Recovery of tax

1[or penalty or any other amount] from certain other persons.- (1) 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 dealer at his last address known to the assessing authority) require any person from whom money is due or may become due to the dealer or any person who holds or may subsequently hold money for or on account of the dealer to pay to the assessing authority, either forthwith upon the money becoming

¹ Inserted by Act 4 of 1992 w.e.f. 1.4.1992.

1957: KAR. ACT 25] Sales Tax due or being held at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due by the dealer in respect of arrears of tax or penalty or the whole of the money when it is equal to or less than that amount.

1. (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.
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 assessing authority shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt.
3. (4) Any person discharging any liability to the dealer 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 dealer for the amount due under this Act, whichever is less.
4. (5) Where any person to whom a notice under this section is sent objects to it on the ground that the sum demanded or any part thereof is not due by him 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 the sum demanded or any part thereof, to the assessing authority.
5. (6) Any amount 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 a charge on the properties of the said person and may be recovered as if it were an arrear of land revenue.

1[Explanation I]

.—For the purposes of this section, the amount due to a dealer or money held for or on account of a dealer by any person shall be computed after taking into account such claims, if any, as may have fallen due for payment by such dealer to such person and as may be lawfully subsisting. 1. Re-numbered by Act 14 of 1987 w.e.f. 1.4.1987.

1[Explanation II.—Notwithstanding anything contained in this Act, for the purpose of this section, the expression "assessing authority" shall include

¹ Inserted by Act 14 of 1987 w.e.f. 1.4.1987.

² Inserted by Act 4 of 1992 w.e.f. 1.4.1992.

2[any officer empowered to levy tax or penalty under any of the provisions of this Act, or] any other officer exercising powers under clause (aa) of sub- section (3) of section 13.]

4[14-A. Issuance of Clearance Certificates to registered dealers.- Where for the purpose of complying with the requirement of any law for the production of a clearance certificate with respect to payment of tax or any other amount under this Act, a registered dealer makes an application

Sales Tax [1957: KAR. ACT 25

¹ Inserted by Act 5 of 1996 w.e.f. 1.4.1996.

to the assessing authority of the area, the assessing authority shall, if no amount of assessed tax or any other amount under this Act is due by or any tax payable in accordance with the provisions of sub-section (1) of section 12-B is outstanding from such registered dealer, issue a clearance certificate in the prescribed form.]