Don't attach bank accounts in customs violation cases in mechanical manner: CBIC to field offices
bank accounts in customs violation cases should be exercised after careful examination of facts and not in a mechanical manner. In an instruction to field formations, the CBIC said in cases where bank accounts have been attached, the investigation and adjudication should be completed at the earliest.
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Under the Customs Act, Principal Commissioner or Commissioner of Customs can order in writing about the attachment of bank accounts for up to six months in cases where it is in the interest of revenue or for preventing smuggling. Such attachments can be extended by another six months.
The CBIC instruction said the tax officer should exercise due diligence by thoroughly considering and examining the facts of the case, including examining the nature of offence, amount of revenue involved or value of smuggled goods before going ahead with attachment and record the same in file.
«Moreover, it must contain the reasons to believe that the bank account holder may utilise the funds from the bank account if it is not provisionally attached,» the CBIC said.
The CBIC further said that the principal commissioner of customs should make careful examination of facts of such attachment cases and the power of provisional attachment must not be exercised in a 'routine/mechanical manner'.
«As the provisional attachment of bank account is resorted to
