Section 6C(3) in The Jammu and Kashmir General Sales Tax Act, 1962
(3)[ The authority granting the certificate of registration may by order and for good and sufficient reasons forfeit the whole or any part of the security furnished by a dealer for realising any amount of tax, penalty, interest or any other sum payable under this Act :Provided that no order shall be passed under this sub-section without giving the dealer an opportunity of being heard] [Rememberedby Act XVIII of 1988, Section 4.]:[Provided further that the security or additional security shall he refundable in the following manner when reasons for its demand no longer exist(a)if the security has been remitted by cash into the treasury it shall be refundable in the same manner as prescribed for refund of tax or penalty under section 10 of this Act; or(b)if the security is in any other prescribed mode, the competent authority under sub-section (1) shall order its release.]
