Ms Sun Flame Trading PVT LTD Aor Snd & Ors. vs. Commissioner Central Excise And Central GST Commissionerate Delhi South

Held

The Court disposed of the writ petitions by issuing a set of directions agreed upon by both parties. The respondent/revenue was directed to lift the provisional attachment orders concerning the 38 bank accounts of the petitioners. The concerned banks were to remit the available amounts to the respondent/revenue upon receiving necessary intimation. This remittance was to be without prejudice to the rights and contentions of the parties. The revenue was to invest the remitted amount in an interest-bearing fixed deposit, which would abide by the final orders in the adjudicatory process. The petitioners would be afforded an opportunity to contest any show cause notice served within three weeks. The revenue was also to lift the provisional attachment order for the other 13 bank accounts. The petitioners were to file quarterly bank statements for the 38 investigated accounts. The court explicitly stated that the show cause notice, if served, would be contested by the petitioners, and the revenue would pass a speaking order thereafter. No issue was expressly left undecided.

Facts

The petitioners, M/s Sun Flame Trading Pvt. Ltd., M/s Atlantic International Trading Pvt. Ltd., and M/s Blue Star International Pvt. Ltd., filed writ petitions challenging the provisional attachment of 38 bank accounts. The respondent, Commissioner Central Excise and Central GST, Delhi South, had initiated investigations. The petitioners, through their counsel, confined their prayer to lifting the provisional attachment. It was noted that some of the attached accounts had a zero balance, with a cumulative credit balance of Rs. 1,67,550.12/- across all 38 accounts. Additionally, the revenue indicated that 13 other bank accounts, concerning entities not under investigation, were also provisionally attached. The court proposed lifting the attachment upon remittance of the cumulative credit balance to the revenue.

Key Issues

1. Whether the provisional attachment orders concerning the 38 bank accounts of the petitioners should be lifted, and if so, under what conditions? Petitioner's contention: The petitioners sought the lifting of the provisional attachment on their 38 bank accounts. They agreed to remit the available credit balance to the revenue to protect its interests pending adjudication. Revenue's contention: The revenue, represented by the Commissioner Central Excise and Central GST, Delhi South, agreed to lift the provisional attachment orders for all bank accounts (both those under investigation and the additional 13 concerning unrelated entities) provided the cumulative credit balance of Rs. 1,67,550.12/- was remitted. The revenue also required quarterly bank statements for the investigated accounts and stated that a draft show cause notice had been prepared.