BHAGALPUR MUNICIPAL CORPORATION TAX AND NON-TAX REVENUES RECOVERY REGULATIONS, 2013

 

PREAMBLE

In exercise of powers conferred under Section 158 of the Bihar Municipal Act 2007 Bhagalpur Municipal Corporation its Resolution No. 02 dated 21.09.2013 has formulated these Regulations the draft of which is previously published to ensure payment and recovery of its Tax and Non-Tax revenue dues. These regulations shall come into effect from the date of its publication in the official Gazette.

Regulation - 1. Scope.

The tax and non-tax revenue dues including user charges for various services provided under section 126, 127, 128 & 147 of the Bihar Municipal Act, 2007, as amended from time to time.

Regulation - 2. Issue of Demand Notice.

If the holding tax dues is not paid before 30th September, in the respective financial year and other non-tax revenues within one month from date of its becoming due, the Municipal Corporation shall cause to be served, on the person liable to pay the same, a notice in the prescribed form 'A' ?.. Self-Assessment forms shall be available in the office of the Municipal Corporation and on the website of the Urban Development and Housing Department, Government of Bihar.

Regulation - 3. Demand Notice Fee.

The Municipal Corporation shall charge the notice fee @ Rs. 50/- per notice from the person liable to pay the tax or the non-tax revenues.

Regulation - 4. Delayed Payment Interest.

If the Holding Tax due is not paid before 30th September, in the respective financial year and other non-tax revenues within one month from the date of its becoming due, delayed payment shall invite levying of interest on tax and non-tax revenue arrears @ 1.5% per month which shall be recovered along with the amount due.

Regulation - 5. Discontinuance of Municipal Services.

(A)     If the person, on whom a notice of demand is served, does not, within twenty one days of service of such notice, pay the sum demanded in the notice, The Municipal Commissioner or a person authorized by him may discontinue municipal services such as water supply, sewerage, solid waste management along with action proposed to be taken in regulation No 6 after giving special notice of seven days for discontinuance of essential services. The services shall be restored only after the payment of the due is deposited together with the reconnection charges, if any.

Regulation - 6. Seizure and Sale of Defaulter's Movable Property.

(A)     If the person on whom a notice of demand is served does not, within twenty one days of service of such notice, pay the sum demanded in the notice the Municipal Commissioner may direct the seizure and sale of moveable property of the defaulter, commensurate with the amount due. The Municipal Commissioner shall issue a warrant in the prescribed form 'B'

(B)     Where the property is within the limit of the Municipal Corporation, the warrant shall be addressed to an officer of the Municipal Corporation and the property is outside the limit, to the District Magistrate of the district concerned. Provided that the Officer to whom the warrant is addressed may endorse such warrant to a subordinate officer.

(C)     For every warrant issued under this Regulation, a warrant fee @ 5% shall be charged on the dues and the said fee shall be included in the cost of recovery.

Regulation - 7. Power of Officer to Break Open Door or Window.

Any officer charged with the execution of warrant of distress issued may, if authorized by a general or special order in writing by the Municipal Commissioner, between sunrise and sunset break open any outer or inner door or window of a building in order to gain entrance to execute the warrant:-

(a)      If he has reasonable ground for believing that such building contains property which is liable to such seizure, and

(b)      If after notifying his authority and purpose and duly demanding admittance. He cannot otherwise obtain admittance:

Provided that such officer shall not enter or break open the door or window of any apartment appropriated to the use of women until he has given not less than three hours' notice of his intention and has given to women an opportunity to withdraw.

Regulation - 8. Execution of Warrant.

