57. Clearance certificate in relation to taxable goods.-

(1) Any person being-

(a) a Department of the Government or Central Government or any other Government of a State or Union Territory;

(b) a local authority;

(c) a Corporation established by or under Central or State Act;

(d) a Co-operative Society; or

(e) any Board constituted by or under Central or State Act;

shall before entertaining a tender for supply of taxable goods or sanctioning any contract for supply of taxable goods, require the supplier or contractor to furnish the tax clearance certificate in the prescribed form issued by the Assessing Authority concerned and if any authority entertains a tender without such certificate from the supplier/contractor, he shall be liable to pay by way of penalty an amount of rupees ten thousand for each such tender.

(2) The person referred to in sub-section (1) shall, furnish a copy of the contract/agreement executed for the supply of taxable goods, to the Deputy Commissioner of Commercial Taxes of the division concerned, in which such Department/agency falls.

(3) If any person referred to in sub-section (1) who enters into such contract/agreement fails to submit a copy of the contract/agreement to the Deputy Commissioner of Commercial Taxes of the division concerned, as required under sub-section (2) of this section, he shall be liable to pay by way of penalty an amount of rupees ten thousand per contract/agreement.

Provided that before levy of penalty under sub section (1) and sub section (3) of this section such person shall be afforded a reasonable opportunity of being heard.