20. Impounding of Motor Vehicle on Import of which Tax is not paid
If a person liable to pay tax in the manner as laid down under sub-section (2) of Section 4 fails to pay tax within 15 days from the entry of motor vehicle into the local area or before an application is made for registration of the vehicle under the Motor Vehicles Act,1998 whichever is earlier, then the designated officer shall forth with impound the vehicle in respect of which tax has remained unpaid and keep the vehicle impounded till the amount of tax and penalty due and payable is paid in full:
Provided that, if the amount of tax and penalty is not paid within one month of impounding of the vehicle, the designated officer shall have power to sell the vehicle in the prescribed manner, by auction and apply the sale proceeds towards recovery of the tax, penalty and costs. The remainder, it any, shall be refunded to the importer .
Provided further that, if, at any time before the auction of the vehicle, the importer pays the tax, penalty and costs, if any, incurred towards holding the auction, then, the designated officer may, after satisfying that all the dues as aforesaid have been fully paid by the importer, cancel the auction and return the vehicle to the importer.
|