DRC-25 – Restoration of Attached Property / Withdrawal of Sale Proceedings

DRC-25 is issued when the taxpayer clears the outstanding dues before the completion of sale of property that was attached for recovery. This form formally withdraws the sale proceedings and restores the attached property back to the taxpayer. It is an important safeguard allowing the taxpayer to prevent loss of property by settling dues in time.

When DRC-25 Is Issued

This form is used when recovery proceedings involving sale of attached property are no longer necessary.

• Issued when the taxpayer pays dues after attachment but before auction is completed.
• Applied when the department decides not to proceed with sale for legal or procedural reasons.
• Triggered when objections to sale are accepted and dues are put on hold.
• Used when the taxpayer arranges instalments or obtains relief from appellate authority.

Legal Framework

DRC-25 follows the principles of recovery under Section 79 but allows sale withdrawal when dues are settled or when circumstances justify restoration.

• Governed by Rule 162 of the CGST Rules.
• Authorised by the Proper Officer supervising the recovery.
• Has the effect of cancelling auction notices like DRC-10, DRC-12, or DRC-15.
• Legally restores the attached property to the taxpayer’s control.

Details Included in DRC-25

The form formally confirms withdrawal of sale proceedings and restoration of property.

• Contains GSTIN, taxpayer name, and attachment/sale references.
• Mentions the amount paid or reason for stopping the recovery sale.
• Specifies the property that is being restored to the taxpayer.
• Instructs relevant authorities (banks, registrars, departments) to remove restrictions.
• Confirms that sale procedures stand cancelled with immediate effect.

Practical Importance

DRC-25 protects the taxpayer from unnecessary loss of property when they have complied with payment requirements.

• Prevents sale or auction once dues are fully paid.
• Restores ownership rights and removes attachment instantly.
• Ensures due process is followed when stopping sale proceedings.
• Acts as official proof that recovery through sale is no longer required.

Action After Issuance

The taxpayer should ensure that all authorities implement the release immediately—banks, sub-registrars, local bodies, or anyone earlier notified of attachment. Updated records should show the property free from encumbrance, and the taxpayer must preserve DRC-25 as proof of restoration.