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No provision in Customs Act allowing freezing a Bank Account

In S. B. INTERNATIONAL vs DIRECTORATE OF REVENUE INTELLIGENCE, the assessee is a sole proprietorship concern. During the relevant period, a search was conducted by the Directorate of Revenue Intelligence (DRI) under the Customs Act in the warehouse of the Assessee regarding the illegal import of tyres. The Assessee was also called upon to produce the bank statements of the concern. After analyzing the documents, the DRI concluded that the said statement was recorded under duress and coercion. Accordingly, the DRI passed an order to freeze the bank account of the concern.

After considering the rival submissions of both the parties the Delhi aHigh court on appeal observed that “Freezing a bank account is not the same as seizing an asset; it interdicts operation of a bank account and it deprives the account holder of banking facilities. Indisputably, there is no sanction in the Customs Act for such action”.

Article referred: http://www.taxscan.in/no-provision-customs-act-freezing-bank-account-delhi-hc/18057/

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