Section 25 of Delhi Value Added Tax Act 2004 - Security from certain
classes of dealers and other persons
What is Security from certain classes of dealers and other persons?
Section 25 of DVAT Act 2004
Section 25 : Security from certain classes of dealers and other
persons - Delhi Value Added Tax Act 2004
Rule 22 to 25 Form 12 to 15
(1) The Commissioner may, if it appears to him to be
necessary so to do, for the continuance of the certificate of
registration, or for the proper realisation of tax, composition
money or other dues payable under this Act or as a condition of
registering a person as a dealer or as a condition of making a
refund under section 38 of this Act, or as a condition of
de-sealing or release under sub-section (4) of section 60,
require a person or prescribed class of persons to furnish
security for the proper performance of their responsibilities
under this Act or under the Central Sales Tax Act, 1956 (74 of
1956) in the prescribed amount, in the prescribed manner and
within such time as may be prescribed.
(2) Notwithstanding sub-section (1) of this section, the
Commissioner may increase, vary, reduce or waive the prescribed
amount of the security, having regard to ?
(a) the nature and size of the business activities of the
(b) the amount of any tax, interest or penalty for which the
person may be or is likely to become liable at any time under
(c) the creditworthiness of the person;
(d) the nature of the security; and
(e) any other matter which the Commissioner considers
(3) Where the security or additional security furnished by a
person is in the form of a surety bond and the surety dies or
becomes insolvent, the person shall within one month of the
occurrence of such event, inform the Commissioner and shall
within three months of such occurrence, execute a fresh surety
(4) Where the surety bond has been executed by another
registered dealer and the dealer's registration is either
cancelled or he has closed down his business, the person shall
furnish a fresh security as may be prescribed and in the manner
as stated in sub-section (3) of this section.
(5) The Commissioner may, for good and sufficient
cause, order the forfeiture of the whole or any part
of the security furnished by a person.
(6) Where the security furnished by any person is forfeited
in whole or is rendered insufficient, he shall furnish a fresh
security of the requisite amount or, as the case may be, shall
make up the deficiency in such manner and within such period as
may be specified.