Case Law Details
Goodmatric Export Pvt. Ltd. Vs Union of India And Others (Bombay High Court)
From a perusal of the impugned letter dated 08.05.2019, it is seen that during the course of the investigation it had come to the notice of the Directorate of Revenue Intelligence, Kolkata Zonal Unit that petitioners had opened an account with respondent No.3 and for that reason, the said account of the petitioners was required to be kept under ‘debit freeze’. It was mentioned that the letter was issued in terms of section 110 of the Customs Act, 1962. However, even this letter does not indicate that activities of the petitioners are unlawful and that they had credited into their bank account, money which have accrued out of such unlawful activities which is required to be frozen except generally stating that “whatever amount (balance) is lying in the concerned bank accounts, the same have been seized by this office, in terms of section 110 of Customs Act, 1962 read with section 121 of Customs Act, 1962, as there are reasons on record to indicate that the companies have engaged in the act of smuggling.”.
But the moot question raised in the writ petition is whether a provisional attachment of bank account can be continued beyond the period of one year?
Provisional attachment of bank account can be for a period of six months but the said period can be extended for a further period not exceeding six months for reasons to be recorded in writing and communicated to the affected person before expiry of the initial period of six months.
In Samyak Jewels Pvt. Ltd. Vs. Union of India decided on 25.09.2020, this Court was confronted with a similar issue where also bank account of the petitioner was frozen on 19.04.2018 and continued to remain frozen for a period of more than one year. Examining the meaning of the word ‘provisional’, it has been held that it is a temporary arrangement. The two words – ‘provisional’ and ‘attachment’ read in conjunction can only mean a temporary attachment. It is for this reason that Parliament has provided a definite timeline in sub-section (5) of section 110 of the Customs Act, 1962.
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