38. Liability for payment of tax or demand

(1) The tax or the demand shall be payable by a dealer or a person on the basis of an assessment or an order passed, under this Act.

Explanation I.– The interest, penalty, or any sum payable under this Act shall be deemed to be tax for the purpose of collection, recovery and for all matters ancillary or incidental thereto.

Explanation II.– The demand shall include any amount payable by a person or a dealer under this Act or the rules.

(2) The tax paid by a dealer or a person shall be adjusted against the tax determined as a result of an assessment or the amount held payable in pursuance of an order passed, under this Act and the balance of the amount shall be payable by such dealer or person within thirty days from the date of service of the notice, or within a period of less than thirty days, as may be determined by the Assessing Authority or auditor or any other authority authorised by the Commissioner in the special circumstances and for reasons to be recorded in writing.

(3) In default of the payment of tax or demand payable under sub–section (1) or sub– section (2), the amount of tax or demand shall be recoverable in accordance with the provisions of this Act including the provisions of the Rajasthan Land Revenue Act, 1956 (Act No.15 of 1956) and the Revenue Recovery Act, 1890 (Central Act No.1 of 1890).

(4) Where a dealer or a person has filed an appeal to the Appellate Authority against an order passed by an assessing authority or any other officer, the said Appellate Authority may, after registering such appeal and after having heard the appellant and the assessing authority or officer or any representative thereof, stay the recovery of the disputed amount of tax or demand or any part thereof for a period of six months from the date of such order or till the disposal of the appeal, whichever is earlier, on the condition that the said dealer or the person furnishes sufficient security to the satisfaction of, the Assessing Authority or the officer, as the case may be, in such form and in such manner as may be prescribed. However, the appellate authority may for reasons to be recorded in writing continue such stay beyond the aforesaid period of six months for a further period not exceeding six months:

"Provided that where an application for stay is not disposed of within a period of thirty days from its filing and the delay is not attributable to the applicant, the same shall be deemed to have been accepted subject to the condition that such dealer or person furnishes sufficient security to the satisfaction of the Assessing Authority or the officer, as the case may be, in such form and in such manner as may be prescribed:"

"Provided further that no security under this section shall be required to be furnished by a department of the Central Government or the State Government or a public sector undertaking, corporation or company owned or controlled by the Central Government or the State Government.”

(5) The assessing authority may, subject to such conditions and restrictions as may be prescribed, in respect of any particular dealer or person and for reasons to be recorded in writing, extend the date of such payment and allow such dealer or person to pay any demand in installments on the condition that the said dealer or the person furnishes sufficient security to the satisfaction of assessing authority.

(6)(a) Where the recovery of tax or demand or any part thereof is stayed under sub– section (4), the amount of such tax or demand ultimately found due shall be recoverable with interest as per provisions of this Act, and such interest shall be payable on such amount from the date the tax or demand first became due.

(b) Where the payment of tax or demand is postponed by installments under sub–section (5), the dealer or the person shall be required to pay interest for the amount postponed and the period extended in accordance with the provisions of this Act.

(a) on the recommendation of the State Government defer the recovery of demand payable by an industrial unit declared as sick by the Board of Industrial and Financial Reconstruction constituted under the Sick Industrial Companies (Special Provisions) Act, 1985 (Central Act No. 1 of 1986) to such extent, for such period and on such conditions with regard to the payment or rate of interest as may be deemed proper;

(b) after having conducted such enquiry as he deems necessary and after recording his reasons for so doing, permit deferment of payment of tax arrears for a maximum period of three years and thereafter, order recovery thereof in sixty monthly installments in case of such sick industrial units and such industrial units facing incipient sickness as may be specified by the Committee constituted for the purpose by the State Government.