89. Power to purchase in case of under-valuation of goods.-

(1) Where, in respect of goods liable to tax under this Act, carried in a goods vehicle or boat, or held in stock by any dealer or on his behalf by any other person, or held in the custody of transporters, the prescribed authority or any officer empowered under Section 66, has reason to believe that the value shown in the document accompanying the goods in transit or the purchase invoice, is lower than that of prevailing market price or maximum retail price by a difference of thirty percent or more, such authority or officer, for reason to be recorded in writing, may purchase such goods;

(2) The power of sub-section (1) shall not be exercisable unless the person or dealer being dispossessed of such goods, is afforded reasonable opportunity of being heard;

(3) The price payable for purchase of such goods shall be the total price as mentioned in the invoice, challan, delivery note, or any other related document, plus the cost of transportation of the goods incurred upto the time of purchase, if any;

(4) In determining whether or not the price shown in the invoice, challan, delivery note or any other related document involves undervaluation, in the case of the owner of the goods other than an owner carrying on business in packaged goods, the authority exercising the power under sub-section (1) shall apply the prevailing market price or fair market value and in the case of an owner carrying on business in packaged goods, shall apply the maximum retail price;

(5) Any person objecting to an order affecting him under this Section may appeal to the prescribed authority;

Such appeal shall be dealt with as if it were an appeal filed under Section 73, 74, 75 and 78, as the case may be, and all the provisions of that Section shall mutatis mutandis apply to such an appeal;

(6) The authority or officer purchasing goods in exercise of the powers of sub-section (1) shall dispose of the goods in public auction within thirty days from the date of such purchase and for value not less than the price paid to the owner of the goods. The sale proceeds so realized should forthwith be paid into the Government Treasury.