Recovery of tax, penalty and interest

(1) Any amount of tax, penalty or interest due under this Act from a dealer, which remains unpaid after the date specified in a notice of demand issued in this behalf under this Act of the rules made thereunder, directing payment of such amount of tax, penalty or interest, shall be recoverable by the Tax Recovery Inspector in accordance with the provisions of sub-section (2) of this section, section 50, section 51 or section 52 and the rules regulating the procedure for recovery of tax, penalty and interest made thereunder where the State Government directs by general or special order so to do in respect of such class or classes of dealers having their places of business in such area or areas as may be specified in such order. (2) Where any amount of tax, penalty or interest is recoverable in accordance with sub-section (1), the prescribed authority shall send to the Tax Recovery Inspector a certificate under its signature specifying the amount of tax, penalty or interest due from the dealer, owner or lessee of warehouse, person or owner of goods (hereinafter referred to as the certificate-debtor), and the Tax Recovery Inspector shall, on receipt of such certificate, proceed to recover from the certificate-debtor the amount specified in the certificate by one or more of the following modes in accordance with the rules as may be prescribed;— (a) attachment and sale of the movable property of the certificate-debtor; (b) attachment and sale of the immovable property of the certificate-debtor; (c) arrest of the certificate-debtor and his detention in prison; (d) appointing a receiver for the management of the movable and immovable properties of the certificate-debtor. (3) The prescribed authority may send a certificate under sub-section (2), notwithstanding that proceedings for recovery of such tax, penalty or interest have been initiated or are being continued by any other mode. (4) The State Government may, for the purpose of this section and sections 46 to 49, appoint, by notification, such number of Tax Recovery Inspectors under section 4 of the Sikkim (Collection of Taxes and Prevention of Evasion of Payment of Taxes) Act, 1987 (Act No. 7 of 1987) and specify the area or areas over which they shall exercise jurisdiction. (5) On receipt of the certificate under sub-section (2), the Tax Recovery Inspector shall serve a notice along with a true and authenticated copy of it to the certificate-debtor, in the form and manner prescribed. (6) On and from the date of the receipt of the notice under sub-section (5), the certificate-debtor shall not transfer his immovable property or any interest therein and any such transfer of the said property or any interest therein shall be void. (7) The certificate-debtor may, within thirty days from the service of the notice required by sub-section (5), or where the notice has not been duly served, then within thirty days from the execution of any process for enforcing the certificate, file his objections (denying his liability in whole or any part of the immovable property specified in the certificate in the form and manner as may be prescribed). (8) The Tax Recovery Inspector to whom the original certificate is sent shall, subject to the provisions of sub-section (1) of section 43 hear the petition, take evidence, if necessary and determine whether the certificate-debtor is liable for the whole or any part of the amount for which certificate was signed. (9) Where any proceeding for the recovery of any amount of tax, penalty or interest remaining unpaid have been commenced under this Chapter and the amount of tax, penalty or interest is subsequently modified, enhanced or reduced in consequence of any assessment made or order passed on appeal, revision or review, under this Act, the prescribed authority may, in such manner and within such period as may be prescribed, inform the certificate-debtor and the Collector or the Tax Recovery Inspector as the case may be, by whom or under whose order the recovery is being made or to be made and thereupon such proceedings may be continued as if the amount of tax, penalty or interest as modified, enhanced or reduced has been substituted for the amount of tax, penalty or interest which was to be recovered under sub-section (1).