Sealing of office for investigation and search – Powers of Customs – Section 105 of the Customs Act 1962

Sealing of petitioner’s office by the Customs in the investigation against the principal importer / supplier – Powers and Authority – Section 105 of the Customs Act, 1962

The main importer / supplier S.T.Eletricals had supplied the goods to Pacific, which sold the same to M/s. Mayur Enterprises, which, in turn, were purchased by the petitioner.

The Custom had started investigation against S.T. Electricals in respect of the goods sold by it.

The office premises of the petitioner were sealed on the ground that the petitioner was not cooperating with the investigation.

This was challenged in the High Court.

HELD that there is no power in the Custom authorities to seal the premises under Section 105 of the Customs Act and they had straightway resorted to take drastic action to seal office when it was available for search.  Moreover, the petitioner was willing to cooperate with the investigation.

Judgment dated 25.7.2023 of the High Court of Bombay in W.P. (L) No.19691 of 2023 – M/s. Narayan Power Solutions  Vs. Union of India and Another