A Division bench of the Bombay High Court recently held that the Customs authorities do not possess any power to seal the premises of a person alleged to be involved in smuggling of goods.
The Petitioner, while seeking to de-seal his premises, sought relief to record his statement under Section 108 of Customs Act, 1962 in visible but not audible distance of advocate.
The counsel for the petitioner, allegedly involved in gold smuggling, sought for de-sealing of his premises by the Customs authorities. He also prayed that his statement under section 108 of the Customs Act, 1962 be recorded in visible but not audible distance of his advocate.
On the contrary, the respondent-revenue submitted that, the presence of the advocate at visible distance is something which does not come to a person involved in gold smuggling as a matter of right and in the present case, except for bald allegation of some alleged assault upon the Petitioner, there is no material brought on record by the Petitioner justifying the prayer for keeping his advocate present.
The bench observed that, “we find that there is no power available with the custom authorities to seal premises of any person, which are nothing but a form of immovable property. Under Section 110 or Section 121 of the Customs Act, 1962 what can be seized and confiscated is the “goods” or movable property”.
It was further observed by the Bombay High Court bench that, “Section 110 and Section 121 respectively empower the customs authorities to seize the goods liable to confiscation and confiscate the sale proceeds of the smuggled goods, which are sold by the person, having knowledge or reasons to believe that the goods are smuggled goods.”
It was thus directed that if any statement of the Petitioner is to be recorded in terms of Section 108 of Customs Act, 1962, same shall be recorded in the presence of advocate of the Petitioner kept at a visible distance but not audible distance during interrogation.
As regards to the more relevant issue, the division bench directed that the seal affixed to the premises of the Petitioner be removed forthwith.
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