The main legal point established in the judgment is the lack of authority of law for freezing the bank accounts under Section 110(5) of the Customs Act and the need for expediting investigations before extreme measures can be continued.

JUDGMENT

1. This order will dispose of the above noted three writ petitions.

2. We have heard Mr.Anand Sachwani alongwith Mr.Brijesh Pathak, learned counsel for the petitioners; and Mr.P.S.Jetly, learned senior counsel alongwith Mr.J.B.Mishra, learned counsel for the respondents.

3. In Writ Petition (St.) No.5670 of 2020 M/s Dunox Trading and Exports Private Limited, a private limited company having its registered office at Andheri (W), Mumbai is the petitioner and 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.03800200001461 of Bank of Baroda, S.V.Branch and 916020048013860 of Axis Bank, Airoli Branch.

6. In the course of hearing, learned counsel for the parties advanced their arguments treating Writ Petition No.5670 of 2020 as the lead case as pleadings have been exchanged in this case. Therefore, all references to facts and pleadings will be in respect of Writ Petition (St.) No.5670 of 2020.

7. According to the petitioner he is engaged in the business of imports and exports and is duly registered with the Directorate General of Foreign Trade having Importer and Exporter Code (IEC) No.AAGCD7568P.

8. Petitioner has stated that it buys handicraft items from various sellers in India for the purpose of export out of India. Petitioner has paid Goods and Services Tax (GST) while purchasing the goods; petitioner has also ensured that the sellers are registered with GST authorities too and have paid GST. Therefore, it is contended that petitioner is entitled to take input credit or refund under Section 16 of the Central Goods and Services Tax Act, 2017 when the goods are exported out of India by the petitioner. Petitioner has complied with all the requirements of the said Act and therefore, entitled to refund.

9. Petitioner'S further claim is to refund of Integrated Goods and Services Tax (IGST) on the exported goods.

10. Grievance has been expressed by the petitioner that since the year 2018 the bank account of the petitioner has been frozen; besides refund claim of IGST has not been entertained for more than one year. That apart, an alert has been put on the IEC of the petitioner as a result of which its business has come to an standstill.

11. Petitioner has stated that officers of respondent No.1 has carried out certain investigation pursuant to which director of the petitioner was summoned to the office of respondent No.1 in the month of March, 2019, whereafter his statement was recorded. Thereafter, he was summoned several times which he had compelled with. However, till date no seizure of any goods belonging to the petitioner has been made nor any show cause notice has been issued to the petitioner.

12. Petitioner wrote letters dated 15th May, 2019, 20th May, 2019, 4th February, 2020 and 12th February, 2020 to the office of respondent No.1 for removal of alert against the IEC of the petitioner. Petitioner also wrote to the office of respondent No.1 on