Special mode of recovery

Special mode of recovery.—

1. (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 known address), require—
   • (a) any person from whom any amount of money is due, or may become due, to a dealer on whom a notice of demand has been served under this Act, or
   • (b) any person who holds or may subsequently hold money for or on account of such 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 the amount of tax, penalty and interest under this Act, or the whole of the money when it is equal to or less than that amount.
2. (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.
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 dealer and the receipt of the payment by the Commissioner shall constitute a good and sufficient discharge of the liability of such person, to the extent of the amount referred to in the receipt.
4. (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 Commissioner 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.
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 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, to the Commissioner.
6. (6) Any amount of money which a person is required to pay to the Commissioner, or for which he is personally liable to the Commissioner under this section shall, if it remains unpaid, be recoverable as an arrear of land revenue.
7. (7) When a dealer to whom a notice under this section is sent proves to the satisfaction of the Commissioner that the sum demanded or any part thereof is not in excess of the amount due by the dealer, nothing contained in this section shall be deemed to operate as a bar to the recovery of any sum due from the dealer by any other mode.