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TMI Blog2021 (1) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... n prospective application with effect from 01.08.2019. The provisional attachment was made on 08.05.2019 when the said provision was not available in the statute book. The petitioner's accounts are allowed to be released/unfrozen - petition allowed. - WRIT PETITION (ST.) NO.94899 OF 2020 - - - Dated:- 19-1-2021 - UJJAL BHUYAN MILIND N. JADHAV, JJ. Mr. Brijesh Pathak i/b. Ms. Yogita V. Gogar for Petitioners. Mr. Pradeep Jetly, Senior Advocate a/w. Mr. J. B. Mishra for Respondents. P.C. : (Per Ujjal Bhuyan, J.) Heard Mr. Pathak, learned counsel for the petitioners and Mr. Jetly, learned senior counsel assisted by Mr. Mishra, learned counsel for the respondents. 2. Challenge made in this writ petition is primarily to the letter dated 08.05.2019 issued by the Directorate of Revenue Intelligence, Kolkata Zonal Unit (respondent No.2) to the General Manager, Kotak Mahindra Bank Limited, Malad (East), Mumbai (respondent No.3) requesting debit-freeze of one account of the petitioners. 3. A perusal of the letter dated 08.05.2019 would go to show that there was an ongoing investigation undertaken by the Directorate of Revenue Intelligence in respect of im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operation of the petitioners, investigation has not reached its finality. 5. Petitioners have filed rejoinder affidavit denying the allegations made by the respondents in their reply affidavit and reiterating what has been contended in the writ petition. 6. While learned counsel for the petitioners submits that issue involved in the present writ petition is within a narrow compass, namely, whether provisional attachment of bank account can be continued beyond the period of six months extendable by another period of six months. In so far the present case is concerned, he submits that even the extended period of six months was not available to the respondents as no order was passed for extending the initial period of six months. 7. On the other hand, Mr. Jetly, learned senior counsel for the respondents has extensively referred to the averments made in the reply affidavit and submits that conduct of the petitioners does not inspire confidence. Such a person is not entitled to invoke the discretionary jurisdiction of the writ court under Article 226 of the Constitution of India. 8. Submissions made have been considered. 9. From a perusal of the impugned letter dated 08. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13. In M/s. Boxster Impex Pvt. Ltd. Vs. Union of India and other connected cases decided on 22.09.2020, this Court held as follows:- 29. From the above it is evident that the said provision was inserted in the statute with effect from 1st August, 2019. Besides, from the tone and tenor of the sub-section it is apparent that it is not a procedural provision per se; rather it is coercive in nature, though the procedure is also laid down for giving effect to the said provision. Being a coercive provision, there has to be strict compliance to the procedure laid down. In such circumstances and having regard to its very nature, such a provision can only have prospective operation and not retrospective operation. Infact, the concerned Finance Act makes it explicit by making the provision effective from a prospective date i.e. from 1st August, 2019. 30. Letter from the office of the Principal Commissioner of Customs to the Branch Manager of IDFC Bank was issued on 1st March, 2019 for freezing of the bank account of the petitioner. This was prior to insertion of sub-section (5) in Section 110 with effect from 1st August, 2019. Therefore, it is quite clear that this provision co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any authority of law. 14. In Samyak Jewels Pvt. Ltd. Vs. Union of India decided on 25.09.2020 , this Court was confronted with a similar issue where also bank account of the petitioner was frozen on 19.04.2018 and continued to remain frozen for a period of more than one year. Examining the meaning of the word provisional , it has been held that it is a temporary arrangement. The two words - provisional and attachment read in conjunction can only mean a temporary attachment. It is for this reason that Parliament has provided a definite timeline in sub-section (5) of section 110 of the Customs Act, 1962. It has been held as under:- 8. Following the above, we do not find any good reason to sustain the communication dated 19th April, 2018 as more than two years have elapsed since the bank account was frozen. We may mention that sub-section (5) of Section 110 speaks of provisional attachment. Dictionary meaning of provisional is arranged or existing for the present, possibly to be changed later ; Black s Law Dictionary, Eight Edition, has defined it as temporary or conditional . Therefore, the statute has provided a definite time line beyond which the attachment bec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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