74. Modes of security on goods owned by unregistered dealers :-

(a) Security referred to in section 67(10) shall be in cash or in any of the modes prescribed under rule 27. The officer incharge shall issue a receipt in the name of the owner of the goods and deliver it to the person Incharge of the goods.

(b) The officer Incharge shall maintain daily collection register in Form VAT-25 and record therein the cash received as security. The total receipts of the day shall be deposited in the treasury during the next following working day. Record of Bank guarantee shall be maintained in a separate register. A statement of cash securities and the bank guarantees in Form VAT-68 shall be sent to the Deputy Commissioner Commercial Taxes Incharge of the Division within 7 days after the expiry of each month. Counterfoils of the receipted challans along with the bank guarantees shall be attached to the said statement. A copy of the said statement shall be sent to the Commissioner.

(c) The Deputy Commissioner Commercial Taxes shall on receipt of the statement in Form VAT-68 cause the entries to be made in the register maintained in Form VAT-69 and soon thereafter issue extracts thereof to the Assessing Authority having jurisdiction over the dealer. The extracts relating to the dealers of another division shall be sent to the Deputy Commissioner Commercial Taxes of such other division for onward transmission to the concerned Assessing Authority.

(d) The security or bank guarantee shall be released after the tax and any other sum payable by the dealer is deposited into the Treasury; provided that at the option of the dealer or if he fails to pay the tax and any other amount payable by him under the Act, the Assessing Authority shall adjust the amount of cash security against such sum payable and refund the excess amount of security, if any.

Explanation: - Empowered Officer or Officer in-charge of Notified Area/Check-post or an Inspector posted at such place means an Assessing Authority.