TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the Directorate of Revenue Intelligence could lawfully freeze the petitioner's bank account in the absence of any express statutory power under the Customs Act, 1962 and without proceedings having been initiated against the petitioner.
Analysis: The freezing communication was issued as an interim measure in connection with an export fraud investigation, but no provision of the Customs Act, 1962 empowered the authority to direct a bank not to permit withdrawals from the petitioner's account. The powers under Section 105 and Section 110 relate to search, seizure and related safeguards, and the record showed that no notice or proceedings had been commenced against the petitioner. The show cause notice issued in the investigation was directed to other persons and could not create any adverse consequence against the petitioner. The decisions relied upon by the revenue were distinguished because they concerned seizure under the Act or situations where proceedings had already been initiated.
Conclusion: The freezing communication was without authority of law and could not be sustained; the petitioner's bank account could not be kept frozen on that basis.
Ratio Decidendi: Bank accounts cannot be frozen by the investigating authority unless such action is supported by a clear statutory power and is connected to proceedings lawfully initiated under the governing statute.
TaxTMI 
TaxTMI 
