JUDGMENT :

SONIA GOKANI, J.

1. By way of the present petition, the petitioners beg to challenge the action of the respondent no.2 directing the Branch Manager of (i) AU Small Finance Bank (ii) Kotak Mahindra Bank, and (iii) State Bank of India by communications dated 27.02.2020 and 02.03.2020 not to allow the petitioner to operate the bank account and further directed to stop the operation of the bank locker by exercising powers under Section 83(1) of the Central Goods and Service Tax, Act 2017 (hereinafter referred to as the ‘CGST Act’).

2. The brief facts leading to the present petition are as follows:-

2.1. On 25.02.2020, the Superintendent of Central Excise, Vadodara conducted a search and seizure at the premises of the petitioner located at 2/3 Dharamnagar Village- Bholav, Bharuch and thereafter investigation in respect of evasion of GST was conducted. The petitioner was summoned and his statement was recorded.

2.2. On 09.06.2020, the present petitioner was arrested and later he was sent to the judicial custody. Mr. Dilip Babulal Jain was a promoter and existing director of Glamox Solution Private Limited (‘GSPL’ for short) which is a registered company engaged in the business of finding angel investor for its customers. Mr. Jain is also a promoter and primary partner in Grabdeal Advertisement and Tourism LLP (‘GATL’ for short) and also a sole proprietor of M/s. Genesis Group which are engaged in the business of providing other financial services such as advisory and consulting services as also in relation to the investment and capital market, derivate market, money market, commodity market, insurance market, real estate market, infrastructure, mutual fund, systematic investment plan etc.

2.3. The company after obtaining funds from the venture capital investors, invests in business assets and the return of investment is refunded to such investors along with certain percentage of profit calculated on pro-rata basis or predetermined interest. No charge is collected in the form of any processing fees or any other charges for the said services from the investors.

2.4. The nature of the business is such that the companies are extending financial assistance towards which consideration is received in the form of interest. Therefore, the same would qualify for exemption under GST as SI No. 27 of Notification No. 12/2017-CT(rate), exempts services by way of extending deposit, loan or advances in so far as the consideration is represented by way of interest of discount (other than interest involved in credit card services).

2.5. According to the petitioner, there would not arise any GST liability on the activities of the present company which enjoys the exemption under the GST and the Revenue Authority never disputed the same nor had it doubted the method adopted by the company of the petitioner. It is alleged that Mr. Jain was forced to make admission for the GST liability to the tune of Rs. 51 crores approximately inclusive of interest and penalty. Moreover, the records are seized without issuing authorization as prescribed under Rule 139(2) of the CGST Rules, 2017. During the investigation, the lockers of the petitioner were sealed. The details of bank lockers also had been provided in the memo of petition. They all are in the AU Small Finance Bank, Kotak Mahindra Bank and State Bank of India.

2.6. The petitioner also has urged that by way of seizure order under Rule 139(2), the officer of the respondent no.2 had seized other documents, laptop, keys of the lockers etc. and by drawing panchnama the cash amount of Rs. 58,25,650/- had been seized. After recording criminal case against Mr. Jain being Criminal Case No. 9753 of 2020 culminated into the charge-sheet dated 07.08.2020, he was sent to judicial custody.

2.7. It is further urged that during the pendency of the proceedings, Mr. Jain and other family members came to be implicated i