6-C. Furnishing of security for the payment of tax etc. by a dealer
(1) The Commissioner or any officer not below the rank of Deputy Sales tax Commissioner authorized by him in writing in this behalf if it appears to him to be necessary so to do, for proper realization 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 amount for which he may be or become liable under this Act.
(2) Where it appears necessary to the authority so to do for proper realization 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.
Provided further that the security or additional security shall be refundable in the following manner when reasons for its demand no longer exist:-
(b) if the security is in any other prescribed mode, the competent authority under sub-section (1) shall order its release.
Provided that no order shall be passed under this sub-section without giving the dealer an opportunity of being heard.