40-G. Modes of security on goods owned by unregistered dealers
(a) Security referred to in section 15-A (9) shall be in cash or in any of the modes prescribed under rule 14-B other than personal bond. The officer Incharge shall issue a receipt in Form ST-41 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 ST-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 ST-42 shall be sent to the Deputy Sales Tax Commissioner 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 Sales Tax Commissioner shall on receipt of the statement in Form ST-42 cause the entries to be made in the register maintained in Form ST-43 and soon thereafter issue extracts thereof to the Assessing Authorities having jurisdiction over the dealer. The extracts relating to the dealers of another division shall be sent to the Deputy Sales Tax Commissioner of such other division for onward transmission to the concerned Assessing Authorities.
(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:- Officer Incharge of Notified Area/Check post or an Inspector posted at such place means an Assessing Authority.
(e) Notwithstanding anything contained in this rule, a dealer shall not be required to furnish security in respect of the goods which are imported for supply to a person who is liable to deduct tax under section 16-C of the Act provided that a certificate in the following form is presented to the Officer incharge of the Notified Area/Checkpost.
"Certified that the goods consigned by M/s __________________________________ under transport through M/s __________________________, the particulars of which are specified below are meant for supply to or are intended to be used in the works contract given by ________________________ to the said consignor and tax is deductible under section 16-C of the Jammu and Kashmir General Sales Tax Act, 1962 from the sale price payable to the consignor.
Particulars of goods under Transport.