TaxTMI 
TaxTMI 
2020 (10) TMI 50
X X X X Extracts X X X X
X X X X Extracts X X X X
....d has filed the writ petition seeking the following reliefs:- (i) To unfreeze bank account of the petitioner bearing No. 10025372568 with IDFC Bank, Andheri (E) Branch; (ii) To set aside the alert imposed on the Import Export Code of the petitioner; (iii) To set aside any direction(s) of the respondents for withholding refund of Integrated Goods and Services Tax ( IGST). 4. In Writ Petition (St.) No.5669 of 2020 M/s Boxster Impex Private Limited, a private limited company having its registered office at Ballard Estate at Mumbai is the petitioner and by filing this petition under Article 226 of the Constitution of India has prayed for identical reliefs; its account number being 172011100002306 with Andhra Bank, Lokhandwala Branch and 811230139267 with DBS Bank, Andheri Branch. 5. In Writ Petition (St.) No.5666 of 2020 petitioner is Elantra Exports Private Limited, a private limited company having its registered office at New Link Road, Andheri (W), Mumbai. In this petition under Article 226 of the Constitution of India the reliefs sought for are identical save and except, the bank account numbers which are as under :- Account No.038002000014....
X X X X Extracts X X X X
X X X X Extracts X X X X
....said dates for unfreezing the bank account of the petitioner as well as to allow refund of GST/ IGST. However, no decision has been taken. 13. Aggrieved, present writ petition has been filed seeking the reliefs as indicated above. 14. An affidavit has been filed by Mr.Raghavendra Singh, Joint Commissioner of Customs (Preventive) on behalf of respondent No.1. Stand taken in the affidavit is that petitioner is a fictitious and bogus company. Specific intelligence was received that M/s Ronera Overseas Private Limited and related firms are involved in circular trading by exporting cheap quality glass bangles on highly inflated value by mis-declaring description for claiming ineligible IGST refund and other government benefits. On examination of export consignments of M/s Ronera Overseas Private Limited it was found that the goods contained therein were ordinary glass bangles, many of which were already in broken state and not fit for market sale. During the same period on examination of import consignments drawn at M/s Ashte Ligistics Private Limited belonging to M/s Alan Impex and M/s Serco Import and Export Private Limited, it was observed that the goods appeared to be plain gl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th the investigation for which investigation could not be completed on priority basis. That apart, ownership of the goods has not yet been established. 21. Unfreezing of the frozen bank account of the petitioner would cause huge loss to the department. In so far claim to IGST and other dues are concerned, it is stated that Mr.Uzair Basar has already obtained benefits to the tune of Rs. 9.86 crores fraudulently. Petitioner is a fake entity which has never presented itself before the department to evade scrutiny. The affiant has described the petitioner as hardened criminal who has carried out the illegal activities of circular trading with the sole objective to loot government revenue. 22. Petitioner has filed rejoinder affidavit. In the rejoinder affidavit all the above allegations have been denied and averments made in the writ petition have been reiterated. It is stated that petitioner is carrying on the business activity of exports of handcrafts being manufactured in various parts of India which has a huge demand in the foreign market. After identifying overseas purchases of handicraft items, petitioner procured the goods from various manufacturers / traders under proper G....
X X X X Extracts X X X X
X X X X Extracts X X X X
....om the pleadings and submissions it is seen that three grievances have been raised by the petitioner, viz, (i) Freezing of its bank account; (ii) Putting an alert on its IEC; (iii) Issuing directions for withholding GST / IGST dues. 27. We take up the first grievance for consideration at the outset. Ex.A to the writ petition is a letter dated 1st March, 2019 issued from the office of the Principal Commissioner of Customs(P) to the Branch Manager, IDFC Bank, Mumbai stating that office of the Principal Commissioner of Customs was investigating a case of misuse of export documents to claim inadmissible dues, drawback and IGST refund by M/s Dunox Trading and Export Private Limited. Reference was made to the current account of the petitioner in the said bank. While the Branch Manager was called upon to provide certain details of the bank account he was also requested not to allow any withdrawal from the said account and operation of locker without prior permission. This is the only document on record on the basis of which the bank account of the petitioner has been effectively frozen. In the affidavit in reply filed on behalf of respondent No.1 the only sta....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ut as under :- (i) The order of attaching the bank account provisionally shall be passed in writing by a proper officer; (ii) Such an order can be passed during any proceedings under the Customs Act; (iii) Before passing such an order the proper officer must form an opinion that such attachment of bank account is necessary for the purposes of protecting the interest of revenue or for preventing smuggling; (iv) Before passing such an order the proper officer must obtain prior approval of the Principal Commissioner of Customs or of Commissioner of Customs; and (v) Such provisional attachment shall be for a period not exceeding six months. 32. As per the proviso the Principal Commissioner of Customs or Commissioner of Customs can extend such provisional attachment for a further period not exceeding six months; but he must record reasons for such extension and such extension of period has to be informed to the person whose bank account is provisionally attached before expiry of the period so specified. 33. Thus from a careful reading of sub-section (5) of Section 110 it is noticeable that several pre-conditions and procedures are manda....