Special mode of recovery

Special mode of recovery.—(1) The Commissioner may, at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to the Commissioner), require—

1. (a) any person from whom any amount of money is due, or may become due, to the dealer, or
2. (b) any person who holds or may subsequently hold money for or on account of the dealer, to pay to the Commissioner, 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 dealer in respect of arrears of tax, interest and penalty or the whole of the money when it is equal to or less than that amount.

1. (2) The Commissioner 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.
2. (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 dealer and the receipt of the Commissioner shall constitute a good and sufficient discharge of the liability of such person to the dealer to the extent of the amount referred to in the receipt.
3. (4) Any payment made by any person under this section to the Commissioner shall be deemed to have been made on behalf of the dealer and the amount so paid shall be credited to the amount of tax, interest, or penalty due by the dealer.
4. (5) Any person discharging any liability to the dealer after receipt of the notice referred to in this section shall be personally liable to the Commissioner to the extent of the liability discharged or to the extent of the liability of the dealer for tax, interest and penalty, whichever is less.
5. (6) 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 dealer or that he does not hold any money for or on account of the dealer, 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 Commissioner to the extent of his own liability to the dealer on the date of the notice, or to the extent of the dealer’s liability for tax, interest and penalty, whichever is less.
6. (7) The Commissioner may apply to the court in whose custody there is money belonging to the dealer for payment to him of the entire amount of such money, or if it is more than the tax, interest and penalty due, an amount sufficient to discharge such tax, interest and penalty.