2019 (8) TMI 971 - HC - FEMA

Non-compliance with the direction for pre-deposit - Offence under FEMA - HELD THAT - The learned counsel for the respondent had earlier taken exception to the maintainability of these appeals at the outset, his submissions having been recorded in the proceedings on 11.07.2019 to the effect that the appellants are belated with reference to the order dated 15.11.2018 which, even otherwise, had not been challenged, the orders sought to be impugned by these appeals being only consequential. At the hearing, the counsel for the appellants was asked if they are now willing to make the pre-deposits as was directed by the appellate tribunal by its order dated 15.11.2018. The counsel answered in the negative taking the position that the appeals at hand raise questions of law. The order dated 15.11.2018 having attained finality, the appellate tribunal had no option left but to dismiss the appeals on account of non-compliance with the condition of pre-deposit. The impugned order dated 08.05.2019 does not give rise to any question of law.

Summary

Issues:
1. Imposition of penalties under FEMA
2. Challenge of penalties before appellate tribunal
3. Waiver of pre-deposit condition
4. Dismissal of appeals by appellate tribunal
5. Maintainability of appeals
6. Compliance with pre-deposit condition
7. Grounds for dismissal of appeals

Imposition of penalties under FEMA:
The adjudicating authority imposed penalties under section 13 of FEMA against the appellants, directing different individuals and entities to pay varying amounts as penalties for violations.

Challenge of penalties before appellate tribunal:
The appellants challenged the penalties imposed by the adjudicating authority before the appellate tribunal constituted under section 18 of FEMA. Applications for waiver of the pre-deposit condition under section 19(1) of FEMA were also made.

Waiver of pre-deposit condition:
The Appellate Tribunal accepted the waiver of pre-deposit for certain entities but directed the individual appellants to make the deposits under the general rule contained in the first proviso to section 19(1) of FEMA. The appellants neither challenged this order nor complied with it.

Dismissal of appeals by appellate tribunal:
The appeals came before the appellate tribunal for consideration, but due to non-compliance with the pre-deposit direction, the tribunal declined to entertain the appeals further and dismissed them on 08.05.2019.

Maintainability of appeals:
The respondent's counsel raised objections to the maintainability of the appeals, arguing that they were belated and that the orders being challenged were only consequential to the earlier order dated 15.11.2018, which had not been challenged.

Compliance with pre-deposit condition:
During the hearing, the counsel for the appellants was asked if they were willing to make the pre-deposits as directed by the appellate tribunal, to which the counsel responded negatively, stating that the appeals raised questions of law.

Grounds for dismissal of appeals:
As the order dated 15.11.2018 had attained finality and the appellants did not comply with the pre-deposit condition, the appellate tribunal had no choice but to dismiss the appeals on the grounds of non-compliance. The impugned order dated 08.05.2019 was found not to give rise to any question of law, leading to the dismissal of the appeals.