Notwithstanding anything contained in section 50, any person who is registered under this Act, fails to pay any tax, penalty or interest payable under the Act or fails to furnish return(s) by the prescribed date or has filed incomplete or incorrect return or has conducted transactions as per data available in the software being used by the Department but has not filed corresponding returns or no business at the declared place is being conducted or deliberately avoids service of notice or has failed to comply with the requirements of any notice, the prescribed authority or the Assessing Authority may, after obtaining the approval of the next higher authority, lock his Tax Identification Number and or suspend the e-services being availed by him as he deems fit, without prejudice to any other action which may be taken against him under this Act or the rules made thereunder:

Provided that a notice shall be issued immediately after locking of the Tax Identification Number and or suspension of e-services by such authority to the person concerned informing him about the action taken alongwith reasons thereof. The locked Tax Identification Number and suspended e-services shall be restored immediately after furnishing evidence of payment of tax, interest, penalty or furnishing of overdue returns, or on compliance of any other action which such persons had been directed to take, as the case may be.

(2) In all cases where the Tax Identification Number has been locked and e-services suspended or restored under sub-section (1), such authority shall display the fact on the official website of the Department and also inform the Commissioner within twenty four hours.

Explanation.- For the purpose of this section, locking of Tax Identification Number and suspension of e-services means temporary stoppage of inter-state movement of goods of the concerned person and withholding of e-services being provided by the Department for the purpose of verification, compliance or for any other purpose.