Deposit of security by proprietor

(1) The Commissioner may require the proprietor of any permanent cinema premises to pay as tax under sub-section (1) of section 3 of the Act and keep available in a Government Treasury an amount not exceeding five hundred rupees as security pledged with him. (2) The Commissioner may forfeit the whole or any part of this security if he is satisfied that sums due from the proprietor under this Act cannot be recoverable otherwise. (3) The Commissioner shall, if he is satisfied that the proprietor of any cinema premises who has deposited any security under sub-section (1) has ceased to carry on the business of exhibiting cinematograph films and that nothing is due from him under this Act or the rules thereunder, refund the security to the proprietor or his legal heirs.