Section 3A(7) in The M.P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976
(7)(a)If a person liable to pay tax fails to pay the tax in the manner as laid down, then the Designated Officer shall forthwith impound the vehicle in respect of which tax has remained unpaid and keep the vehicle impounded till the amount of tax and penalty due is paid in full;(b)If the amount of tax and penalty is not paid within one month of impounding of the vehicle, the Designated Officer shall have the power to sell the vehicle in the manner prescribed, by auction and apply the sale proceeds to towards recovery of the tax, interest and cost incurred on it. The remainder, if any, shall be refunded to the person;(c)If at any time before the auction of the vehicle the person pays the tax, interest and cost incurred if any, the Designated Officer may, after satisfying that all the dues have been fully paid by the person, cancel the auction proceedings and return the vehicle to the person.
