40-E. Detention, seizure and release of goods

(a) Notwithstanding anything contained in foregoing rules, the concerned authority may not seize the goods and if seized, may release them before making order under section 15-A(4) of the Act, provided that the person incharge of the goods or owner thereof pays to the said authority an amount equal to the amount of penalty leviable which shall be adjusted against the amount of penalty subsequently levied or refund it as the case may be, or furnishes security as required under the proviso to sub section (4) of Section 15-A of the Act which shall be in the modes prescribed under rule 14-B other than personal bond.

(b) If the amount of penalty levied under section 15-A(4) of the Act is not paid within the prescribed period or the period specified in the notice of demand, as the case may be, the goods shall be auctioned in accordance with the provisions of sub rule (m), (n) and (o) of rule 40 and the sale proceeds thereof shall be paid to the owner of the goods after deducting the amount of penalty demanded.

(c) The goods shall be sold by auction as provided under sub section (11) of section 15-A in accordance with the provisions of sub rule (m), (n) and (o) of rule 40.

(d) The application form for refund as provided in sub- section (11) of section 15-A shall be in Form ST-31-C and the amount refundable under sub section (11) of Section 15-A shall be refundable in the same manner as provided for refund of tax and penalty under section 10 of the Act.