Special mode of recovery

Special mode of recovery.

1. (1) Notwithstanding anything contained in any law or contract to the contrary, the assessing authority may, at any time or from time to time, by notice in writing, a copy of which shall be forwarded to the importer at his last address known to the assessing authority, require
   • (a) any person from whom any amount of money is due, or may become due, to the importer, or
   • (b) any person who holds or may subsequently hold money for or on account of the importer, to pay to the assessing authority, either forthwith upon the money becoming due or at or within the time specified in the notice (not being before the money becomes due or is held as aforesaid), so much of the money as is sufficient to pay the amount due by the importer in respect of the arrears of tax under this Act, or the whole of the money when equal to or less than that amount.
2. (2) The assessing authority may at any time or from time to time amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.
3. (3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the importer and the receipt of the assessing authority shall constitute a good and sufficient discharge of the liability of such person to the importer to the extent of the amount referred to in the receipt.
4. (4) Any person discharging any liability to the importer after receipt of the notice referred to in this section shall be personally liable to the assessing authority to the extent of the liability discharged or to the extent of the liability of the importer for tax and penalty, whichever is less.
5. (5) Where a person to whom a notice under this section is sent, objects to it by a statement on oath that the sum demanded or any part thereof is not due to the importer or that he does not hold any money for or on account of the importer, then, nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the assessing authority to the extent of his own liability to the importer on the date of the notice, or to the extent of the importer's liability for tax and penalty, whichever is less.
6. (6) Any amount of money which a person is required to pay to the assessing authority, or for which he is personally liable to the assessing authority under this section shall, if it remains unpaid, be recoverable as an arrear of land revenue.
7. (7) For the purposes of this section, the amount of money due to an importer for or on account of the importer by any person includes money due to the importer, or held for or on account of the importer, by the Government of India or the Government of any State or any local authority.