Special mode of recovery:-

Notwithstanding anything contained in any law or contract to the contrary, 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) required any person who holds or may subsequently hold any money for, or on account of such dealer to pay into Government Treasury in the manner specified in the notice, either forthwith or upon the money becoming due or bring held, or at or within the time specified in the notice not being before money becomes due or is held, so much of the money as is sufficient to pay the amount of tax due from the dealer or penalty or both, as the case maybe, under this Act, or the whole of the money when it is less than that amount. (2)The notice under sub-section (1) may, from time to time amend or revoke any such notice or extend the time for making such payment in pursuance of the notice.

1. (3) Any person making any payment in compliance with a notice issued sub-section (1)shall be deemed to have made the payment under the authority of the dealer and the receipt from the Government Treasury shall construct a good and sufficient discharge of the liability of such person to the dealer to the extent of the amount specified in the receipt.
2. (4) Any person discharging liability to the dealer, after service on him of the notice issued under sub-section (1) shall, if the liability as discharged in any manner other than that required under the said notice, be personally liable to the State Government to the extent of the liability discharged or to the extent of the liability of the dealer for tax or penalty, or both whichever is less.
3. (5) Where a person on whom a notice is served under sub-section (1) proves to the satisfaction of the Commissioner that the money demanded or any part thereof were not due to the dealer, or that he did not hold any money for or on account of the dealer, at the time the notice was served on him nor is the money demanded or any part thereof is likely to become due to the dealer or to be held for or on account of the dealer, then such person shall not be liable to pay into Government treasury any such money or part thereof.
4. (6) Any amount of money, which a person is required to pay under sub-section (1) or for which he is personally liable under sub-section (4), shall, if it remains unpaid, be recoverable in the same manner as provided under Section 107; Provided that nothing in this Section shall operate to affect any action taken or prevent any action that may be or is being taken under section 48 for recovery from the dealer the amount due from him.