Recovery as prescribed in section 11:
Recovery of sums due to the Government can be made by the officer empowered by the Central Board of Excise and Customs or a Central Excise Officer or a proper officer authorized in this behalf under section 142 of the Customs Act, 1962 on the direction of the officer empowered by the Central Board of Excise and Customs.
1. Recovery from the person from whom money is due: Sub-section (1) of section 11 provides as under-
(i) Recovery by deducting the amount payable to the defaulter or by attaching and selling excisable goods of the defaulter: Recovery of the sums due to the Government can be made by either of the following two methods-
(a) deducting the amount so payable from any money owing to the person from whom such sums may be recoverable or due which are under his control, or
(b) attachment and sale of excisable goods belonging to such person.
(ii) Recovery as arrears of land revenue: If the amount payable is not so recovered, he may prepare a certificate signed by him specifying the amount due from the person liable to pay the same and send it to the Collector of the district in which such person resides or conducts his business. The said Collector, on receipt of such certificate, shall proceed to recover from the said person the amount specified therein as if it were an arrear of land revenue.
(iii) Recovery in case of transfer of business: If a person from whom some recoveries are due, transfers his business in whole or in part to another person, then all excisable goods, materials, preparations, plants, machineries, vessels, utensils, implements and articles in the possession of the transferee can be attached and sold for recovery. An officer empowered by the Central Board of Excise and Customs, after obtaining written approval from the Principal Commissioner/ Commissioner of Central Excise, can make such recovery.
2. Recovery from a person other than from whom money is due – Garnishee Proceedings: Sub-section (2) empowers the Central Excise Officer to recover the monies due to the Government from any person other than from whom money is due, if that other person holds money for/on account of the first person. The procedure for the same is as under: –
(i) Issue of notice: for recovery to any person other than from whom money is due: The Central Excise Officer may issue a written recovery notice to the following persons:
- any person from whom money is due to such person
- any person from whom money may become due to such person
- any person who holds money for or on account of such person
- any person who may subsequently hold money for or on account of such person.
The notice would be required to pay to the credit of the Central Government so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount.
The money would be paid either forthwith upon the same becoming due or being held, or at or within the time specified in the notice. However, in no case the money would be required to be paid before it becomes due or is held.
(ii) Noticee bound to comply with the notice: Every person to whom a notice is issued under this sub-section shall be bound to comply with such notice. In case any such notice is issued to a post office, banking company or an insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary.
(iii) Consequences of default in payment by noticee: In a case where the person to whom a notice under this sub-section has been issued, fails to make the payment, he shall be deemed to be a person from whom duty and any other sums of any kind payable to the Central Government under any of the provisions of this Act or the rules made thereu nder have become due, in respect of the amount specified in the notice. Therefore, all the consequences prescribed for assessees in default would apply for such other person as well.