(1)Where it appear to the assessing authority to whom an application is made under Section 6 to be necessary so to do for the proper realisation of the tax payable, it may, by an order in writing and for reasons to be recorded therein impose as a condition for the issue of a certificate of registration, a requirements that the tobacconist shall furnish in the prescribed manner and within such time as may be specified in the other such security as may be so specified for all or any of the purposes of this Act.(2)Where it appears to the assessing authority to be necessary so to do for the proper realisation of tax payable under this Act, it may, at any time while such certificate is in force, by an order in writing and for reasons to be recorded therein, require the tobacconist to whom the certificate has been granted, to furnish within such time as may be specified in the order and in the prescribed manner such security or if the tobacconist has already furnished any security in pursuance of an order under this sub-section or sub-section (1), such additional security, as may be specified in the order, for the aforesaid purpose.(3)No tobacconist shall be required to furnish any security under sub-section (1) or under sub-section (2) by the assessing authority unless he has been given a reasonable opportunity of being heard and the amount of security that may be required to be furnished by any tobacconist under either of, or both, the aforesaid sub-sections shall in no case exceed the tax payable, in accordance with the estimate of the assessing authority, on the turnover of receipts of the tobacconist for the year in which such security is required to be furnished.(4)Where the security furnished by a tobacconist under sub-section (1) or sub-section (2) is in the form of a surety bond and any surety dies or becomes insolvent the tobacconist shall, within thirty days of the occurrence of any of the aforesaid events, inform the assessing authority granting the certificate of registration 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 in writing and for sufficient cause, forfeit the whole or any part of the security furnished by a tobacconist for realising any amount payable by the tobacconist under this Act :Provided that no order shall be passed under this sub-section without giving the tobacconist a reasonable opportunity of being heard.(6)Where by reason of an order under sub-section (5) the security furnished by any tobacconist 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)If a tobacconist fails to comply with an order under sub-section (1) or sub-section (2) or with the provisions of sub-section (4) or sub-section (6), the assessing authority may, after affording the tobacconist a reasonable opportunity of being heard, reject the application for registration or if the tobacconist is already registered under this Act, cancel his registration certificate. In the event of rejection of application for registration, or cancellation of the certificate of registration, the tobacconist shall be deemed to have failed to apply for registration.
