56. Delivery of documents and seizure of goods

(1) The owner or a person duly authorised by such owner or the driver or the person Incharge of a vehicle or carrier or of the goods shall deliver the documents and declaration form(s) as specified in clause (b) of sub-section (2) of section 76, suo motu to the assessing authority or the officer authorized under sub-section (4) of section 76, at the time of inspection.

(2) Where any direction is issued under clause (a) of sub-section (5) of section 76, the assessing authority or the officer authorized under sub-section (4) of section 76, shall complete the verification or enquiry within seven days from the date of issue of the direction and will take appropriate action, if any, as warranted by the circumstances of the case.

(3) Where the owner or a person duly authorized by such owner or the driver or the person in charge of the vehicle or carrier or of goods, as the case may be, does not produce or possess any document and declaration Form as specified in clause (b) of sub-section (2) of section 76 in respect of the goods in movement or the documents and the declaration Forms produced appears to be false or forged, the assessing authority or the officer authorized under sub-section (4) of section 76, may seize the goods and shall issue a receipt of the goods so seized in Form VAT-52.

(4) Where the goods are seized, the assessing authority or the officer authorized under sub-section (4) of section 76, shall serve a notice on the owner or a person duly authorized by such owner or the driver or the person in charge of the vehicle or carrier or of the goods, as the case may be, requiring him to show cause, within seven days from the date of service of the notice, as to why the documents and declaration, as referred to in sub-rule (1) were not produced or why the correct particulars were not furnished, at the time of inspection. If the said the assessing authority or the officer authorized under sub-section (4) of section 76 is satisfied with the reply, or the penalty imposed under sub-section (6) of section 76 has been paid, or a security as demanded in lieu of such amount of penalty has been furnished, he shall release the goods and deliver the same to the owner of the goods or to anybody else duly authorized by such owner, after obtaining an acknowledgement to that effect.

(5) Where the goods are in transit through railways or airways or by any other mode, the provisions of this rule shall be applicable mutatis mutandis.

(6) Where the goods seized are subject to speedy and natural decay, and in the case of other goods where no compliance of the requirement of sub-rule (4) is made within one month from the date of service of the notice, the assessing authority or the officer authorized under sub-section (4) of section 76, with the written approval of the Deputy Commissioner (Administration) having jurisdiction, may sell such goods in open auction.

(7) The sale proceeds received under sub-rule (6) shall be deposited in the Government account.

(8) Any person entitled to such sale proceeds shall, on an application to the Deputy Commissioner (Administration) referred to in sub-rule (6), be paid the sale proceeds, referred to in sub-rule (7), after deducting there from the amount of tax and/or penalty due in respect of the goods seized and auctioned, the amount of interest, if any, the expenses of the sale and other incidental charges."