Section 561(1) in Rules under the United Provinces Excise Act, 1910
(1)(a). Shop shall be settled by the Collector under Tree-Tax System by auction with the person offering the highest bid but a fresh auction may be held if the highest bid made is considered to be inadequate or the person offering the bid is disqualified from holding Tari shops under the Excise Rules or is of a doubtful solvency or is otherwise considered undesirable by the Collector.(b)The person offering the highest bid shall be required to deposit one-twelfth of the total bid offered by him as advance immediately on the provisional acceptance of the bid at sale by the officer conducting the sale. The other one-twelfth shall be paid immediately after the final settlement of the shop by the Collector but not later than September 30. This amount of advance deposit of one-sixth shall be adjusted towards tree-tax and surcharge on the trees marked after April 30. One-third of the total amount offered shall be payable latest by January 31, and the remaining half by April 30.(c)In case the entire amount of any of the instalments mentioned in sub-clause (b) is not deposited by the date fixed, the licence shall be cancelled and shop settled afresh by resale by the Collector by auction at the risk of the defaulter. If there is any loss on resale, it shall be recovered by adjustment of the advance deposit and balance, if any, shall be recovered as arrears of Land Revenue.(d)It shall be open to the officer conducting the auction to demand one-twelfth advance deposit by the second or third highest bidder if he thinks that the bid of the highest bidder may not be accepted owing to reasons mentioned under sub-clause (a) supra.(e)If a successful bidder due to greater demand of Tari wants to register trees of the value over and above the amount offered at auction, he can do so by depositing extra tree-tax and surcharge for such trees during any of the periods specified above.
