(1) Notwithstanding anything contained in this Act, the owner or other person in charge of a vehicle or vessel while transporting into or out of the State, coffee, rubber, cardarnom, ginger, paper, arecanut, cashewnut, iron and steel and any other goods notified by the Government the value of which exceeds rupees two thousands and five hundred or such amount as notified by the Government from time to time, shall carry with him in addition to the documents prescribed under section 29 of the Act a permit issued by the officer empowered in this behalf or the assessing authority as the case may, be in the prescribed form.

Note.- If the transporter of notified goods is not accompanied by the documents specified in sub-section (1) above, it shall be deemed to be smuggling of the notified goods for the purpses of the Act.

(2) Any officer authorised by the Government in this behalf shall have the power to intercept and search the vehicle or vessel or any conveyance referred to in sub-section (1), at any place within the State for the purpose of enabling such officer to verify whether any notified goods are being transported in contravention of sub-section (1).

(3) If on verification, such officer has reason to suspect that the notified goods are being transported in contravention of the provisions of sub-section (1), he may without any unreasonable delay, produce the goods and the vehicle before such officer authorised by the Government, by notification in the Gazette, not below the rank of an Inspecting Assistance Commissioner.

(4) Where the authorised officer is satisfied that the driver or other person in charge of the vehicle or vessel transported the notified goods in contravention of sub-section (1), or the documents produced are false or reasonably suspected to be false in respect of the particulars furnished therein, the authorised officer shall have the power to seize and detain the notified goods along with vehicle or vessel:

Provided that before taking action of seizure and detention, the authorised officer shall give the person in -charge of the notified goods and the owner of the notified goods, if ascertainable, and to the owner of the vehicle or vessel a notice in writing informing him the reason for the seizure and detention and an opportunity of being heard:

Provided further that the authorised officer may release the notified goods and the vehicle or vessel seized and detained, if the owner or the person in-charge of the notified goods or owner or person in-charge of the vehicle or vessel files an option to pay in lieu of seizure and detention, a penalty equal to thrice the amount of tax due at the rate applicable to the goods liable to seizure and detention and twice the amount of tax due or an amount of rupees fifty thousands whichever is higher for the release of the vehicle or vessel in lieu of detention:

Provided also that if the owner of the vehicle or vessel produces the permit prescribed in sub-section (1) and the owner of the notified goods proves the bonafides of the transport of goods within seven days of the seizure and detention, the authorised officer shall release the goods and the vehicle.

(5) Notwithstanding anything contained in the foregoing provisions, if the owner or person in charge of the notified goods or the owner or person in charge of the vehicle fails to prove the genuineness of the transport of the goods or to remit the penalty as specified in the second proviso to sub-section (4) within 30 days from the date of seizure and detention of goods and the authorised officer has reason to believe that the owner or the person in charge of the vehicle or vessel has transported the notified goods to evade payment of tax with the knowledge or convinance of the owner of the goods, the authorised officer may confiscate the vehicle or vessel along with the notified goods.

(6) No order confiscating any vehicle or vessel shall be made under sub-section (5), if the owner of the person in charge of the vehicle or vessel proves to the satisfaction of the authorised officer it was used for carrying the notified goods without the knowledge or connivance of the owner himself, his agent, if any or the person in charge of such vehicle or vessel and that each of them has taken all reasonable and necessary precautions against such use:

Provided that the authorised officer shall serve notice to the owner of the vehicle or vessel or the person in charge of the vehicle or vessel or the owner of the notified goods, if ascertainable, intimating the reason for the confiscation of the vehicle or vessel and an opportunity of being heard. The authorised officer shall also afford an opportunity to pay a penalty equal to thrice the amount of tax attempted to be evaded by the owner of the goods and rupee one lakh by the owner or person in charge of the vehicle or vessel in lieu of confiscation of vehicle. If the owner of the notified goods is not ascertainable or not willing to remit the penalty specified, the owner of the vehicle or vessel or the person in charge of the vehicle or vessel shall pay thrice the amount of tax sought to be evaded and an amount of rupees one lakh in lieu of confiscation of the notified goods and vehicle or vessel.

(7) The permit referred to in this section shall be obtained either from the officer empowered to in this behalf in the border checkpost or from the assessing authority as the case may be, for the transport of notified goods into or out of the state.

(8) Any person aggrieved by an order under sub-section (6) may, within thirty days from the date of communication to him of such order, file an application for revision, in such manner and in such form, as may be prescribed and accompanied by a fee or rupees five hundred befor the Deputy Commisioner and the Deputy Commissioner may pass such orders thereon as he thinks fit:

Provided the Deputy Commissioner may admit an application for revision filed after the expiry of the said period ,if he is satisfied that the applicant had sufficient cause for not filling the revision within the said period.

(9) Any person aggrieved by an order under sub section (8) may within thirty days from the date of communication to him of such order file a revision in such manner and in such form as may be prescribed and accompanied by a fee of rupees five hundred before the Commissioner and the decision of the Commissioner shall be final:

Provided that the Commissioner may admit an appplication for revision filed after the expiry of the said period , if he is satisfied that the applicant had sufficient cause for not filling the application within the said period .

(10) where an order of confiscation under this section has become final in respect of any goods , vehicle or vessel , such goods , vehicle or vessel, as the case may be , shall vest in the Government free from all encumbrances.

(11) The award of confiscation under this section shall not prevent the infliction of any punishment to which the person affected therby is liable under the Act.