70. Furnishing of security. -

(1) The security required to be furnished under the provisions of sections 26 of the Act and/or any other provision under the Act maybe in the following forms, namely -

(a) cash deposit in the Government Treasury under the head "0040-Sales Tax";

(b) post office saving bank account, the account being pledged to the Commissioner or any officer authorized by him in this behalf;

(c) bank guarantee from a Scheduled Bank agreeing to pay to the State Government on demand the amount of security;

(d) such saving certificates or bonds or fixed deposit receipts as are issued by the Government of India, the State Government or Scheduled Bank from time to time, to be pledged to the Commissioner or any other officer authorized by him in this behalf.

(2) In the event of default in the payment of any tax, interest, penalty or any other amount due, the security furnished by the dealer shall be liable to adjustment towards such amount after intimation to him, and the short fall in the amount of security shall unless ordered otherwise, be made up by him within a period of fifteen days from the date of intimation in any of the ways specified in sub-rule (1).

(3) The security furnished under the provisions of section 26 of the Act shall be forfeited if the payment of the amount due on account of advanced tax, penalty or interest imposed is not made within the time allowed for the payment thereof.