The officer charged with the execution of a warrant of seizure and shall seize any movable property the person or seize any movable property belonging to any other person which may be found with the holding in respect of which such defaulter is liable to such tax or non-tax revenue, subject to the following conditions, namely:-

(a)      The following property shall not be seized

(i)       Necessary wearing apparel and bedding of the defaulter, his wife and children;

(ii)      The tools of the artisans;

(iii)     when the defaulter, is an agriculturist his implements of husbandry, seed, grain and such cattle as may be necessary to enable him to earn his livelihood;

(b)      The seizure shall not be excessive, that is to say, the property seized shall be as nearly as possible equal in value to the amount reasonable under the warrant, and if any property has been seized which in the opinion of the Municipal Commissioner or the person to whom the warrant was addressed, should not have been so seized, it shall forthwith be returned to the person from whom it was seized;

(c)      The officer shall, after seizure of the property, forthwith make in the presence of two witnesses an inventory of the property which he seizes under such warrant, and shall at the same time give a written notice in the prescribed from "C" or in a form to the like effect to the person in possession thereof at the time of seizure that such property will be sold as therein mentioned;

Provided that, when the holding in respect of which the default is committed is a place of business and the movable property seizes is shown to the satisfaction of the Municipal Commissioner to have been left there for repairs or safe custody in the ordinary course of business, it shall be released

Provided also that if the said property or any part thereof belongs to any person other than the defaulter, the defaulter shall be liable to indemnify the owners thereof for any damage he may sustain by reason of such seizure, or by reason of any payment he may make to avoid such seizure or any sale under the same.

Regulation - 9. Attachment and Sale of Immovable Property.

(a)      If the person, on whom a notice of demand is served, does not, within twenty one days of service of such pay the sum demanded in the notice, Municipal Commissioner may direct attachment and sale of immovable property of the defaulter. The Municipal Commissioner shall issue a warrant in the prescribed form 'D'

(b)      Where the property is within limit of the Municipal Corporation, the warrant shall be addressed to an officer of the Municipal Corporation and where property is outside the limit, to the District Magistrate of the district concerned. Provided that the Officer to whom the warrant is addressed may endorse such warrant to a subordinate officer

(c)      For every warrant issued under this Regulation, a warrant fee @5% shall be charged on the dues and the said fee shall be included in the cost of recovery.

(i)       The attachment of immovable property shall be made by an order prohibiting the defaulter from transferring or changing the property in the way, and all person from taking any benefit from such transfer or charge;

(ii)      The order shall be proclaimed at some place on or adjacent to the property by loud speaker or other customary mode, and a copy of the order shall be fixed on the conspicuous part of the property and a conspicuous part of the Municipal Corporation office and also when the property is land paying revenue to the state Government, in the office of the District Magistrate

(iii)     any transfer of or charge on the property attached or any interested therein made without permission of the Municipal Commissioner shall be void against all claims of Municipal Corporation enforceable under the attachment.

Regulation - 10. Sale of Moveable and Immovable Property.

how to be conducted:-

(1)     When the movable property seized is subject to speedy and natural decay, or when the expenses of keeping it in custody together with the amount to be levied is likely to exceed its value, the Municipal Commissioner shall at once give notice to the person in whose possession the property was when seized, to the effect that it will be sold at once, and shall sell it accordingly unless the amount named in the warrant paid forth with.

(2)     On the expiry of the time specified in the notice served by the officer executing the warrant, the property seized or attached or in the case of immovable property a sufficient portion thereof, if not sold at once under sub-regulation (i) may be sold by public auction under order of the Municipal Commissioner, unless the warrant is suspended by him or the sum due is paid by the defaulter together with all costs incidental to the notice, warrant, seizure, attachment or detention of property as the case may be.

(3)     When the sum due together with costs is paid by the defaulter as aforesaid, any attachment levied on his immovable property shall be deemed to be removed.

(4)     The sale proceeds or such part thereof as may be sufficient shall be applied, first, in discharge of any sum due to the State Government in respect of such property and secondly, in discharge of the sum due to the Municipal Corporation and all such incidental costs as aforesaid.

