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        Central Excise

        2018 (7) TMI 17 - HC - Central Excise

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        High Court Upholds Search and Seizure Without Warrant, Emphasizes Legal Procedures The High Court rejected and disposed of both writ petitions challenging search and seizure proceedings conducted without a warrant, emphasizing adherence ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                              High Court Upholds Search and Seizure Without Warrant, Emphasizes Legal Procedures

                              The High Court rejected and disposed of both writ petitions challenging search and seizure proceedings conducted without a warrant, emphasizing adherence to legal procedures and court directives. The Court found the petitioners had abandoned the right to challenge the search and seizure in a previous petition, invoking constructive res judicata. As the appeal had been allowed with instructions for fresh adjudication in compliance with High Court directives, the current challenge was rejected based on abandonment of relief and the settled nature of the matter.




                              Issues:
                              Challenge to search and seizure proceedings conducted by the respondent department without a search warrant and in contravention of directives given by the High Court in a previous litigation.

                              Analysis:
                              The two writ petitions were filed by the petitioners challenging the search and seizure proceedings conducted by the respondent department in their factory premises without a search warrant on 12-4-2012. The petitioners, engaged in manufacturing rolled products under Chapter 72 of the Central Excise Tariff Act, contended that the search was illegal and disregarded previous directives from the High Court. The counsel argued that the department's actions were in total contravention of the law and that the final order was anti-dated, indicating mala fide intentions. The petitioners were not allowed to cross-examine witnesses as directed by the High Court, and the department passed the final order prematurely. The counsel further contended that the search and seizure proceedings violated statutory provisions as no search warrant was issued, as admitted by the department under the Right to Information Act, contravening Section 12F of the Central Excise Act.

                              The department's counsel argued that Rule 22 of the Central Excise Rules, 2002 empowers officers to access premises without a search warrant for revenue safeguarding purposes. The order dated 31-3-2017 was challenged in an appeal, which was allowed on 11-10-2017, remitting the matter back for fresh adjudication while emphasizing compliance with High Court directives. The counsel contended that the matter had been settled through the appeal, and no further adjudication was required, urging the rejection of the petition.

                              The High Court noted that in a previous writ petition disposed of on 27-4-2017, the petitioners had not pressed the challenge to the search and seizure proceedings but focused on cross-examining witnesses. As the petitioners had abandoned the relief challenging the search and seizure in the previous petition, the subsequent challenge was not permissible due to constructive res judicata. The Court found that the petitioners had given up the right to challenge the search and seizure by not pressing the relief in the earlier petition. Additionally, since the appeal had been allowed, and the matter remitted for fresh adjudication with specific instructions to comply with High Court directives, the Court rejected the current petition on the grounds of abandonment of relief and the settled nature of the matter.

                              Therefore, the High Court rejected and disposed of both writ petitions, emphasizing the importance of adhering to legal procedures and directives issued by the court in such matters.
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                              ActsIncome Tax
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