TaxTMI 
TaxTMI 
2024 (9) TMI 67
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....in Original Complaint No. 922/2018, by the Ld. Adjudicating Authority vide which attachment of the properties attached in PAO No. 02/2018 dated 27.03.2018 was confirmed for attachment, including the property of the appellant which is detailed as under: Sr. No. Description Value of the Property (Rs.) Name of the Possessor/Owner 2. House No. 64-A, Aggar Nagar, Ludhiana Value to the Extent of Rs. 63,83,282/- Smt. Suresh Devi (D-6) 2. As per the facts of the case, Excise and Taxation Officer, Ludhiana-1, lodged a complaint vide No. 1323 dated 08.11.2013 before Police Commissioner, Ludhiana against M/s Yourk International for showing export of readymade garments to the tune of Rs. 12.38 crores vide H-Forms to Banglades....
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....ments regarding exports, the same was found to be forged and fabricated. As per the report received from Commission of Customs, Petrapol Land, Custom Station, Bangaon, West Bengal, Directorate of Enforcement also registered ECIR No. 09/JLZO/2013 dated 06.12.2013 for conducting investigation under Prevention of Money Laundering Act, 2002. During investigation, ED collected documents from various sources and also recorded statements of many persons u/s 50 of PMLA. Thereafter, Provisional Attachment Order No. 02/2018 was passed. After passing of the said Provisional Attachment Order, Original Complaint No. 922/2018 was filed before the Adjudicating Authority. After going through the Original Complaint, documents and statements of witness....
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....e and totally illegal and arbitrary to the extent of the said attachment. Since ex-facie illegal acts can be interfered with under Article 226 of the Constitution of India, not withstanding the existence of an alternate remedy, this Court is of the view that the provisional attachment of the immovable property as seen from the Schedule A to Exhibit P-11, order dated 22.04.2024 is liable to be set aside. ...". He also relied upon the judgment of Hon'ble Supreme Court of India in case Pavana Dibbur v. E.D. 2023SCC online SC 1586, wherein in para 31 sub-para c., it is held that-The first property cannot be said to have any connection with the proceeds of crime as the acts constituting scheduled offences were committed after the property was....
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....mar Garg and daughter of Shri Ramesh Mehan. Accordingly, he submitted that present appellant was part and parcel of the conspiracy for layering of the proceeds of crime within the family members as mentioned in the aforesaid flow chart. In support of his contention the statement of many witnesses recorded u/s 50 of PMLA. He further argued that the judgments relied upon by Ld. Counsel for the appellant are not applicable in any manner, as the Hon'ble High Court of Kerala has not discussed about the judgment of Hon'ble Supreme Court of India in case of Vijay Madanlal Choudhary v. Union of India,MANU/SC/0924/2022; 2022 SCC Online SC 929. Further, the judgment of Hon'ble Supreme Court of India by D.B. in case ofPavana Dibbur v. E.D. (supra) is ....
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.... proceeds of crime relating to a scheduled (predicate) offence, including income, profits and other benefits from the proceeds of crime. These definitions also allow for value confiscation, regardless of whether the property is held or owned by a criminal or a third-party...". Further, it is held that- "68. It was also urged before us that the attachment of property must be equivalent in value of the proceeds of crime only if the proceeds of crime are situated outside India. This argument, in our opinion, is tenuous. For, the definition of "proceeds of crime" is wide enough to not only refer to the property derived or obtained as a result of criminal activity relating to a scheduled offence, but also of the value of any such pro....