CBIC Urges Caution in Attaching Bank Accounts in Customs Cases

The Central Board of Indirect Taxes and Customs (CBIC) recommends a careful and deliberate approach when attaching bank accounts in customs violation cases. They stress completing investigations and adjudication promptly. Provisional attachments should not be routine, and diligence is necessary to protect revenue interests without unduly harming businesses.

The Central Board of Indirect Taxes and Customs (CBIC) has issued directives emphasizing careful scrutiny before attaching bank accounts in customs violation cases. The CBIC instructed field formations to expedite investigation and adjudication processes if bank accounts are attached, ensuring swift and fair resolution.

According to the Customs Act, principal commissioners or commissioners are authorized to order the attachment of bank accounts for up to six months to safeguard revenue or prevent smuggling. This period can be extended by an additional six months if necessary.

CBIC's latest instruction calls for tax officers to exercise due diligence, thoroughly evaluate the offence's nature, revenue involved, or value of smuggled goods, and document reasons for believing the funds might be utilized if not attached. The principal commissioners must ensure attachments are not done mechanically but with a careful examination to protect the business operations of those affected, aiming to complete proceedings within the attachment period for effective duty recovery.

(With inputs from agencies.)