Technically, you still own the car (you have not sold it to the gararge, just asked them to sell it for you).
As such, it is entirely your responsibility to ensure the car is insured and taxed - the garage would not, for example, be able to allow anyone to test-drive the car unless it was either on their books (and thus drivable on their trade plates), or was taxed.
Go to court, apologise for the mistake, and hope to be let off lightly.
In the meantime, get it taxed, insured - and then get it sold. Chuck it on ebay, starting at 99p with no reserve. But stop messing about with it.
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