41. Security for payment of tax pending appeal or revision.-

(1) Where it is provided in the Act, that an appellant or an applicant in revision proceedings, shall furnish security in regard to the payment of tax or fee or other amount, the appellant or applicant, as the case may be, or any person on his behalf shall furnish security as the authority before which the appeal or application is preferred may direct in its discretion. The Security bond shall be in Form-HH with suitable modification, wherever necessary.

(2) Where it is provided in the Act that an appellant or an applicant in revision proceedings shall furnish security in regard to the payment of tax or fee or other amount, the appellant or applicant or any person on his behalf shall furnish property security, along with a security bond in Form-HH or a bank guarantee in Form-G as the authority before which the appeal or application is preferred may, in its discretion, direct. Where an appellant or an applicant in revision proceedings or any person on his behalf furnishes immovable property as security, he shall mortgage such property to the Government by deposit of title deeds in any town which has been notified under sub-section (f) of section 58 of the Transfer of Property Act, 1882 (Central Act IV of 1882) and the security bond in Form-HH shall be registered in the appropriate Sub-Registrar's Office. The security bond or the bank guarantee, as the case may be, shall be filed in duplicate, the original of which shall bear appropriate adhesive non-judicial stamps or Court fee stamps. This security bond in Form-HH will cease to have effect from the date of receipt of the appellate or revisional orders by the appellant or applicant or petitioner in case the appeal / application / revision is fully allowed in favour of the appellant / applicant / petitioner or in case the applicant / appellant / petitioner has paid the tax amount as determined by the assessing authority and confirmed by all the authorities in case the proceeding is taken to authorities specified under the Act. The security bond shall thereafter be released by necessary endorsement on the original and returned to the appellant or applicant. The Bank guarantee furnished shall become part and parcel of the records of the assessing or appellate or revising authority and shall not be returned to the bankers or the appellant or the applicant. It shall be cancelled by the assessing authority and an advice of cancellation may be sent to the appellant or applicant or bankers after the expiry of six months from the date of receipt of the appellate or revision order by the appellant or applicant. If a security bond in Form-HH had been furnished, it shall, subject to the provisions of these rules, be released by necessary endorsement on the original and returned to the appellant or applicant and if Bank guarantee had been furnished, it shall, subject to the provisions of these rules, be cancelled by the assessing authority and an advice of cancellation may be sent to the appellant or applicant or bankers, on request by the appellant after the disposal of the appeal or earlier, if sufficient proof is produced that the entire amount for which the appeal / revision has been preferred is fully paid.

(3) Where the appellant or applicant furnishes the security referred to in sub-rule (2), he shall file the security bond or the bank guarantee or other security to the assessing authority concerned. The appellant should obtain and file the duplicate copy of security bond with necessary endorsement of assessing officer in Form-HH for having executed the security or the duplicate copy of bank guarantee in Form-G with necessary endorsement of the assessing officer for having filed the bank guarantee, before the appellate or revising authority.