40. Inspection under sub sections 3 and 5 of section 15

(a) An officer authorized by the Commissioner under sub-section (3) and (5) of section 15, hereinafter referred to as the authorized officer may do any or all of the following acts namely:-

(i) to enter the said building or place with such assistance of police officers as may be required, to search the same and to place identification marks on such books of accounts or other documents found therein, as in his opinion, will be relevant to or useful for any proceedings under the Act and to make a list of such books or documents with particulars of the identification marks thereon;

(ii) to examine such books or documents and to make copies of or extracts from such books or documents.

(iii) to take possession or seize any such books or documents under sub section (3) and (4) of section 15 and to make a note or an inventory of any other article or thing found in the course of such search which, in his opinion will be useful for or relevant to any proceedings under the Act.

(c) If ingress into such building or place cannot be so obtained it shall be lawful for the authorized officer executing the authority, with such assistance of a police officer as will be required to enter such building or place and search therein and in order to effect an entrance into such building or place to break open any outer or inner door or window of any building or place, whether that of the person to be searched or of any other person if after notification of his authority and purpose and demand of admittance duly made, he cannot otherwise obtain an admittance.

(d) Where any person in or about such building or place is reasonably suspected of concealing about his person any articles for which search is being made, such person may also be searched by the authorized officer with such assistance, as he may consider necessary. If such person is a woman, the search shall be made by any other woman with strict regard to decency.

Before making a search the "Authorised Officer" about to make it shall call upon two more respectable inhabitants of the locality in which the building or place to be searched is situated to attend and witness the search and may issue an order in writing to them or any of them so to do.

(e) The search shall be made in the presence of the witnesses aforesaid and a list of all things seized in the course of such search and of the places in which they were respectively found shall be prepared by "authorised officer" and signed by such witnesses.

(f) The occupant of the building or place searched or some person on his behalf shall be permitted to attend during the search and copy of the list prepared under the preceding clause shall be delivered to such occupant or person. A copy shall also be forwarded to the Commissioner.

(g) When any person in searched, a list of all things taken possession of shall be prepared and copy thereof shall be delivered to such person. A copy shall also be forwarded to the Commissioner.

(h) If the authorized officer seizes any books of accounts/ registers of documents under section 15, he shall forthwith grant a receipt for the same and shall return them under proper receipt to the dealer or to the person from whose custody they were seized after completing proceedings under the said section. The proceeding shall ordinarily be completed within a period of 90 days from the date of seizure. The authorized officer may take copies or extracts of the seized documents as may be considered necessary. The officer may before returning the books of accounts etc. affix his signatures and his official seal at one or more places thereon and in such case the dealer or the aforesaid person will be required to mention in the receipt given by him the number of places where the signatures and the seal of the officer have been affixed on such books of accounts.

(hh) Notwithstanding anything contained in sub-rule (h) the officer seized any account books, registers or other documents may for the reasons to be recorded in writing, with the prior approval of the Commissioner, retain such account books registers or documents for a further period not extending beyond 30 days from the date of completion of all the proceedings under he Act.

(i) In all searches under these rules if any building or place is an apartment in actual occupancy of a woman who according to custom does not appear in pubic the authority making the search shall before entering such apartment give notice to such woman that she is at liberty to withdraw and shall afford her every reasonable facility for withdrawing and may then break open the apartment and enter it.

(j) If any officer authorized or empowered by Commissioner under sub-section (5) of section 15 finds any goods, the sale of which, is liable to tax and which are found in any office, shop, godown, vehicle or in any other place of business or in any building or place of the dealer but not accounted for by the dealer in his accounts, registers or other documents maintained in the course of his business he may seize such goods. He shall prepare a list of all such goods seized under this sub-rule and get it signed by two respectable witnesses.

Provided the goods so seized shall be kept under official custody or hand over to any person for the safe custody till orders for their release are issued by the authorized officer. The goods shall be handed over to such person after obtaining declaration in Form ST-13-A in presence of two respectable witnesses who shall sign such declaration form.

(k) Soon after the seizure of the goods, the authorised officer may levy penalty under sub-section (5) of section 15 of the Act provided that before passing the order, a reasonable opportunity of being heard is given to the dealer by issuing a notice in Form ST-31-B. The goods shall be released after passing orders subject to payment of penalty imposed, if any. And in case the penalty demanded is not paid within the period under rules, it shall be put to auction and the sale proceeds of the goods shall be paid to the owner of the goods after deducting the amount of such penalty besides other expenses incurred on unloading, handing and auctioning. The excess amount shall be paid to the owner of the goods on an application made in Form ST-31-C within a period not exceeding 180 days from the date of auction. In case no claim of ownership is made within the said period the amount shall be forfeited to the Government. No interest shall accrue on such amount.

(m)

(i) The goods seized shall be sold in public auction under the supervision of the Deputy Sales Tax Commissioner 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 be displayed on the notice board on his office and copies thereof shall also be displayed in the office of the Deputy Sales Tax Commissioner 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.

(ii) 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.

(iii) Intending bidders shall deposit as earnest money a sum equal to ten per centum of the estimated value of the seized goods. The successful bidder shall deposit an additional earnest money equal to twenty per centum of the value of the goods auctioned immediately on the fall of the hammer. Officer conducting the auction shall grant a receipt in Form ST-41 acknowledging the receipt of earnest money.

(iv) 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 be forfeited to the Government, the seized goods shall be resold by auction in the manner prescribed in the foregoing clauses of this sub rule.

(o) 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 obtaining 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 (o) above postpone the sale till orders are passed in appeal or revision.