19. Collection and incidence of duty under section 17.
The following persons shall be accountable for the duty payable on the death of the deceased by virtue of section 17, namely:--
any person (other than a bona fide purchaser for full consideration in money or money' s worth received by the company for its own use and benefit) who receives, whether directly from the company or otherwise, or disposes of, any assets which the company had, whether as capital or as income, at the death or at any time thereafter;
any person who received any distributed assets of the company on their distribution: Provided that a person shall not,--
by virtue of clause (b), be accountable in respect of any assets for any duty in excess of the value of those assets, or
by virtue of clause (c), be accountable in respect of any assets for more than a part of the duty bearing to the whole thereof the same proportion as the value of the distribution of those assets bears to the principal value of the assets of the company passing on the death by virtue of section 17. Explanation.-- For the purposes of this sub- section the expressions" distributed assets" and" assets of the company passing on the death" do not include any distributed assets of the company which the deceased received on their distribution; and a person who, having received any distributed assets of the company, has died before the deceased shall be deemed to have been a person accountable by virtue of clause (c).
Where a company incorporated 1[ outside India] is accountable for any duty by virtue of the preceding sub- section or of this sub- section, every person who is a member of that company at the death shall also be accountable for a rateable part of that duty in proportion to the value of his interest in that company.
A person accountable for any duty by virtue of this section shall, for the purpose of raising and paying the duty, have all the powers conferred on accountable parties.
On a winding up of the company, sub- section (1) of 2[ section 530 of the Companies Act, 1956 (1 of 1956 )], shall have effect as if there were included in clause (a) of that sub- section a reference to any duty
payable in respect of assets of the company passing on a death by virtue of section 1[ 17] of this Act, and 2[ section 123 of the Companies Act, 1956 (1 of 1956 )] shall have effect accordingly.
The duty payable on the death of the deceased by virtue of section 17 shall be a first charge by way of floating security on the assets which the company had at the death or has at any time thereafter, and any part of the duty for which by virtue of clause (c) of sub- section (1) any person is accountable in respect of any distributed assets shall be a first charge also on those assets: Provided that nothing in this sub- section shall operate to make any property chargeable as against a bona fide purchaser thereof for valuable consideration without notice.
Where any duty has been--
paid by a person accountable therefor by virtue only of clause (c) of sub- section (1); or
raised by virtue of sub- section (5) out of any distributed assets charged therewith; that person or, as the case may be, the person who was entitled to those assets subject to the charge, may (without prejudice to any right of contribution or indemnity which he may have apart from this sub- section) recover the amount of the duty so paid or raised as aforesaid from any person who is accountable therefor otherwise than by virtue of the said clause (c).
No part of the duty paid by the company shall be recoverable by it from any person on the ground only that he is entitled to any interest in, or to any sum charged on, the assets which the company had at the death of the deceased.
The provisions of sub- sections (1) and (3) of section 53 shall not have effect in relation to the duty payable by virtue of section 17.