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2018 (2) TMI 588 - HC - CustomsJurisdiction - power of DRI to issue directions - Freezing of petitioner's Current account - it is suspected that the petitioner is connected/involved in illegal import of tyres - whether the DRI has the jurisdiction to issue such directions without passing any orders under the provisions of the Customs Act? Held that: - Chapter XIII of the Customs Act contains provisions regarding search, seizure and arrest. In terms of Section 105(1) of the Customs Act, if the specified officer has reason to believe that any goods are liable to confiscation or any documents or things, which in his opinion will be useful for or relevant to the proceedings under the Act, are secreted in any place, he may authorize any officer of Customs to search or may himself search for such goods, documents or things - It is clear from a plain reading of Section 105(1) of the Customs Act that the specified officers must have “reason to believe” that any goods are liable to confiscation or any documents or things, which are useful or relevant to the proceedings have been secreted. A mere reason to suspect would not be sufficient for authorizing search of any premises. Section 102(1) of CrPC permits any police officer to “seize any property which may be alleged or suspected to have been stolen, or which may be found under circumstances which create suspicion of the commission of any offence”. Apart from the reason that the investigations are being conducted under the Customs Act and the provisions of Section 102 of CrPC are not available; the impugned communication is also not sustainable under the provisions of Section 102 of CrPC for several reasons. The power is available only to any “police officer” and as held by the Supreme Court in Surjeet Singh Chhabra v Union of India & Ors [1996 (10) TMI 106 - SUPREME COURT OF INDIA] - the DRI officials are not police officers. Also, in terms of Section 102(3) of CrPC, it is necessary for the police officers to report seizure to a Magistrate. Plainly, no such procedure was followed. Whether the operations on bank accounts could be interdicted? - Held that: - There is no provision under the Customs Act which permits the proper officer to direct freezing of bank accounts. Section 110(1) of the Customs Act provides for seizure of goods - the amount in a bank account which represents the sale proceeds of smuggled goods can be confiscated in terms of Section 121 of the Customs Act and can also be seized under section 110 of the Customs Act. But, there is no provision which permits freezing of bank accounts. Even if the credit balance of a bank account is considered as goods which can be seized, there is no authority in law to suspend operations in a bank account. Freezing a bank account is not the same as seizing an asset; it interdicts operation of a bank account and it deprives the account holder of banking facilities. Indisputably, there is no sanction in the Customs Act for such action - the impugned communication directing freezing of accounts of the petitioner is unsustainable Petition allowed.
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