2017 (11) TMI 839 - AT - FEMA

Revision petition u/s 19(6) of FEMA against the order of penalty - contentions of the respondent is that revision petition filed by the revisionist is not maintainable as there is no specific provision in the Act - Held that - As gone through provisions of section 16 which provides for appointment of Central Government Officers as at Adjudicating Authority for holding an inquiry for the purpose of imposing any penalty against the respondent. As informed that after passing the impugned order no complaint against the respondent was filed against the order passed by the Adjudicating Authority who has imposed the penalty nor any inquiry is conducted in this regard under section 16 of the Act as provided under sub-section 6 of section 19. Under these circumstances, there is a force in the submissions of learned counsel for the respondent that the revision petition filed by the appellant is not maintainable. The penalty amount as per impugned order has been deposited by the respondent. Thus revision petition is accordingly dismissed.

Summary

Issues:
1. Maintainability of revision petition under Section 19(6) of the Foreign Exchange Management Act, 1999.
2. Imposition of penalty by the Appellate Authority.
3. Compliance with provisions of section 16 regarding inquiry and penalty imposition.

Analysis:
1. The appellant filed a revision petition under Section 19(6) of the Foreign Exchange Management Act, 1999 challenging the penalty imposed by the Appellate Authority. The respondent contended that the revision petition is not maintainable as there is no specific provision in the Act. The respondent had already deposited the penalty amount. The Appellate Tribunal is empowered to examine the correctness of orders made by the Adjudicating Authority under section 16. The Tribunal noted that no complaint was filed against the respondent after the penalty was imposed, and no inquiry was conducted under section 16 of the Act as required by sub-section 6 of section 19.

2. The Tribunal reviewed the provisions of section 16, which appoint Central Government Officers as the Adjudicating Authority for inquiries related to imposing penalties. The Tribunal observed that no complaint or inquiry was initiated against the respondent after the penalty was imposed. Considering these circumstances, the Tribunal agreed with the respondent's counsel that the revision petition filed by the appellant was not maintainable. Since the penalty amount had already been paid by the respondent as per the impugned order, the Tribunal decided to dismiss the revision petition.

3. In conclusion, the Tribunal found merit in the respondent's argument regarding the maintainability of the revision petition under Section 19(6) of the Act. As the penalty amount had been deposited by the respondent and no further action was taken against them, the Tribunal dismissed the revision petition. The judgment highlights the importance of following procedural requirements and conducting inquiries as mandated by the relevant sections of the Foreign Exchange Management Act, 1999 to ensure the legality and propriety of penalty imposition.