Bhavesh Kiritbhai Kalani VS The Union Of India

The petitioner is the owner of a firm named M/s Global Corporation, which operates as a commission agent at the Agricultural Produce Market Committee in Gondal. The firm holds a valid license, No. LIC/18424, issued by the market committee in accordance with Section 27 of the Gujarat Agriculture Produce Markets Act, 1963.

The petitioner is the proprietor of a firm named M/s Global Corporation, which operates as a commission agent at the Agricultural Produce Market Committee in Gondal. The firm holds a valid license (No. LIC/18424) from the market committee, as required by Section 27 of the Gujarat Agriculture Produce Markets Act, 1963.

Additionally, the petitioner has a valid GST Registration Certificate under the Central Goods and Service Tax Act, 2017 (CGST Act, 2017), with registration number 24BCSPK2560G1ZJ. The petitioner claims to be involved in numerous transactions with various parties and asserts compliance with all legal requirements while conducting business.

The petitioner, who owns the firm M/s Global Corporation, operates as a commission agent at the Agricultural Produce Market Committee in Gondal under a valid license (No. LIC/18424) issued as per Section 27 of the Gujarat Agriculture Produce Markets Act, 1963. Additionally, the petitioner holds a valid GST Registration Certificate under the Central Goods and Services Tax Act, 2017 (CGST Act, 2017), with the registration number 24BCSPK2560G1ZJ.

The petitioner claims to be engaged in numerous transactions with various parties, adhering to legal requirements in his business operations. However, on August 20, 2020, he discovered that his current account (No. 3785569992) at the Central Bank of India, Rajkot Main Branch, had been frozen. This action was taken without prior notice or opportunity for him to respond. He found out that the order to freeze his account came from the Office of the Principal Commissioner of Central GST, Mumbai, and since then, he has been unable to access his account.

The petitioner, proprietor of M/s Global Corporation, operates as a commission agent at the Agricultural Produce Market Committee in Gondal, holding a valid license (No.LIC/18424) as per the Gujarat Agriculture Produce Markets Act, 1963. Additionally, the petitioner has a valid GST Registration Certificate under the Central Goods and Service Tax Act, 2017, with registration No.24BCSPK2560G1ZJ, indicating compliance with relevant laws while conducting voluminous transactions for several parties.

On August 20, 2020, the petitioner discovered that his current account (No.3785569992) with the Central Bank of India, Rajkot Main Branch, had been frozen. This action was taken without prior notice or opportunity to contest it, as the petitioner only received the attachment order from the Office of the Principal Commissioner of Central GST, Mumbai, after the fact. Since then, he has been unable to access the account.

The petitioner approached the bank, specifically respondent no.3 through its Manager, seeking details and reasons for the account freeze. Despite repeated requests, the bank did not disclose any information. Subsequently, he contacted respondent no.2 in Mumbai with similar requests. It was orally communicated to him that the account was frozen due to his involvement in transactions with a third party that violated the provisions of the CGST Act. The petitioner’s grievance is that he has been left uninformed and unable to operate his account despite following due legal processes.

The petitioner, proprietor of M/s Global Corporation, operates as a commission agent at the Agricultural Produce Market Committee in Gondal, holding a valid license (No.LIC/18424) as required under the Gujarat Agriculture Produce Markets Act, 1963. Additionally, the petitioner holds a valid GST Registration Certificate (No.24BCSPK2560G1ZJ) under the Central Goods and Service Tax Act, 2017 (CGST Act, 2017). The petitioner asserts compliance with the law in his business dealings, which involve numerous transactions with various parties.

On August 20, 2020, the petitioner’s current account (No.3785569992) at the Rajkot Main Branch of the Central Bank of India was frozen without prior notice. This action was taken by the Office of the Principal Commissioner of Central GST, Mumbai. Since the account was frozen, the petitioner has been unable to operate it.

In response, the petitioner contacted the Bank through its Manager, seeking an explanation and the details necessary for unfreezing his account. Despite multiple requests, the petitioner received no information regarding the GST authority’s justification for freezing the account. Similarly, when the petitioner approached the GST authority in Mumbai, he was informed orally that the account was frozen due to voluminous transactions with a third party allegedly violating the CGST Act.

The petitioner subsequently filed an application under the Right to Information Act, 2005 on October 22, 2020. However, the response received on October 28, 2020, from the Bank (respondent no.3) stated that the requested information could not be disclosed as it would impede the investigation process. Consequently, the petitioner has approached the Court seeking redress for the grievances arising from the freezing of his account without adequate explanation or opportunity to address the concerns raised by the GST authorities.

The petitioner is the owner of M/s Global Corporation, a commission agent operating under a valid license from the Agricultural Produce Market Committee in Gondal, as stipulated by Section 27 of the Gujarat Agriculture Produce Markets Act, 1963. The petitioner is also registered under the Central Goods and Service Tax Act, 2017, holding GST Registration No. 24BCSPK2560G1ZJ.

The petitioner, involved in numerous business transactions, discovered on August 20, 2020, that the Central Bank of India had frozen his current account No. 3785569992 at the Rajkot Main Branch. The freezing order was issued by the Office of the Principal Commissioner of Central GST in Mumbai. Despite multiple requests to the bank and the GST authorities for the reasons behind the account freeze and for its release, the petitioner received no satisfactory information. The authorities indicated that the freeze was due to transactions with a third party allegedly violating CGST provisions.

The petitioner subsequently filed an application under the Right to Information Act, 2005 on October 22, 2020, but the response received on October 28, 2020, stated that disclosing the information would hinder the investigation process. This led the petitioner to challenge the action in court, arguing that the account freeze was arbitrary and not permissible under Section 83 of the CGST Act. The petitioner cited precedents from this Court and the Bombay High Court in similar cases (Valerius Industries Vs. Union of India and Kaish Impex Pvt. Ltd. Vs. Union of India) to support his claim.

The petitioner’s legal challenge seeks the following reliefs:

1. The defreezing of his account.
2. Disclosure of the reasons behind the freezing order

The petitioner, who owns a firm named M/s Global Corporation, operates as a commission agent at the Agricultural Produce Market Committee in Gondal, with a valid license and GST registration. The petitioner was informed on August 20, 2020, that the Central Bank of India had frozen his current account due to an order from the Principal Commissioner of Central GST in Mumbai. This freezing occurred without prior notice, and despite multiple requests for information, the petitioner was not informed of the reasons behind the account freeze.

The petitioner’s attempts to obtain details from both the bank and GST authorities were unsuccessful. According to oral information, the account was frozen due to the petitioner’s transactions with a third party involved in violations of the CGST Act. The petitioner subsequently filed an application under the Right to Information Act, 2005, but was informed that releasing the requested information could impede the investigation.

The petitioner argues that the action was arbitrary and that Section 83 of the CGST Act does not allow freezing of a third party’s account for matters related to the assessable party. He cites previous court rulings in similar cases to support his claim.

In response, the Deputy Commissioner, Mr. Rahul Dhingra, filed an affidavit stating that the account freeze was linked to an investigation into Sajid Imam Shaikh of M/s Belluxa Trading Company. This company was involved in fraudulent activities, including obtaining bogus invoices and claiming refunds of accumulated Input Tax Credit. The company, found to be non-existent, had received a significant refund amount from the Union Bank of India, and the freezing of the petitioner’s account was part of the measures taken to safeguard government revenue.

The case has progressed to a court hearing, with the petitioner seeking relief from the court regarding the account freeze and challenging the actions taken by the GST authorities.

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