Union of India & Ors. Vs Magnum Steel Ltd. (Supreme Court of India)
Search & Seizure proceedings cannot be initiated unless there is sufficient material against the assessee
The Hon’ble Supreme Court in Union of India & Ors. v. M/s. Magnum Steel Ltd. [Civil Appeal Nos. 9597-9599 of 2011 dated March 2, 2023] has held that, the person authorizing the search must express its satisfaction that the material is sufficient for it to conclude that search is necessary. Further held that, there should exist something to show what is such material. Furthermore, stated that, the concerned official of the Revenue Department, who authorized the search did not refer to any information or any report on the record which was produced before the Hon’ble Madhya Pradesh High Court.
Facts:
This appeal has been filed by the Revenue Department (“the Appellant”) against the order dated December 1, 2009 (“the Impugned Order”) passed by the Hon’ble Madhya Pradesh High Court, wherein, the initiation of search and seizure proceedings dated August 20, 2009 and all consequential proceedings, launched against M/s. Magnum Steel Ltd. Etc. (“the Respondent”) were quashed, on the grounds that there were “no reasons to believe” as per Section 110 of the Central Excise Act, 1944 (“the Central Excise Act”) read with Section 123 of the Customs Act, 1962 (“the Customs Act”).
Issue:
Whether the Impugned Order is sustainable, whereby, the initiation of search and seizure proceedings and all consequential proceedings, were quashed, on the grounds that there were “no reasons to believe”.?
Held:
The Hon’ble Supreme Court in Civil Appeal Nos. 9597-9599 of 2011 held as under:
