Section 201: Procedure for sale of goods and application of sale proceeds

201. Procedure for sale of goods and application of sale proceeds.- (1) Where any goods, other than confiscated goods, are to be sold under any provision of this Act, they shall be sold after due notice to the owner 7[or his agent or custodian of the goods] by public auction 55[omitted]. 41[(1A) The goods may be sold under sub-section (1) through electronic means, as prescribed by the Board under the rules.] (2) The sale proceeds shall be applied to the following purposes in their respective order, namely:- (a) first to pay the expenses of the sale; (b) then to pay the freight or other charges, if any, payable in respect of the goods, if notice of such charges has been given to the person holding the goods in custody; (c) then to pay the customs-duty, other taxes and dues payable to the 8[Federal Government] in respect of such goods; (d) then to pay the charges due to the person holding such goods in custody. (3) The balance, if any, shall be paid to the owner of the goods, provided he applies for it within six months of the sale of the goods or shows sufficient cause for not doing so 52[: Provided that, in case wherein goods declaration has been filed, the share of importer in sale proceeds shall not exceed the declared value of the goods.] 55[(4) No court shall stay the auction proceedings unless the person obtaining stay order furnish pay order or bank guarantee not less than fifty per cent of the reserve price of the goods before the nazir of the court.]

Effective date: 1969-03-03

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