The court ruled that the provisional attachment of bank accounts and summons issued for investigation were illegal, as the petitioner was a bona fide purchaser of goods cleared for home consumption, and no pending demand existed against them.

JUDGMENT :

BHARGAV D. KARIA, J.

1. Heard learned advocate Dr.Sujay Kantawalla with learned advocate Mr.Anupam Dighe with learned advocate Mr.Kartikey D. Kanojiya for the petitioner and learned Additional Solicitor General Mr.Devang Vyas with learned advocate Mr.Siddharth Dave with learned advocate Mr.C.B. Gupta for the respondents.

2. Rule, returnable forthwith. Learned advocate Mr.Siddharth Dave and learned advocate Mr.C.B.Gupta waives service of notice of rule for on behalf of the respective respondents.

3. By this petition under Article 226 of the Constitution of India, the petitioner has prayed for the following reliefs :

“a. That this Hon'ble Court may be pleased to hold and declare that

i. the investigation carried by the office of Respondent No.2 is not just and fair and the conduct of the Respondents against the Petitioner herein in pursuance to F.No.GEN/INT/MISC/26/2023, is unwarranted and illegal;

ii. that the continuous provisional attachment of the Petitioner's Bank Account No.6311621118 and Petitioner's Proprietor's Bank Account No. 7211434006 is without any authority of law;

b. That this Hon'ble Court may be pleased to issue a Writ of Mandamus or Writ in the nature of Mandamus or any other appropriate Writ, Order or Direction directing Respondents, their servants, subordinates, and agents:

i. to withdraw Summons dated 07.06.2024 bearing F.No. F.No.GEN/INT/MISC/26/2023 (Annexure - C) and any subsequent Summons issued to the Petitioner;

ii. to refrain from issuing further Summons to the Petitioner seeking for documents related to M/s S.T. Electricals;

iii. to defreeze the Petitioner's Bank Account No. 6311621118 and Petitioner's Proprietor's Bank Account No.7211434006 held with Respondent No.4 bank;

c. That this Hon'ble Court may be pleased to issue a Writ of Certiorari or Writ in the nature of Certiorari or any other appropriate Writ, Order or Direction calling for records and proceedings dealing with Summons dated 07.06.2024 bearing F. No. F. No. GEN/INT/MISC/26/2023 (Annexure- C) and after going into the legality, propriety and validity thereof, to quash and set aside the same.

d. That this Hon'ble Court may be pleased to issue a Writ of Prohibition or any other appropriate Writ, Order or Direction, directing the Respondents Nos. 2, and 3, their servants, subordinates, and agents to cease and desist from issuing further Summons to the Petitioner in terms of Investigation under F. No. GEN/INT/MISC/26/2023;

e. Pending the hearing and final disposal of the present Petition, this Hon'ble Court be pleased to direct the Respondents:

i. to refrain from issuing further Summons to the Petitioner seeking documents related to M/s S.T. Electricals;

ii. to defreeze the Petitioner's Bank Account No. 6311621118 and Petitioner's Proprietor's Bank Account No. 7211434006 held with Respondent No. 4 bank;

iii. to refrain from taking any coercive steps against the Petitioner in furtherance to proceedings under F. No.GEN/INT/MISC/26/2023;”

4. Factual matrix giving rise to this petition can be summarised as under :

4.1. The petitioner is engaged in business of trading of (Cold Rolled Grain Oriented) CRGO Strips, Sheets, etc. During Financial Year 2023-24, the petitioner made purchase and sale transactions with one M/s. S. T. Electricals for “CRGO Strips”.

4.2. The respondent No.2-Commissioner of Customs (Prevantive), Jaipur initiated inquiry against M/s. S. T. Electricals in respect to an import made by it vide Bill of Entry No.5525864 dated 15.04.2023.

4.3. It is the case of the petitioner that on 12.07.2023, the petitioner found that its Bank Accounts having Bank Account No.6311621118 and Bank Account No.7211434006 with Kotak Mahindra Bank Limited were put under a “Debit Freeze” by the respondent No.4-Kotak Mahindra Bank.

4.4. On inquiry, the petitioner was informed that the said action was carried out as per directions from the respondent No.2. Thereafter, the respondent No.3-Superintendent of Customs (Preventive), Jaipur issued summons on 17.05.2024 to