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Challenge to the order of attachment of premises under Customs Act, 1962. Analysis: The writ petitions under Article 226 of the Constitution sought to challenge the order directing attachment of premises purchased in the name of two entities towards pending recovery of Government dues from specific firms involved in duty drawback fraud. The facts revealed the fraudulent activities of certain individuals and the subsequent transfer of funds to purchase properties, leading to the issuance of demands and attachment orders by the Customs Department. The legal battle involved multiple petitions, appeals, and revisions challenging the attachment orders issued by the Customs Department. The initial petitions were withdrawn to explore statutory remedies, but subsequent appeals and revisions faced dismissals due to jurisdictional issues and the nature of the issues raised. The petitioners then filed fresh writ petitions challenging the legality and propriety of the attachment orders, leading to a detailed examination by the Court. The Court analyzed the contentions raised by both parties, focusing on the principles of constructive res judicata and the sufficiency of evidence and notices issued by the Customs Department. The Court found that there was prima facie evidence of fraud and collusion leading to the acquisition of properties with fraudulently obtained funds. The Court ruled that the proceedings were not barred by res judicata and directed the department to issue fresh show cause notices, allowing for replies and personal hearings before passing appropriate orders. In conclusion, the Court quashed the impugned order of attachment, directing the department to initiate fresh proceedings while continuing the attachment during the adjudication process. The judgment clarified the tentative nature of the observations made and emphasized the need for due process and adherence to the law in further proceedings.
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