Rule 125

(1) The provisions of the Act and these rules relating to recovery of tax, penalty and any other amount due under the Act, including the provisions of section 36, shall apply to payment and recovery of tax assessed and penalty levied under section 54.

(2) Where the tax assessed and penalty levied under section 54 is not paid within the time specified in Form VAT 340, the officer in charge of any check post shall, without prejudice to other modes of recovery, detain any goods vehicle belonging to such defaulter upon its entry into the State.

(3) The Officer-in-charge of the check post shall release the vehicle detained, upon production of proof of payment of the tax or penalty or both, due by the defaulter.

(4) Where the tax or the penalty or both, are not paid by such defaulter within ten days from the date of detention of the vehicle, the officer in charge of the check post may, after giving a notice on of not less than fifteen days to the defaulter, dispose of the vehicle in public auction and adjust the sale proceeds towards the tax and penalty, the excess amount shall, after deduction of the charges incurred for the sale, be refunded to the defaulter.