DRC-10 is issued under Section 79(1)(b), Rule 144. This guide explains the legal basis, common grounds, procedural steps, and how GST Notice AI drafts your reply in under 60 seconds with relevant citations and defences.
Form DRC-10 is a public auction notice issued under Section 79(1)(b) read with Rule 144 of the CGST Rules. After a confirmed demand (DRC-07) remains unpaid and goods have been attached under DRC-16, the Proper Officer publishes DRC-10 notifying that the attached goods will be sold by public auction to recover the tax, interest, and penalty.
Legal Section
Section 79(1)(b), Rule 144
Response Window
15 Days (Minimum)
Reply Deadline
15 Days from Publication
Risk Level
Very High — Goods Will Be Auctioned
Sale Certificate
Form DRC-12
Issuing Authority
Proper Officer (Recovery)
Non-Payment of Confirmed Demand
A DRC-07 demand remains unpaid beyond the appeal window (3 months) and no stay has been granted by the Appellate Authority or a Court.
Failed Response to Recovery Notice
Recovery notice under Section 79 / Form DRC-13 (garnishee on bank) or DRC-16 (attachment of property) did not result in full recovery of the dues.
Attached Goods Pending Disposal
Perishable or hazardous goods attached under DRC-16 must be sold urgently — a shorter 15-day auction notice is permitted under Rule 144(1)(b).
Auction Under Court Order
In rare cases, a court confirms the demand and orders recovery — DRC-10 is the instrument used to liquidate attached assets under the court decree.
Verify the underlying DRC-07 order and confirm whether an appeal or stay application is already pending. A pending stay petition can be cited to seek postponement of auction.
Compute the total outstanding — principal tax, interest under Section 50, penalty, and recovery costs. Pay the full amount via DRC-03 to halt the auction (refund claim possible if appeal later succeeds).
If paying is not feasible, immediately file a writ in the jurisdictional High Court seeking stay of auction citing financial hardship, pending appeal, or procedural irregularity in the attachment.
Inspect DRC-16 (attachment) for defects — was the attachment on goods that do not belong to the defaulter? Were exempt goods (stock-in-trade of a partner, personal effects) wrongly attached? Any defect can ground a challenge.
Attend the auction and bid yourself if buying back is economically sensible (e.g., business stock worth more than the outstanding demand). Maintain auction records for any post-sale challenge.
After sale, Form DRC-12 (Sale Certificate) is issued to the purchaser. Any residual amount over the demand must be refunded to the defaulter under Rule 144(5).
Attachment Defence Analysis
Reviews the DRC-16 and underlying recovery chain (DRC-07 → DRC-13 → DRC-16 → DRC-10) and flags procedural gaps that can be challenged in writ.
Pre-Deposit + Stay Drafting
Drafts a stay application template citing Cognizant Technology, Jindal Pipes, and other HC precedents on post-decisional hearing and coercive recovery.
Payoff Calculator
Live computation of the minimum one-time payment needed to stop the auction, including correct interest accrual date.
Upload your DRC-10 notice. AI drafts the reply, computes deadlines, and cites every applicable section and rule.
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