Section 6(1) in Punjab General Sales Tax (Deferment and Exemption) Rules, 1991
(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.]
