Page 41 - GSTL_11th June 2020_Vol 37_Part 2

2020 ] RECOVERY OF ARREARS UNDER GST — A COMPLETE ANALYSIS J49
laid down, which state that transfer of property will become void,
whenever there is a tax amount due to be paid.
However, the transfer will not be held as void, provided :
• Transfer has been made for an adequate consideration
• Transfer has been made in good faith, i.e. without any inten-
tion to cause fraud
• The taxpayer has not received any notice regarding pending
tax dues or proceedings at the time of transfer
• Prior permission of the proper officer has been obtained
(b) Tax to be the first charge on property
As per the Section 82 CGST, 2017, any tax amount which is due, in-
cluding interest and penalty, will be the first charge on the property
of the defaulter, and will override all laws, except the Insolvency
and Bankruptcy Code, 2016.
(c) Provisionally attaching property to protect revenue
The provisions of Section 83 of the CGST Act, 2017, read with Rule
159 of the CGST Rules, 2017 and Form GST DRC-22, provides that if
at any point in time, the Commissioner is of the opinion, that the
Government revenue is at stake, then he has the authority to provi-
sionally attach any property of the defaulting taxpayer. Such a pro-
visional attachment will have a validity of 1 year. Properties are
generally treated as a temporary security for the purpose of provi-
sional attachment, especially when there is a strong suspicion that
the defaulter will abscond. That is the reason why the provision has
been made to include bank accounts also into such property and in-
clude them as part of provisional attachment of property to protect
revenue. The Property to be attached consists of an interest of the
defaulter being a partner in the partnership property.
(d) Recovery provisions in cases of appeal and revisions
It is covered under Section 84 read with Rule 161 and Form GST
DRC 25 of the CGST Legislations. If the taxpayer files for an appeal
or revision against the notice of demand received then either of the
following can occur in the appeal decision :

Situation 1 The due The Commissioner Let’s assume that the
amount is will serve another original amount
increased notice of demand demanded was
in the for the difference. Rs. 20,000. The tax-
appeal The old amount payer appealed
will be covered by against this amount
the notice earlier and subsequently, it
issued. was increased to
Rs. 22,000. Then the
Commissioner will
issue a fresh notice
only for Rs. 2,000.
GST LAW TIMES  11th June 2020  41