(1) Notwithstanding anything contained in the Act or any law or contract to the contrary, the authority prescribed for assessment and recovery of tax or interest or both and penalty imposed may, at any time by notice in writing ( a copy of which shall also be given to the proprietor) direct – 6
(a) any person who holds or may subsequently hold any money for or on account of the proprietor, or
(b) any person from whom any money is due or may become due to the proprietor who has failed to pay upto the date fixed in the notice of demand the amount of tax or interest or both or penalty payable according to the said notice of demand served upon such proprietor or in respect of which the date of payment has not been extended by any competent authority, to pay into the Government treasury, in the same manner as have been prescribed for payment of tax or interest or both either forthwith or upon the money becoming due so much of the money as is sufficient to pay the amount due from the proprietor.
(2) The authority issuing a notice under sub-section (1) may, at any time, amend or revoke any such notice or extend the time for making payment in pursuance of the notice.
(3) Any person making any payment in compliance with a notice issued under subsection (1) shall be deemed to have made the payment under the authority of the proprietor and the receipt from the Government treasury shall constitute a good and sufficient discharge of the liability of that person to the proprietor to the extent of amount specified in the receipt.
(4) Any person if not discharging the liability after service of notice under sub-section
(1) on him, shall be personally liable to the State Government for the amount of tax and interest or penalty.
(5) If amount, for which any person becomes liable personally to the State Government under sub-section (4), remains unpaid, it shall be recoverable as an arrear of land revenue from him.
(6) If any person contravenes any of the provisions of sub-section (4) of this section the prescribed authority shall after giving an opportunity of being heard by an order in writing direct that such person shall pay by way of penalty a sum not exceeding twice the amount payable under sub-section (1).