Seizure of goods must adhere to procedural safeguards unless linked to electoral misconduct; ownership must be substantively established before neutral parties.

ORDER :

Per : Justice Vivek Rusia

The present three writ petitions are filed under Article 226 of the Constitution of India raise interconnected questions of facts and law arising out of the seizure of jewelry in 37 consignments on 23.10.2023 by the Static Surveillance Team, (SST) Ratlam by the District Election Officer during the enforcement period of Model Code of Conduct during the Madhya Pradesh State Assembly Elections and thereafter proceedings initiated under the INCOME TAX ACT , 1961 (in short 'the IT Act') and the consequential action taken by the respondent authorities.

02. Since the factual matrix and legal questions involved are substantially common and interlinked across all the writ petitions, with the joint request of the parties, they are analogously heard and are being disposed of together by this common judgment.

03. Admittedly, the petitioners have sought common relief in these three writ petitions and there is no conflict of interest between them. There are no allegations and counter-allegations against each other.

They all agree on a series of actions taken by the respondents.

FACTS OF THE CASE IN BRIEF

04. On 23.10.2023, during the enforcement of the Model Code of Conduct in connection with the Legislative Assembly Elections in Madhya Pradesh, a Bolero Vehicle bearing registration No.MP 09 ZR 5319 (hereinafter called as 'Vehicle') operated by Sequel Logistics Private Limited was intercepted by the Static Surveillance Team (SST), . At the time of interception, Mr. Amit Sharma, an employee acting in his official capacity as Custodian Officer at the Indore office of Sequel Logistics, was present in the Vehicle along with the driver.

4.1. The SST was operating under the directions of the Election Commission of India in accordance read with the Standard Operating Procedure for seizure and release of cash and valuable items issued by the Central Board of Direct Taxes (CBDT) vide Regulation No. 464/Seizure/GE-Las/2021/EPPS dated 19.08.2021 read with Instruction No. 76/Instructions/EEPS/2015 dated 29.05.2015.

4.2. Upon interception, the SST seized 37 sealed and tamper-proof jewellery consignments valued at over Rs.6.00 crore, as per accompanying documents. These consignments belong to various clients of Sequel Logistics booked for transportation to the different locations. The petitioner M/s Arihant Jewellers, one of them, booked the consignment, which allegedly contained approximately 1785.120 grams of gold jewellery valued at Rs.1,06,36,500/-.

4.3. Following the seizure, summons dated 25.10.2023 under Section 131 of the IT Act were issued to Mr. Amit Sharma in his personal capacity by the Income Tax Department and he was asked to appear before them on the same day itself. Subsequently, on his arrival, his statement was recorded wherein he disclosed that he was not the owner of any of the consignments and was acting purely in his official capacity as a custodian employee of Sequel Logistics and that the goods belonged to different clients of Sequel Logistics, but the same was not accepted or believed.

4.4. The District Grievance Committee for Ratlam, constituted by the District Election Officer under the instruction of the Election Commission of India, comprising the Chief Electoral Officer, the Nodal Officer of Expenditure Monitoring and the District Treasury Officer on 26^th October, 2023, issued a communication to the Income Tax Department acknowledging its request for requisition of seized consignments. Pursuant to this a warrant of authorization under Section 132A(1) of the INCOME TAX ACT was issued on 27.10.2023 by the Principal Director of Income Tax (Investigation), Bhopal authorizing the Deputy Director of Income Tax (Investigation) to requisition the seized consignments and accordingly consignments and supporting documents were handed over on 28.10.2023 by Shri Durgesh Sirolia, SST Magistrate, Ratlam.

4.5. Subsequently, on 29.12.2023, a notice was issued by the Principal Commissioner of Income Tax–1, Indore, to