27. Payment of Tax, Interest and Penalty

(1) A notice of demand under sub-section (2) of section 39 and sub-section (3) of section 25 shall be in Form N-VIII and notice under sub-section (3) of section 43 shall be in Form N-IX.

(2) Every dealer or any other person required to pay any tax or interest or penalty under the Act shall pay the amount of tax or interest or penalty into Government Treasury, or any Bank authorised by the Commissioner in this behalf, by Challan in Form CH-I:

Provided that if the circle incharge is satisfied that a dealer has been and is maintaining adequate funds in his bank account he may permit him to pay the amount of tax or interest or penalty, if any, through a crossed cheque drawn on a bank functioning at the place where the Government Treasury is situated or to any Bank to be specified by the Commissioner. Such permission may, at any time, be revoked without assigning any reason.

Provided further that where a dealer is permitted to pay the amount of tax or interest or penalty, as the case may be, by a crossed cheque or crossed bank draft such cheque or draft, shall be drawn by the dealer in favour of the Deputy Commissioner or the Assistant Commissioner or the Commercial Taxes Officer in charge of the circle, as the case may be, to which the payment relates. Where the cheque or draft is on a bank other than a branch of the Reserve Bank or the State Bank of India it or the Bank authorised in this behalf shall also include an additional amount equal to the actual collection charges, if any.

Explanation: For the purposes of calculating penalty, if any, under the Act and the rules, the date of receipt of cheque or draft, as the case may be, by Bank or the treasury or the Circle concerned, as the case may be, shall ordinarily be deemed to be the date of payment by the dealer, save in the case of a cheque, which is dishonoured.

(3) If the authority specified in rule 62 is satisfied that owing to circumstances beyond the control of a dealer, he is not in a position to pay the full amount due under sub section (2) of section 39, he may, on application from the dealer and for reasons to be recorded in writing, permit the dealer to pay the amount due in installments, if the dealer agrees to pay an amount which is not less than one-third of the amount payable on the date of the application.

Provided that, such installments shall not ordinarily extend beyond the expiry of a period of twelve months from the date of receipt of the application.

(4) (a) The Bank authorised to receive payments under sub rule (2) shall forward to the Circle Incharge a list of all payments received along with such other documents directed by Commissioner in this behalf each day by the end of next following day.

(b) The list referred to in clause (a) shall also be posted by the bank on the web-site of the department when so required.

(5) Notwithstanding anything contained in sub-rule (1), the Commissioner may, by a notification issued in this behalf empower any authority appointed under section 10 for the purpose of receiving payment of tax or interest or penalty in cash. Such order shall be subject to such conditions and restriction as may be imposed by the notification.

(6) The challan in Form CH-I shall be filled up in five copies. The portion of the challan marked “Original” shall be sent by the Treasury Officer to the concerned circle incharge. The portion of the challan marked “Duplicate” shall be retained by the treasury and the portion marked “Triplicate” and “Quadruplicate” shall be returned to the dealer or the taxpayer after being duly receipted. The dealer or the taxpayer shall retain the portion marked “Triplicate” and shall furnish the portion marked “Quadruplicate” along with his return to the authority specified in rule 62. The copy marked “For Circle” shall be forwarded by the Bank to the circle incharge.

(7) The Commissioner may by an order provide for the acceptance of any payment of any tax or interest along with return or penalty, directly by any branch of the State Bank of India or of any other Nationalised Bank or of any other Bank authorized in this behalf. The manner in which such payment shall be made or the challan to be submitted by a dealer or accepted by the Branch of the Bank and other matters incidental thereto shall be as specified in the order and be subject to such conditions and restrictions as may be laid down therein.