Provisional customs attachment of bank accounts can be lifted pending adjudication if revenue safeguards are secured.

Bank accounts provisionally attached under the Customs Act were ordered to be defreezed pending adjudication, subject to interim safeguards protecting the Revenue. The company had to place a fixed deposit of Rs. 1.15 crore with lien in favour of the Revenue and execute a bond securing liability under the proposed order-in-original. The attachment arrangement was to continue until adjudication was completed and the order-in-original was communicated. The respondents were also directed to issue the show cause notice within the stipulated time and complete the proceedings in accordance with law.

---

---

Issues: Whether the bank accounts provisionally attached under Section 110(5) of the Customs Act, 1962 should be defreezed pending adjudication, and what interim safeguards were necessary to protect the Revenue.

Analysis: The petitions were disposed of on terms requiring the company to place a fixed deposit of Rs. 1.15 crore with lien in favour of the Revenue and for the petitioners to execute a bond securing the Revenue against liability arising from the proposed order-in-original. The attachment was not finally adjudicated, and the arrangement was directed to continue until completion of adjudication and communication of the order-in-original. The respondents were directed to issue the show cause notice within the stipulated time and complete proceedings in accordance with law.

Outcome: On compliance with the stated conditions, the respondents were directed to defreeze the bank accounts mentioned in the order, and the petitions stood disposed of accordingly.

---