shall be determ....
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....be sold. Issue of proclamation. 39. When any sale of movable property is ordered by the Tax Recovery Officer, the Tax Recovery Officer shall issue a proclamation, in the language of the district, of the intended sale, specifying the time and place of sale and whether the sale is subject to confirmation or not. Proclamation how made. 40. (1) Such proclamation shall be made by beat of drum or other customary mode,- (a) in the case of property attached by actual seizure- (i) in the village in which the property was seized, or, if the property was seized in a town or city, then, in the locality in which it was seized; and (ii) at such other places as the Tax Recovery Officer may direct; (b) in the case of property attached otherwise than by actual seizure, in such places, if any, as the Tax Recovery Officer may direct. (2) A copy of the proclamation shall also be affixed in a conspicuous part of the office of the Tax Recovery Officer. Sale after fifteen days. 41. Except where the property is subject to speed....
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....operty shall be sold by public auction in one, or more, lots as the officer may consider advisable, and if the amount to be realized by sale is satisfied by the sale of a portion of the property, the sale shall be immediately stopped with respect to the remainder of the lots. Sale by public auction. 45. (1) Where movable property is sold by public auction, the price of each lot shall be paid at the time of sale or as soon after as the officer holding the sale directs and in default of payment, the property shall forthwith be resold. (2) On payment of the purchase-money, the officer holding the sale shall grant a certificate specifying the property purchased, the price paid and the name of the purchaser, and the sale shall become absolute. (3) Where the movable property to be sold is a share in goods belonging to the defaulter and a co-owner, and two or more persons, of whom one is such co-owner, respectively bid the same sum for such property or for any lot, the bidding shall be deemed to be the bidding of the co-owner. Irregularity not to vitiate sale, but any person injured may sue. 46. No irregularity in publishing, or conducting, the sale of movable property s....
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....ed to be sold, the Tax Recovery Officer shall cause a proclamation of the intended sale to be made in the language of the district. Contents of proclamation 54. A proclamation of sale of immovable property shall be drawn up after notice to the defaulter, and shall state the time and place of sale, and shall specify, as fairly and accurately as possible,- (a) the property to be sold; (b) the revenue, if any, assessed upon the property or any part thereof; (c) the amount for the recovery of which the sale is ordered; (d) the reserve price, if any, below which the property may not be sold; and (e) any other thing which the Tax Recovery Officer considers it material for a purchaser to know, in order to judge the nature and value of the property. Mode of making proclamation. 55. (1) Every proclamation for the sale of immovable property shall be made at some place on or near such property by beat of drum or other customary mode, and a copy of the proclamation shall be affixed on a conspicuous part of the property and also upon a conspicuo....
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....h reserve price, it shall be lawful for an Assessing Officer, if so authorised by the Chief Commissioner or Commissioner in this behalf, to bid for the property on behalf of the Central Government at any subsequent sale. (2) All persons bidding at the sale shall be required to declare, if they are bidding on their own behalf or on behalf of their principals. (3) The bid shall be rejected if the person bidding on behalf of his principle fails to deposit the authority. (4) Where the Assessing Officer referred to in sub-rule (1) is declared to be the purchaser of the property at any subsequent sale, nothing contained in rule 58 shall apply to the case and the amount of the purchase price shall be adjusted towards the amount specified in the certificate. Application to set aside sale of immovable property on deposit. 61. (1) Where immovable property has been sold in execution of a certificate, the defaulter, or any person whose interests are affected by the sale, may, at any time within thirty days from the date of the sale, apply to the Tax Recovery Officer to set aside the sale, on his depositing- (a) the amount specified in the proclamation....
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....sale shall become absolute. (2) Where such application is made and allowed, and where, in the case of an application made to set aside the sale on deposit of the amount and penalty and charges, the deposit is made within thirty days from the date of the sale, the Tax Recovery Officer shall make an order setting aside the sale. (3) No order under sub-rule (2) shall be made unless notice of the application has been given to the persons affected thereby. Return of purchase money in certain cases. 65. Where a sale of immovable property is set aside, any money paid or deposited by the purchaser on account of the purchase, together with the penalty, if any, deposited for payment to the purchaser, and such interest as the Tax Recovery Officer may allow, shall be paid to the purchaser. Sale certificate. 66. (1) Where a sale of immovable property has become absolute, the Tax Recovery Officer shall grant a certificate specifying the property sold, and the name of the person who at the time of sale is declared to be the purchaser. (2) Such certificate shall state the date on which the sale became absolute. Postponement of sale to enable defaulter to raise amount due un....
