Recovery of tax and other dues payable under the Act from persons from whom money is due to the dealer

(1) The assessing 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 address known to the assessing authority) require any person from whom money is due or may become due to the dealer , or any person who holds or may subsequently hold money for, or on account of the dealer , to pay to the assessing authority either forthwith if the money has become due or is so held, or within the time specified in the notice (but not before the money becomes due or is held), so much of the money as is sufficient to pay the amount due by the dealer in respect of *(arrears of tax, interest, penalty or fee) or the whole of the money when it is equal to or less than that amount. NOTE: "The bracketed words were substituted for the words 'arrears of tax, penalty or fee' by Act 18 of 1985,w.e.f.1.7.1985. (2) The assessing authority may, at any time, or from time to time, amend or revoke any such notice or extend the time of 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 and the receipt of the assessing authority shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt. (4) Any person discharging any liability to the dealer 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 to the extent of the liability of the dealer for the amount due under this Act, whichever is less. (5) Where any 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 by him to the dealer or that he does not hold any money for or on account of the dealer , then nothing contained in this section shall be deemed to require such person to pay the sum demanded or any part thereof, to the assessing authority. (5-A) Where any person to whom a notice under sub-section (1) is sent, fails to pay to the assessing authority the sum demanded or any part thereof as required in the said notice, such sum shall be recoverable from such person as if it were an arear of land revenue due from him.) NOTE: Sub-section (5-A) was inserted by Act 5 of 1968 w.e.f. 1.7.1968. (6) The provisions of this section shall be without prejudice to any action that may be taken for the recovery of the money due from the assessee. (17-A. Transfers to defraud revenue void: Where during the pendency of any proceeding under this Act, or after the completion thereof any dealer creates, a charge on, or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever of any of his assets in favour of any other person, with the intention to defraud the revenue, such charge or transfer shall be void as against any claim in respect of any tax, or any other sum payable by the dealer as a result of the completion of the said proceeding or otherwise: Provided that, such charge or transfer shall not be void if it is made- (i) for adequate consideration and without notice of the pendency of such proceeding under this Act or, as the case may be, without notice of such tax or other sum payable by the dealer ; or (ii) with the previous permission of the assessing authority. Explanation: In this section ‘assets ‘means land , building, machinery, plant, shares, securities, and fixed assets in banks to the extent to which any of the assets aforesaid do not form part of the stock in trade of the business of the dealer.) NOTE: Section 17-A was inserted by Act 18 of 1985, w.e.f.1.7.1985. 1[17-B. Provisional attachment of property to protect revenue in certain cases: (1) Where, during the pendency of any proceeding for the assessment of any turnover or for the assessment or reassessment of any turnover which has escaped assessment, the assessing authority is of the opinion that for the purpose of protecting the interest of the revenue it is necessary so to do, he may with the previous approval of the Commissioner, by order in writing, attach provisionally in the prescribed manner any property belonging to the assessee. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1): Provided that the Commissioner may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years.] 1. Section 17-B was ins. by Act No. 25 of 1988 w.e.f.6.9.1988. *[17-C. Special powers of Deputy Commissioner under the Revenue Recovery Act: (1) A Deputy Commissioner shall have the powers of a Collector under the Andhra Pradesh Revenue Recovery Act, 1864 for the purpose of recovery of any amount due under this Act. (2) Subject to the provisions of sub-section (3) all Deputy Commercial Tax Officers shall, for the purposes of recovery of any amount due under this Act, have the powers of the Mandal Revenue Officer under the Andhra Pradesh Rent and Revenue Sales Act, 1839 for the sale of property distrained for any amount due under this Act. (3) Notwithstanding anything contained in the Andhra Pradesh Rent and Revenue Sales Act, 1839, the Deputy Commercial Tax officer in the exercise of the powers conferred by sub-section (2) shall be subject to the control and superintendence of the Deputy Commissioner. *Inserted by Act No.4 of 1989 w.e.f.30.3.1989.