(1) when a check post is set upon a through fare or under section 29, barriers may be erected, across the road or through fare in the form of contrivance to enable vehicle or vessel being intercepted, detained and searched.

(2) No person shall transport within the state across or beyond the notified area any consignment of goods if the value thereof exceeds twenty five rupees by any vehicle or vessel unless he is in possession of :

(a) either a bill of sale or delivery note or way bill or certificate of ownership; and

(b) a declaration also when the vehicle or vessel enters or leaves the state limits.

(2A) No person shall transport within the state across or beyond the notified area or within two kilometers from the border area, goods of the description given in sub-section (2A) of section 29 not exceeding two kilograms by weight unless he is in possession of the records and documents prescribed in sub-rule (2) above.

(3) At any place within the area notified by Government under sub-section (1) of section 29 the driver or any other person in charge of any vehicle or vessel and any person referred to in sub-section (2A) of section 29 shall remain stationary or as the case may be keep the animal stationary as long as may be required by the officer in charge of the notified area or any other officer of the Sale Tax Department not lower in rank than an assessing authority and allow and enable the officer to inspect the goods under transport and to examine the records specified in sub-rule (2).

(4) When the officer-in-charge of the check post or barrier within the notified area is not at the check post or barrier, the driver or any other person in charge of a vehicle or vessel and any person referred to in sub-section (2A) of section 29 shall remain stationery or as the case may be keep the animal stationary at the check post or barrier when required by the peon on duty at the check post or barrier for a period not exceeding ten minutes in order to enable the officer in charge of the check post or the barrier or the other officer specified in sub-rule (3) to come and examine the goods and the records connected with the goods under transport.

(5) If on such examination any such officer finds that any consignment of goods (the value thereof exceeds rupees five) or the entire goods are not covered by proper documents or that the documents carried by the driver or any other person in charge of the vehicle or vessel are defective or suspects that the documents are bogus or false, the said officer shall immediately issue a notice to the said person to show cause why further step should not be taken against him under section 29. If the Officer is satisfied as to the reason or reasons for the omission or the defects as the case may be, he may allow the goods to pass through the notified area after recording his findings therefor. If he is not satisfied with the reasons, he shall proceed to unload, seize and confiscate the goods after following the procedure laid down in sub-rules (6) to (8)

(6) The said officer may order the unloading of the goods which are not allowed to pass through the notified area under sub-rule (5) and upon such order the person in charge of the vehicle or vessel or the owner of the goods, if present, shall arrange to unload the goods. The officer shall thereupon proceed to seize and confiscate the goods. The officer who seizes the goods for confiscation, shall issue a notice to the driver or any other person in charge of the vehicle or vessel or the owner if present, specifying therein the reasons for the seizure of the goods. He shall obtain from the said person the name and address of the owner of the vehicle or vessel and the name and address of the owner of the goods if he is not present in the vehicle or vessel.

(7) Where any officer orders unloading of the goods and seize them, he shall issue to the driver or other person in charge of the vehicle or vessel or the owner if present, a receipt giving the description and quantity of the goods unloaded and delivered to him by the driver or other person in charge of the vehicle or vessel or the owner of the goods and obtain his acknowledgment.

(8) Any such officer shall, before ordering confiscation of the goods, give the person in charge of the goods and the owner if present in the vehicle or vessel an opportunity of being heard. If the owner is not present in the vehicle or vessel, and if his name and address are not ascertainable from the driver or other person in charge of the vehicle or vessel, the officer shall make such enquiry as he deems fit, ascertain the name and address of such person and if his name and address are ascertainable, give him an opportunity of being heard before ordering confiscation. In case his name and address are not ascertainable after enquiry, the officer shall straight away proceed to confiscate the goods.

(9) The goods confiscated shall be sold in public auction.

(i) A copy of the order of confiscation shall be served on the person in charge of the goods and/or the owner of the goods if ascertainable.

(ii) The officer in charge of the check post shall cause to be published in the Notice Board of his office a list of the goods confiscated and intended for sale with a notice under his signature specifying the place where and the day and hour at which the confiscated goods will be sold and shall display copies of such list and notice in more than one public place near the check post as the office may consider necessary to give wide publicity to the sale. If the value of the goods exceeds Rupees one thousand copies of the list and notice shall be published in the office of the Inspecting Assistant Commissioner also. No sale shall take place until after the expiration of a period of fifteen days from the date on which the notice is affixed:

Provided that in the case of perishable goods, the sale may be conducted at any time after the affixing of the notice even if an appeal has been filed against the order of confiscation.

(iii) The officer in charge of the check post shall conduct the sale in person.

