2019 (4) TMI 1714

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e facts are that the respondent/Customs Authorities issued notices on 06.02.2019, to enquire into allegations of bogus addresses for the purposes of claiming IGST refunds. The petitioner relies upon the judgment of this Court in S.B. International vs. The Assistant Director, Directorate of Revenue Intelligence & Ors., (2018) 361 ELT 305 (Del.). In that judgment the Court, after considering the provisions of the Customs Act and other similar enactments, held that the power to freeze or suspend operations of a bank account cannot legally be exercised. The judgment in S.B. International (supra) states as follows: "37. Thus, the amount in a bank account which represents the sale proceeds of smuggled goods can be confiscated in terms of Sectio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h v. Addl. DRI, Kolkata Zonal Unit (supra), the Calcutta High Court considered a case where the DRI had directed the bank with which the petitioner was maintaining its account not to permit any debts. The Court held that the DRI was undoubtedly entitled to proceed with the investigation and take appropriate action against the petitioner in accordance with law; however, there was no provision where the DRI could prevent banking operations pending investigations. The Court referred to Section 121 of the Customs Act and observed that "the Section can only be invoked on a specific finding that smuggled goods have been sold. Operations can only be prevented in respect of the sale proceeds of smuggled goods". And, since in the said case, no speci....