Section 14AC: Bar on operations of bank accounts

[14AC. Bar on operations of Bank Accounts. – (1) This section shall apply– (a) where the Commissioner has reasons to believe that a person is engaged in supply of taxable goods without having registration under this Act; (b) the Commissioner has provided three consecutive opportunities of being heard to the person to obtain registration under this Act; and (c) the person has failed to obtain registration. (2) Notwithstanding anything contained in this Act or any other law for the time being in force, the Commissioner shall have the powers to direct banking companies, scheduled banks and other financial institutions, through an order in writing, to intermittently suspend operation of the bank account of such a person for three working days. (3) The Commissioner shall, if the contravention continues under sub- section (1), repeat suspension specified in sub-section (2), for two more times with an interval of one week between the suspensions. (4) The Commissioner shall, if the contravention under sub-section (1) continues after his order under sub-section (3), direct the banking companies, scheduled banks and other financial institutions, through an order in writing to permanently bar operation of the bank accounts of the person. (5) Upon registration of such person, the Commissioner shall issue and convey order for removal of bar on operation of his bank accounts not later than two working days. (6) Any person, aggrieved by any decision or order passed under this section, may within thirty days of the date of receipt of such decision or order prefer an appeal before the Chief Commissioner Inland Revenue. (7) The provisions of this section shall come into force on such date as the Board may notify in the official Gazette.

Effective date: 1990-11-01

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