2014 (3) TMI 1225 - HC - FEMA

Deposit of penalty u/s 9(1)(a) and 9(1)(c) of Foreign Exchange Regulation Act, 1973 - HELD THAT - As directed the appellants shall deposit the amount of penalty imposed under Sections 9(1)(a) and 9(1)(c) of Foreign Exchange Regulation Act, 1973, within four (4) weeks from today. In the event of the appeals being allowed, the Enforcement Directorate shall refund that amount along with interest on it @ 12 per cent per annum from the date of deposit of amount with it till the date of its refund. The bank guarantee which the appellants had furnished in compliance of the interim order dated 30.8.2010 be returned to the appellants. On such deposit being made, the appeals pending before the Appellate Tribunal will be decided on merits. If the aforesaid amount is not deposited within four (4) weeks, the appeals pending before the Tribunal shall stand dismissed for want of deposit.

Summary

Issues involved: Deposit of penalty under Sections 9(1)(a) and 9(1)(c) of Foreign Exchange Regulation Act, 1973, refund by Enforcement Directorate, return of bank guarantee, decision on appeals pending before Appellate Tribunal.

In the judgment, the learned counsel for the appellants informed the court that the appellants would deposit the penalty amount imposed u/s 9(1)(a) and 9(1)(c) of the Foreign Exchange Regulation Act, 1973 within four weeks. It was further stated that if the appeals are allowed, the Enforcement Directorate would refund the deposited amount along with interest at 12% per annum. The bank guarantee provided by the appellants in compliance with the interim order was to be returned to them upon deposit. The judgment specified that failure to deposit the amount within the stipulated time would result in the dismissal of the appeals pending before the Tribunal for non-compliance.

The judgment concluded by disposing of the appeals in accordance with the directions given regarding the deposit, refund, and return of the amounts involved.