In the Principal Act, for the following shall be substituted, namely:-
20. Mode recovery:
All arrears of tax, penalty, interest and fees due under this Act fi-om any person shall, without prejudice to any mode of collection, be recovered;
(a) as if it were an amear of land, or
(b) on application to any Magistrate, by such Magistrate, as if it were a fine imposed by him
22. Insertion of new Section 20A:
In the Principal Act, after Section 20 so substituted, the following shall be inserted as new Section 20A and 20B, namely:-
20A. Special mode of recovery:
(1) Notwithstanding anything to the contrary contained in any law or in any contract, the assessing authority may, at any time or from time to time by notice in writing, a copy ofwhich shall be forwarded to the assessee at his last address known to the assessing authority, require:-
(i) any person from whom any amount of money is due or may become due to an assessee on whom notice of demand has been served under this Act, or;
(in any person who holds may subsequently hold money for or on account of such assessee, to pay the assessingauthority, eitherforthwithupon the money becoming due or being held at or within the time specified in the notice (but not money becomes due or is held as aforesaid), so much of the money as is sufficient to pay the amount due by the assessee in respect of arrear of tax, penalty and interest 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 Section, the amount of money due to an assessee from, or money held for or on account of an assessee by, any person, shall be calculated after deductingthereon such clams (ifany) l a d l y subsisting, as may fallen due for payment by such assessee to such person.
(2) The assessing authority may, at any time or from time to time, 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 authority of the assessee; the receipt of the assessing authority shall constitute agood and sutficient discharge ofthe liability of such person, to the extent of the amount referred to in the receipt.
(4) Any person discharging any liability to the assessee after receipt of the notice referred to in this section, shall be personally liable to the assessing authority to the extent of the liability discharged, or the extent of the liability of the assessee for tax, penalty and interest, whichever is less.
(5) Where a person to whom a notice under this section is sent proves to the satisfaction of the assessing authority that the sum demanded or any part thereof is not due to the assessee or that he does not hold any money for or on account of the assessee, then, nothing contained in this section shall be the case may be, to the assessing authority.
(6) Any amount of money which a person is required to pay to the assessing authority or for which he is personally liable to the assessing authority under this section, if it remains unpaid, be recovered from such person as an m a r of land revenue.
20B. Recovery of tax where trade, calling etc. of employer is transferred:
Where the ownership of the profession, trade, calling or employment of an assessee liable to pay tax is transferred, any tax, penalty or interest or other amount payableunder this Act, in respect of such business, remainingunpaid at the time of the transfer, may without prejudice to any action that may be taken for its recovery kom the transferor, be recoverable fiom the transferee as if he were the assessee liable to pay such tax, penalty, interest or any other;
23. Amendment of Section 21:
In the principal Act, for the Section 21, the following shall be substituted, namely:-
21. Refunds:- The assessing authority shall refund to aperson the amount of tax, penalty, interest and fees (if any) paid by such person in excess of the amount due from him, the refund may be made either by cash payment or at the option of such person, by deduction of such excess form the amount of tax, penalty, interest and fee due fiom him.
Provided that such excess shall first be applied towards the recovery of any amount due in respect ofwhich a notice under Section 18 has been served and thereafter the balance, ifany, shall be re@nded.
24. Insertion of new Section 22A and 22B in NagalandAct 4 of 1968:
In the Principal Act, after Section 22, the following shall be inserted as Section 22A and 22B, namely: