72. Release/disposal of goods seized :-

(1) Notwithstanding anything contained in the foregoing rules, the concerned authority may not seize the goods and if seized, may release them before making order under Section 67(5), 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 (10)of Section 67 which shall be in the modes prescribed under Rule 27.

(2) If the amount of penalty levied under Section 67(5) 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-rules [3] (4) (5) (6) [7] and [8] of Rule 72 and the sale proceeds thereof shall be paid to the owner of the goods after deducting the amount of penalty demanded.

(3) The goods seized shall be sold in public auction under the supervision of the Deputy Commissioner Commercial Taxes concerned. Notice for auction of the seized goods specifying the place, date and time of auction shall be published in a local newspaper. A copy of the notice alongwith a list of seized goods to be auctioned under the signature of an officer shall be displayed on the notice board on his office and copies thereof shall also be displayed in the office of the Deputy Commissioner Commercial Taxes concerned and at any other public place near the Notified Area (Check-post). The notice shall ordinarily be given one week before the auction is conducted unless it is considered necessary to give a shorter notice with the prior approval of the Commissioner.

(4) On the appointed day and time the seized goods shall be put to auction in one or more lots as the officer conducting the auction may consider advisable and shall be knocked down in favour of the highest bidder. The earnest money of the unsuccessful bidders shall be refunded to them immediately after the auction is over.

(5) Intending bidders shall deposit as earnest money a sum equal to ten percent of the estimated value of the seized goods. The successful bidder shall deposit an additional earnest money equal to twenty percent of the value of the goods auctioned immediately on the fall of the hammer.

(6) The highest bidder shall pay the balance amount of the bid within three days when the auctioned goods shall be delivered to him. The sale proceeds shall be deposited into the Treasury under the head "0040-Sales Tax". If the bidder fails to pay the balance amount within three days of the auction the earnest money deposited by him shall stand forfeited to the Government, the seized goods shall be resold by auction in the manner prescribed in the foregoing clauses of this sub-rule.

(7) If the goods seized are of a perishable nature, their sale shall not be postponed on account of a revision or appeal having been preferred against the order of seizure.

(8) If any order directing seizure is reversed in revision or appeal the goods seized if they have not been sold before such reversal comes to the knowledge of the officer conducting the sale, shall be released or if they have been sold, the proceeds thereof shall be paid to the person concerned or his agent on payment of or after deducting the charges incurred by the State after receipt for the same.

Provided that if the person concerned or his agent brings to the notice of the officer conducting the sale that an appeal or revision against the orders directing seizure has been filed before the appropriate authority the officer conducting the sale shall, without prejudice to sub rule (8) above postpone the sale till orders are passed in appeal or revision.

(9) The application form for refund as provided in sub-rule 13 of Rule 67 shall be in Form VAT-57 and the amount refundable under sub-section 12 of Section 67 shall be refundable in the same manner as provided for refund of tax and penalty under section 50 .