Glonia Impex v. The Assistant Commissioner (SIIB), Cochin / The Commissioner of Customs, Cochin / The Union of India
[Citation -2020-LL-1104-47]

Citation 2020-LL-1104-47
Appellant Name Glonia Impex
Respondent Name The Assistant Commissioner (SIIB), Cochin / The Commissioner of Customs, Cochin / The Union of India
Relevant Act CGST
Date of Order 04/11/2020
Assessment Year 2017-18, 2018-19
Judgment View Judgment
Keyword Tags fraudulent transaction • attachment of bank account

IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR WEDNESDAY, 04TH DAY OF NOVEMBER 2020 / 13TH KARTHIKA, 1942 WP(C).No.8432 OF 2020(D) PETITIONER/S: GLONIA IMPEX, FLR 4, 71, POPULAR ARCADE, TATA ROAD NO.1, NEAR ROXY CINEMA, OPERA HOUSE, MUMBAI - 400 004, REPRESENTED BY ITS SOLE PROPRIETOR HITESH RAMESH DURGAWALE. BY ADVS. SRI.A.RANJITH NARAYANAN SMT.A.SIMI RESPONDENT/S: 1 ASSISTANT COMMISSIONER(SIIB), OFFICE OF COMMISSIONER OF CUSTOMS, CUSTOMS HOUSE, COCHIN - 682 009. 2 COMMISSIONER OF CUSTOMS, CENTRAL BOARD OF INDIRECT TAXES AND REVENUE, CUSTOMS HOUSE, COCHIN - 682 009. 3 UNION OF INDIA, REPRESENTED BY SECRETARY, GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, PIN - 110 001. 4 LAKSHMI VILAS BANK, REPRESENTED BY ITS MANAGER, MUMBAI FORT BENCH 104, MUMBAI SAMACHAR MARG, MUMBAI, PIN - 400 001. R1-2 BY ADV. SRI.B.RAJESH (KOTTAYAM) R3 BY ADV. MR.P.R.AJITH KUMAR, CGC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.11.2020, COURT ON SAME DAY DELIVERED FOLLOWING: WP(C).No.8432 OF 2020(D) 2 JUDGMENT petitioner who is stated to be supplier of diamonds, and registered dealer under Goods and Service Tax Act, within jurisdiction of Mumbai, states that he had supplied diamonds to M/s. Nebal Tradings during period 2017-18 and 2018-19 and said transaction was duly declared in GST return filed by petitioner and appropriate tax also paid. It is his specific case that no investigation is pending against him and no summons or notice has been served on him till date, either by customs authorities or by GST authority. In meanwhile, however, by Ext.P1 communication, 1st respondent issued instruction to Banker of petitioner to freeze its Bank account on nebulous ground that entity by name Nebal Trading had transferred certain amounts to petitioner's account. relief sought for in writ petition is to quash Ext.P1 order and to lift attachment over Bank account of petitioner, in as much as, it is not pursuant to any proceedings that were initiated against him. 2. Through statement filed on behalf of respondents 1 and 2, details of investigation against firm by name M/s Varma enterprises are narrated and it is averred that proceeds of alleged illegal transactions carried on by M/s Varma enterprises were channeled through M/s Nebal Trading to petitioner concern. Save for tracing of funds to petitioner firm, there is no mention of any proceedings initiated against petitioner firm or of any offence committed by petitioner firm that would necessitate attachment of its Bank account. WP(C).No.8432 OF 2020(D) 3 3.I have heard learned counsel appearing for petitioner and also learned Standing Counsel appearing for respondents. On consideration of facts and circumstances of case as also submissions made across Bar, I find that there is absolutely no basis in law for proceeding against petitioner herein, in connection with offences alleged to have been committed by M/s Varma enterprises. mere fact that part of money that was obtained from alleged fraudulent transactions have found its way to Bank account of petitioner cannot, without anything to suggest complicity of petitioner in such transactions, be basis for attachment of Bank accounts of petitioner. Thus, there being no material to implicate petitioner in alleged fraudulent transaction, I find that Ext.P1 communication issued by 1st respondent cannot be legally sustained. writ petition is therefore allowed by quashing Ext.P1 communication and directing 4th respondent Bank to treat attachment over Bank account of petitioner with it as lifted. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE SJ WP(C).No.8432 OF 2020(D) 4 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF COMMUNICATION DATED 18/10/2019 ISSUED BY FIRST RESPONDENT TO BANK FOR FREEZING BANK ACCOUNT (IMPUGNED). EXHIBIT P2 COPY OF REPLY DATED 28/11/2019 FILED BEFORE CHIEF COMMISSIONER OF CUSTOMS, COMMISSIONER OF CUSTOMS, ADDITIONAL COMMISSIONER AND ASSISTANT COMMISSIONER OF CUSTOMS WITH ACKNOWLEDGMENT. EXHIBIT P3 COPY OF DOCUMENTS SUBMITTED ALONG WITH REPLY DATED 28/11/2019. EXHIBIT P4 COPY O F JUDGMENT OF BOMBAY HIGH COURT IN KAISH IMPEX PRIVATE LIMITED VS. UNION OF INDIA DATED 17/01/2020. EXHIBIT P5 COPY OF JUDGMENT OF DELHI HIGH COURT IN S.B.INTERNATIONAL VS ASSISTANT DIRECTOR DATED 05/02/2018. EXHIBIT P6 COPY OF CIRCULAR NO.3/3/2017-GST, DATED 5/7/2017. EXHIBIT P7 COPIES OF GST RETURNS FILED BY PETITIONER DURING RELEVANT PERIOD. Glonia Impex v. Assistant Commissioner (SIIB), Cochin / Commissioner of Customs, Cochin / Union of India
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