51. Special mode of recovery.

(1) Notwithstanding anything contained in section 50 or 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 ,require-

(a) any person from whom any money is due or may become due to a dealer, who has failed to comply with a notice served under sub-section (4) or sub-section (5) of section 50 or has failed to pay any interest due from him under this Act ; or

(b) any person who holds or may subsequently hold any money for or on account of such dealer, to pay into Government Treasury in the manner specified in the notice issued under this sub-section either forthwith or upon the money becoming due or being held , or 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 of tax due from the dealer with the interest or penalty or both , as the case may be, as payable under this Act or the whole of the money when it is equal to or less than that amount.

(2) The assessing authority may, at any time or from time to time, amend or revoke any notice issued under sub-section (1) or extend the time for making the payment in pursuance of such notice.

(3) Any person making any payment in compliance with a notice issued under sub-section (1) shall be deemed to have made the payment under the authority of the dealer and the receipt from the Government Treasury shall constitute a good and sufficient discharge of the liability of such person to the dealer to the extent of the amount specified in the receipt.

(4) Any person discharging liability to the dealer after service on him of the notice issued under sub-section (1) shall , if the liability is discharged in any manner other than that required under the said notice , be personally liable to the Government to the extent of the liability so discharged or to the extent of the liability of the dealer for the tax due under this Act alongwith the interest or penalty or both, as payable, whichever is less.

(5) Where a person on whom a notice is served under sub-section (1) proves to the satisfaction of the assessing authority that the money demanded or any part thereof was not due to the dealer or that he did not hold any money for or on account of the dealer, at the time the notice was served on him, or that the money demanded or any part thereof is not likely to become due to, or to be held for or on account of, the dealer, nothing contained in this section shall be deemed to require such person to pay into Government Treasury any such money or part thereof , as the case may be.

(6) Any amount of money which a person is required to pay under sub-section (1) or for which he is personally liable to the Government under sub-section (4) shall , if it remains unpaid, be recoverable in the same manner as provided under sub-section (7) of section 50 :

Provided that nothing in this section shall operate to affect any action taken or that may have been taken or prevent any action that may be or is being taken under section 50 for recovery from the dealer the amount due from him.