53.     Seizure and confiscation of goods:

          1)      If any officer authorized under Section 43, finds any goods in any office, shop, godown, vehicle vessel or any other place of business or any other building or place of a dealer which have not been accounted for in the accounts, registers, or other documents maintained in the course of his business, the officer may, for reasons to be recorded in writing, seize such goods. The order of seizure on Form 603 shall specify the description, the quantity and the value of the goods seized.  A copy of it shall be served on the dealer or the person in charge of the goods.

          2)      Any officer may, if security in cash is furnished to his satisfaction, order release of goods seized to the owner, and if he is not present, to the person in charge of the goods pending further enquiry if necessary. The order of release on Form 604 shall be subject to the condition that if the goods in question are finally confiscated under sub-rule (4), they shall be produced within such time as may be required, failing which, the cash security furnished shall stand forfeited to the State Government without further notice.

          3)      In cases not failing under sub-rule (2), if the whole or any part of the goods, seized under sub-rule (1) are of a perishable nature, the officer may sell them or get them sold, in public auction as laid down in sub-rules (8) to (17).

                   Provided that the notice of fifteen days laid down in sub-rule (9) below shall not apply to the public auction of goods of perishable nature and in lieu of the same, the officer shall cause adequate publicity through displaying a notice on the notice board of his office.

          4)      Any such officer, after making such enquiry as he deems fit and after giving the owner of the goods, if he is ascertained, an opportunity of being heard, may confiscate the whole or any part of the goods seized, if he is satisfied that there is evasion or an attempt to evade tax thereon in any manner whatsoever.  If the owner is not ascertained even after the enquiry, the officer shall order confiscation of the goods.  A copy of the order of confiscation on Form 605 shall be served on the owner of the goods if he is ascertainable.

          5)      The goods confiscated under sub-rule (4) shall be sold in public auction as laid down in sub-rules (8) to (17).

          6)      If, on enquiry, under sub-rule (4), it is considered by the officer who seized the goods that confiscation is not warranted in regard to any of the goods seized, or if any order of confiscation is set aside or modified in regard to any goods, on appeal or revision, such goods shall be returned to the owner or any other person authorized by him if they had not be sold in public auction under sub-rule (3) or (5).  If they had already been sold in public auction, the proceeds of the sale less the expenses incurred in the sale, if any by the State Government, shall be refunded to the owner of the goods or any other person authorized by him.

          7)      In case wherein a confiscation order has been passed in respect of any goods, the owner of which was not ascertainable before the order is passed, such owner of the goods or any other person on his behalf may appear before the officer who ordered the confiscation and satisfy him with relevant records regarding the bonafides of the goods in question and regarding the reasons for his non-appearance earlier.  If the officer is satisfied that there has been no evasion or attempt at evasion of tax he may order, for reasons to be recorded in writing, the release of the goods confiscated or if such goods had already been sold and delivered, the refund of the sale proceeds of the goods, less the expenses incurred for safe custody of the goods and other incidental charges.  If the officer is not so satisfied, he may after recording reasons therefore, order that the sale under sub-rule (5) shall be proceeded with or that the proceeds of the sale already conducted shall not be refunded, as the case may be.

          8)      The officer who detained the goods shall cause to be published in the notice board of his office a list of the goods detained and intended for sale with a notice On Form 606 under his signature, specifying the place where and the date on, and the hour at which the detained goods will be sold in open auction and shall also display copy of such list and notice in the office of the Commercial Tax Officer having jurisdiction over the place where the goods were detained.

          9)      A notice of fifteen days shall be given before the auction is conducted.

          10)    Intending bidders shall deposit as earnest money a sum equal to five percent (5%) of the estimated value of the goods.

          11)    At the appointed time, the goods shall be put up in one or more lots, as the officer conducting the auction sale may consider necessary and shall be knocked down in favour of highest bidder, subject to confirmation of the sale by the Commercial Tax Officer having jurisdiction over the place where the goods were detained where the value of the goods auctioned does not exceed one thousand rupees and by any officer not lower in rank than the Deputy Commissioner in other cases.

          12)    The earnest money deposited by the unsuccessful bidders shall be refunded to them within three days from the date of auction.     

          13)    a)      The auction purchasers shall pay to the officer conducting the auction the sale value of the goods in cash immediately after the sale and shall not be permitted to carry away any part of the goods until he has paid in full and until the sale is confirmed by the authority specified in sub-rule (11).

                   b)      The officer receiving the value of the goods in cash shall issue a receipt on Form 607 to the person making such payment.

          14)    Where the purchaser fails to pay the purchase money the earnest money deposited by the defaulting bidder shall be forfeited to the Government and the goods shall be resold in the auction.  The procedure prescribed for the first auction shall be followed for conducting the subsequent auction.          

          15)    If any order directing detention is set aside on appeal or revision, the goods so detained, if they have not been sold in auction, shall be released and if they have been sold, the proceeds thereof shall be paid to the owner of the goods, deducting the expenses incurred from the time a detention of the goods to the time they were sold in auction.

          16)    Any person from who tax is due shall on application to the officer on Form 608 who conducted the sale, and upon sufficient proof, be paid the sale proceeds specified under sub-rule (13), after deducting the expenses of sale and other incidental charges and the amount of tax due.

          17)    The procedure specified in this rule shall apply to give effect to the orders directing refund on appeal of revision.