FORM X

[See rule 7(1)(d)]

Security Bond under the Central Sales Tax Rules, 1957

KNOW ALL MEN BY THESE PRESENTS that I/we .................... am/are ......................... Held and firmly bound unto the Government of Jharkhand, exercising the executive power of the State of Jharkhand (hereinafter referred to as the government which executive shall unless excluded by or repugnant to the context, include the successors in-office and assigns including any authority appointed under section 8 of the Jharkhand Sales Tax Act, 1959) in the sum of rupees .............................................

[amount in figures and followed by amount in words]

(thereinafter referred to as the said sum) to be paid the Government on demand, for which payment well and truly to be made, I/We bind myself/ourselves, my/our heirs, executors and administrators and legal representatives by these presents;

AND WHEREAS the above bounden has been required by the .................... Commercial Taxes ..................... Circle/Sub--Circle to furnish security for the said sum for the purpose of securing the proper payment to tax payable under this Act or for the proper custody and use of forms referred to in clause (a) of the first proviso to sub-section (2) of section 6 or sub-section (1) of section 6A or clause (a) of section (4) of section 8 of the Central Sales Tax Act, 1956 and indemnifying the Government against all loss, costs or expenses, which the Government may, in any way, suffer, sustain or pay by reason of the omission, default or failure of the above bounden or any person or persons acting under or for him/them to pay such tax in the manner and by the time provided by or prescribed under the said Act to make proper use of the registration certificate and declaration forms.

NOW the condition of the above written bond is such that if the above bounden, his/their heirs, executors, administrators and legal representatives or any person acting under or for him/them pays the full amount of tax payable by him under the said Act and in the manner and by the time provided by or prescribed under the said Act on demand the authority, such demand to be in writing and to be served upon the above bounden his/their heirs, executors, administrators or legal representatives or any person acting under or for him/them in the manner provided by or prescribed under the said Act and shall also at all times indemnify and save harmless the Government from all and every loss, cost or expenses which has been or shall or may at any time or times hereafter during the period in which the above bounden is held liable to pay tax under the said Act, be caused by reason of any act, omission, default, failure or insolvency of the above bounden or of any persons acting under or for him/them, then his obligation shall be void and of no effect, otherwise the same shall be and remain in full force.

AND IT IS HEREBY FURTHER AGREED that in the event of the death/partition/disruption/dissolution/winding up or the final cessation of the liability under the Act or the rules prescribed thereunder of the establishment of the intended business to which the certificate in Form B relates and registration of the business so established under the said Act of the above boundens, this bond shall remain with authority or any officer duly authorised by him in this behalf for twelve years from occurring of any of the events aforesaid for recovering and tax that may be payable by the above bounden or any loss, cost or expenses that may have been sustained, incurred or paid by the Government owing to the act, omission, default, failure or insolvency of the above boundens or any person or persons acting under or for him/them or the above bounden's heirs, executors, administrators and legal representatives and which may not have been discovered until after the above bounden's death/partition/disruption/dissolution/winding up or final cessation of his/their liability under the said Act or the Rules prescribed thereunder the establishment of the intended business and registration thereof under the said Act:

Provided always that without prejudice to any other right or remedy for recovering the tax, loss or damage as aforesaid it shall be open to the Government to recover the amount payable under this bond as an arrear of land revenue.

IN WITNESS WHERE OF the said ......................... Has hereunto set his hand [full name] this ...................... Day of .......................

We .............................. hereby declare ourselves sureties for the bounden and guarantee that he/they shall do and perform all that he/they has/have above undertaken to do and perform and in case of his/their omission, default or failure therein we hereby bind ourselves jointly and severally to forfeit to the Governor of Jharkhand exercising the executive power of the Government of the State of Jharkhand (hereinafter referred to as "the Government" which expression shall unless excluded by or repugnant to the context include his successor-in-office and assigns including any authority appointed under section 8 of the Jharkhand Sales Tax Act, 1959,] the sum of rupees ............................. (amount in figures followed by amount in words) (hereinafter referred to as the said sum) in which the above bounden has bound himself or such other lesser sum as shall be deemed to be sufficient by the authority to recover any amount of tax, payable by the above bounden and remaining unpaid and also to recover any loss, damage, cost or expenses which the Government may sustain, incur or pay by reason of such omission, default or failure.

And we agree that the Government may, without prejudice to any other rights or remedies of the Government recover the said sum from us, jointly and severally as an arrear of land revenue.

And we also agree that neither of us shall be at liberty to terminate his suretyship except upon giving to the authority six calendar months notice in writing of his intention so to do and our joint and several liability under his bond shall continue in respect of all acts, omission, defaults, failure and insolvencies on the part of the above bounden until the expiration of the said period of six months.

This shall be signed by the proprietor of the business, if an individual, by the Karta, if an undivided family, by an authorised partner in the case of a firm; by a managing director, managing agent or principal executive officer in the case of a company or corporation: by a principal executive officer or officer-in-charge in the case of a society, club, association, department of Government or local authority.