(1) A dealer, in respect of payment of finally assessed tax in instalments, shall apply in Form-23 hereto before the authority specified under sub-rule (2) within thirty days from the date of service of demand notice (Form-9).
(2) The authorities for the purpose of sub-rule (1) shall be,—
(a) the Government, in cases where the payment of tax in instalments exceeds rupees one lakh or where the period within which such tax to be paid in instalments exceeds twelve months; and
(b) the Commissioner, in cases where the payment of tax in instalments does not exceed rupees one lakh or where the period within which such tax to be paid in instalments does not exceed twelve months.
(3) The authorities specified under sub-rule (2) may relax the period specified above in cases where the assessee satisfies them that the delay in filing the application for grant of instalments was for reasons beyond his control.
(4) The granting of instalments under sub-rule (2), shall be subject to the following conditions, namely:—
(a) the dealer is not in arrears of payment of tax or any other sum due under the Act except the payment of tax for which instalments are sought on the date of making the application under sub-rule (1);
(b) the dealer furnishes adequate security to the satisfaction of the assessing authority concerned for payment of tax in respect of which the instalments are sought;
(c) the dealer pays, alongwith each permitted instalment, interest at eighteen per cent.
per annum on the sums remaining unpaid from time to time;
(d) the dealer makes a declaration to the effect that no other application has been made to authorities or Courts other than the authorities specified under sub-rule (2) for payment of tax by instalments.
(5) The authority to whom the application is made under sub-rule (1), may, after making such inquiry as he deems fit, by an order in writing, subject to the limits specified under sub-rule (2), permit an assessee to pay the tax or other sums due in such instalments and subject to such conditions as may be specified in its order.
(6) If the dealer contravenes any of the conditions specified in the order or in sub-rule (4) or commits any default in making payments in accordance with the provisions of these rules, the whole of the sum remaining unpaid on the date of such default shall become recoverable at once in a lumpsum together with the interest and penalties, if any, levied in - 7 - accordance with the provisions of the Act or Rules.