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TMI Blog2018 (2) TMI 1508X X X X Extracts X X X X X X X X Extracts X X X X ..... garb of such investigation and scrutiny, the need for freezing and attaching the bank accounts should be made out by referring to and production of necessary materials. Merely because the investigations are pending, we are not inclined to accede to the request of Mr. Jetly to continue the freezing order till all investigations are concluded and show cause notices are issued. We are not inclined to presume merely on the basis of the affidavit in reply filed by the Revenue that the adjudication process will necessarily result in a demand for payment of duty, interest and penalty. Petition disposed off. - Writ Petition (L) No. 377 of 2018, 378 of 2018, 379 of 2018, - - - Dated:- 6-2-2018 - S.C. DHARMADHIKARI SMT. BHARATI H. DANGRE, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e these transactions put under scrutiny, verification, leave alone detailed investigation. 4. The petitioners state that certain consignments sought to be exported by one of the group companies came under the scanner of respondents and they commenced investigation. A search was carried out of the premises of M/s Shantai Exim Ltd. on 18th September 2017. After search of the premises, some persons connected with these companies were arrested and taken to the office of the Directorate of Revenue Intelligence, Mumbai (for short DRI ) for further investigation. These persons were released on the next day after a sum of ₹ 5 crores was deposited as required by the DRI. 5. Thereafter the Directors were summoned for recording their stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nduct day to day activities and incur expenses for payment of salary, import and export bills etc. This would totally paralyse their business activities. In the present case, though the searches were carried out way back in August 2017, neither any show cause notice is issued nor any adjudication order has been passed. There is no hope that the freezing on accounts would be raised and shortly. This is the reason why the petitioners have approached this Court in writ jurisdiction. 8. On the other hand, Mr. Jetly appearing on behalf of the DRI, says that an affidavit of the Deputy Director has been filed. That affidavit shows as to how these petitions are an abuse of the process of law. The petitioners are bent on preempting the inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, having them cleared by payment of duty or otherwise exporting the goods with compliance of the Customs Act, 1962, suddenly there was no need to investigate their cases. We are inclined to accept this submission of Mr. Shah only to the extent that there is no prohibition against investigation of old cases and past transactions, but in the garb of such investigation and scrutiny, the need for freezing and attaching the bank accounts should be made out by referring to and production of necessary materials. 11. In the present case, vide communications to the bankers, which is of two lines, by the DRI, it is informed that the DRI is investigating wrong availment of duty drawback by the exporters M/s Shantai Exim Ltd., M/s Shantai Industrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. The respondents are well aware that they will have to issue a show cause notice setting out the allegations, call for an explanation from the petitioners and thereafter deal with it by passing a speaking order. Thus, the adjudicatory process would have to be undertaken and that is admitted before us. This process was required to be undertaken, but no show cause notice has been issued till date. When we asked Mr. Jetly as to why the bank accounts should be frozen, Mr. Jetly's response is that every receipt in this account and which would be eventually taken away by the petitioners is in the form of availment of duty drawback. In other words, the duty drawback or refund is the only sum which would be credited in the account and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation by the Revenue. Once the account is credited with such amount or proceeds as are earned and generated by the petitioners, then, equally, while withdrawing the sums, they will forward the details to the DRI together with supporting documents. (iii) Since there is a complaint that the business operations would be paralysed, we direct that within a period of 10 days from the amount being credited or withdrawn, the requisite particulars, documents etc. shall be forwarded to the DRI. (iv) The DRI shall be at liberty to call for further details and particulars as may be necessary. (v) The petitioners forwarding the particulars, documents along with the supporting documents and declarations to the DRI will be without prejudice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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