SECURITRANS INDIA PVT. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioner, Securitrans India Pvt. Ltd. (SIPL), has filed this writ petition against the Income Tax Department (hereinafter referred to as the Department) [Respondent Nos. 2 to 6] seeking various reliefs including the release of a sum of Rs. 60,48,672 which was seized while transporting cash from the customers of HDFC Bank [Respondent No. 7] to its Gandhi Nagar Branch at Ghaziabad. Background facts

(2.) The background to the petition is that the Petitioner -SIPL is engaged in the business of transporting cash on behalf of the banks in its armoured vehicles including cash collections from customers of the various banks. In the instant case, SIPL carries out the service of collection and safe delivery of money physically from the customers of Respondent No. 7/HDFC Bank strictly in accordance with the terms of a written agreement entered into between SIPL and HDFC Bank. The Petitioner states that it is also a registered service provider and pays service tax. It is stated that under the Finance Policy of the Government of India, the business carried by the Petitioner is legitimate and within the scope of license granted by the Reserve Bank of India (RBI) to HDFC Bank. It is asserted that the Petitioner was performing the services of collection and transportation of cash under the direct authorization and on behalf of the HDFC Bank in terms of the agreement with HDFC Bank. A copy of the said agreement dated 23rd August 2014 has been placed on record.

(3.) The agreement spells out the obligations of the Petitioner. The Petitioner is obliged thereunder to have sufficient security practices, control processes and checks in respect of cash pick up/delivery services rendered and handled/executed at its premises or in the banks premises or at customers premises or while the cash is in transit on a regular basis." HDFC Bank has the right to immediately notify the RBI in the event of any breach of security and leakage of confidential customer information/data/records. In these eventualities, HDFC is liable to its customers for any damages and SIPL shall indemnify HDFC for such losses or damages.