Clearance certificate

(1) Notwithstanding anything contained in any other law for the time being in force,- (a) no Government, local authority, educational institution, corporation or body corporate established by or under a Central or State Act shall place order with, or make purchases of any goods from any person or make any payment to such person for such purchases, or (b) no Government, local authority, educational institution, corporation or body corporate established by or under a Central or State Act, or company incorporated under the Companies Act, 1956 (1 of 1956), or registered co-operative society, shall enter into any contract with any person for execution by him of such contract and shall make payment to such person for execution of such contract, or (c ) no Government, local authority, educational institution, corporation or body corporate established under a Central or State Act, shall renew any license issued by them to any person, unless the Commissioner certifies in the prescribed manner that such person- (i) has no liability to pay tax or has not defaulted in furnishing any returns together with the receipted challan or challans showing payment of all taxes payable under this Act, or (ii) has not defaulted in making payment of tax otherwise payable by, or due from him under this Act. (2) The application for the certificate required under sub-section (1) shall be made by the person referred to that sub-section to the Commissioner.