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Violation of Section 8(3) of FERA - Imposition of penalty Issue 1: Violation of Section 8(3) of FERA - Imposition of penalty The appeal was filed challenging the order imposing a penalty of Rs. 12,000 on the appellant for the alleged violation of Section 8(3) of FERA. The facts of the case revealed that foreign currency was seized from the residential premises of the appellant, who claimed to have acquired it for a business promotion tour from Authorized Dealers. The appellant stated that he was abroad from 18-3-1992 to 18-8-1992 and was required to surrender the foreign exchange within 90 days from the date of return, as per a Notification issued by the Reserve Bank of India. The Directorate of Enforcement contended that as per Notification No. FERA/73/88-RB, unutilized foreign exchange should be surrendered within 90 days from the date the individual becomes aware that it cannot be used. The raid was conducted within 10 days of the appellant's return from the foreign tour, falling within the stipulated period. However, it was argued that in such circumstances, the appellant could not be held guilty of violating Section 8(3) of FERA. The appellate tribunal, chaired by Justice Subhash Samvatsar, found that the appellant could not be deemed to have contravened Section 8(3) of FERA, and that the penalty imposed by the Directorate of Enforcement was erroneous. Consequently, the appeal was allowed, the impugned order was set aside, and the penalty amount deposited by the appellant was directed to be returned to him. This detailed analysis provides a comprehensive overview of the legal judgment, focusing on the issue of violation of Section 8(3) of FERA and the subsequent imposition of a penalty. The summary encapsulates the key arguments, findings, and the ultimate decision rendered by the appellate tribunal, ensuring a thorough understanding of the case.
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