Chapter-4

Chapter-4 Provisions Relating To Withholding, Auction and Forfeiture
of Property
9. Power to withhold property: (1) In cases where the Excise Duty Officer or any employee deputed by him finds any person exporting any  product subject to excise duty from the manufacturing site or importing it by evading excise duty, the Excise Duty Officer may withhold such property.
(2) In cases where any person does not pay the excise duty payable under the Act and these Rules within the time-limit, the Excise Duty Officer may withhold the property of such person.
(3) In order to have the product or property, which the Excise Duty Officer has withheld pursuant to Sub-rules (1) and (2), so withheld that it is incapable of being sold or distributed or that title to it cannot be transferred in any other manner, he shall make request to the concerned office to so withhold the property or product. In cases where
request is so made, it shall be the duty of the concerned office to withhold such product or property.

10. Provisions relating to auction sale: (1) In cases where it appears that the product or property withheld pursuant to Section 17 of the Act can be perished, decayed or destroyed or its value can be diminished immediately, and the Excise Duty Officer has to immediately auction such product or property, he has to auction such product or property by affixing the auction notice to the notice board of the Office, and giving a time-limit of Seven days in maximum taking into account of the situation and nature of such product or property.
(2) In making auction sale pursuant to Sub-rule (1), it shall be made in presence of one representative of the local authority in the place where the product subject to auction sale is situated, or one employee of nearby governmental office and the concerned person or his representative, as well, as far as possible.
(3) In making auction sale of the product or property to be sold by auction pursuant to Sub-rule (1), it shall be auctioned through bidding, by fixing the minimum value of the product or property on the  basis of the prevailing market value of such product or property.

11. Power to forfeit product or property: (1) In cases where it is  proved that a product subject to excise duty has been exported from the manufacturing place of enterprise or been imported from abroad without paying excise duty, the Excise Duty Officer may possess and forfeit such product.
(2) In cases where any person is found manufacturing, importing, selling or storing a product subject to excise duty or rendering service subject to excise duty, without obtaining the license, the Excise Duty  Officer may forfeit all the goods related to it.
(3) In cases where any person is found manufacturing, importing, selling or storing a product subject to excise duty or rendering service subject to excise duty, by preparing false accounts or forged document, the Excise Duty Officer may forfeit all the goods related to it.
(4) In cases where any person conceals, hides or evades the payable excise duty, the Excise Duty Officer may forfeit the goods related to it and the manufacturing equipment, as well.
(5) The Excise Duty Officer shall, prior to forfeiting the product taken under possession, give a seven-day notice to the concerned person  to submit evidence indicating reasons, if any, for not forfeiting it.