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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SONIA GOKANI, VAIBHAVI D. NANAVATI, JJ.
Bhavesh Kiritbhai Kalani – Petitioner
Versus
Union of India – Respondent
Special Civil Application No. 16360 of 2020
Decided On : 19-04-2021
Gujarat Agriculture Produce Markets Act, 1963 - Section 27 - Central Goods and Service Tax Act, 2017 - Section 79 and 83 - Right to Information Act, 2005 – GST Registration Certificate - License - Agricultural Produce Market Committee - Seeking direction to Respondents to defreeze/ detach the Current Bank Account of Petitioner with Central Bank of India from provisional attachment under Section 83 of Tax Act, 2017 on terms and conditions - Petitioner has a valid GST Registration Certificate under Provisions of Act, 2017 having Registration - According to the petitioner, he is involved in voluminous transactions of several parties and he follows the law while conducting his business. He came to realize that Central Bank of India freezed his current account No. 3785569992 with the Rajkot Main Branch. Without availing any opportunity, he straightway received the attachment order and realized that from Office of Principal Commissioner of Central GST such order of freezing had happened and since then, he has not been allowed to operate the account.
Finding of the court: There are no proceedings against present petitioner under Sections 62, 63, 64, 67, 73 and 74 of Act. There is no reason therefore, to invoke Section 83 against writ applicant and proceedings. Since proceedings are initiated by authorities in connection with third parties, invocation of powers under Section 83 are not available with the respondents - Despite of due service to bank bank has chosen not to remain present. Under RTI Act, where information was sought by petitioner. It has chosen not to divulge on ground of pending investigation strangely. It is rightly pointed out before us that this action of freezing account is harsh and to be resorted as provided under Statute. Thus, being a drastic power, authority concerned cannot be oblivious of serious consequences of provisional attachment of bank account. Even if for purpose of safeguarding interest of the government revenue, bank had chosen to follow directions from respondents, not to intimate to the petitioner as to why his account was freezed is wholly impermissible - Already proceedings initiated under Section 79 against present petitioner, who is third party. Against such initiation of proceedings under Section 79 of the Act, no challenge in present petition is made and a limited prayer is to actions of initiating proceedings under Section 83 and freezing of account which has already been addressed. We follow the decision of the Division Bench and quash and set aside provisional attachment, without addressing issue concerning Section 79 of Act which Petitioner wishes to challenge before the appropriate forum.
Result: Writ Petition is allowed
ORDER :
1. The petitioner herein is the proprietor of the Firm running in the name and style of M/s Global Corporation. It is acting as commission agent at Agricultural Produce Market Committee, Gondal with its valid license No. LIC/18424 of the market committee as required under Section 27 of the Gujarat Agriculture Produce Markets Act, 1963.
2. The petitioner has a valid GST Registration Certificate under the Provisions of the Central Goods and Service Tax Act, 2017 (hereinafter referred to as ‘the CGST Act, 2017’) having Registration No. 24BCSPK2560G1ZJ. According to the petitioner, he is involved in voluminous transactions of several parties and he follows the law while conducting his business. He came to realize that the Central Bank of India on 20.08.2020 freezed his current account No. 3785569992 with the Rajkot Main Branch. Without availing any opportunity, he straightway received the attachment order and realized that from the Office of the Principal Commissioner of Central GST, Mumbai, such order of freezing had happened and since then, he has not been allowed to operate the account.
3. The petitioner approached the respondent no. 3 - the Bank through its Manager and requested to let him be provided the necessary details for the reason of defreezing his account. It is his serious grievance that despite his repeated requests, no information was disclosed by the authority concerned as to why the GST authority exercised such powers. He also approached the respondent no. 2 at Mumbai with the similar request of defreezing the account as also to provide the reasons of such attachment for freezing of his account. He was orally conveyed that because of voluminous transactions with the third party, which is involved in violation of the provisions of the CGST Act, his account has been frizzed.
4. He moved an application under the Right to Information Act, 2005 on 22.10.2020. The Reply received on 28.10.2020 from the respondent no. 3 revealed that the information sought for could not be revealed on account of the fact that same would impede the process of investigation. This has resulted into his approaching this Court with a grievance that the action was totally arbitrary and Section 83 does not permit the freezing of the account of the third party for any steps which are needed to be taken against the assesses. He has also depended on the judgment and order of this Court rendered in Special Civil Application No. 13132 of 2019 in case of Valerius Industries vs. Union of India, as also the decision of the Bombay High Court rendered in case of Kaish Impex Pvt. Ltd. vs. Union of India and Others dated 17.01.2020 in Writ Petition No. 3145 of 2019. Prayers sought in this petition are the following prayers:
“(A) Your Lordships may be pleased to issue a Writ of Certiorari or any other Writ or direction quashing and setting aside the attachment order passed by the Respondent No. 2 and be further pleased to direct the Respondents to defreeze/detach the Current Bank Account No. 3785569992 of the Petitioner with the Central Bank of India, Rajkot Main Branch from provisional attachment under Section 83 of the Central Goods and Services Tax Act, 2017.
(B) Pending admission and final hearing of the Petition, this Hon’ble Court may be pleased to direct the Respondents to defreeze/ detach the Current Bank Account No. 3785569992 of the Petitioner with the Central Bank of India, Rajkot Main Branch from provisional attachment under Section 83 of the Central Goods and Services Tax Act, 2017 on terms and conditions as this Hon’ble Court may deem fit.
(C) Your Lordships may be pleased to dispense with the filing of the requisite Court due to Global COVID-19 Pandemic. The Petitioner undertakes to pay and affix the same as and when directed by this Hon’ble Court.
(D) Your Lordships may be pleased to pass any other and further order as this Hon’ble Court may deem fit interest of Justice.
(E) Award Costs.”
5. The Notice came to be issued by this Court on 22.12.2
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