Section 6C in The Jammu and Kashmir General Sales Tax Act, 1962
6C. [ Furnishing of security for the payment of tax, etc. by a dealer. [Inserted by Act XIII of 1978, Section 7.]
(1)The Commissioner or any officer not below the rank of Deputy Sales Tax Commissioner authorised by him in writing in this behalf, if it appears to him to he necessary so to do, for the proper realisation of the tax, penalty, interest or any other sum levied, under this Act, may impose, for reasons to be recorded in writing, as a condition for issue of a certificate for registration or renewal thereof, a requirement that the dealer shall give security or additional security of an amount in the manner prescribed by the rules for the payment of the aforesaid amounts for which he may be or become liable under this Act.](2)[ Where it appears necessary to the authority so to do for proper realisation of tax payable under this Act, he may, at any time while certificate of registration is in force, by an order in writing and for reasons to be recorded therein, require the dealer to whom the certificate has been granted, to furnish within such time as may be specified in the order such security or if the dealer has already furnished any security under sub-section (1), such additional security as may be specified in the order.] [Inserted by Act XVIII of 1988, Section 4.](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.]
