Case Law Details
Shri Vishnu Processors Vs Union of India (Punjab and Haryana High Court)
Issue under consideration is whether the Search and resultant seizure of documents and record by Director of Revenue Intelligence is justified under Customs Act, 1962?
In the present case, the petitioner is engaged in the supply of input to M/s Worldwide Tradelinks and M/s NMR Knitfab Private Limited. In an ongoing investigation upon M/s Worldwide Tradelinks and M/s NMR Knitfab Private Limited for availing ineligible drawback and IGST by way of accumulating ITC, a search was also conducted by the Director of Revenue Intelligence (DRI) in the factory premises of Petitioner leading to the seizure of their records and preparation of panchnama in relation to such search proceedings. Hence, writ petition filed requesting quashing of panchnama.
The contention of learned counsel for the petitioner was that panchnama should be quashed as officials of Director of Revenue Intelligence (DRI) had no jurisdiction to conduct search at the premises of the petitioner as he is not an exporter. The argument is that investigation is with regard to Ludhiana dealer and in case of any doubt or dispute it was only the officials of Goods & Service Tax Department who could have proceeded further in the matter so far as the petitioner is concerned.
High Court states that the section 105 of Customs Act is widely worded and search can be conducted if the Assistant or Deputy Commissioner of Customs has reasons to believe that there are any document or thing which in his opinion will be useful or relevant to any proceedings under this Act or secreted at any place. The section does not restrict the search only with regard to importer or exporter, the other premises can also be searched. The petitioner was a supplier/seller to the exporters at Ludhiana, there was an investigation that ineligible drawback etc. had been claimed by procuring only the bills without there being transfer of goods, this establishes the relevance of search with proceedings under the Act.
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