(1) If on examination of goods and the records connected therewith, the officer in charge of the notified area or the officer empowered by the Government under sub-section (1) of section 47 finds that any consignment of goods, the value of which exceeds rupees one thousand 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, or that the person transporting the goods is attempting to evade payment of the tax due under the Act, the said officer shall immediately issue a notice to the said person to show cause why further steps should not be taken against him under section 47.

If the officer inspecting the goods is satisfied as to the reason or reasons for the omission or the defects, as the case may be, he may, after recording his findings there for, allow the goods to be transported. Where a dealer holding electronic identity card owns the goods either in person or through the e-mail ID Furnished by the dealer or the one allotted to the dealer along with the Electronic Identity Card and requests that the further proceedings be conducted at the place where his principal place of business is situated, the officer in charge of the notified area or the officer empowered by the Government under subsection (1) of Section 47 may transfer the records of the case to the officer of the area where the principal place of business of the dealer is situated who is empowered under sub-section (1) of section 47, for proceeding further in accordance with the provisions of section 47 and this rule. If he is not satisfied with the reasons, he may pass an order for the unloading and detention of the goods and thereupon the owner of the goods or his representative or the driver or other person in charge of the vehicle or vessel shall unload the goods Before issuing the order for such unloading and detention the officer shall issue a notice in Form No. 17 A

(2) Where on the basis of a mobile alert received by a dealer holding an Electronic Identity Card issued under sub-section (14) of section 16 or on the basis of a telephonic information received from the officer in charge of the notified area, a dealer intimates such officer using the e-mail I.D. furnished by the dealer or the one allotted to the dealer along with the Electronic Identity Card issued under sub-section (14) of section 16, that the consignment in respect of which such information is received by him is bogus or that it does not relate to him or that the name of the consignor or consignee , as the case may be, shown in the documents accompanying the consignment is not genuine, such officer shall treat the goods as not covered by the documents prescribed, or the consignment as bogus and proceed accordingly under these rules.

(3) The Officer recording the statement under sub-section (5) of section 47 shall obtain, from the person in charge of the goods or vehicle or vessel, 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. Such Officer shall also record the details of the consignor as well as the consignee as ascertained from the person in charge of the goods or vehicle or vessel. For this purpose such officer may direct the driver or the person in charge of the vehicle or vessel to produce the registration certificate of the vehicle or vessel, driving license of the driver or permits, as may be required.

(4) (a) The security referred to in sub-section (2) of section 47, other than that referred to in the first proviso to the said sub section, shall be furnished in any of the ways specified in clauses (a) to (c) and (f) of sub-rule (2) of Rule 19 or by depositing the amount with the officer referred to in sub-rule (1).

(b) The security referred to in the first proviso to sub section (2) of section 47 shall be in Form No.6. Where such bond is required to be furnished with sureties, the sureties shall be identifiable and solvent enough for the amount assured.

(5) The Officer accepting the security shall, after giving proper cash receipt where security is furnished by deposit of cash or an acknowledgement where security is furnished in any other form and pass an order in writing releasing the goods and allowing the same to be transported.

(6) In cases where the consignor or consignee, as the case may be, in the state is a registered dealer, the officer authorised under sub-section (5) of section 47 shall be one having jurisdiction over the area where the principal place of business of such dealer is situated.

(7)(a) If the officer to whom proceedings are submitted under sub-section (5) of section 47 is satisfied after inquiry that there has been no attempt to evade the tax due under the Act on the transaction in pursuance of which the goods are transported, he shall, for reasons to be recorded in writing;

(i) Order the release of the goods detained or seized, on the owner of the goods paying the expenses, if any, incurred by the officer concerned for the safe custody of the goods and incidental charges including charges for the service and publication, of the notice under sub-sections (6) and (10) of section 47 and the order under clause (d) of this sub-rule (which shall be specified in the order).

(ii) Release the security (including any bond) furnished by the owner of the goods or any other person.

