(1) Where the goods are seized under section 76 and the penalty imposed has not been paid by the date specified in the notice issued under sub-section (2) of section 77 or goods are seized under sub-section (10) of section 80, the authority who has seized such goods shall issue a proclamation for open auction for sale of such goods for cash on delivery fixing a date, not earlier than thirty days from the date of issue of such proclamation for sale, and in such proclamation, the time and place of sale and description of the goods for sale shall be mentioned.
(2) The proclamation for open auction referred to in sub-rule (1) shall be published in two local newspapers, and copy of such proclamation shall be,-
(a) hung up for public view at the place where the sale in auction is to take place; and
(b) forwarded to the dealer, casual dealer or person from whom such goods have been seized under section 76 or owner of such goods if his address is available, or to the person who subsequently claims ownership of authority of possession, where his address is available in the seizure records.
(3) The goods shall ordinarily he sold to the highest bidder but if it appears to the Deputy commissioner, Assistant commissioner or Sales Tax Officer, as the case may be, that such highest bid as offered by such bidder is inadequate, he may adjourn the sale to some other date, and a fresh proclamation specifying the next date for auction shall also be issued and published in accordance with the provisions of sub-rule (2).
(4) On the date of auction specified in the proclamation referred to in sub-rule (1) or sub-rule (3), the goods seized under section 76 shall be sold under sub-section (4) of section 77:
Provided that if a copy of the proclamation does not appear to have been forwarded to the dealer or person from whom goods have been seized, and the amount of penalty is due, and if such dealer, casual dealer or person or the owner of the goods so seized appears before the Deputy Commissioner, Assistant Commissioner or Sales Tax Officer, as the case may be, on any date not later than receipted challan showing payment of penalty due from such dealer or person, the goods, referred to in such proclamation shall not be sold in auction, and such goods shall be released to such dealer, casual dealer or person in accordance with the provisions of sub-rule (7) of rule 125.