Freezing bank account

[Satbir singh wahi]

Sir

Dy commissioner of cutoms preventive,mumbai has directed bank to freeze bank account.As they are investigating the drawback and igst refund taken by exporter.

But no show cause issued. Further exporter has reversed itc for july to sept.17.pls guide.

AI Summary

Freezing bank accounts during customs refund probes lacks statutory sanction, making such restraints open to legal challenge.
Practices report that a competent authority may direct banks to freeze accounts during investigations into allegedly fraudulent drawback or IGST refund claims, with SCNs normally issued after investigation and freezes released if no objectionable material is found. However, a legal view notes the Customs Act contains no express sanction to prevent banking operations, making such freezes susceptible to judicial challenge where statutory authority is absent.