(b) If, after conducting the enquiry, the officer, finds that there has been an attempt to evade payment of tax due under the Act on the transaction, in pursuance of which the goods are transported, he shall pass an order in writing imposing on the owner of the goods a penalty not exceeding twice the amount of tax attempted to be evaded as estimated by him.

(c) In an order under clause (b), the officer shall also specify, in cases where goods have been seized, that the goods are liable to be sold in public auction as provided in sub-sections (8) and (11) of section 47 without any further notice, in case the penalty is not paid within thirty days from the date of the order.

(d) an order under clause (a) or clause (b) shall be communicated to the owner of the goods in the same manner as a notice under sub-section (6) of section 47 is to be served, and also on the person who was in charge of the vehicle or vessel at the time of detaining the goods.

(8) Where an order imposing penalty has been passed and the owner of the goods or his representative or the driver or other person in charge of the vehicle or vessel has paid the amount of penalty together with the expenses and other incidental charges for keeping the goods seized in custody and for the service and publication of the notice under sub-sections (6) and (10) of Section 47 and the order under clause (d) of sub-rule (7) of this rule to the Officer imposing the penalty, such officer shall pass an order directing the release of the goods seized or of the security or bond furnished, as the case may be.

(9) Where the penalty is not paid within the time specified in sub-section (8) of section 47 -

(a) if cash security has been furnished or when the goods seized have been sold under subsection (12) of Section 47 and the amount deposited in Government Treasury, the officer authorized under sub-section (5) of Section 47 shall adjust the amount towards the penalty imposed and the expenses and incidental charges to be recovered and refund the excess if any;

(b) if any other security or a bond has been furnished, the officer shall take steps to realize the amount of penalty imposed from the security and adjust the same towards the penalty and expenses and incidental charges.

(10)(a) when the goods seized are to be sold in public auction as provided in sub-sections (8) and (11) of section 47 the officer who imposed the penalty shall cause to be published in the notice board of his office, a list of the goods seized and intended for sale with a notice under his signature specifying the place and the day and hour at which the seized goods will be sold and shall display copies of such list and notice in more than one public place in the notified area or in or around the place in which the goods were detained as the officer may consider necessary to give wide publicity to the sale.

(b) If the value of the goods exceeds rupees one thousand, copies of the list and notice shall be published in the office of the concerned Deputy Commissioner also.

(c) No sale shall take place until after the expiration of a period of fifteen days from the date on which the notice is affixed.

(d) The officer who imposed the penalty or any other officer authorized in this behalf by the Deputy Commissioner shall conduct the sale in person and the goods seized shall be made available at the place of sale:

(e) At the appointed time, the goods shall be put up in one or more lots as the officer conducting the sale may consider advisable and shall be knocked down in favour of the highest bidder subject to the confirmation of the sale by the Deputy Commissioner.

(f) Where the amount fetched in auction is more than the amount of the penalty due from the owner of the goods, the surplus after realizing the penalty imposed, the charges for the service and publication, if any, of the notice under sub-sections (6) and (10) of Section 47 and the order under clause (d) of sub-rule (7) of this rule, the expenses for the conduct of the sale and the expenses and other incidental charges referred to in sub-section (14) of section 47, shall be refunded.

(g) 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 goods until he has paid for the same in full.

(h) Where the purchaser fails to pay the sale value of the goods in ready cash the goods shall be re-sold at once and the defaulting purchaser shall be liable for any loss arising there from as well as the expenses incurred on the re-sale.

(i) Where on re-sale, the property is sold at a higher price than at the first sale, the excess amount remaining available after adjusting the penalty and other expenses as provided in clause (f) shall be returned to the owner of goods as provided in sub-section (15) of section 47

(11) The provisions of clauses (a), (b) and (d) to (h) (both inclusive) of sub-rule (10) shall, so far as may be, apply to a sale falling under sub-section (12) of section 47.