Mahazar not Served on Seizure of Car and Cash: Madras HC orders Provisional Release of Seized Car [Read Order]

Mahazar - Mahazar not Served on Seizure of Car - Seizure of Car - Cash - Madras HC - Madras High Court -taxscan

The Madras High Court ordered provisional release of seized car as no mahazar was served on seizure of car and cash.

The writ petition has been filed to quash the impugned order rejecting the request of the petitioner, Shri Eburamusa Sherif, to return the car bearing No.TN 04-AV-1374 and cash Rs.1,24.000/- seized from the petitioner and two others.

It was the case of the petitioner that the petitioner has not been served with Mahazar although the car and cash were seized. It was submitted that the petitioner is willing to co-operate for further proceeding and that no useful purpose will be served by retaining the car by the respondents as the car is prone to rusting and depreciation if it is not motored/ operated and / or used. The counsel for the petitioner submitted that the petitioner is willing to execute any bond or any other securities that may be required to release the car.

The Senior Panel Counsel for the second and third respondents on the other hand submitted that this writ petition is premature in as much as the investigation is not complete. It was submitted that the car was used for smuggling gold imported by passengers. It was submitted that the petitioner had attempted to facilitate the commission of offence and therefore the subject car was seized and is liable to be confiscated under the provisions of the Customs Act, 1962.

A Single Bench of Justice C Saravanan granted partial relief to the petitioner by ordering release of the petitioner’s car viz with certain conditions like the petitioner shall furnish a bank guarantee for a sum of Rs.1,00,000/- as security to the second respondent and renewed from time to time and a further security in the form of bond in favour of the second respondent shall be executed undertaking to pay fine and penalty that may be imposed on the petitioner after adjudication of the proceedings under the Customs Act, 1962 etc.

“On compliance of the above conditions by the petitioner, the said car shall be provisionally released by the second respondent within three days. The cash seized shall be released/or confiscated and /or appropriated towards penalty if only any after adjudication of the proposed proceedings” the Court noted.

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