Rule 25 - Forfeiture of security (Section 25) - Delhi Value Added Tax Rules, 2005

25. Forfeiture of security (Section 25) (1) Where the Commissioner proposes to forfeit a security in full or in part or is of the view that the security furnished is insufficient, he shall serve upon the person who furnished the security a notice in Form DVAT-14. (2) Where the Commissioner is not satisfied with the explanation given in response to the notice served upon in sub-rule (1), he shall pass an order in Form DVAT-15 forfeiting the security in part or in full and requiring the person to make good the deficiency of security. (3) Where security is furnished in a form other than cash or bank guarantee and the security is forfeited in full or in part or is rendered insufficient, the Commissioner shall in the notice allow the person affected, to pay the forfeited or insufficient amount in cash within the time specified in the notice. (4) If the amount to be forfeited or rendered insufficient is not deposited in cash pursuant to sub-rule (2) (3) of this rule, the Commissioner shall make an application to the Collector as defined in Delhi Land Reforms Act, 1954 (hereinafter referred to as "Collector") to recover the said amount from the person, his surety or guarantor as arrears of land revenue. (5) The Commissioner shall furnish to the Collector the names and addresses of the person, his surety or guarantor and the amount to be recovered and thereupon the Collector shall proceed to recover the amount from the person or his surety or guarantor or from both as arrears of land revenue. (6) Where security has been provided in the form of a pledge of goods, the Commissioner may sell the goods following the procedure prescribed in rule 41 to the extent applicable. (7) Where the security furnished by any person is forfeited in whole or is rendered insufficient, the person shall make up deficiency in any of the forms referred to in Table under rule 23, as may be required by the Commissioner, within fifteen days from the date of service of order in Form DVAT- 15.