Application of seized assets: recovery of tax liabilities from assets with surplus returned after discharge. Seized or requisitioned assets may be applied to discharge existing tax liabilities and liabilities determined on completion of assessment or for the block period, including penalties and interest, where the person is in default. If the asset's nature and source are satisfactorily explained within the prescribed period, liabilities may be recovered from the asset and the balance released with requisite higher level approval within the statutory time limit. Money seized may be applied directly; other assets may be deemed under distraint and sold to satisfy outstanding liabilities, with any surplus returned to the person from whose custody the assets were seized.