(1)The registering authority may, for proper realisation of tax payable under this Act and for enforcement of lawful conduct of any dealer from time to time, demand from a registered dealer or from a dealer who has applied for registration under this Act, a reasonable security, or additional security, as the case may be, to be paid in the prescribed manner and if the security so demanded is not paid within such time as ma be specified in the order demanding such security, he may, notwithstanding anything contained in this Act,-(a)If the defaulter happens to be a registered dealer, cancel the certificate of registration granted to him; or(b)If the defaulter is a dealer who has applied for registration, refuse to grant him such registration:Provided that no such cancellation or refusal shall be made unless the dealer has been given a reasonable opportunity of being heard.
