Security in Interest of Revenue

Security in interest of revenue
[(1) * * *] [(1A) * * *] [(2) Where it a appears necessary to the Assessing Authority so to do-- (a) for the proper realisation of any tax, penalty or other sums due or payable under this Act; or (b) for the proper custody or use of forms prescribed under this Act or the Rules framed thereunder; or (c) as a condition for the grant or, as the case may be, renewal or the continuance in effect of a recognition certificate of registration or provisional registration. It may, by an order in writing and for reasons to be recorded therein, direct, before the grant or, as the case may be, renewal of such certificate or at any time while such certificate is in force, that the dealer or the person concerned shall furnish, in the prescribed manner and within such time, as may be specified in the order, such security or, if the dealer or the person concerned has already furnished such security, such additional security, of any nature, as may be specified, for all or any of the aforesaid purposes.] (3) No dealer or the person concerned shall be required to furnish any security or additional security under sub-section (2) by the assessing authority unless he had been given an opportunity of being heard, andthe amount of such security or additional security that may be required to be furnished by any dealer shall in no case exceed the tax payable, in accordance with the estimate of the assessing authority,on the turnover of the dealer for the assessment year in which such security is required to be furnished.
(4) Where the security furnished by a dealer or the person concerned under sub-section (2) is in the form of surety bond and any surety dies or becomes insolvent, the dealer or the person concerned shall, within thirty days of the occurrence of any of the aforesaid events, inform the assessing authority granting the certificate under section 4B or sections 8A and 8B or issuing the forms referred to in clause (b) of sub-section (2), as the case may be, and shall within ninety days of such occurrence furnish a fresh surety bond or furnish in the prescribed manner other security for the amount of the bond.
(5) The assessing authority may, by order and for good and sufficient cause, forfeit the whole or any part of the security furnished by a dealer or the person concerned
(a) for realising any amount of tax, penalty or other amount payable by the dealer or the person concerned; or (b) if the dealer or the person concerned is found to have misused any of the forms referred to in sub-section (2) or to have failed to keep them in proper custody:
PROVIDED that no order shall be passed under this sub-section without giving the dealer or the person concerned an opportunity of being heard.
(6) Where by reason of an order under sub-section (5) the security furnished by any dealer or the person concerned is rendered insufficient, he shall make up the deficiency in such manner and within such time as may be directed by the assessing authority.
(7) The assessing authority may
(a) refuse to grant or, as the case may be, renew the recognition certificate or the certificate of registration or provisional registration; or (b) suspend any such certificate already issued; or (c) refuse to issue any of the forms referred to in sub-section (2) or sub-section (3A);
to any dealer or the person concerned, who has failed to comply [* * *] with an order under sub-section (2) or sub-section (3A), or with the provisions of sub-section (4) or sub-section (6) until the dealer or the person concerned has complied with such order or such provisions, as the case may be:
PROVIDED that no order under clause (a) or clause (b) above, shall be passed without giving the dealer or the person concerned an opportunity of being heard.
(8) The assessing authority may, on application by the dealer or the person concerned, order the return of the surety bond or refund any amount or part thereof deposited by way of security by the dealer or the person concerned under this section or under section 10 if it is not required for the purposes of this Act.
(9) An appeal under section 9 shall lie against an order passed under this section.
(10) Any person aggrieved by an order of the appellate authority may, within ninety days of the service of the order on him but after furnishing the security, file an appeal under section 10.
(11) The provisions of this section shall mutatis mutandis apply in relation to security required to be furnished under the order of any authority under this Act or the court.