Special mode of recovery of tax, penalty and interest

(1) Notwithstanding the forwarding of a certificate under section 46 for recovery of any amount of tax, penalty or interest, the prescribed authority may, at any time, by notice in the prescribed form, require any person from whom money is due or may become due to a dealer or any person who holds or may subsequently hold money for, or on account of, such dealer, to deposit into a Government Treasury or State Bank of Sikkim or any other bank as may be notified by the Government under the appropriate head of account, either forthwith upon the money becoming due or being held or at or within the time specified in the notice so much of the money as is sufficient to pay the amount due from such dealer in respect of the arrears of such tax, penalty or interest or the whole of the money when such money is equal to or less than that amount. (2) A notice under this section may be issued to any person who holds or may subsequently hold any money for, or on account of the dealer jointly with any other person, and for the purposes of this section, the shares of the joint holders in such account shall be presumed, until the contrary is proved, to be equal. (3) A copy of the notice shall be forwarded to the dealer at his last known address and in the case of a joint account, to all the joint-account holders at their last known address. (4) Save as otherwise provided in this section, every person to whom a notice is issued under this section shall be bound to comply with such notice, and, in particular, where any such notice is issued to a post office, banking company or insurer, it shall not be necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary. (5) Any claim respecting any money, which is due or to become due or is being held or may subsequently be held in relation to which a notice under this section has been issued arising after the date of such notice, shall be void as against any demand contained in such notice. (6) Where a person to whom a notice under this section is sent proves to the satisfaction of the prescribed authority 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 or that the money demanded or any part thereof is not likely to be due to the dealer or be held for, or on account of, the dealer, then, nothing contained in this section shall be deemed to require such person to deposit any such sum or part thereof as the case may be. (7) The prescribed authority may, at any time, amend or revoke any notice issued under this section or extend the time for making any payment in pursuance of such notice. (8) The Government Treasury or the State Bank of Sikkim or any other bank as may be notified by the Government, shall grant a receipt for any amount paid in compliance with a notice issued under this section and the person so paying the amount shall be fully discharged from his liability to the dealer to the extent of the amount so paid. (9) Any person discharging any liability to the dealer after receipt of a notice under this section shall be personally liable to the extent of his own liability to the dealer so discharged or to the extent of the liability of such dealer for any amount due under this Act, whichever is less. (10) If the person to whom a notice under this section is sent fails to make payment in pursuance thereof, he shall be deemed to be a dealer in default in respect of the amount specified in the notice and further proceeding may be taken against him for the recovery of the amount as if it were an arrear due from him and the notice shall have the same effect as attachment of debt. (11) The prescribed authority may apply to the court in whose custody there is money belonging to the dealer for payment of the entire amount of such money or, if it is more than the amount of tax, penalty or interest due, an amount sufficient to discharge the liability of the amount of tax, penalty or interest: Provided that any dues exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 (5 of 1908), shall be exempt from any payment required to be made under this section.