Section 7A in Himachal Pradesh Motor Vehicles Taxation Act, 1972
7A. [Owner To Furnish Security.] [Inserted vide H.P.Motor Vehicle Taxation(Amendment) Act, 1999.]
(1)Where such an owner makes a default in the payment of tax [or penalty] [Inserted vide H.P.M.V.T.(Amendment) Act, 2002.] under this Act, for a continuous period of two months or more, the taxation authority, for the proper realization of the tax [or penalty] [Inserted vide H.P.M.V.T.(Amendment) Act, 2004.] levied under this Act, shall, after giving opportunity of being heard, require any owner of the motor vehicle to deposit as security [a sum equal to the amount of tax or penalty due from him] [Inserted vide H.P.M.V.T.(Amendment) Act, 2004.], in the manner prescribed.(2)Where the security furnished by an owner of a motor vehicle under sub-section (1) is in the form of surety bond and the surety becomes insolvent or is otherwise incapacitated or dies or the surety withdraws, such owner shall, within fifteen days of the occurrence of any of the aforesaid events, inform the taxation authority and shall within thirty days of such occurrence, furnish a fresh surety bond.(3)The taxation authority, may by an order in writing for good and sufficient cause and after giving the owner a reasonable opportunity of being heard, forfeit the whole or any part of the security furnished by such owner for realizing any amount of tax, interest or penalty payable by him under this act.(4)Where by reason of an order under sub-section (3), the security furnished by such owner is rendered insufficient; he shall make up the deficiency in such manner and within such time as may be prescribed.(5)The taxation authority may, on an application by such owner, release the security furnished by him or any part thereof, if the same is no longer required to be retained for the purposes of this Act.(6)[ Where an owner makes default in the payment of tax or penalty under this Act, for a continuous period of two months or more and makes a request to allow him to deposit the tax and penalty due, in installments, the taxation authority may after obtaining surety bond equal to the amount of tax or penalty due from him, allow such owner to deposit the outstanding tax and penalty thereon, in six monthly installments, subject to the condition that such owner deposits twenty five percent of the amount of tax and penalty due, immediately as the first installment."] [Inserted vide H.P.M.V.T.(Amendment) Act, 2004.]
