(1) The security to be furnished under section 15 of the Act may be furnished by the dealer in any of the following ways, namely:—
(a) by depositing as security in Government treasury, the amount fixed by the said authority; or - 3 -
(b) by depositing with the said authority Government Securities for the amount fixed by the said authority; or
(c) by depositing security amount in any Scheduled Bank as defined by the Reserve Bank of India Act, 1934 (2 of 1934), as fixed deposit and pledging the fixed deposit receipt to and depositing it with the said authority; or
(d) by furnishing to the said authority a guarantee from a Scheduled Bank as defined in the Reserve Bank of India Act, 1934 (2 of 1934), agreeing to pay the State Government, on demand, the amount of security fixed by the said authority.
(2) The security furnished may, in the extent of default of any tax due be adjusted towards such tax. The assessing authority may in any case where such adjustment has been made, demand fresh security or additional security to make-up the amount adjusted towards the tax:
Provided that no action under this sub-rule shall be taken unless the dealer affected has had a reasonable opportunity of showing cause against such action.