Payment and recovery of tax (1) The tax admittedly payable shall be deposited within the time prescribed or by the thirty-first day of August, 1975, whichever is later failing which simple interest at the rate of [fourteen per cent per annum] shall become due and be payable on the unpaid amount with effect from the day immediately following the last date prescribed or till the date of payment of such amount, whichever is later and nothing contained in section 7 shall prevent or have the effect of postponing the liability to pay such interest.
Explanation: For the purposes of this sub-section, the tax admittedly payable means the tax which is payable under this Act on the turnover of sales or, as the case may be, the turnover or purchases, or of both, as disclosed in the accounts maintained by the dealer, or admitted by him in any return or proceeding under this Act, whichever is granted, or, if no accounts were maintained then according to the estimate of the dealer and includes the amount payable under section 3B or sub-section (6) of section 4B.
(1A) The tax assessed under this Act shall be deposited in the manner specified in, and within thirty days of the service of the notice of assessment and demand.
Ic9560(1B) If the tax (other than the tax admittedly payable to which sub-section (1) applies) assessed, reassessed or enhanced by any authority or court remains unpaid for three months after expiration of the period specified in the notice of assessment and demand simple interest at the rate of 4 [one per cent] per mensem on the unpaid amount calculated from the date of such expiration shall become due and be payable:
(1BB) If the tax, assessed under this Act is enhanced in reassessment or otherwise by any authority, tribunal or court, the dealer shall also be liable to pay simple interest at the rate specified in sub-section (1-B) on the unpaid amount of the enhanced tax from the date of expiration of the period specified in such notice of assessment and demand already served on the dealer under sub-section (1A) and it shall not be necessary to give a fresh notice of assessment and demand with respect to the enhanced tax and it shall be deemed that the tax so enhanced was assessed in the order of assessment made for the first time.]
PROVIDED that the amount of interest under this sub-section shall be recalculated if the amount of tax is varied on appeal or revision or by any order of a competent court or authority.
(1C) The amount of interest payable under sub-section (1), (1A) (1B), (1BB), (1C), (2) shall be without prejudice to any other liability or penalty that the dealer may incur under this Act or under any other law for the time being in force, and shall be added to the amount of tax and be also deemed for all purposes to be part of the tax.
(2) Where realisation of any tax remained stayed by any order of any court or authority and such order of stay is subsequently vacated, the interest referred to in sub-section (IB) shall be payable also for any period during which such order remained in operation.
(2-A) Notwithstanding anything contained in sub-sections (1), (1A), (IB), (1C) or (2) the Commissioner may, on the application of a manufacturer within such time and in such manner as may be prescribed grant in lieu of exemption, under section 4A, moratorium for payment of the admitted tax subject to such conditions as may be prescribed. The Commissioner may withdraw any such moratorium in the circumstances in which it could have withdrawn the exemption under section 4A, but no such withdrawal shall be made with retrospective effect:
PROVIDED that on and after commencement of the Uttar Pradesh Trade Tax (Amendment) Act, 1997, the Commissioner may on the application of a manufacturer having a small scale industry the date of starting production of which falls on or after April 1,1990, grant in lieu of exemption under section 4A, moratorium for payment of the admitted tax and the provision of Rule 43 of the Uttar Pradesh Trade Tax Rules, 1948 as amended by the Uttar Pradesh Trade Tax (Second Amendment) Rules, 1993 shall apply for granting such moratorium.
Ic9560(2-B) Notwithstanding anything contained in any other provision of this Act and Rules made thereunder, the State Government may grant moratorium from payment of the admitted tax to a power project industrial unit, subject to such conditions as may be prescribed.]
(3) Notwithstanding anything contained in any law or contract to the contrary, 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
(a) any person from whom any amount is due or may become due to the dealer, or (b) any person who holds or may subsequently hold money for or on account of the dealer, to pay the assessing authority
(i) forthwith upon the money becoming due or being held, or (ii) at or within the time specified in the notice not being 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 or other dues under this Act, or the whole of the money when it is equal to or less than that amount.
Explanation: For the purpose of this sub-section, the amount due to a dealer or money held for or on account of a dealer by any person shall be computed after taking into account such claim, if any, as may have fallen due for payment by such dealer to such person and as may be legally subsisting.
(4) The assessing authority may at any time or from time to time amend or revoke any such notice.
(5) Any person making any payment in compliance with notice under sub-section (3) 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 dealer to the extent of the amount referred to in the receipt.
(6) Any person discharging any liability to the dealer after receipt of the notice referred to in sub-section (3) shall be personally liable to the assessing authority to the extent to the liability discharged or to the extent of the amount mentioned in such notice, whichever is less.
(7) Where a person, to whom a notice under sub-section (3) is sent, proves to the satisfaction of the assessing authority that 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, as the case may be, to the assessing authority.
(8) Any tax or other dues payable to the State Government under this Act, any amount of money which a person is required to pay to the assessing authority under sub-section (3) or for which he is personally liable to the assessing authority under sub-section (6) shall, notwithstanding anything contained in any other law for the time being in force and subject to any special or general order of the State Government, be recoverable as arrears of land revenue, or in the prescribed manner by the assessing authority or any other officer authorised by the State Government in that behalf and such authority or officer shall, for the purposes of such recovery
(i) have all the powers which a civil court has under the Code of Civil Procedure, 1908 for the purpose of recovery of an amount due under a decree;
(ii) have the power to require the assessing authority or such authorised officer, having jurisdiction in any other area to make such recovery if the defaulter is or has property within the area of such other assessing authority or officer, and thereupon such other assessing authority or officer shall proceed to make recovery in prescribed manner.
(9) Notwithstanding anything contained in sub-sections (1) and (1A) and notwithstanding any judgment, decree or order of any court, Tribunal or other authority, where any notice of assessment and demand in respect of any tax or other dues under this Act, is served upon a dealer by an assessing authority and an appeal, revision or other proceeding is filed in respect of such tax or dues then
(a) where as a result of such appeal, revision or other proceeding the amount of such tax or other dues is enhanced, the assessing authority shall serve upon the dealer a fresh notice only in respect of the amount by which such tax or other dues are enhanced, and any proceeding in relation to the amount specified in the notice already served upon him before the disposal of such appeal, revision or other proceedings may be continued from the stage at which it stood immediately before such disposal;
(b) where as a result of such appeal, revision or other proceeding the amount of such tax or other dues is reduced
(i) it shall not be necessary to serve upon the dealer a fresh notice but only the reduced amount shall be realised;
(ii) if any recovery proceedings are pending before any officer or authority other than the assessing authority, the assessing authority shall intimate such reduction to such officer or authority;
(iii) any proceeding initiated on the basis of the notice or notices served upon the dealer before the disposal of such appeal, revision or other proceedings, including any recovery proceedings, may be continued in relation to the amount so reduced from the stage at which it stood immediately before such disposal;
(c) no fresh notice shall be necessary in any case where amount of the tax or other dues is not enhanced (with reference to the amount assessed by the assessing authority) as a result of such appeal, revision or other proceedings.
(10) Any amount paid or deposited by, or recovered from, or refundable to a dealer under the provisions of this Act, shall first be adjusted towards the principal amount of tax, fee, penalty or other dues outstanding against him and the excess, if any, shall then be adjusted towards the interest, if any, due from him.
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