Section 38(1) in The M.P. Vanijyik Kar Adhiniyam, 1994
(1)Notwithstanding anything contained in Section 32 or any law or contract to the contrary, the Commissioner or any officer other than an Inspector appointed under Section 3, may at any time or from time to time, by notice in writing, a copy of which shall be sent to the dealer or person, at his last address known to the officer issuing the notice, require-(a)any person from whom any amount is due or may become due to a dealer or person who has failed to comply with a notice of demand for any amount due under this Act;(b)any person who holds or may subsequently hold any money for or on account of such dealer or person,to pay to the Government under this sub-section, either forthwith or upon the money becoming due or being held, or at 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 due from the dealer or person in respect of the arrears of the tax, interest and penalty under this Act or the whole of the money when it is equal to or less than that amount.Explanation. - For the purpose of this sub-section the amount due to a dealer or person or money held for or on account of a dealer or person, by any person shall be computed after taking into account such claims, if any, as may have fallen due for payment by such dealer or person to such person and as may be lawfully subsisting.
