9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 639 - HC - FEMAImposition of penalty - prohibition of any payment into a credit of a resident outside India except with general or special permission of the Reserve Bank of India - Held that - Admittedly, the payment was made in India towards customs duty payable by the non-resident Indian while importing the car. The adjudicatory authority with reference to notification No.16/2000, dated 03/05/2000 held that only certain payments are allowed to be made in favour of a resident outside India during his stay in India and not one that was paid by the petitioner to the importer of the car, who is a Non-resident Indian. - The payment now effected is not one referable as permitted under notification No.16/2000, dated 03/05/2000. The notification No.FEMA/17/RB-2000, dated 03/05/2000 relied by the learned counsel for the petitioner has no application in this matter, as the same deals with the payment in Indian rupees to residents of Nepal and Bhutan. The adjudicatory authority passed the order after adverting to the relevant provisions. I do not find any infirmity with the order passed by the adjudicatory authority in regard to the decision making process - Decided against the appellant.
Issues:
Violation of FEMA provisions regarding payment to a Non-resident Indian. Validity of penalty imposed by adjudicatory authority. Interpretation of notifications related to payments to residents outside India. Maintainability of writ petition challenging decision-making process. The judgment addresses a writ petition filed against an order issued under the Foreign Exchange Management Act, 1999 (FEMA) by the Joint Director, Directorate of Enforcement. The petitioner contested the decision-making process of the adjudicatory authority, claiming that the writ petition was maintainable for this reason. The court permitted arguments on the merits of the dispute. The adjudicatory authority imposed a penalty on the petitioner for advancing &8377; 15 lakhs to a Non-resident Indian for importing a car, deeming it a violation of FEMA provisions. The petitioner argued that the restriction on payments applied only to individuals residing outside India, not to individuals in India, even if they were Non-resident Indians. The adjudicatory authority based its decision on notification No.16/2000, dated 03/05/2000, which specified permissible payments to residents outside India during their stay in India. The authority concluded that the payment made by the petitioner to the Non-resident Indian importer of the car did not fall within the permitted categories. The court found that the notification cited by the petitioner's counsel, No.FEMA/17/RB-2000, dated 03/05/2000, pertained to payments in Indian rupees to residents of Nepal and Bhutan, and was not applicable in this case. The court upheld the authority's decision-making process and advised the petitioner to seek recourse with the appellate authority if dissatisfied. Regarding the delay in filing an appeal, the court excluded the period from 14/07/2014 to 09/02/15 from the limitation period. Ultimately, the court dismissed the writ petition without costs, finding no fault with the adjudicatory authority's order. The judgment emphasizes the importance of compliance with FEMA provisions and the necessity of approaching the appropriate appellate authority for redressal in case of grievances against adjudicatory decisions.
|