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....d to the Assessing Officer, the property shall vest in the Central Government and the Central Government shall, where necessary, intimate the concerned Registering Officer appointed under the Registration Act, 1908, accordingly. (3) Where the price of the property agreed upon under sub-rule (1) exceeds the amount due from the defaulter, such excess shall be paid by the Assessing Officer to the defaulter within a period of three months from the date of delivery of possession of the property. (4) Where the Assessing Officer fails to pay the excess amount referred to in sub-rule (3) within the period referred therein, the Central Government shall, for the periodcommencing on the expiry of such period and ending with the date of payment of the amount remaining unpaid, pay simple interest at one-half per cent for every month or part of a month to the defaulter on such amount. Time limit for sale of attached immovable property. 71. (1) No sale of immovable property shall be made under this Part after the expiry of four years from the end of the financial year in which the order giving rise to a demand of any tax, interest, fine, penalty or any other sum, for the recovery o....
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.... on the defaulter, and another copy shall be affixed on a conspicuous part of the premises in which the business is carried on and on the notice board of the office of the Tax Recovery Officer. Appointment of receiver for immovable property. 73. Where immovable property is attached, the Tax Recovery Officer may, instead of directing a sale of the property, appoint a person as receiver to manage such property. Powers of receiver. 74. (1) Where any business or other property is attached and taken under management under the foregoing rules, the receiver shall, subject to the control of the Tax Recovery Officer, have such powers as may be necessary for the proper management of the property and the realisation of the profits, or rents and profits, thereof. (2) The profits, or rents and profits, of such business or other property, shall, after defraying the expenses of management, be adjusted towards discharge of the arrears, and the balance, if any, shall be paid to the defaulter. Withdrawal of management 75. The attachment and management under the foregoing rules may be withdrawn at any time at the discretion of the Tax Recovery Officer, or if the arrears are disch....
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....the purposes of this rule, the karta of a Hindu undivided family shall be deemed to be the defaulter if the defaulter is the Hindu undivided family. Hearing. 77. The Tax Recovery Officer shall give the defaulter an opportunity of showing cause why he should not be committed to the civil prison, when the defaulter appears before the Tax Recovery Officer in obedience to a notice to show cause or is brought before the Tax Recovery Officer under rule 73. Custody pending hearing. 78. Pending the conclusion of the inquiry, the Tax Recovery Officer may, in his discretion, order the defaulter to be detained in the custody of such officer as the Tax Recovery Officer may think fit or release him on his furnishing security to the satisfaction of the Tax Recovery Officer for his appearance when required. Order of detention. 79. (1) Upon the conclusion of the inquiry, the Tax Recovery Officer may make an order for the detention of the defaulter in the civil prison and shall in that event cause him to be arrested if he is not already under arrest. (2) The Tax Recovery Officer may, before making the order of detention, give the defaulter an opportunity of satisfying the arrea....
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....covery Officer may, at any time after a warrant for the arrest of a defaulter has been issued, cancel the warrant on the ground of serious illness of the defaulter. (2) The Tax Recovery Officer may, in a case where a defaulter has been arrested, release him if, in the opinion of the Tax Recovery Officer, he is not in a fit state of health to be detained in the civil prison. (3) A defaulter, who has been committed to the civil prison, may be released therefrom by the Tax Recovery Officer on the ground of the existence of any infectious or contagious disease, or on the ground of his suffering from any serious illness. (4) A defaulter released under this rule may be rearrested, but the period of his detention in the civil prison shall not in the aggregate exceed that authorised by rule 77. Entry into dwelling house. 83. For the purpose of making an arrest under this Schedule- (a) no dwelling house shall be entered after sunset and before sunrise; (b) no outer door of a dwelling house shall be broken open unless such dwelling house or a portion thereof is in the occupancy of the defaulter and he or other occupant of....
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....s from the date of the order appealed against. (3) Pending the decision of any appeal, execution of the certificate may be stayed if the appellate authority so directs, but not otherwise. (4) Where a Chief Commissioner or Commissioner is authorised to exercise powers as such in respect of any area, then, regardless of anything contained in sub-rule (1), all appeals against the orders passed before the date of such authorisation by any Tax Recovery Officer authorised to exercise powers as such in respect of that area, or an area which is included in that area, shall lie to such Chief Commissioner or Commissioner. Review. 90. Any order passed under this Schedule may, after notice to all persons interested, be reviewed by the Chief Commissioner, Commissioner, Tax Recovery Officer or other officer who made the order, or by his successor in office, on account of any mistake apparent from the record. Recovery from surety. 91. A person may be proceeded against under this Schedule, if he has become surety for the amount due by a defaulter, as if the person were the defaulter. Subsistence allowance. 92. (1) The sum payable for the subsistence of a defaulter, who is a....