44. Special mode of recovery.

(1) Notwithstanding anything contained in any law or contract to the contrary, the Prescribed Authority may, at any time or from time to time, by notice in writing, a copy of which shall be forwarded to the dealer at his last known address, require—

(a) any person from whom any amount of money is due, or may become due, to a dealer or person liable on whom notice has been served under sub-section (3) of section 29; or

(b) any person who holds or may subsequently hold money for or on account of such dealer or person liable,

to pay to the Prescribed Authority, either forthwith upon the money becoming due or being held or within the time specified in the first mentioned notice (but not before the money becomes due or is held as aforesaid) so much of the money as is sufficient to pay the amount due from the dealer or person liable in respect of the arrears of tax, interest, penalty or any other sum due under this Act, or the whole of the money when it is equal to or less than that amount.

Explanation.— For the purposes of this sub-section, the amount of money due to a dealer or person liable from, or money held for or on account of a dealer or a person liable by, any person, shall be calculated by the Prescribed Authority after deducting therefrom such claims, if any, lawfully subsisting, as may have fallen due for payment by such dealer or person liable to such person.

(2) The Prescribed Authority may amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.

(3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the dealer or person liable, and the receipt thereof into the Government account, shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount specified in the receipt.

(4) Any person discharging any liability to the dealer or person liable after receipt of the notice referred to in this section, shall be personally liable to the Prescribed Authority to the extent of the liability discharged or to the extent of the liability of the dealer or person liable for tax, interest, penalty or any other sum due whichever is less.

(5) 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 person liable or that he does not hold any money for or on account of the dealer or person liable, then, nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, to the Prescribed Authority.

(6) Any amount of money which the aforesaid person is required to pay to the Prescribed Authority, or for which he is personally liable to the Prescribed Authority under this section shall, if it remains unpaid, be recoverable as an arrear of land revenue.

(7) The Prescribed Authority may apply to the Court in whose custody there is money belonging to the dealer or person liable for payment to him of the entire amount of such money or if it is more than the tax, interest, penalty or any other sum, if any, due, an amount sufficient to discharge such tax, interest, penalty or any other sum due.