C No 1(34) GST-1/92 Dated 18th January, 1994.Sales Tax Circular No.1/1994.

SUBJEC:- RECOVERY OF ARREARS UNDER SECTION 48(2) OF THE SALES TAX ACT, 1990 READ WITH SALES TAX RECOVERY RULES, 1992. A question has arisen whether a defaulter of sales tax can be arrested and detained in prison under Section 48(2) of the Sales Tax Act, 1990 read with Sales Tax Recovery Rules, 1992. It is generally argued that as there are no specific provisions of arrest under Section 33 or under any other section of the Sales Tax Act, such defaulters cannot be arrested. 2. The issue has been examined in detail in the Central Board of Revenue. It appears that the scope of Section 48(2) of the Sales Tax Act, 1990 has not been appreciated fully by certain field formations. For the purpose of recovery of tax, penalty or any other demand raised under the Act, the officer of sales tax have been given the same powers which under the Code of Civil Procedure, 1908 (V of 1908) a civil court has for the purpose of recovery of an amount due under a decree. This is clearly stated in Sub-section (2) of Section 48 of the Sales Tax Act, 1990. 3. Section 51 of the Code of Civil Procedure deals with the powers of a court to enforce execution of a decree. The relevant section is re-produced below:- "Subject to such conditions and limitations as may be prescribed, the Court may, on the application of the decree-holder order execution of the decree- (a) by delivery of any property specifically decreed; (b) by attachment and sale or by sale without attachment of any property; (c) by arrest and detention in prison; (d) by appointing a receiver; or (e) in such other manner as the nature of relief granted may require. Provided that, where the decree is for payment of money, execution by detention in prison shall not be ordered unless, after giving the judgement-debtor an opportunity of showing cause why he should not be committed to prison, the Court, for reasons recorded in writing, is satisfied. (a) that the judgement-debtor, with the object or effect of obstructing or delaying the execution of the decree,- (i) is likely to abscond or leave the local limits of the jurisdiction of the Court; or (ii) has, after the institution of the suit in which the decree was passed, dishonestly…