(1) The tax assessed or any other amount demand under this Act shall be paid in such manner and in such installments, if any, and within such time, as may be specified in the notice of demand, not being less than twenty one days from the date of service of the notice. If default is in paying according to the notice of demand, the whole of the amount outstanding on the date of the default shall become immediately due and shall be a charge on the properties of the person or persons liable to pay the tax or other amount under this Act:

Provided that the time limit of twenty one days for a notice under this Sub-section shall not apply to casual traders.

(2) Any tax assessed or any other amount due under this Act from a dealer or other person may, without prejudice to any other mode of recovery, be recovered.

(a) as if it were an arrear of land revenue:

(b) on application to any Magistrate, by such Magistrate, as if it were a fine imposed by him:

Provided that no proceedings for such recovery shall be taken or continued as long as such dealer or other person has, in regard to the payment of such tax or other amount, as the case may be, complied with an order by any of the authorities to whom he has appealed or applied for revision, under the provisions of this Act.

(3) If the tax or any other amount assessed or due under this Act is not paid by any dealer or any other person within the time prescribed therefore in this Act or in any rule made thereunder and in other cases within the time specified therefor in the notice of demand, the dealer or the other person, shall pay simple interest at the rate of twelve per cent per annum on the tax or other amount defaulted.

(3A) Where any dealer has failed to include any turnover or taxable turnover of his business or to pay the tax due thereon on the taxable turnover in any return filed or where any turnover or tax due has escaped assessment, interest under sub-section (3) shall accrue on the tax due on the turnover with effect from such date on which the tax due would have fallen due for payment, had the dealer included the same in the return relating to the period to which the turnover or tax, as the case may be, relates.

(3B) (i) Where, as a result of any order in appeal or revision or in any other proceeding, the tax or any other amount due under this Act is finally settled, the interest leviable under Sub-section (3) shall be on the amount as finally settled and the period during which the collection of tax or other amount is stayed by any Court or any other authority shall not be excluded in computing the period for calculating interest under the said Sub-section.

(ii) For the removal of doubt it is hereby clarified that the provisions of Clause (i) of this Sub-section shall apply to all tax and other amount pending payment as on the 1st day of April, 1994.

(4) Where, as a result of any order in appeal or revision or any rectification under Section 43, any dealer or other person is not liable to pay the tax assessed or any other amount, the levy of interest for the non-payment of such tax or other amount shall be canceled and if any amount of such interest has been collected, it shall be refunded to the dealer or other person as the case may be.

(5) Where, as a result of any order in appeal or revision or any rectification under Section 43, any tax assessed or any other amount due from any dealer or other persons has been reduced, the interest levied for the non-payment of such tax or other amount shall be proportionately reduced and if any amount of interest in excess of such reduced interest has been collected, such excess shall be refunded to the dealer or other person, as the case may be.

(6) The provisions of Sub section (4) and (5) shall so far as may be, apply, in respect of interest levied for the non-payment of tax provisionally assessed which has been reduced in part or in full as a result of final assessment.

(7) The provisions of the Kerala Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1967 (23 of 1967), shall apply for all proceedings in relation to the recovery of any amount due under this Act.