(1) The prescribed authority may, at the time of grant of certificate 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 as may be specified by him for securing proper and timely payment of tax or any other sum payable by him under this Act.

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

(3) The prescribed authority may, by order in writing and for good or 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), furnished by a dealer, for-

(a) realising or recovery of tax or any other sum due, or

(b) recovery of any financial loss caused to the State Government due to negligence or default in not making proper use of or not keeping in safe custody, blank or unused forms of way bill.

(4) Where the security furnished by a dealer, is forfeited in whole or is rendered insufficient, such dealer 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 a dealer, 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 by a dealer, 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 dealer an opportunity of being heard.