Section 25 in Daman and Diu Value Added Tax Regulation, 2005
25. Requirement of furnishing security.
(1)The Commissioner may, for the purpose of -(a)granting a certificate of registration to a person as a dealer; or(b)making a refund under section 38,require such person to furnish security, for the proper discharge of obligations by him under this Regulation or under the Central Sales Tax Act, 1956 (74 of 1956), for such amount equivalent to the amount which may be prescribed and in the manner and within such time, as may be prescribed.(2)Notwithstanding anything contained in sub-section (1), the Commissioner may increase, reduce or waive the prescribed amount of the security, having regard to -(a)the nature and size of the business activities of the person;(b)the amount of any tax, interest or penalty for which the person may be, or is likely to become, liable at any time under this Regulation;(c)the creditworthiness of the person;(d)the nature of the security; and(e)any other matter which the Commissioner considers relevant.(3)Where the security or additional security furnished by a person is in the form of a surety bond and the surety dies or becomes insolvent, the person shall, within one month of the occurrence of such event, inform the death or insolvency of such surety to the Commissioner and execute a fresh surety bond within three months of such occurrence.(4)Where the surety bond has been executed in favour of a person by another registered dealer and the certificate of registration of such dealer has been either cancelled or he has closed down his business, the person shall furnish a fresh surety as may be prescribed and in the manner as stated in sub-section (3).(5)The Commissioner may, for good and sufficient cause, order the forfeiture of the whole or any part of the security furnished by a person.(6)Where the security furnished by any person is forfeited in whole or is rendered insufficient, he shall furnish a fresh security of the requisite amount or, as the case may be, shall make up the deficiency in such manner and within such period as may be specified.
