FINAL ORDER

06.08.2024 Dictated By: Rajesh Malhotra Present appeal u/s 26 of Prevention of Money Laundering Act, 2002 is filed by appellant against the order dated 13.09.2018 passed 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:

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 Bangladesh during the FY 2012-13, and on the basis of which, the firm claimed VAT refund of Rs. 0.74 crore from Punjab Government vide application dated 11.02.2013 on VAT-29 Form. After enquiry by Custom Authorities, Petrapol Land, West Bengal,it is reported that all the Shipping Bills produced by the firm were found to be forged and fabricated. On the basis of the said complaint, FIR No. 221 dated 14.11.2013 u/s 177, 420, 465, 467, 468 and 471 IPC was lodged against Ramesh Mehan Proprietor of M/s Yourk International and his son Rajeev Mehan. After completion of investigation, police filed charge-sheet against Rajeev Mehan. As per charge-sheet, during the third quarter of the year 2012-13, M/s Yourk International had shown trade of about Rs.16.37 Crores for which it has shown the purchase of readymade garments worth Rs. 16.31 crores from the State of Punjab.Out of the said purchase, the firm M/s Yourk International had shown exports made to Bangladesh to the tune of Rs. 12.38 crores indirectly vide H-Form through M/s Shreyas International. VAT on such goods in the State of Punjab is 6.05%, but as per the provisions, the tax on Export Goods is Nil, in the State of Punjab. Accordingly, M/s Yourk International moved an application dated 11.02.2013 vide VAT-29 Form for refund of VAT amounting to Rs. 0.74 croresalongwithUndertaking, H-Forms, Bill of Lading, Shipping Bills etc. On the basis of the same, the said amount was refunded to the firm on 02.04.2013. On verification of the said documents 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 witnesses, Ld. Adjudicating Authority issued Show Cause Notice against the Noticee(s) for filing reply. After going through the replies and hearing the rival submissions, Ld. Adjudicating Authority passed the Order dated 13.09.2018. Aggrieved by the said order, appellant Suresh Devi, filed the present appeal.

3. During the arguments, Ld. Counsel for the appellant submitted that appellant Suresh Devi purchased the subject house in the year 1998, vide sale agreement dated 02.04.1998 for amount of Rs.10,00,000/-. He argued that on 03.05.2013, alleged proceeds of crime i.e. Rs.74 lacs were stated to be credited into the account of M/s Yourk International.He argued that by stretch of no imagination the said house being purchased much prior to the alleged commission of offence could not said to have been purchased from any proceeds