M/S Blue Star International PVT LTD & Ors. vs. Commissioner Central Excise And Central GST Commissionerate Delhi South

Held

The Court held that the provisional attachment orders concerning the 38 bank accounts of the petitioners and the other 13 bank accounts would be lifted. This was contingent upon the petitioners remitting the cumulative credit balance of Rs. 1,67,550.12/- to the respondent/revenue. The revenue was directed to invest this amount in an interest-bearing fixed deposit with a nationalized bank, with the principal and accrued interest to abide by the final orders in the adjudication process. The revenue was also directed to serve a show cause notice on the petitioners within three weeks, affording them an opportunity to contest it, file a reply, and be heard. Subsequently, the revenue must pass a speaking order. The petitioners were also directed to file quarterly bank statements for the 38 bank accounts. The Court noted that the remittance of the amount was without prejudice to the rights and contentions of the parties.

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 revenue, represented by the Commissioner Central Excise and Central GST, Delhi South, had issued these attachment orders. The petitioners sought the lifting of these attachments. It was noted that some of the 38 accounts had a zero balance, and the cumulative credit balance across all 38 accounts was Rs. 1,67,550.12/-. Additionally, the revenue indicated that 13 other bank accounts, concerning entities and persons not under investigation, were also provisionally attached. The revenue proposed to lift all attachments if the cumulative amount of Rs. 1,67,550.12/- was remitted to them, pending adjudication, and quarterly bank statements were filed.

Key Issues

1. Whether the provisional attachment orders issued by the respondent/revenue concerning 38 bank accounts of the petitioners and 13 other bank accounts belonging to unrelated entities can be lifted upon the remittance of the cumulative credit balance of Rs. 1,67,550.12/- to the revenue, pending adjudication proceedings? Petitioner's Contention: The petitioners, through their counsel, sought the lifting of the provisional attachment orders on the 38 bank accounts, confining their prayer to this relief. They agreed to the proposed arrangement for lifting the attachments. Revenue's Contention: The respondent/revenue, represented by its counsel, agreed to lift the provisional attachment orders for all 38 bank accounts and the additional 13 bank accounts, provided that the cumulative credit balance of Rs. 1,67,550.12/- was remitted to the revenue. This amount would abide by the final outcome of the adjudication proceedings. The revenue also required the petitioners to file quarterly bank statements for the 38 accounts. The revenue further informed that a draft show cause notice had been prepared and would be served on the petitioners.