25. Payment of tax in advance of assessment on failure to furnish returns

(1) Where any registered dealer fails to furnish any return for any period as required by sub-section (1) of Section 18 and fails to pay the tax payable for such period,

(a) the Commissioner may, if the tax payable by such dealer in a year does not ordinarily exceed ten thousand rupees; and

(b) the Commissioner shall, if the tax payable by such dealer in a year exceeds rupees ten thousand,

require such dealer to pay such tax, in the manner laid down in the following sub-sections, in advance of an assessment which may be made under Section 20.

(2) The amount of tax payable in advance under sub-section (1) shall be computed by the Commissioner as under.

(a) Where a registered dealer has been assessed to tax for any previous year or part thereof, the tax payable in advance shall be an amount which bears to the amount of tax assessed in respect of the latest previous year or part thereof the same proportion as the period for which the tax payable in advance bears to the period for which the latest assessment was made.

(b) Where a registered dealer has not been assessed to tax for any previous year or part thereof but has furnished the return as required by sub-section (1) of Section 18 for any period, the tax payable in advance shall be an amount which bears to the maximum amount of tax payable according to any such return the same proportion as the period for which the tax payable in advance bears to the period for which such maximum amount of tax was payable according to such return.

(c) Where a registered dealer has not been assessed to tax under this Act for any previous year and no returns have been furnished by him for such year or where a registered dealer has no previous year, the tax payable in advance shall be such amount as the Commissioner may determine to the best of his judgment.

(3) After the expiry of the date by which the return has become due, the Commissioner may issue a notice in the prescribed form to a registered dealer who has failed to furnish such return requiring him to pay in the prescribed manner and within the prescribed time the tax payable in advance computed in accordance with sub-section (2).

(4) If any registered dealer who is required under sub-section (3) to pay the tax in advance furnishes the return under sub-section (1) of Section 18 and pays the amount of tax in accordance with the provisions of sub-section (2) of Section 24 on or before the date specified in the notice issued under sub-section (3) or satisfies the Commissioner that the return had already been furnished by him by the date by which it was due, the said notice shall stand cancelled.

(5) The tax payable in advance or any part thereof left unpaid within the time specified in the notice issued under sub-section (3) shall be recoverable as an arrear of land revenue for which purpose the provisions of sub-sections (11) and (12) of Section 24 shall mutatis mutandis apply.

(6) The tax paid under this Section shall be adjusted towards the tax assessed or re-assessed under Section 20.