(1) If any goods are seized under section 82 or 84, the Commissioner or any Officer authorised by the Commissioner, by an order in writing upon the person from whom such goods are seized, or the owner of such goods, where the particulars of the owner of such goods are available, or possession, after giving reasonable opportunity of being heard a penalty not exceeding fifty per centum of the value of such goods as may be determine by him in accordance with rules made under this Act.
(2) If the penalty is not paid by the date specified in the notice issued under sub-section(1) the Commissioner or the Officer authorised by him, in such manner and subject to such restrictions and conditions as may be prescribed, sell the goods so seized in open auction and remit the sale proceeds thereof to a State Government Treasury.
(3) Notwithstanding anything contained in sub-section (2), the Commissioner may, subject to such rules as may be made under this Act, where the goods seized are:-
(a)Of perishable nature.
(b)Required to be used by specified date.
(c) Sell such goods in open auction before the occurrence of, or expiry of such period as may be considered fit and proper or, if he is of the opinion that such may become un-usable, un-saleable on detention destroy such goods, if the said goods become un-saleable before the sale in open auction actually take place.
(4) The proceeds of sale of the goods under sub-section (2) and (3) shall be applied in the prescribed manner for payment in the following order of priority;
(a) first for incidental charges, if any, relating to auction sale of such goods;
(b) secondly, for expenses, if any, for storage of such goods;
(c) thirdly, for penalty imposed under sub-section (1); and
(d) the balance of the proceeds of the sale, if any, shall be paid to the owner of the goods or, if his particulars are not available, to the person from whom such goods were seized upon application within one year from the date of sale or within such further period as may be allowed by the Commissioner for cause shown to his satisfaction.
(5) Notwithstanding anything contained under sub-section (1), (2) or (3) the Commissioner or any Officer authorised by him may, for reason to be recorded in writing, direct release of the goods seized on such terms and conditions as he may deem fit.