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Survey, Search & Seizure | 51 |6. Report to the senior authority- After the search, the party has tosubmit a report to the senior authority like Collector, Commissioner,etc. The outcome of search is given to enable the senior officer to judgethe bona fide of the search and to exercise control over searches carriedout.7. Safeguards-Section 136(2) of the Customs Act provides for deter-rentpunishment including imprisonment of the Customs Officer heldresponsible for vexatious searches. In the cases of Excise and FERA,vexatious searches are punishable by a fine.8. Arrests- The power of arrest vests with the Customs, Central Exciseand enforcement officers. Income-tax Officers have no powers ofarrests. Arrests are generally resorted to in cases where the detectedoffence is of a serious nature and the case appears to be fit for criminalprosecution. Persons are generally not arrested when the intentionis only to have departmental proceedings. Persons are arrestedwhen there is a gravity of offence, evidence of personal culpability, astrong prima facie case and a likelihood of person tempering with theevidence by remaining at large or absconding.9. departmental Proceedings- Under the Income-tax Act, the IncometaxOfficer concerned must make a summary assessment within 120days of the seizure estimating the undisclosed income and calculatingthe amount of tax on income so estimated along with the interest andpenalty payable. Thereafter, he retains in his custody only such assetsas are, in his opinion, sufficient to satisfy the aggregate amount of tax,penalty and interest due.Books of account and documents seized cannot be retained for morethan 180 days except for specially recorded reasons and with theapproval of the Commissioner. Law specifically provides that theperson concerned may make copies of the documents concerned.In the case of the Customs Act, the period for retaining the contrabandcannot be extended beyond one year. The adjudicating officer canimpose penalties up to five times the duty of customs evaded, or threetimes the duty of excise evaded, or five times the foreign exchangeinvolved. Penalty in the case of income tax can be up to 200% of taxevaded. The contraband goods can be absolutely confiscated orallowed to be redeemed on payment of fine. No imprisonment can beawarded by an adjudicating officer.www.taxguru.in