2021 (10) TMI 202 - HC - Customs

De-freezing of petitioner Bank Account - SCN issued without jurisdiction and in violation of the Circular dated 16th September 2014 - HELD THAT - This Court directs the registry of Customs, Excise and Service Tax Appellate Tribunal to list the Petitioner s appeal before the appropriate Bench on or before 10th October, 2021. This Court clarifies that it has not commented upon the merit of the controversy. The rights and contentions of all the parties are left open. Petition disposed off.

Summary

Issues:
Challenging a notice freezing a bank account under the Finance Act, 1994 and seeking directions for de-freezing, compliance with mandatory deposit requirements, delay in hearing the appeal by the Appellate Tribunal, lack of response from the Respondent No. 2, and the functionality of the Customs, Excise and Service Tax Appellate Tribunal.

Analysis:
The petitioner challenged a notice issued by Respondent No. 2 under section 87(b)(i) of the Finance Act, 1994, directing the freezing of the petitioner's bank account. The petitioner contended that the notice was issued without jurisdiction and in violation of a Circular from Respondent No. 1. The Circular stated that no coercive measures for recovery shall be taken during the pendency of an appeal if the mandatory deposit is made. The petitioner had complied with the deposit requirement before filing the appeal, citing settled law that no further recovery should be made during the appeal. Reference was made to a decision by the Customs, Central Excise and Service Tax Tribunal in support of this argument.

The petitioner also highlighted the delay in the appeal process, with the appeal pending for two years without a hearing. Despite filing an application for an early hearing, there was no progress, causing significant losses to the petitioner. Respondent No. 2 did not respond to requests for de-freezing the bank account, further exacerbating the situation.

During the proceedings, it was noted that the Customs, Excise and Service Tax Appellate Tribunal was functional and regularly hearing appeals. Consequently, the High Court directed the registry of the Tribunal to list the petitioner's appeal before the appropriate Bench by a specified date. The Court clarified that its directive did not comment on the merits of the case, leaving the rights and contentions of all parties open. The High Court's order was communicated to the Tribunal, leading to the disposal of the writ petition and pending application.

This comprehensive analysis of the judgment outlines the key issues raised, the arguments presented by the parties, and the final directives issued by the High Court, providing a detailed understanding of the legal proceedings and outcomes.