TaxTMI 
TaxTMI 
2010 (1) TMI 34
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....in continuing to keep the bank accounts of the Petitioner frozen. 2. According to the Respondents, as stated in their counter affidavit in the present case, on the evening of 7th September 2005 certain consignments of imported duty free high value computer parts imported in the name of M/s. Everest Exports were taken delivery of at the Air Cargo complex, IGI Airport, New Delhi. They are alleged to have been taken to the residence of Shri Bhuvan Aggarwal the proprietor of the Petitioner M/s. Laxman Overseas, the petitioner herein, and unloaded there. During a subsequent search of the Petitioner's premises the imported goods were found to be high value computer parts. Their present market value was estimated at Rs.1.80 crores whereas the d....
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.... 110(1) of the Act ibid, in case no notice is given under Section 124 of the Act ibid, then the goods shall be returned to the persons from whom they were seized. In this case, however, the bank accounts have been frozen in terms of Section 110(3) of the Act ibid, to which the limitation laid down under Section 110(2) is not applicable [Judgment of Hon'ble High Court of Calcutta in case of Rohit Kumar v. Union of India, as discussed above refers]." 4. Further in para 10 of the counter affidavit it is stated as under: "Thus it is observed that there is a proclivity on part of the accused to not only evade duties, but also to dishonor the legal processes that have been initiated by the Government, such as, summons etc. In these circumstanc....
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....t is not denied by the Respondents and therefore he questions the purpose of keeping the Petitioner's bank accounts frozen for over four years. He assails the said action as being totally unjustified particularly since till date no show cause notice has been issued by the Petitioner and therefore no explanation has been sought from it. No criminal case has been filed and the sole proprietor of the Petitioner has never been arrested. It is submitted that there is no legal basis for the bank accounts to remain frozen indefinitely. 8. Since learned counsel for the Respondents has placed considerable reliance on both Section 110 (3) and Section 121 of the Act, the said provisions need to be examined. Section 110 (3) reads as under: "Secti....
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....e continuation and completion of the investigation within a reasonable period thereafter. It implies that as part of the investigation the officer will have to make enquiry and form an opinion whether the goods or things seized by him are relevant to the investigation. For instance in the present case, the officer is expected to have by now made enquiries to satisfy himself that the amount in the petitioner‟s bank accounts has a causal connection with the illegal exports allegedly made by the petitioner in contravention of the Act. Also, if the officer forms such opinion it would have to be reduced to writing and the Petitioner would be required to be confronted with it by issuing to it a show cause notice. And again, all of this has ....
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.... including bank accounts have been seized and such person is afforded an opportunity of giving an explanation. 10. In response to a query from the Court as to what steps have been taken by the Respondents to issue a show cause notice to the petitioner, learned counsel for the Respondents candidly states that investigations are still in progress and despite over four years having elapsed since the raid on the petitioner‟s premises, no show cause notice has yet been issued. He states on instructions that investigations are expected to conclude shortly and it is possible that a show cause notice may be issued to the Petitioner in the near future. He accordingly submits that the bank accounts should not be de-freezed at this point in t....