29. Security to be furnished in certain cases.-

(1) The prescribed authority may at the time of grant of certificate of registration to a dealer, for good and sufficient reasons to be recorded in writing, require the dealer to furnish in the prescribed manner such security or such additional security (after the dealer has been registered) as may be specified by it for securing proper and timely payment of tax or any other sum payable by him under the Act.

(2) The prescribed authority may, by order in writing and for good and sufficient reasons to be recorded therein, demand from any person other than a registered dealer who imports into the State any consignment of goods, a reasonable security for ensuring that there is no evasion of tax or any other sum payable by him under the Act.

(3) The prescribed authority may by order in writing and for good and sufficient reasons 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) for proper realization or recovery of the tax, penalty, interest or any other sum due under the Act.

(4) Where the security furnished by a dealer or any other person is forfeited in whole or is rendered insufficient, such dealer or other 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 by the prescribed authority.

(5) The prescribed authority may, on application by the person, who has furnished security as required, 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) Security shall be furnished under sub-section (1) and sub-section (2) 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 person concerned an opportunity of being heard.