181. Demand notice for the amount of tax and penalty due from dealers

(1) After an order of assessment is passed by the appropriate assessing authority under rule 179 or rule 180 in respect of a dealer, such authority shall serve a notice in Form 30 on such dealer directing him to make payment of the amount of tax and penalty, if any, due from such dealer by such date as may be specified in such notice :

Provided that, if the dealer is eligible under section 40 for deferment of payment of tax due after assessment, the appropriate assessing authority shall specify in the notice the amount of tax due which is eligible for deferment and the date on which such deferred tax shall be paid by such dealer in accordance with the provisions of sub-section (7) of section 40 and the rules made thereunder.

Explanation.- (I) For the purpose of fixing the date of payment of the amount of tax due which is not eligible for deferment in accordance with the provisions of rule 106 or rule 119 and the amount of penalty imposed, if any, the proviso to sub-rule (1) shall not apply.

Explanation.- (II) For the purpose of determining the amount of tax due from a dealer, who is eligible for remission under section 41 in respect of any period, if it is found on assessment that tax on sale referred to in that section is in excess of the amounts of tax eligible for remission according to his returns, such excess amount is not eligible for remission.

(2) The date to be specified or payment by a dealer in the notice referred to in sub-rule (1) shall not ordinarily be less than 30 days after service of the notice :

Provided that, where on account of delay in service of the notice in Form 30 the dealer is denied of the minimum time of 30 days for compliance with such notice, he may, on application, be allowed such further time as falls short of 30 days from the service of such notice.

(2A) When assessment is made under sub-section (2) of section 45, the date to be specified for payment by a dealer in the notice referred to in sub-rule (1) shall not ordinarily be less than 15 days after service of the notice:

Provided that where, on account of delay in service of the notice in Form 30, the dealer is denied the minimum time of 15 days for compliance with such notice, he may, on application, be allowed such further time as falls short of 15 days from the service of such notice.

(3) The notice referred to in sub-rule (2) or sub-rule (2A) shall also specify the date by which a dealer shall produce a receipted copy of challan of the Reserve Bank of India or a Government Treasury as a proof of payment of tax and penalty, if any, made according to the notice.

(4) If after an order of assessment made under rule 179 or rule 180 in respect of a dealer, the amount of tax payable and penalty payable, if any, is found to be less than the amount of tax paid by such dealer according to return in respect of the same period, the appropriate assessing authority shall serve a notice in Form 30 specifying the amount paid in excess, and allowing the refund under section 60 enclose a Refund Adjustment Order authorising the dealer to adjust the amount paid in excess against the amount payable according to the return which falls due subsequent to the date of receipt of the Refund Adjustment Order by the dealer.

Provided that where any amount of tax penalty or interest due from such dealer in respect of any other period remains unpaid by such dealer till the date of assessment, the appropriate assessing authority shall adjust the amount assessed to have been paid in excess towards the tax, penalty or interest, and thereupon, if any, amount still remains refundable, he shall specify such adjustment in the said notice in Form 30 and send to the dealer a Refund Adjustment Order for the amount still remaining refundable along with such notice.

Provided further that where a dealer makes an application any time but ordinarily not later than thirty days from the date of receipt of the Refund Adjustment Order for payment of the refundable amount otherwise than by way of a Refund Adjustment Order on the ground that there shall be no such amount of tax payable by him against which the refundable amount may be adjusted and if the appropriate assessing authority is satisfied to that effect, the said authority may refund the said amount to the dealer accordingly.