Vat Actupdated - RS Goyal & Associates

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(d) The Commissioner may, at any time after the service of the notice under clause (b) and
before passing an order imposing penalty under clause (c), release the goods seized if the
dealer or the person from whom the goods were seized furnishes security in the form of cash
security or bank guarantee to the satisfaction of the Commissioner, in each case for such
reasonable amount as the Commissioner may specify by order in writing with due regard to
the amount of penalty proposed. On payment by the dealer of the penalty imposed upon him
under clause (c), if the security furnished is in the form of bank guarantee, the bank
guarantee shall be released and if such security has been furnished in the form of cash
security, it shall be adjusted towards the penalty so imposed and the balance, if any, shall be
refunded to the dealer.
(e) Where no security is furnished under clause (d), the dealer shall pay the amount of
penalty, within thirty days of the service of the order imposing penalty on him and on
payment of such amount goods seized shall be released forthwith.
2 (ea) Subject to such restrictions and conditions and in such manner as may be prescribed,
a dealer, on whom a penalty has been imposed under clause (c), may opt to pay in lieu of
penalty a lump sum amount, which shall be twice the amount of tax referred to in clause (b)
and once the dealer has exercised the option he shall not have any right to challenge the
order of penalty in any forum. 2
(f) If the dealer fails to pay within the period specified in clause (e) the penalty imposed
under clause (c), the Commissioner shall, subject to other provisions of this Section, dispose
of the goods by way of sale in such manner as may be prescribed and apply the sale
proceeds thereof towards the penalty imposed and the expenses incurred on account of and
incidental to the custody, protection, preservation and sale of such goods and shall refund
the balance, if any, to the dealer or person entitled.
(g) The penalty imposed under clause (c) shall be without prejudice to any other action
under any other provision of this Act.
(h) Where any objection is made to the seizure of the goods seized under clause (a) on the
ground that such goods do not belong to the dealer or are not otherwise liable to seizure, the
Commissioner shall proceed to decide the objection:
Provided that no such objection shall be entertained -
(i) where, before the objection is made, the goods seized had already been sold, or
(ii) where the Commissioner considers that the objection was designedly or
unnecessarily made.
(i) All questions including question relating to right, title or interest in the goods seized
arising between the parties to such proceeding or their representatives and relevant to the
adjudication of the claim or objection, shall be determined by the Commissioner dealing with
the claim or objection.
(j) Upon the determination of the question referred to in clause (i), the Commissioner shall, in
accordance with such determination:-
(i) allow the claim or objection and release the seized goods either wholly or to
such extent as he thinks fit, or
(ii) disallow the claim or objection, or
(iii) pass such order as, in the circumstances of the case, he deems fit.
(k) where any claim or objection has been adjudicated upon under clause (j) or where the
Commissioner refuses to entertain a claim or objection under the proviso to clause (h), any
such order made shall be deemed to be an order relating to assessment of tax against a
dealer under Section 20 and shall be subject to the same condition as to appeal, revision or
any other remedy under this Act.