5. Recovery (Section 4 and 5)

If a person liable to pay tax, fails to pay in the manner as laid down under Section 3, then the concerned Excise and Taxation Officer shall forthwith impound the Motor Vehicle alongwith accessories, if any, in respect of which, the tax has remained unpaid and keep the vehicle or accessories, or both, as the case may be, impounded till the amount of tax and penalty due and payable is paid in full :

            Provided that if the amount of tax or penalty is not paid within one month of the impounding of the aforesaid goods, the Excise and Taxation Officer shall have the power to sell the goods by auction and apply the sale proceeds towards the recovery of the tax, penalty and costs, if any. The remainder shall be refunded to the person concerned :

            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, the Excise and Taxation Officer may, after satisfying that all dues have been fully paid by the importer, cancel the auction and return the vehicle to the importer.