(1) Where, upon interception or search made under clause (a), clause (b), or clause (c), of section 74 for the purpose of verifying whether any consignment of goods is being or has been transported by a dealer, casual dealer or any other person from railway station, steamer station, airport, port, post office or any other place referred to in section 73 or from any checkpost to any other place within or outside west Bengal in contravention of the provisions of the sections referred to in section 73 or section 81, it is found by a Senior Joint Commissioner; Joint Commissioner, deputy commissioner, Sales Tax Officer or Assistant Sales Tax Officer, either at the checkpost or at any other place that a consignment is being or has been transferred in contravention of the provisions of section 73 or section 81 and the rules made thereunder and such consignment of goods is seized by such authority under sub-section (1), or sub-section (2), of section 76, or whose goods are seized under sub-section (3) of section 76, such dealer, casual dealer or any other person, as the case may be, shall be liable to pay penalty and/or security, if demanded under section 77 and a Senior Joint Commissioner; Joint Commissioner, deputy commissioner or a Sales Tax Officer shall serve a notice in Form No. 60 upon the person from whom such goods are seized or the owner of such goods or the person who subsequently establishes his claim for ownership of such goods, as the case may be, directing him to appear in person or through his agent and to show cause on the date and at time and place specified in such notice why a penalty and/or security under section 77 shall not be imposed on him.

(2) The a Senior Joint Commissioner; Joint Commissioner, Deputy Commissioner or Sales Tax Officer shall fix a date for hearing not less than fifteen days from the date of service of notice referred to in that rule :

Provided that the requirement of allowing fifteen days time for show cause in the notice may, at the request of the dealer, casual dealer or the person be waived by the authority who serves such notice.

(3) The dealer, casual dealer or the person be directed-

(a) to produce the bill, invoice, consignment note or document of like nature issued by the consignor and the catalogue, if any, of the manufacturer of goods showing therein the retail sale prices fixed by such manufacturer in respect of such goods in West Bengal;

(b) to furnish a declaration in respect of the aggregate retail price of the seized goods at which these are likely to be sold in West Bengal.

(4) The dealer, casual dealer or the person on whom notice has been served under sub-rule (1) may prefer objection to the imposition of penalty and/or demand of security.

(5) After considering the objection, if any, preferred by the dealer, casual dealer or the person or after considering the document and evidence including the catalogue showing the retail sale price referred to in clause (a) of sub-rule (3) in respect of such goods that may be produced and also the prevailing market price referred to in clause (30A) of section 2 of such goods, the authority referred to in sub-rule (2) shall, for the purpose of penalty and/or of demanding security, pass a reasoned order, in writing, determining the fair market value referred to in clause (14A) of section 2, of the goods transported in contravention of the provisions of section 73 or section 81, impose a penalty or determine the security if demanded such dealer, casual dealer or person, as the case may be, in accordance with the provisions of section 77:

Provided that where no prevailing market price in respect of such goods is available, the authority referred to in sub-rule (2) shall, after causing necessary enquiry and considering the document and evidence including the catalogue showing retail sale price referred to in clause (a) of sub-rule (3) in respect of such goods that may be produced, pass a reasoned order, in writing, determining the fair market value referred to in clause (14A) of section 2, of the goods transported in contravention of provisions of section 73 or section 81:

Provided further that where the fair market value, determined under this sub-rule, of such goods is found to be lower than the aggregate retail price of such goods as declared under clause (b) of sub-rule (3), the aggregate retail price of such goods as declared under clause (b) of sub-rule (3) shall be deemed to be the fair market value:

Provided also that in determining the fair market value of such goods, the authority referred to in this sub-rule shall take into account 

(a) the cost of transport of such goods;

(b) tax, duty or any other amount charged in respect of such goods;

(c) the amount of profit likely to be earned on sale of such goods in West Bengal,

which are normally added by a seller to the cost of the goods in fixing the sale price of the goods.

(6) When a penalty is imposed and/or security is determined under sub-rule (5) by the authority referred to in sub-rule (2), such authority shall serve upon the person, casual dealer or dealer a notice in Form No. 61 directing him to pay the amount of penalty imposed and/or the security determined by the date specified in such notice and to furnish a copy of the receipted challan as proof of payment of such penalty and/or of security and take delivery of the goods seized under section 76 by the date specified in such notice.

(7) On receipt of a copy of the receipted challan referred to in sub-rule (6) as proof of payment of penalty and/or of security, the authority referred to in sub-rule (2) shall after the person, casual dealer or dealer acknowledges the receipt of such goods in the copy of the seizure receipt related thereto, release the goods under sub-section (3) of section 77.