(1) Where the goods are seized under sub-section (8) of section 73, clause (b) of sub-section (4) of section 74, sub-section (11) of section 74 and sub-section (8) of section 76, the authority who has seized such goods, shall issue a proclamation for open auction for sale of such goods for cash on delivery fixing a date, not earlier than seven days from the date of issue of such proclamation for sale, and in such proclamation the time and place of sale and the description of the goods for sale shall be mentioned.

(2) The proclamation for open auction referred to in sub-rule (1) shall be publicised and copy of such proclamation shall be 

(a) hung up for public view at the place where the auction sale is to take place, and

(b) forwarded to the dealer or person, from whom such goods have been seized or owner of such goods, if his address is available.

(3) The goods shall ordinarily be sold to the highest bidder but if it appears to the authority issuing the proclamation for auction sale that such highest bid as offered by such bidder is inadequate, he may adjourn the sale to some other date, and a fresh proclamation specifying the next date for auction shall be issued and publicised.

(4) On the date of auction specified in the proclamation referred to in sub-rule (1) or (3), the goods seized shall be sold:

Provided that if the dealer or person from whom such goods have been seized or owner of such goods, to whom the copy of the proclamation for sale has been forwarded under sub-rule (2), appears before the authority concerned on any date not later than the date fixed for auction sale and makes payment of tax and penalty as provided under the section, in accordance of which the seizure was made, the goods referred to in the proclamation of sale shall not be sold in auction and such goods shall be released to such dealer or to the person from whom the goods have been seized or the owner of the goods, as the case may be.

(5) Notwithstanding anything contained in sub-rule (1), where the goods seized are of perishable nature the proclamation for open auction for sale of such goods shall be made immediately and the open auction shall be conducted within twenty four hours.