CHAPTER 17

SEARCH, SEIZURE, ARREST AND PROSECUTION

PART I

SEARCH and SEIZURE
1. Introduction

1.1 Provisions of search and seizure are used by the Central Excise Officers to enforcethe provision of the Central Excise Law. These provisions are used as an exception whenthe direct physical intervention becomes necessary. At the same time the search andseizure is to be done in accordance with the laid down law. In this regard reference is tobe made to the applicable provisions of other statutes, i.e. Code of Criminal Procedure.

2. Provisions relating to search

2.1 The provisions relating to search are given in Section 18 of the Act,1944, whichprovides that all searches should be made in accordance with the provisions of theCode of Criminal Procedure.

2.2 Rules 22 & 23 of the Central Excise (No.2)Rules, 2001 (hereinafter referred to as thesaid Rules), empower the authorized officer to enter and search any premises,conveyance or other place. Further, rule 24 ibid specifically empowers such officer toeffect a seizure or detention. Moreover, Section 12 of the Central Excise Act, 1944,empowers the Central Government to apply the provisions of the Customs Act to theCentral Excise also. In exercise of such powers the Central Government has issuedNotification No.68/1963-CE, dated 4.5.1963 modifying and extending the various sections ofCustoms Act, 1962 to Central Excise matters.

2.3 In terms of the said rules, an officer not below the rank of the Inspector of CentralExcise, duly authorized by Commissioner by special or general order, can search at anytime, any premises or conveyance where he has reason to believe that excisable goodsare manufactured, stored or carried in contravention of the provisions of the Act or rules.For a registered premises or for stopping and searching any conveyance in transit nosearch warrant is required. However, in other cases, normally search warrants are issuedby the Deputy/Assistant Commissioner authorizing the search. The Central Excise Officeris also authorized to stop and search any conveyance as well. The search is to becarried out in the presence of two independent witnesses.

2.4 Section 22 deals with vexatious searches, seizure etc. by Central Excise Officers.In such case the Central Excise office will be liable to punishment under the law. Similarprovision is made applicable to any person wilfully and malaciously giving falseinformation leading to vexatious search.

3. Seizure

3.1 Rule 24 of the said Rules provides for power to detain goods or seize theexcisable goods. If a Central Excise Officer, has reason to believe that any goods,which are liable to excise duty but no duty has been paid thereon or the said goodswere removed with the intention of evading the duty payable thereon, the CentralExcise Officer may detain or seize such goods.

3.2 The power to release seized goods emanates from power to seize itself. Thegoods seized may be released provisionally under bond in the Format specified undererstwhile Central Excise Rules, 1944 [B-8 bond] along with 25% security or surety by theofficer who is normally competent to adjudicate the case. The adjudicating officer willalso consider the importance of such goods for evidence, and will release the goodsprovisionally if the bond is furnished. Wherever necessary, sample may also be drawn.The adjudicating officer, however, will ask the owner or in-charge of the goods to whomthe goods were released provisionally to produce the goods any time before the issue ofadjudication order, if he is of the view that the goods are liable for confiscation. In casethe person to whom goods were released provisionally fails to produce the goods atappointed time, the bond may be enforced for recovering.

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