(5)     The surplus proceeds shall be forth with credited to the Municipal Fund and notice of such credit shall be given at the same time to the person in whose possession the property was at the time of seizure or attachment. If such person claims the surplus by written application to the Municipal Commissioner within three years from the date of the notice given under this sub-regulation, the Municipal Commissioner shall refund the surplus amount to him.

(6)     Any such surplus not so claimed within three years of its credit in Municipal fund shall be the property of Municipal Corporation.

(7)     The officer authorized for execution of the warrant of seizure after executing the warrant and sale of seized goods shall file a return in form 'E' to the Municipal Commissioner.

Regulation - 11. Sale outside Municipal Limits.

When warrant is to be executed outside the Municipal Limit the Municipal Commissioner may, by endorsement, direct the person to whom the warrant is addressed to sell the property seized or attached; and in such case it shall be lawful for such person to sell the property and to do all things incidental to sale in accordance with provisions in Regulation 10 and exercise the power and perform the duties of the Municipal Commissioner under sub-regulations (i) and (ii) of Regulation-10 in respect of such sale except the power of suspending the warrant. Such person shall, after deducting all costs of recovery incurred by him, remit the amount recovered under the warrant to the Municipal Commissioner who shall dispose of the same in accordance with provisions of Regulation 10.

Regulation - 12. Chargeable Fees and Costs.

The fees for every notice or warrant issued and for the maintenance of any livestock seized shall be chargeable and shall be included in the cost of recovery to the levies under Regulation-10

Regulation - 13. Summary Proceedings against defaulters.

(i)       If any sum recoverable under provision of this regulation is due or is about to become due from any person, and if the Municipal Commissioner shall have reason to believe that such person is about to leave the limits of Municipal Corporation, the Municipal Commissioner may direct immediate payment by such persons of such sum and cause a bill for the same to be presented to him.

(ii)      If on presentation of such bill, the said person does not forthwith pay the said sum or does not furnish security to the satisfaction of the Municipal Commissioner, the amount shall be levied by seizure and sale of his movable property or by attachment and sale of his immovable property in the manner specified in this regulation except that it shall not be necessary to serve upon him any notice of demand and the Municipal Commissioner warrant of seizure and sale may be issued and executed without any delay.

Regulation - 14. Issue fresh warrant.

(i)       If the proceeds of any sale under Regulation -10(4) are not sufficient to cover the sum due together with the cost of recovery, the Municipal Corporation may issue a fresh warrant of seizure for the recovery of the balance due and for all additional costs thereof.

(ii)      The provisions of Regulations 6 to 13 shall, with all necessary modifications, be deemed to apply whenever a warrant is issued under sub regulation (i).

Regulation - 15. Keeping account of seizure and sales.

The Chief Municipal Officer shall cause a regular account in form No. 'F' and 'G' to be kept of all distressed levied, and sale made, for the recovery of taxes under this regulation.

Regulation - 16. Payments Receipts.

For every sum paid on account of any tax under this regulation, a receipt shall be tendered by the person, receiving these payments, stating the sum and tax on account of which it has been paid.

Regulation - 17. Selling Unclaimed Holding.

(1)     If money be due under the Bihar Municipal Act, 2007 in respect of any tax or non-tax revenue from the owner thereof, on account of any tax, expenses or charges recoverable under the Act, and if the owner of such holding is unknown or the ownership thereof is disputed, the Municipal Commissioner may publish twice, at an interval of two months, a notification of sale of such holding, and after the expiry of no less than one month from the date of last publication, unless the amount recoverable be paid, may sell such holding to the highest bidder, who shall, at the time of sale deposit the full amount of the purchase money.

(i)       After deducting the amount due to the Municipal Corporation as aforesaid the surplus sale proceeds if any shall be credited to the municipal fund, and may be paid on demand to any person who establishes his right to the satisfaction of the Municipal Commissioner or in a court of competent jurisdiction.

(ii)      Any person may pay the amount due at any time before the completion of the sale, and may recover such amount by a suit in a court of competent jurisdiction from any person, beneficially interested in such property.

