Stock of goods stored in undisclosed warehouses

(1) If any registered dealer has not disclosed any warehouse in his application for registration made under sub-section (2) of section 26 or has not furnished information under section 88 regarding change of his warehouse or opening of a new warehouse for amendment of his certificate of registration under sub-section (6) of section 26 and if any stock of goods is found in such warehouse after search made under section 64 by authorised officer, it shall be presumed that such dealer has transported such goods in contravention of section 60 and stored those goods in such warehouse, unless such dealer - (a) explains to the authorised officer who conducts such search, the reason for not disclosing the warehouse or furnishing the information under section 88 and the stock of goods found stored in such warehouse, and (b) produce on demand by the authorised officer and explains the stock register or account of stock showing entry of such goods in the purchase bill or cash memo or challan. (2) Where the dealer plays for time for the purpose of clause (b) of sub-section (1), the authorised officer may allow time to produce before him the document referred to in that clause, and shall meanwhile seal such warehouse up to the time allowed by him.