Provisional attachment of bank account(s) - Section 110 (5) of Customs Act, 1962

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..... subject above. The section 110 (5) of Customs Act, 1962 provides - (5) Where the proper officer, during any proceedings under the Act, is of the opinion that for the purposes of protecting the interest of revenue or preventing smuggling, it is necessary so to do, he may, with the approval of the Principal Commissioner of Customs or Commissioner of Customs, by order in writing, provisionally attach any bank account for a period not exceeding six months. Provided that the Principal Commissioner of Customs or Commissioner of Customs may, for reasons to be recorded in writing, extend such period to a further period not exceeding six months and inform such extension of time to the person whose bank account is provisionally attached, before the e .....

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..... pproving authority to make careful examination of facts of the case to determine whether a case is fit for exercising power under section 110(5). Before going ahead with any provisional attachment, the collective evidence, based on the proceedings/ inquiry already conducted in the case, must indicate that, prima facie, a case is made out against the bank account holder. 6. After the approval, the order in writing, which is issued directing the provisional attachment, must reflect/contain the basis of framing opinion by the proper officer to attach the bank account. It must clearly specify the duration for which the bank account is being attached. The initial period of provisional attachment cannot exceed six months. 7. The order, or its ext .....

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..... on Number (DIN) in terms of Board s Circular Nos. 37/2019-Customs dated 05.11.2019 and 43/2019-Customs dated 23.12.2019. 11. As the provisional attachment of bank account is resorted to protect the interests of the revenue and may also affect the business and functioning of the person whose bank account is provisionally attached, it may be endeavored that in all such cases, the investigation and adjudication are completed at the earliest, well within the period of attachment, so that the due liability of duty/tax as well as interest, penalty etc. arising upon adjudication can be recovered from the said person and the purpose of attachment is achieved. (Shweta Garg) Deputy Commissioner (Investigation-Customs Wing) - Circular - Trade Notice .....

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