Regulation - 18. Requisition to Certificate Officer.

Any arrear of tax or non-tax revenue due from any person in respect of which a notice of demand has been served under this regulation, shall be recoverable as public demand payable to the Municipal Corporation.

Regulation - 19. Recovery of Arrears of Tax or Non-Tax Revenue as a Public Demand.

(1)     The Municipal Commissioner may apply to the Collector of the District for the application of the procedure prescribed by the Bihar and Orissa Public Demand Recovery Act, 1914, to recovery of the whole or any part of any arrear of tax which the Municipal Commissioner has failed to realize by distress and sale, together with cost according to the prescribed scale of fees.

(2)     If the Collector is satisfied that the Municipal Commissioner has so failed to realize the whole or any part of any tax and that an application has been submitted no more than one month after such failure, he shall allow the application and shall thereupon publish in the prescribed manner and for the prescribed period a list of the arrear of taxes and non-tax revenue in respect of which the application has been allowed.

(3)     After such publication of the list, any arrear of tax and non-tax revenue included therein shall be recoverable as a public demand payable to the Municipal Corporation.

Regulation - 20. Recovery of Arrear through Suit.

(A)     Instead of proceeding by seizure and sale or in case of failure to realize thereby the whole or any part of any tax or non-tax revenue, The Municipal Corporation may sue the person liable to pay the same in any civil court of competent jurisdiction, for body warrant and recovery of due taxes.

Regulation - 21. Attaching Bank Account and Other Financial Instruments.

Where the sum due together with the costs is not paid by the defaulter, instead of filing suit, attachment of bank account if any as well as other financial instruments held individually or jointly in the name of the defaulter may be made and dues shall be recovered accordingly.

Regulation - 22. Writing off Irrecoverable Taxes or Non Tax Revenue.

The Municipal Corporation may, with the previous approval of the state Government, order to be struck off the books any sum due on account of any tax or of the cost of recovering any tax which may appear to him to be irrecoverable.

Regulation - 23. Persons Prohibited from Purchasing at Sales.

All officers and servants of the Municipal Corporation, all officers of the State Government and all Chaukidars, constables and other officers of police and their family members are prohibited from purchasing any property at any sale under the Bihar Municipal Act, 2007.

Regulation - 24. Seizure not Unlawful for Want of Form.

No distress levied under Bihar Municipal Act, 2007 shall be deemed unlawful nor shall any person making the same be deemed a trespasser, on account of

(a)      Any defect or want of form in the notice, summons, notice of demand, warrant of seizure, inventory or other proceeding relating thereto; or

(b)      Any irregularity committed by the said person:

Provided that any person aggrieved by such defect or irregularity may recover in any Court of competent jurisdiction, full satisfaction, for any special damage sustained by him.

Regulation - 25. Recovery in Special Cases.

If the sum due from the owner of any holding remains unpaid after the notice of demand has been duly served, and such owner is not resident within Municipal Corporation, of the place of abode of such owner is unknown, the same may be recoverable from the occupier for the time being of such holding, who may deduct from the next and following payments of his rent the amount which may be so paid by or recovered from him.

Provided that if any such holding is occupied severally by more than one person, the sum recovered from any one such persons shall not exceed such amount as shall bear to the total sum due the same proportion as the value of the part of the holding of the occupation of such person bears to the entire value of the holding.

Regulation - 26. Recoveries from Central or State Government.

In case of any dues recoverable from department/undertakings of the Central or State Government, further any action under regulation 5 to 10 and 21 of the regulation shall be taken only with the prior written approval of the Urban Development & Housing Department, Government of Bihar.

 

FORM 'A'

(Regulation 2)

Notice of Demand under section 158 of Bihar Municipal Act, 2007

To

..........................?

..........................?

..........................?

