Where any sum is collected or deducted as tax under this Part and deposited in favour of the Government,—

(a) the tax shall be deemed to have been paid by the person from whom the tax is deducted or collected;

(b) in case of such deduction or collection, the person referred to in clause (a) cannot take any legal action against the deducting entity or, as the case may be, the collector, and if any legal action is taken, the deducting entity or, as the case may be, the collector shall be exempted from liability.