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TMI Blog2020 (10) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... gs. But I refrain from doing so. Now that the search has been conducted and it has been shown that the stock register was not maintained at the petitioner's place of business, I do not want to quash the order of seizure. However, the order of prohibition has to be necessarily interfered with. The search and seizure had taken place on 21.08.2020. By now, more than 40 days have elapsed. Even, a show cause notice has not been issued till date. The respondents have made a cool statement in their para wise comments that no allegation has been made against the petitioner on the matter under investigation merely by issuing orders of seizure and prohibition and that the matter would be decided by proper officer under CGST Act only after completion of the investigation of the case. The respondents ought to release the goods on provisional basis. The respondents are directed to take personal bond from the petitioner. I wanted to know if the petitioner can offer any security. It appears that the two immovable properties of the petitioner are already under mortgage. The petitioner states that at best he can deposit a sum of ₹ 2.00 lakhs. It is not as if the petitioner is going to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enquiry. According to the petitioner, mere non-maintenance of the stock register in the place of business cannot be a ground to order seizure of the goods. The petitioner is ready to fully account the stock position. He also submitted that the petitioner has been prompt in remitting the customs duty. The petitioner has not at all come under adverse notice. The petitioner's counsel placed reliance on the decision of the Hon'ble Supreme Court reported in AIR 1976 SC 1753 (Income Tax Officer, Calcutta and Ors. vs. Lakhmani Mewal Das ). More than anything else, the impugned action will have calamitous consequences on the petitioner's business which had just restarted after remaining shut down for months due to Covid-19 outbreak. 3. This writ petition was listed for admission on 21.09.2020. At the admission stage itself, the learned standing counsel took notice for the respondents. The matter was ordered to be called on 30.09.2020. It was taken up for disposal on 30.09.2020. Acceding to the request for adjournment made by the respondents, the case was taken up for hearing on 01.10.2020. With the consent of the learned counsel on either side, the matter was heard finall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that this Court cannot sit in appeal over the reasonable belief of the proper officer for ordering search. The learned standing counsel placing reliance on the decisions reported in 1987 (20) E.L.T 483 (S.C) (State of Gujarat vs. Shri Mohanlal Jitamalji Porwal and another), 1992 (59) E.L.T 201 (S.C) (Indru Ramchand Bharvani vs. Union of India) and 2004 (168) E.L.T 298 (Mad.) (Bhagawan R.Daswani vs. Collector of Central Excise, Coimbatore), submitted that the writ petition has been prematurely filed and called upon this Court to dismiss the writ petition. 7. I carefully considered the rival contentions and went through the materials on record. Lord Atkin in his celebrated dissent in Liversidge vs. Anderson (1942) AC 206, proclaimed that laws speak the same language in war as in peace and that the words have only one meaning. I bow in reverential agreement. Likewise, laws speak the same language during normal as well as in pandemic times. But, contemporary imperatives demand that courts, whenever possible, ought to adopt that approach which will kickstart the economy. Salaried classes may not be bearing the brunt. The position of the farmer, manufacturer and the trader is diff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer, Calcutta and Ors. vs. Lakhmani Mewal Das (1976) 3 SCC 757 held that the existence of the belief can be challenged by the assessee but not the sufficiency of reasons for the belief. The expression reason to believe does not mean a purely subjective satisfaction on the part of the officer. It must be held in good faith. It cannot be merely a pretence. It is open to the Court to examine whether the reasons for the formation of the belief have a rational connection with or a relevant bearing on the formation of the belief and are not extraneous or irrelevant for the purpose of the section. To this limited extent, the action of the authority in initiating proceedings is open to challenge. Of course, as contended by the learned standing counsel for the respondents this judgment was rendered in the context of Income Tax Act as regards the reopening of the assessment where income escaped assessment. But then, the same principles will govern the case on hand also. It is true that this Court cannot sit in appeal over the satisfaction of the proper officer. It is equally true as observed in 2004 (168) E.L.T 298 (Mad) (Bhagwan R.Daswani vs. Collector of Central Excise, Coimbatore), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fer any security. It appears that the two immovable properties of the petitioner are already under mortgage. The petitioner states that at best he can deposit a sum of ₹ 2.00 lakhs. It is not as if the petitioner is going to run away. He has roots in Madurai. Unless the petitioner is permitted to deal with the goods in question, even if some levy is imposed on the petitioner in future, he will not be able to pay the same. Common sense dictates that the petitioner is allowed to do business. The respondents are directed to release the goods on taking personal bond from him and on payment of a sum of ₹ 2.00 lakhs. Even while the order of seizure is sustained, the order of prohibition is modified in the above terms. Of course, the respondents are at liberty to conduct adjudication proceedings against the petitioner if he is unable to account for the stock position. The observations made in this order will not have any bearing on the said proceedings. 12. I am done with this case. But I cannot help mumbling to myself that the general market is flooded with chinese goods. The public must make a conscious choice to encourage swadeshi products. Last Sunday, I went out to buy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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