12. Payment and recovery of tax

(1) The amount of any tax or interest assessed and penalty imposed under this Act by any authority shall be paid by the assessee in the manner prescribed by such date as may be specified in the notice of manner prescribed by such date as may be specified in the notice of demand served upon the assessee and the date to be specified shall not demand served upon the assessee and the date to be specified shall not be less than fifteen days but not more than thirty days from the date of service of such notice:

Provided that the prescribed authority, may, in the manner and subject to such conditions, as may be prescribed, in respect of any assessee, for reasons to be recorded in writing, extend the date of payment, specified in the notice of demand, or allow such importer to pay the amount due by instalments against an adequate security, subject to payment of interest for the extended period/ period of instalments till the actual date of payment at the rate specified in sub-section (5) of section 9.

(2) The amount of any tax, interest and penalty imposed under this Act, which remains unpaid after the due date shall be recoverable as arrears of land revenue.

(3) Notwithstanding anything contained in the proviso to subsection (1), if the amount specified in any notice of demand whether as tax or penalty is not paid within the time specified therein from the date of service of the notice, the importer shall be liable to pay simple interest on such amount for the period beginning with the day following the last date for making payment and ending with the date of payment  (inclusive), calculated at the rate of two per cent per month for the first twelve months and at the rate of three per cent per month for the remaining period. The period during which recovery of any amount remained stayed by order of any competent authority or court, shall not be excluded for the purpose of calculation of interest:

Provided that where any order of assessment of tax or penalty is modified, amended or rectified by order of any court or competent authority, the interest shall be charged on the amount ultimately found due.

(4) Where during the pendency of any proceedings under this Act, any person liable to pay any tax or other dues creates a charge on, or transfers, any immovable property belonging to him in favour of any other person with the intention of defrauding the State of any such tax or other dues, such charge or transfer shall be void as against any claim in respect of any tax or other dues payable by such person as a result of the completion of the said proceedings.