(1) If any registered dealer has not disclosed any warehouse in his application for registration made under sub-section (1) of section 24, or has not furnished information under clause (b) of section 27A regarding change of his warehouse or opening of a new warehouse for amendment of his certificate of registration under section 27 and if any stock of goods is found in such warehouse after search made under section 74 by the Commissioner, , the Special Commissioner, the Additional Commissioner, or as the case may be, any of such persons appointed under sub-section (1) of section 6 to assist the Commissioner as may be prescribed to exercise the power under this section, it shall be presumed that such dealer has transported such goods in contravention of section 73 and stored those goods in such warehouse, unless such dealer-

(a) explains to the satisfaction of such authority, the reason for not disclosing the warehouse or furnishing the information under clause (b) of section 27A and

(b) produces on demand by such authority and explains to his satisfaction that the stock register or any account of stock showing entry of such goods therein and purchase bill, tax invoice, invoice or cash memo, challan or any document of like nature within twenty-four hours or within such time as may be granted to him upon an application made in writing by such dealer.

(2) Where the dealer prays for time under clause (b) of sub-section (1), the authority referred to in sub-seciton (1) shall allow a time to produce before him the document referred to in that clause, and shall meanwhile seal such warehouse up to the time allowed by him.