2018 (12) TMI 736 - HC - Customs

Attachment of immovable property - direction for completion of investigation in a time bound programme - Held that - To enable the respondents to complete the investigation, we direct the petitioners or any of them who may be summoned by the competent authority for giving the statement in the ongoing investigation to appear before the Competent Authority. Since we do not have the full details of the investigation, it would not be proper for us to give any rigid time frame for completing the same - The authorities would attempt to complete the investigation as expeditiously as possible and issue a show-cause notice to the petitioners, if upon completion of investigation the case for proceeding further is made out. This may be done preferably by 31st March, 2019. Petition disposed off.

Summary

Issues:
1. Withholding of export benefits by Customs authorities pending investigation into alleged irregularities.
2. Placement of petitioners' immovable property under attachment by Customs authorities.
3. Delay in completing the investigation by Customs authorities.
4. Non-cooperation of petitioners with the ongoing investigation.
5. Direction for petitioners to cooperate with the investigation.
6. Lack of rigid time frame for completing the investigation.
7. Issuance of show-cause notice to petitioners upon completion of investigation.
8. Decision on lifting the attachment of the immovable property.

Analysis:

1. The petitioners claimed that Customs authorities withheld their export benefits due to alleged irregularities in exports made in 2014. They highlighted that part of the benefits were paid, but some were withheld, causing them financial harm. The petitioners requested completion of the investigation in a time-bound manner and lifting of the attachment on their residential property.

2. In response, the Department's counsel argued that they discovered several illegalities in the petitioners' export claims, including inflated foreign exchange remittances through forgery. The investigation was ongoing, and the petitioners were accused of not cooperating with the authorities. The Department sought the petitioners' cooperation in the investigation process.

3. The Court directed the petitioners to cooperate with the investigation by appearing before the Competent Authority for statements. The Department assured that the investigation was at an advanced stage and committed to issuing a show-cause notice by a specified date if further action was warranted, preferably by 31st March 2019.

4. Acknowledging the lack of complete details on the investigation, the Court refrained from setting a rigid time frame for its completion but emphasized the need for expeditious progress. The Court decided not to order the lifting of the attachment on the immovable property at that stage, considering the ongoing investigation.

5. The judgment concluded by disposing of the petition with the provided directions and observations, ensuring that the petitioners would cooperate with the investigation process as required.