Please take notice that the sum of Rs. ....................being the amount due from you on account of Municipal tax on holding No....................Circle No .................... ward No....................as in the statement below, is hereby demanded from you and if you do not, within fifteen days of the service of this notice on you, pay the same to an officer authorized to receive payment, or in the office of the Municipal Commissioner, the same with cost will be levied by seizure and sale of your movable property or otherwise as provided in the law.

 

 

FORM B

(Regulation 6)

Distress warrant under section 158 (b) of the Bihar Municipal Act, 2007

To (here insert the name of the officer charged with the execution of the warrant)

Whereas….......................?of…..............................as not paid or shown sufficient cause for the non-payment of the sum of Rupees….................due for taxes mentioned in the margin, although the said sum has been duly demanded in writing from the said and fifteen days have elapsed since the service of the Notice of demand. This is to require you to seize the moveable property of the said….......................?where it may be found within Municipal Corporation, except ploughs, plough cattle, tools or implements of trade of agriculture or any other moveable property subject to the same exceptions which may be found within the holding specified in the margin to the amount of the said sum of ….................and the further sum of ....….….......….…to defray the charges of taking and selling such property and if within ten days next after such distress the said sum of…..................??..shall not be paid, to sell the said property and having paid and deducted out of the proceeds of the sale of said sum of…....................and the charge of taking, keeping and selling such property, to return the surplus (if any) on demand to the person whom you shall have found in possession of the said property and, if no demand is made to pay the same to the Municipal Corporation. If seizure cannot be made of sufficient property of the said…...... you is to certify the same to undersigned in returning the warrant.

Municipal Commissioner

Municipal Corporation Bhagalpur

 

FORM C

(Regulation 8 (C)

Inventory and notice under Section 158 (b) of the Bihar Municipal Act, 2007

(State particulars of goods seized)

Take notice that I have this day….................. seized the property specified in the above inventory for the sum of…..................?.. due for the taxes mentioned in the margin and that unless you pay to me or into the office of the Municipal Commissioner of …...................the said sum of …........... and the further costs of this seizure as specified below within ten days from the day of the date of this notice the property will be sold.

Signature of the officer executing the Warrant of seizure

 

FORM D

(Regulation- 9 (a))

Notice for Attachment and Sale of Property for Recovery of Tax and Non -Tax Revenue under Section 158 of the Bihar Municipal Act, 2007

To (here insert the name of the officer charged with the execution of the warrant)

Take the Notice that the as you have not complied with the Notice given to earlier in form- dated – for recovery of (Mention the name of the tax/non tax revenue) on your holding No – Located in circle No – in Ward No  This holding is therefore attached herewith. The attached holding is going to be put to sale through auction to recover the dues mentioned above is hereby attached for sale to recover.

Signature of the Officer Executing the Warrant

Date

 

FORM 'E'

(Regulation 10(7))

Return of sales of seized goods.

Signature of the officer executing the

Warrant of distress

 

FORM 'F'

(Regulation 15)

Warrant Register

 

 

FORM 'G'

(Regulation 15)

Register of Seizure and sale of Property

(1)     Name of defaulter

(2)     Number on register and specification of holding on account of which the arrear is due

(3)     Amount of arrear due

(4)     Amount of costs and penalty

(5)     Total amount to be realized

(6)     Inventory of property seized under seizure

(7)     Date of seizure

(8)     Date of sale

(9)     Details of articles sold

(10)   Amount realized on each articles

(11)   Purchaser's name

(12)   Total amount realized

(13)   Amount paid into Municipal Corporation on Account of the arrear due, with date

(14)   Amount paid into Municipal Corporation on account of costs and penalties

(15)   Surplus proceeds of sale remaining after deducting the amount of arrears, costs and penalties etc.

(16)   How the surplus was disposed of with date of such disposal

(17)   Balance of arrear still remaining unrealized, if any

(18)   On what date remaining balance was realized or written off by authority

(19)   Remarks (explaining why the property seized was released without sale if not eventually sold, etc)