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2019 (8) TMI 136 - AT - FEMAJurisdiction - power of Single Member Bench to decide appeals under the provisions of FERA and FEMA - appellants contention is that Section 52 of the FERA does not allow any Single Member to hear and decide the appeals where the order imposing a penalty exceeds ₹ 2,50,000 was a provision under the FERA, 1973 - HELD THAT - As per Section 12 (6A) of SAFEMA, the Chairman of the Appellate Tribunal may constitute a Bench with one or two Members and a Bench so constituted may exercise and discharge the powers and functions of the Appellate Tribunal. Even the erstwhile Section 20 of FEMA (rescinded vide Finance Act 2017) had provisions to constitute Bench with one or more Members - while the Appellate Board of FERA has been dissolved with the coming into effect of FEMA on 01.06.2000, the Appellate Tribunal set up under SAFEMA will be the Appellate Tribunal for the purposes of FEMA also. The provisions under SAFEMA provide for both a Single Member Bench and a Division Bench to be constituted by the Chairman. It is a fact that the Chairman has notified in July 2018 distribution of cases/appeals to all the existing Benches including both the Single Benches of the undersigned and the Chairman functioning as a Member. As per section 2(s) of FEMA, Member means a Member of the Appellate Tribunal and includes the Chairperson thereof . There is no merit in the miscellaneous petitions on the question of limitation of jurisdiction of the Single Member Bench as per the legal provisions - petition dismissed.
Issues involved:
1. Jurisdiction of a Single Member Bench to decide appeals under FERA and FEMA. 2. Applicability of Section 52 of FERA and Section 49 of FEMA. 3. Powers and functions of the Appellate Tribunal under SAFEMA. 4. Review/recall of Tribunal's order dated 5.12.2018. 5. Compliance with pre-deposit order. Issue 1: Jurisdiction of a Single Member Bench The judgment addresses the challenge to the jurisdiction of a Single Member Bench to decide appeals under FERA and FEMA. The appellants argued that the Single Member did not have the authority to decide appeals where the penalty exceeded a specified amount under FERA. However, the judgment clarifies that FERA was repealed when FEMA came into effect, transferring the jurisdiction to the Appellate Tribunal under SAFEMA. The Chairman of the Appellate Tribunal can constitute Benches with one or two Members, as per Section 12(6A) of SAFEMA. Issue 2: Applicability of Section 52 of FERA and Section 49 of FEMA Section 52 of FERA and Section 49 of FEMA are discussed in detail. The judgment explains that the Appellate Board under FERA was dissolved upon the enactment of FEMA. Any pending appeals under FERA were transferred to the Appellate Tribunal under FEMA for disposal. The provisions of SAFEMA govern the functioning of the Appellate Tribunal for FEMA purposes, allowing for both Single Member and Division Benches. Issue 3: Powers and functions of the Appellate Tribunal under SAFEMA The judgment emphasizes that the Appellate Tribunal under SAFEMA is the designated tribunal for FEMA matters. The Chairman can constitute Benches with one or two Members, as provided in Section 12(6A) of SAFEMA. The distribution of cases to existing Benches, including Single Benches, was notified by the Chairman, ensuring proper functioning of the Tribunal. Issue 4: Review/recall of Tribunal's order The appellants filed miscellaneous petitions seeking a review or recall of the Tribunal's order dated 5.12.2018. The judgment notes that the petitions were dismissed after a detailed hearing, with no merit found in challenging the jurisdiction of the Single Member Bench based on legal provisions and relevant Supreme Court decisions. Issue 5: Compliance with pre-deposit order The judgment grants a further period for compliance with the pre-deposit order issued by the Bench on 5.12.2018. The appellants are directed to report compliance by a specified date, emphasizing the importance of adhering to the Tribunal's orders. In conclusion, the judgment clarifies the jurisdiction of the Single Member Bench under FERA and FEMA, the applicability of relevant legal provisions, the powers of the Appellate Tribunal under SAFEMA, the dismissal of review petitions, and the importance of compliance with pre-deposit orders.
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