(1) The Commissioner may, after considering the recommendation of the Controller, State Accounts Department, and after taking the explanation of the person concerned, or making such further enquiry, as he may consider necessary, disallow any item which appears to him to be contrary to law and surcharge the same on the person making, or authorising the making of the illegal payment; and may charge against any person responsible therefor the amount of any deficiency or loss caused by the negligence or misconduct of that person, or any sum received which ought to have been but is not brought into account by that person and shall, in every such case, certify the amount due from such person.

(2) The Commissioner shall state in writing the reasons for his decision in respect of every surcharge or charge and shall send by registered post a copy thereof to the person against whom it is made.

(3) If a person to whom a copy of the Commissioner's decision is sent under sub-section (2) refuses to take delivery thereof he shall be deemed to have duly received it on the day on which it was refused by him.