40-D. Detention and seizure of goods

(a-i) The authorized officer seizing the goods under sub section (4) or sub section (9) of section 15-A of the Act, shall prepare an inventory of the goods seized and copy of the inventory shall be handed over to the person Incharge of the goods against a proper receipt. The goods seized may be kept in official custody or handed over to any person for safe custody against declaration Form ST-31-A.

(a-ii) In case the goods are seized under sub section (4) or (9) of section 15-A of the Act in any godown or any other premises of the transport, clearing or forwarding agency or in any vehicle or conveyance or any other place, the goods shall be kept in the official custody or handed over to the person Incharge of the godown or any other premises of the transport, clearing or forwarding agency or any other person against declaration in Form ST-31-A.

(b) Notice of hearing as required by proviso to section 15-A (4) shall be issued in Form ST-40. The notice shall be served on the person Incharge of the goods at the time of seizure requiring him to show cause within a period of 15 days as to why the penalty is not levied. A copy of the notice shall be forwarded to the owner of the goods, if he is a person other than the person Incharge of the goods, provided that his address is available from the documents accompanying the goods or is disclosed by the person Incharge of the goods.

(c) On the date specified in the notice the officer shall consider the objections raised and the evidence adduced, if any. Thereafter he may cause such other enquiries to be made as he considers necessary, and pass an order in writing releasing the goods or levying the penalty within 30 days from the date specified in the notice of hearing provided that the Commissioner may for cogent reasons allow him to pass the order after the said period of 30 days.

(d) For demanding security under sub section (9) of section 15-A of the Act, a notice in Form ST-40-A shall be served on the person incharge of the goods at the time to seizure.