SHANTAI INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By these petitions under Art. 226 of the Constitution of India, the petitioners are challenging the communications addressed by the Directorate of Revenue Intelligence to the Bankers, namely Kotak Mahindra Bank and Bank of Baroda, the branches of both at Surat, in which the petitioners have current accounts.

(2.) Mr. Shah, in support of these petitions, would submit that by its very nature the current accounts are maintained by the bankers at the request of and pursuant to a contract in that behalf with the customers/clients like the petitioners so as to facilitate day to day operations of ongoing business.

(3.) Mr. Shah would submit that the business activities of the petitioners are totally paralysed. These companies are engaged in the business of export of fabrics and readymade garments. They are group of companies known as "Sawlani Group". It is in the business for past 25 years. The business is conducted by complying with the provisions of the Customs Act, 1962. M/s. Shantai Industries Ltd. has been exporting consignment of fabrics and readymade garments from Nhava Sheva Port. On several occasions in the past, the export consignments were cleared after proper procedure was followed. The petitioners assert that at no point of time in the past was there any discrepancy noted in the transactions nor were these transactions put under scrutiny, verification, leave alone detailed investigation.