(iv) At the appointed time, the goods shall be put up in one or more lots as the officer conducting the auction sale may consider advisable and shall be knocked down in favour of the highest bidder subject to the confirmation of the sale by the Inspecting Assistant Commissioner where the value of the goods auctioned does not exceed Rupees one thousand and by the Deputy Commissioner in other cases. Where the amount fetched in auction is more than amount of the penal tax due from the owner of the goods, the surplus after deducting the expenses, if any, incurred by the department in this behalf shall be paid to the owner of the goods.

(v) The auction purchaser shall pay the sale value of the goods in ready cash immediately after the sale and he will not be permitted to carry away any part of the property until he has paid for the same in full. Where the purchaser fails to pay the purchase money, the property will be re-sold at once and the defaulting purchaser will be liable for any loss arising from as well as the expenses incurred on the re-sale.

(vi) The sale proceeds shall be remitted into the Government Treasury under the Departmental head of account.

(11) If any order directing confiscation is reversed in appeal the goods confiscated, if they have not been sold before such reversal comes to the knowledge of the officer conducting the sale, shall be releases or if they have been sold, the proceeds thereof shall be paid to the owner of the goods or his agent on payment of or after deducting the charges incurred by the state after obtaining receipt for the same.

(12) Where a confiscation was order for the reason that the owner was not ascertainable and the goods have not been disposed of in auction the owner or any person on his behalf may appear before the officer ordering the confiscation and satisfy him with relevant records regarding the bonafides of the transport of goods in question. If the officer is satisfied that there been no evasion of tax, he may, for reasons to be recorded in writing order the release of the confiscated goods. The officer shall also specify in his order the amount due, to be paid towards the charges, if any, incurred by state for the safe custody of the goods and other incidental charges and on payment of such charges the officer shall release the goods. If the officer is not so satisfied, he may after recording the reasons therefor, order that the sale under sub-rule (9) be proceeded with.

(13) (a) The bill of sale referred to in sub-rule (2) shall contain the particulars specified in the sub-rule (11) of Rule 32.

(b) The delivery note and the certificate of ownership referred to in sub-section (2) of section 29 shall be in Forms 26 and 27 A respectively. The delivery note shall be deemed to be a way bill for the purposes of sub-rule (2), sub-section (2) of section 29, and Clause (i) of section 31.

Provided that when rubber is transported across the state frontiers, a declaration in Form N1, Form N2, Form N3 or Form N4 prescribed under Rule 43B of the Rubber Rules, 1995 and when coffee is transported the certificate in Form TP3 prescribed under Rule 31 and 32 of the Central Excise Rules, 1944 shall also accompany the transport.

(bb) Where goods are transported inter-state in bulk either by lorry or on vessel under the cover of certificate of ownership by agriculturists, as owners of such goods produced by them, such certificate shall be got countersigned by the Sales Tax officers/ Agriculture Income Tax Officer, as the case may be.

(c) The declaration referred to in clause (b) of sub-section (2) of section 29 of the Act shall be in Form 27B.

14(i) When the vehicle or vessel enters or leaves the state limits the driver or other person in charge of the vehicle or vessel shall carry with him three copies of the declaration referred to in sub-rule (2) duly filed in and signed by the consignor and shall file the same along with a copy of the sale bill or delivery note in respect of the consignment before the person in charge of the check post or barrier within the notified area.

(ii) The officer in charge of the Check Post or barrier shall on receipt of the three copies of the declaration enter therein the serial number according to the register maintained in the check post for the purpose, shall affix the seal of the Check Post, shall note the time and date of Check with his initials and shall return the third copy to the person whom it was received:

Provided that a separate declaration shall be filed in respect of the consignments relating to each consignee when the goods are being imported into Kerala and of each consignor when the goods are sent outside the state:

Provided further that no declaration in relation to goods to be delivered in Kerala shall be accepted as valid if the consignee in Kerala is shown or described as "self" unless the full particular and address of the person who will take delivery of the goods at destination in Kerala are furnished.

(15) Whenever confiscation is authorised by these Rules, the officer adjudging it shall give the owner, if ascertainable, or the person in charge of the goods, an option to pay, in lieu of confiscation, a penalty not exceeding double the amount of tax calculated at the rate or rates applicable to the goods confiscated and release the goods on payment of the said penalty:

Provided that the officer may release the goods on cash security being furnished by the person concerned to the extent of the penalty leviable, if in his opinion further time is required to arrive at a correct finding as to whether a penalty is to be imposed or not and that the security so furnished shall be adjusted towards the penalty in case it is payable or returned to the person concerned, if otherwise.