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Power to purchase underpriced goods.
49. (1) Where a taxing authority has, for the purpose of any
proceeding under this Act, reasons to believe that any goods whether in stock or in transit, are underpriced in a document or book of account produced before it, it may, with prior approval of the Commissioner or such officer as the Commissioner may, in writing, authorise for the purpose, make an offer to purchase such goods at the price shown in the document or book of account increased by ten per cent plus freight and other expenses, if any, incurred by the owner in relation to the goods.
(2) If the owner of the goods accepts the offer, he shall make delivery of the goods on a date and time and at a place specified by the officer making the offer and shall be paid the offered price with other expenses within ten days of the delivery of the goods but if he rejects the offer, or after accepting the offer fails to deliver the goods on the specified date and time and at the specified place, it shall be conclusive proof that the owner has underpriced the goods.
(3) The goods purchased under sub-section (2) shall be sold by public auction in the manner prescribed as early as possible but if the goods are of a perishable nature or subject to speedy and natural decay or are such as may, if held, lose their value or when the expenses of keeping them are likely to exceed their value, then, such goods shall be immediately sold or otherwise disposed of in the manner prescribed and the sale proceeds of the goods or the amount obtained by disposal of the goods shall be deposited in the State Government treasury. |