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