2023 (7) TMI 1134

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....rms of the prayer clause (c)(a) i.e. to unseal the petitioner's office premises located at Plot No. W-255(A), TTC Industrial Area, Rabale MIDC, Navi Mumbai - 400 701. Dr. Kantawala would submit that respondent no. 2-Assistant Commissioner of Customs would not have authority and jurisdiction to seal the office premises of the petitioner in exercising powers under Section 105 of the Customs Act, 1962 and that too, without any notice to the petitioner. 3. It is submitted by Dr. Kantawala that the respondents purport to undertake investigation in regard to the transactions in respect of goods which were sold by one S. T. Electricals who is the principal importer/supplier. It is also his submission that S. T. Electricals in regard to the action....

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....Mr. Kantharia is not in a position to justify that the powers under Section 105 of the Customs Act, 1962 can be utilized to seal the office premises. He would, however, submit that the Customs Officers would have an authority to search the premises and as the petitioner was not cooperating, the premises came to be sealed. 6. Having heard learned counsel for the parties and having perused the record, we are of the opinion that the power to search cannot mean a power to seal. A power to seal the premises is a drastic power. In our opinion, such powers cannot be exercised unless the same is expressly conferred by law. Also the respondents have not supported their contention of such power being vested with the Customs Officers citing any autho....

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....cks on the exercise of the power to search by the Assistant Collector of Customs. The object of the section is this make a search for the goods liable to be confiscated or the documents secreted in any place. which are relevant to any proceeding under the Act. The legislative policy reflected in the section is that the search must be in regard to the two categories mentioned therein, namely, goods liable to be confiscated and documents relevant to a proceeding under the Act. No doubt the power can be abused. But that is controlled by other means. Though under the section the Assistant Collector of Customs need not give the reasons, if the existence of belief is questioned in any collateral proceedings, he has to produce relevant evidence to....

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....e Assistant Collector are effectively controlled in the manner stated above. We cannot, therefore, say that s. 105 offends Art. 14 of the Constitution." 8. We are thus of the opinion that the customs authorities would not have an explicit power under Section 105 of the Customs Act to seal the premises. This also for the reason that sealing of premises, is a drastic action. It results in tinkering with substantive rights of a person to hold, use and occupy any immovable property. The property may be used for the business purposes or otherwise, hence, any action to seal the premises would have a direct bearing and effect on legal rights of the person to use and occupy the premises as guaranteed by Article 300A of the Constitution. The actio....