Section 6 in Punjab General Sales Tax (Deferment and Exemption) Rules, 1991
6. [ Security for availing the benefit of deferment of, or from exemption from the liability to pay tax. [Sub-rule (1) of Rule 6 substituted by Punjab Government Gazttee Legislative Supplement Part II dated 10.7.1995.]
(1)A unit which makes an application under sub-rule (1) of rule 5 for availing the benefit of deferment of the liability to pay tax under the Act shall execute a mortgage deed in Form ST(D & E) IV in favour of the Government thereby creating first charge on the assets of the unit or the applicant shall furnish a bank guarantee of the amount equivalent to fifteen per cent of the total benefit to be availed of in a year and a surety bond in form ST (D and E) VII for the balance amount of eighty-five per cent. The mortgage deed so executed or the bank guarantee, so furnished, shall be valid till the recovery of the entire deferred amount of tax. The bank guarantee if expiring yearly or if furnished on annual basis, shall be renewed two months before the date of its expiry, failing which the unsecured deferred tax, shall become due for payment immediately.](2)The bank guarantee furnished under sub-rule (1) shall remain in force for the period for which the deferment is applied for and in case the entire amount of deferment is not paid within the stipulated period of deferment, the bank guarantee shall be renewed before the date of its expiry, failing which the unsecured deferred tax shall become due for payment immediately.(3)Omitted vide Punjab Government Gazette Legislative Supplement Part III dated 10.7.1995.(4)The prescribed authority shall, after satisfying itself that a unit which has made an application under sub-rule (1) of rule 5 for availing benefit of deferment of, or exemption from the liability to pay the tax under the Act, fulfils all the conditions laid down in the rules for such a benefit and that he has furnished adequate security under these rules and after satisfying itself that the application is in order, shall issue in respect of the unit a certificate in Form ST (D and E) II to that effect.Explanation. - The mortgage deed and the bank guarantee specified in this rule shall be entered in a register to be maintained in Form ST (D and E) III, by prescribed authority and shall be kept in personal custody of the prescribed authority and it shall be handed over to his successor personally against proper receipt and a certified copy of the same shall be sent to the Excise and Taxation Commissioner by name who will acknowledge its receipt.
