The petitioner is a supplier of diamonds, and also a registered dealer under the Goods and Service Tax Act, within the jurisdiction of Mumbai, stating that he had supplied diamonds to M/s. Nebal Tradings during the time period 2017-18 and 2018-19 and the transaction was duly declared in the GST return which was filed by the petitioner and the appropriate tax was also paid. As per his specific case no investigation was pending against him and no summons or notice had been served on him till date, either by the customs authorities or by the GST authority. But, the respondent issued an instruction to the Banker of the petitioner to freeze its Bank account on the grounds that an entity by name Nebal Trading had transferred certain amounts to the petitioner’s account. The relief sought for in the writ petition is to quash Exhibit Plaintiff 1 order and to lift the attachment over the Bank account of the petitioner, and is not pursuant to any proceedings that were initiated against the petitioner.
The court observing the facts and circumstances concluded that there is absolutely no basis in law for proceeding against the petitioner with the connection of offences alleged to have been committed by M/s Varma enterprises. The only fact is that a part of the money that was obtained from alleged fraudulent transactions have found its way to the Bank account of the petitioner cannot, without anything to suggest the complicity of the petitioner in such transactions, be the basis for the attachment of the Bank accounts of the petitioner. Thus, there being no material to implicate the petitioner in the alleged fraudulent transaction, the court found that Exhibit Plaintiff 1 communication issued by the 1st respondent cannot be legally sustained. The writ petition is therefore allowed by quashing Exhibit Plaintiff 1 communication and directed the respondent Bank to treat the attachment over the Bank account of the petitioner with it as lifted.