Section 7B in The Central Sales Tax (Punjab) Rules, 1957
7B.
(1)The security referred to in sub-section (2-A) or sub-section (3-A) of Section 7 of the Act may be furnished in the following manner, namely :-(a)If the Assessing Authority has ordered the deposit of security in cash, the dealer concerned shall deposit the requisite amount in appropriate Government Treasury under the head "XII-Sales Tax" and furnish the treasury or bank receipt to the Assessing Authority concerned.(b)If the Assessing Authority has ordered the deposit of the amount of security in the Post Office, the dealer shall deposit the amount in the Post Office, the amount being pledged to the Assessing Authority concerned, and deposit the Post Office Savings Bank Pass Book with him.(c)If the Assessing Authority has ordered the dealer to furnish bank guarantee for the amount of the security, the dealer shall furnish to the Assessing Authority concerned bank guarantee from a scheduled bank agreeing to pay to the State Government on demand the amount of security involved.(d)If the Assessing Authority has ordered the dealer to furnish personal bond for the amount of the security, the dealer shall execute personal bond in Form-III appended to these rules, on a non-judicial paper of the appropriate value with two solvent sureties for the amount involved acceptable to the Assessing Authority concerned and furnish it to him.(2)The security furnished shall be maintained in full so long as registration certificate continues to be in force. The Assessing Authority may demand, for sufficient reasons, at any time additional security if he has reason to believe that the amount already determined is inadequate.(3)In the event of default in payment of any tax or penalty due under the Act or misuse or improper custody of the forms referred to in clause (a) of the first proviso to sub-section (2) of Section 6 or sub-section (1) of Section 6-A or clause (a) of sub-section (4) of Section 8 of the Act, the security furnished by the dealer shall be liable to adjustment towards such tax or penalty or forfeited under the intimation to him and shortfall in the amount of security shall be made up by the dealer within a period of 30 days from the date of the said intimation.
