Case Note & Summary
The petitioner, Samadhan Steel Traders, challenged a search warrant issued under Section 105 of the Customs Act, 1962, by the Assistant Director, D.S. Mane. The petitioner argued that the warrant showed satisfaction by D.S. Mane, but the original record produced by the respondents revealed that the satisfaction was actually reached by two other officers, the Additional Director and Additional Director General, and not by the issuing officer. The court examined the record and found that there was no material to show that D.S. Mane had formed the requisite reason to believe. The court held that the satisfaction must be that of the officer issuing the warrant and must be recorded; otherwise, the search is illegal. The court quashed the search warrant and directed the respondents to return all seized documents and goods to the petitioner.
Headnote
A) Customs Law - Search and Seizure - Section 105 of the Customs Act, 1962 - Reason to Believe - The court examined whether the search warrant under Section 105 was validly issued based on the satisfaction of the authorized officer. The court found that the record did not show satisfaction by the officer who issued the warrant, but by other officers. Held that the satisfaction must be that of the officer issuing the warrant and must be recorded; failure to do so renders the search illegal (Paras 2-5).
Issue of Consideration
Whether before ordering search under Section 105 of the Customs Act, the competent authority had formed a legal opinion and was there a reason to believe that it would lead to goods liable to confiscation or any document or thing useful or relevant to any proceedings under the Customs Act.
Final Decision
The court quashed the search warrant and directed the respondents to return all seized documents and goods to the petitioner.
Law Points
- Search warrant under Section 105 Customs Act requires satisfaction by authorized officer
- satisfaction must be recorded
- non-recording of reasons invalidates search
Case Details
2012 LawText (BOM) (08) 13
WRIT PETITION NO. 6043 OF 2011
B.P. Dharmadhikari, Sunil P. Deshmukh
Mr. Raviraj R. Chandak for petitioner, Mr. Alok Sharma, ASG for respondents
Samadhan Steel Traders, through its Proprietor, Jaynarayan s/o. Nagolalji Bangad
The Union of India, The Senior Intelligence Officer, Directorate General of Central Excise Intelligence, The Deputy Commissioner of Central Excise Division, Nanded, The Assistant Director, Directorate General of Central Excise Intelligence
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Nature of Litigation
Writ petition challenging validity of search warrant under Section 105 of Customs Act
Remedy Sought
Quashing of search warrant and return of seized documents and goods
Filing Reason
Search warrant issued without proper satisfaction by authorized officer
Issues
Whether the search warrant under Section 105 of the Customs Act was validly issued based on the satisfaction of the authorized officer
Submissions/Arguments
Petitioner argued that the warrant showed satisfaction by D.S. Mane, but the record revealed satisfaction by other officers, not by the issuing officer.
Respondents argued that the search was validly conducted based on intelligence.
Ratio Decidendi
The satisfaction required under Section 105 of the Customs Act must be that of the officer issuing the search warrant and must be recorded; failure to do so renders the search illegal.
Judgment Excerpts
The question is, whether before ordering search under Section 105 of the Customs Act, the competent authority had formed a legal opinion and was there a reason to believe that it would lead to goods liable to confiscation or any document or thing in his opinion would be useful or relevant to any proceedings under the Customs Act, 1944 ?
Procedural History
Writ petition filed in 2011; notice issued on 20th August 2011; on 15.6.2012 court directed respondents to produce original record; reply affidavits filed on 28th September 2011 and 13th July 2012; final hearing on 14th August 2012.
Acts & Sections
