DRC-12 — Notice for Sale of Attached Movable Property

DRC-12 is issued when the department initiates the sale of movable property that has already been attached for recovery of GST dues. It serves as a formal notice to the taxpayer informing them that their attached movable assets—such as vehicles, machinery, stock, or other goods—are proposed to be sold for recovering outstanding demand. This notice gives the taxpayer one final opportunity to clear dues before the sale proceeds.

When DRC-12 Is Issued

This form is used only after the department has attached movable property and the taxpayer fails to make the required payment within the permitted time.

• Issued after movable property is attached under Section 79.
• Sent when attached goods are to be sold directly without auction scheduling.
• Applied when immediate sale is necessary to protect revenue or avoid deterioration of goods.
• Used in cases where goods are perishable or liable to lose value quickly.

Legal Basis

DRC-12 supports recovery actions permitted under Section 79, enabling sale of attached movable assets after due notice.

• Governed by Rule 147(2) of the CGST Rules.
• Must be issued by the Proper Officer handling the recovery.
• Serves as the legal communication prior to sale of attached movable goods.
• Ensures the taxpayer is given proper notice before disposal of property.

Details Mentioned in DRC-12

The form includes necessary information about the goods and the proposed sale process.

• Identifies the taxpayer with GSTIN, name, and attachment reference.
• Describes the movable property such as goods, stock, tools, machinery, or vehicles.
• States the reason for sale, usually continued non-payment after attachment.
• Specifies the date by which dues may be cleared to prevent the sale.
• Indicates the manner of sale—direct sale, tender, or departmental disposal.

Practical Importance

DRC-12 ensures transparency and fairness by giving the taxpayer one clear chance to avoid sale of their movable assets.

• Enables taxpayer to prevent the sale by making immediate payment.
• Ensures the department follows due process before disposing goods.
• Helps preserve the value of goods that may deteriorate over time.
• Creates a legal record prior to the sale for use in future proceedings.

Action After Receiving DRC-12

The taxpayer must act swiftly by settling the outstanding dues to prevent the sale of their movable property. If the dues are not paid by the specified date, the officer is authorised to proceed with the sale under the applicable recovery rules.