(1) Security or additional security as may be determined under sub-section (2A), (3A), (3C) of section 7 by the authority granting the certificate of registration or the authority issuing the forms shall be furnished by the dealer/registered dealer in any of the following manner, namely: -

(a) by depositing with the said authority Government securities for the amount fixed by the said authority; or

(b) by depositing such amount in cash, in a Government Treasury; or

(c) by depositing such amount into the different schemes of the Post Office and pledging the such Certificates of deposit and depositing the same with the said authority; or

(d) by furnishing two sureties, acceptable to the said authority, by executing a security bond for such amount in Form X by such date as may be specified in the order or in the event of insolvency or death of the surety, within ninety days, or

(e) by furnishing to the said authority a guarantee from a Nationalized Bank approved in this behalf by the said authority, agreeing to pay to the State Government, on Demand the amount of security fixed by the said authority.

(2) At any time, the said authority may to his satisfaction, increase or reduce the amount of Security furnished in this behalf. Where additional amount of security is determined under sub-section (3E) of section 7, by the authority issuing the certificate of registration or form, it shall be furnished by the dealer within thirty days of such order or by such date as may be specified in the order in any of the manner mentioned in sub-rule (1) as may be directed.

(3) Any person aggrieved by an order passed under sub-rules (1), (2) or an order passed under sub-section (3D) or (3G) of section 7, may after depositing in a Government treasury one per centum of the amount in dispute, calculated to the nearest rupee subject to a minimum of rupee one, and a maximum of rupees fifty, prefer an appeal against such order to the Additional Commissioner of Commercial Taxes (Appeal).

(4) An appeal under sub-rule (3) shall -

(a) be in Form XI

(b) be filed in triplicate,

(c) be presented to the appellate authority by the appellant or by his Agents or legal practitioner or be sent by registered post to the said authority,

(d) be accompanied by -

(i) a certified copy of the order appealed against, and the notice of demand, if any, served upon the appellant,

(ii) a receipt showing deposit into the Government treasury of the prescribed fee for the appeal.

(5) Subject to the provisions of sub-section (3B) of section 7, the appellate authority while disposing of an appeal, may confirm, reduce, modify or enhance the amount of security or additional security or the refund as the case may be and its order thereon shall be conclusive and final.