(1) Notwithstanding anything contained in any other law for the time being in force, no Government, local authority, educational institution, or corporation or body corporate established by or under a Central or State Act shall enter into any works contract with any dealer for execution by him of such works contract and shall make payment to such dealer for execution of such works contract, or shall place order with, or make purchases of any goods from, any dealer or make any payment to such dealer for such purchases, unless the Commissioner certifies in the prescribed manner that such dealer-

(a) has no liability to pay tax or has not defaulted in furnishing any return or returns together with the receipted challan or challans showing payment of all tax payable under this Act or the West Bengal Sales Tax Act, 1994 (West Ben. Act XLIX of 1994) or the Central Sales Tax Act, 1956,

(b) has not defaulted in making payment of tax, otherwise payable by, or due from, him under this Act or the West Bengal Sales Tax Act, 1994 (West Ben. Act XLIX of 1994) or the Central Sales Tax Act, 1956, or

(c) has made satisfactory provision for securing the payment of tax by furnishing bank guarantee in favour of the Commissioner or otherwise,

as the case may be:

Provided that the provisions of this sub-section shall not apply to any payment where any amount is deductible from such payment under sub-section (1) of section 40.

(2) The application for the certificate required under sub-section (1) shall be made by the dealer referred to in that sub-section to the Commissioner and shall be in such form and shall contain such particulars as may be prescribed.

(3) Where the Commissioner, upon an application made by a dealer and after making such enquiry as he deemed fit and proper, is satisfied and issues a certificate in the prescribed form to the effect that such dealer is not liable to pay tax under section 14 or that he has paid tax payable by, or due from, him under that section, payment may, notwithstanding anything in sub-section (1), he made to such dealer for execution by him of a works contract referred to in section 14 on production by him of such certificate of the Commissioner.