SEARCH, SEIZURE, ARREST AND PROSECUTION - Central Excise Practice Manual (OLD) - Central Excise

13. SEARCH, SEIZURE, ARREST AND PROSECUTION The statutory provisions relating to search and seizure are used to enforce the Central Excise law in exceptional circumstances when the direct physical intervention becomes necessary. The search and seizure is effected in accordance with the procedures as laid down in the law. 13.1 Provisions relating to search seizure: Rules 22 23 empower the authorized officer of the Department to search any premises, conveyance or other place. Rule 24 empowers the officer to effect seizure or detention of the excisable goods. Further, the provisions of the Customs Act, 1962 relating to search and seizure are made applicable to Central Excise matters by virtue of Section 12 of the Act read with Notification No.68/63 dated 4.5.1963. In terms of the aforesaid provisions, an officer not below the rank of the Inspector of Central Excise, with the written permission of the AC/DC, can search at any time, any premises or conveyance where he has reason to believe that excisable goods are manufactured, stored or carried in contravention of the provisions of the Act or Rules. There is no requirement for search warrant for conducting search of a registered premises or for stopping and searching of any conveyance in transit. In respect of other cases, search warrants are required to be issued by an Officer not below the rank of AC/DC for authorizing the search. The search would be carried out in the presence of two independent witnesses. The proceedings of the search and seizure would be recorded in the Mahazar (also called as the Panchnama) drawn by the two independent witnesses and the seized materials would be listed out therein. A copy of the Mahazar would be supplied to the person-in-charge of the searched premises or seized goods . If the Central Excise Officer has reason to believe that any goods, which are liable to Excise duty but no duty has been paid thereon or the said goods were removed with the intent of evading the duty payable thereon, the Central Excise Officer may detain or seize such goods. 13.2 Provisional release: The power to release seized goods emanates from the power to seize itself. The goods seized may be released provisionally by the officer who is normally competent to adjudicate the case on execution of the Bond (B-8 bond) along with 25% security or surety. The adjudicating officer will take into consideration the importance of such goods for evidence while releasing the goods provisionally. Sample would also be drawn, if necessary. The adjudicating officer may, however, require the owner or in-charge of the goods to whom the goods are provisionally released, to produce the goods any time before issue of the adjudication order. If the adjudicating authority is of the view that the goods are liable for confiscation and when the concerned person to whom goods were provisionally released fails to produce the goods at the appointed time, the bond would be enforced for recovery of the dues. 13.3. Summon: A Gazetted Officer of Central Excise (Superintendent and above) is empowered to summon any person for giving evidence or producing documents necessary for any inquiry conducted by the said officer for the purpose of enforcement of the provisions of the Act (Section 14 of the Act). The person summoned is entitled to get a copy of the statement given by him in connection with the investigation, if the said statement is proposed to be included as a relied upon document in the proceedings initiated under the provisions of the Act. 13.4 Arrest: Any Central Excise Officer not below the rank of Inspector with the prior approval of the Commissioner can arrest any person under Section 13 whom he has reason to believe that he is liable to punishment under the Central Excise Act. The arrested person shall be produced before the Jurisdictional Magistrate or the Chief Judicial Magistrate, as the case may be, within 24 hours of the arrest. 13.5 Prosecution: Besides the Departmental adjudication, prosecution may also be launched under Section 9 of the Act against persons who have committed any of the offences specified under this Section. In respect of offices committed by Companies, prosecution may be launched under Section 9AA of the Act, against any person, Director, Manager, Secretary or other officers of a company or partner/ proprietor of the firm, who is responsible for the conduct of the business of the company/firm and is found guilty of the offences under the Central Excise Act / Rules.