9911796707
TMI Blog2013 (6) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... it should be shown to be so. In the judgment of Delhi Court VIKAS GUMBER Versus UNION OF INDIA [2008 (7) TMI 414 - HIGH COURT OF DELHI] the proceedings initiated was after lapse of 4 years and therefore the Delhi High Court characterised it as not bona fide attachment and therefore directed lifting of attachment of all bank accounts. Only difference in the present case is that the bank accounts are under attachment for about two years, but without issue of a show cause notice under Section 124 of the Act. Even the condition imposed on the appellant by the learned Single Judge to furnish bank guarantee or security is not sustainable and the fact that even after passing of the order by the learned Single Judge on 15-9-2010 the respondents ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority that the Customs officials or officials of the Directorate of Revenue Intelligence, while exercising powers under the Customs Act, 1962. do not have power to attach bank accounts, at the stage of investigation, unless they are able to show the subject matter is one liable for confiscation; that there is no liability fastened on the appellants determining the amount due under any adjudication order, commensurate to the balance in the bank account for a total amount of Rs. 58 lakhs and some amounts in other Bank accounts being held up due to attachment has affected business of the appellants for about two years, which is per se unreasonable and not a proper exercise of power by a public authority assuming for arguments sake, such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofar as seizure of articles is concerned as enabled under sub-section (3) of Section 110, but under sub-section (4) of Section 110, insofar as seized documents are concerned, this provision only enables a person to seek for copy of the documents; that no time limit is stipulated here and therefore a person laying claim to documents cannot seek return of documents just because a period of 12 months has expired. 6. Sri Raviraj, learned Counsel submits that the proceeds of a Bank account, represents the proceeds of sale of contraband goods or goods which are otherwise liable for confiscation, the provisions of the Customs Act not only provides for determining the liability but also provides in law for confiscating the goods seized. Sri R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification in the Official Gazette, specify the goods or class of goods which shall, as soon as may be after its seizure under sub-section (1), be disposed of by the proper officer in such manner as the Central Government may, from time to time, determine after following the procedure hereinafter specified.] [(1B) Where any goods, being goods specified under sub-section (1A), have been seized by a proper officer under sub-section (1), he shall prepare an inventory of such goods containing such details relating to their description, quality, quantity, mark, numbers, country of origin and other particulars as the proper officer may consider relevant to the identity of the goods in any proceeding under this Act and shall make an application t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (3) of Section 110 and submits that it is a situation of seizure of documents or things and it includes a bank account. 9. While it is true that the enabling power for seizure of any documents or things which, in our opinion, will be useful for, or relevant to, any proceeding under this Act is available under sub-section (3) of Section 110 of the Act prima facie it should be shown to be so. 10. Even while the question whether the proceeds in a bank account can be confiscated within the scope of sub-section (3) of Section 110 may be debatable, it is assumed to be so for the propose of examining of these appeals and we proceeds to examine the merits of the case. 11. Learned Single Judge has specifically indicate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttachment of bank account is not at all permitted by law. 13. Sri Lakshminarayana, learned Counsel for the appellant submits that even if it is the case of the department, it may attract a duty liability and if at all penalty can be imposed in such a situation, but when the respondents have not issued show cause notice after enquiry and investigation for determining extent of under valuation and corresponding duty liability, we find no justification in keeping the bank account frozen for the amount in balance therein under attachment. 14. In the circumstances we find that even the condition imposed on the appellant by the learned Single Judge to furnish bank guarantee or security is not sustainable and the fact that even after p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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