Security to be furnished in certain cases

(1) The prescribed authority may, at the time of granting of certificate to a dealer, for good and sufficient reasons to be recorded in writing, require the dealer to furnish in the prescribed manner such security as may be specified by it for securing proper and timely payment of tax or any other sum payable by him under this Act. (2) The prescribed authority may, by order in writing and for good or sufficient reason to be recorded therein, demand from any person who imports into Sikkim any consignment of goods, a reasonable security for ensuring that there is no evasion of tax. (3) The prescribed authority may, by order in writing and for good or sufficient reason to be recorded therein, forfeit the whole or any part of the security or additional security referred to in sub-section (1) or sub-section (2), furnished by a dealer, registered dealer, undertaking or person as required by sub-section (1) or demanded under sub-section (2), for— (a) realizing or recovery of tax or any other sum due, or (b) recovery of any financial loss caused to the State Government due to negligence or default in not making proper use of, or not keeping in safe custody, blank or unused forms of declaration. (4) Where, by reason of any order under sub-section (3), the security furnished by a dealer, registered dealer, undertaking or person is forfeited in whole or is rendered insufficient, such dealer, registered dealer, undertaking or person shall, on demand by order of the prescribed authority, furnish fresh or further security of the requisite amount or shall make up the deficiency, as the case may be, in such manner and within such period as may be specified in such order. (5) The prescribed authority may, on application by a dealer, undertaking or person, who has furnished security as required by sub-section (1) or demanded under sub-section (2), refund in the prescribed manner any amount of security or part thereof if such security is not required for the purposes for which it was furnished. (6) Any security required by sub-section (1) or demanded under sub-section (2) shall be furnished by a dealer, registered dealer, undertaking or person in such manner and by such time as may be specified in the order requiring to furnish or demanding such security. (7) No order shall be passed under this section without giving the dealer, registered dealer, undertaking or person an opportunity of being heard.