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2020 (9) TMI 395
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.... of the petitioner company was frozen. Learned counsel for the petitioner has submitted that the investigation in the present case had been initiated and was being carried out under the provisions of Central Goods and Service Tax Act, 2007. Hence, freezing of the bank account by Deputy Commissioner (Customs) under the provisions of Customs Act, 1962 was not permissible. Moreover, no power to issue orders for freezing of bank account was available under the Customs Act, 1962 and the said power had only been introduced by way of amendment to Section 110(5) inserted by the Finance (No.2) Act, 2019, dated 1.8.2019. The said power had only been granted to Commissioner of Customs for a period not exceeding six months with the maximum cap of on....
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.... accept the above submission of the Respondents. Without there being any authority in law to justify the freezing of the bank accounts, requiring the Petitioners to furnish security for de-freezing such bank accounts would be unjustified. It is always open to the DRI to conclude the investigation and issue a SCN in accordance with law. Statutory authorities have to exercise their powers strictly according to the Act under which they function. In Khaja Mustafa Kamal v. Union of India (supra), in similar circumstances, it was observed as under: "19 Once there are allegations of fraud the Revenue has a larger responsibility and duly to the public. It cannot refuse to take all steps and rest only on freezing of bank accounts of the all....
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....t there was some liability but the circumstances in which he has paid the sum of Rs. 16,62,794.18 has been duly explained by him. He terms the payment as ad-hoc and when he states that this is only to cooperate in the investigation that the petitioner has made this payment, then, we do not find any justification for the continued action. In a letter addressed on 4th January, 2016, to the Senior Intelligence Officer, copy of which is at page 34 of the paper-book, the petitioner specifically complains that the investigation started in the month of September, 2014.He has appeared and has given evidence. He was asked to submit copies of all shipping bills and related export documents. They have been submitted. He claims that no wrong has been c....
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.... claim excess Duty Drawback and other export benefits. I say that investigations have revealed that the Petitioner was procuring bogus purchase bills from fictitious firms which existed only on paper. Infact no goods were purchased from these firms. I say that this modus operandi was used in order to claim excess Duty Drawback by inflating the PMV as per the value shown on the bogus purchase bills. I say that there exists a linkage between the monies which have been held in the bank accounts with the modus operandi of illegally obtaining the benefit of a drawback by showing inflated FOB value. I say that the data/information gathered was confirmed by Shri Parvez Mohammed Sharif Ansari, the person who was involved in issuing the bogus purcha....
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....but on the public as a whole resulting in a voluntary deposit from the petitioner, then, why the investigations could not be concluded nor a show cause notice issued nor any steps taken till date. When such petitions are filed, it is our experience that detailed affidavits are filed in order to justify the act, but there is not a word about the delay. On 21st April, 2016, the deponent has time to file a very detailed affidavit-in-reply and file it in Court, but it is surprising that the Directorate and whole of it does not have time to proceed against those indulging in fraud on the public. A justification of this nature comes promptly only when parties like the petitioner complain of a freezing or attachment of their bank accounts an....