Special mode of recovery of tax and other liabilities under this Act
Section 47 of the Bihar Value Added Tax Act, 2005 deals with special mode of recovery of tax and other liabilities under this Act. Notwithstanding anything contained in section 39 or any law or contract to the contrary, the prescribed 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 to the said authority) direct-- (a) any person fro The Act came into force on 23 Jun 2005.
(1) Notwithstanding anything contained in section 39 or any law or contract to the contrary, the prescribed 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 to the said authority) direct--
(a) any person from whom any money is due or may become due to a dealer who has failed to comply with a notice of demand served under section 39; 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 within the time specified in the notice (not being before the money becomes due or it is held) so much of the money as is sufficient to pay the amount of tax due from the dealer, together with interest and penalty, if any, under this Act or the whole of the money when it is equal to or less than that amount.
(2) The authority issuing a notice under sub-section (1) may, at any time or from time to time, amend or revoke any such notice or extend the time for making any payment in pursuance of the 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 any liability to the dealer after service on him of the notice issued under sub-section (1) shall be personally liable to the State Government to the extent of the liability discharged or to the extent of the liability of the dealer for tax, interest and penalty, whichever is less.
(5) Where a person on whom a notice is served under sub-section (1) proves to the satisfaction of the authority which issued the notice 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, nor is the money demanded or any part thereof, likely to become due to the dealer or be held for or on account of the dealer, nothing contained in this section shall be deemed to require such person to pay into the Government Treasury any such money or part thereof, as the case may be.
(6) If any person contravenes any of the provisions of sub-sections (1) and (4) of this section, the prescribed authority shall after giving an opportunity of being heard by an order in writing direct that such person shall pay by way of penalty a sum not exceeding twice the amount payable under sub-section (1).
(7) Any amount of money which a person is directed to pay under subsection (1) or for which he is personally liable to the State Government under sub-section (4), shall, if it remains unpaid, be recoverable as an arrear of land revenue.
(8) No action shall be taken under this section in respect of any amount of tax, interest and penalty, if any, the date of payment of which has been extended or the realisation of which has been stayed under this Act during the period of such extension or stay.
(9) The provisions of this section shall be without prejudice to any action that may be taken for recovery of the arrears of tax, interest and penalty, if any, due from the dealer or person.
Section 47, The Bihar Value Added Tax Act, 2005 (Act 27 of 2005).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… for payment of illegal tax liability including penalty to the tune of Rs. 19,71,68,458.60/- (Nineteen Crores Seventy One Lacs Sixty Eight Thousand Four Hundred and Fifty Eight Rupees and Sixty Paisa). c) For issuance of appropriate writ(s)/ order(s)/ direction(s) for quashing the Notice of Demand under Section 47 of the Bihar Value Added Tax Act, 2005 dated 26.08.2014 issued by the office of Deputy Commissioner Commercial Taxes, Kishanganj Circle, Kishanganj to the Bank of the petitioner i.e. petitioner no. 6 for realization of illegal tax liability including penalty to the tune of Rs. 19,71,68,458.60/- (Nineteen Crores …
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… has prayed for the following relief(s): > "i) To issue an appropriate writ, order or direction in the nature of mandamus commanding the Respondents to refund an amount of Rs.24,55,026/0, along with interest at prime lending rate, which was recovered by the Respondents with respect to year 2007- 2008 under section 47 of Bihar Value Added Tax Act, 2005 by way of attachment of bank account during pendency of the appeal before Joint Commissioner of Commercial Taxes, Tirhut Division against audit objection regarding short payment of VAT. > ii) This Hon'ble Court may further adjudicate and hold that the pursuant to the order dated …
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… Petitioners have prayed for the following relief/s :- "(i) For restraining the respondents or its agent from attaching the personal property or the bank account of the petitioners for the dues of the Registered Dealer M/s. Brijnandan Motors Pvt. Ltd. relating to the commercial taxes contrary to the scheme of Section 47 of the Bihar Value Added Tax Act, 2005 and its rules; (ii) For directing the respondents to withdraw the Notice in Form N-XI bearing Memo No. 50 dt. 22.2.2019 issued to the Petitioner's maintain their savings account by which the bank has been directed to pay a sum of Rs.2,89,52,613/- as tax due payable by the …
Questions about Section 47
What does Section 47 of the Bihar Value Added Tax Act deal with?
Section 47 of the Bihar Value Added Tax Act is headed "Special mode of recovery of tax and other liabilities under this Act". Notwithstanding anything contained in section 39 or any law or contract to the contrary, the prescribed 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 to the said authority) direct-- (a) any person fro
How do I find court cases under Section 47 of the Bihar Value Added Tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Bihar Value Added Tax Act 47, section 47 Bihar Value Added Tax Act, section 47 of the Bihar Value Added Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 47 of the Bihar Value Added Tax Act, and has it changed?
Its own text turns on section 39 (Payment and recovery of tax), so none of them can safely be read on its own. 4 other provisions in this corpus refer back to it.
When did Section 47 of the Bihar Value Added Tax Act come into force?
Section 47 of the Bihar Value Added Tax Act, cited as Bihar Value Added Tax Act 47, came into force on 23 Jun 2005, having been enacted on 23 Jun 2005. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions2082 words
- 93. Power to make rules1896 words
- 56. Production of books of account, inspection, search and seizure1330 words
- 24. Returns, payment of tax, interest and penalty1244 words
- 16. Input tax credit1054 words
- 9. Tribunal1053 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 20 Oct 2026. This page is not a substitute for legal advice.