Central Government Act
Section 7(3D) in The Central Sales Tax Act, 1956
(3D) The authority granting the certificate of registration may by order and for good and sufficient cause forfeit the whole or any part of the security furnished by a dealer,--
for realising any amount of tax or penalty payable by the dealer;
if the dealer is found to have misused any of the forms referred to in sub- section (2A) or to have failed to keep them in proper custody: Provided that no order shall be passed under this sub- section without giving the dealer an opportunity of being heard.