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Issues:
1. Interpretation of provisions under the Foreign Exchange Regulation Act, 1973. 2. Alleged contraventions under sections 10(1)(b) and 12(2)(b) of the Act. 3. Application of principles of natural justice. 4. Assessment of penalties based on evidence and legal provisions. Analysis: Interpretation of Provisions: The judgment pertains to a batch of appeals under the Foreign Exchange Regulation Act, 1973. The court highlighted the procedural aspects involving penalties under sections 50, 52, and 54 of the Act. It emphasized that appeals before the court should be limited to questions of law, distinguishing between departmental inquiries and proceedings where the department and the dealer are parties. Alleged Contraventions: The case involved a dealer in goat hair who faced charges of sending goods to West European countries instead of East European countries as claimed. The documents seized indicated discrepancies in export destinations and receipt of export proceeds in rupees. The adjudicating authority imposed penalties under sections 10(1)(b) and 12(2)(b) of the Act, leading to appeals before the Foreign Exchange Regulation Appellate Board, which reduced the penalties considering the circumstances. Application of Natural Justice: The appellant contended a failure of natural justice due to delays in proceedings and lack of access to seized documents. The court noted that the appellant had opportunities to inspect documents, but delays in adjudication were acknowledged. However, the court found no denial of natural justice solely based on the delay, emphasizing the need for specific circumstances to establish such a claim. Assessment of Penalties: The court scrutinized the basis for penalties under sections 10(1)(b) and 12(2)(b). It observed that the contravention under section 10(1)(b) was supported by evidence of securing foreign exchange, but the contravention under section 12(2)(b) lacked clarity. The court highlighted the stringent proof required for penalties under the Act, setting aside the penalty under section 12(2)(b) due to insufficient evidence and lack of material supporting the contravention. Conclusion: The judgment concluded by setting aside the penalty under section 12(2)(b) while confirming the penalty under section 10(1)(b) as modified by the Appellate Board. The court emphasized the necessity for proper documentation in adjudicatory orders for effective scrutiny in appellate processes. No costs were awarded, and a one-month timeline was provided for payment.
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