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Issues:
Violation of section 8(3) r/w section 68(1) of FR Act, 1973 - Failure to furnish evidentiary proof of utilization of foreign exchange remitted. Appeal for penalty imposed by Assistant Director, Enforcement Directorate. Analysis: The judgment by the Appellate Tribunal for Foreign Exchange, New Delhi, involved appeals against a penalty imposed on the individual appellant and the appellant company for not providing evidence of utilizing foreign exchange remitted, contravening section 8(3) r/w section 68(1) of FR Act, 1973. The appellants sought adjournment but later requested disposal on merit. As per FEMA 1999, appeals must be disposed of within 180 days. The Tribunal decided to finalize the appeals on merit after granting full dispensation. The appellant company claimed to have acquired foreign exchange for training its officials by a Taiwan-based company. They argued that the training was completed within the visa period by working day and night, utilizing the remitted foreign exchange for training, boarding, and lodging expenses. They contended that the impugned order lacked evidence, making it illegal, void, and against natural justice principles. On the contrary, the respondent argued that the appellant company released foreign exchange for training four officials for 45 days but only sent two officials for 14 days, without confirmation of training completion by the Taiwan company. The respondent claimed a clear contravention of FER Act provisions. The Tribunal noted that foreign exchange was released to the appellant company for training four officials for 30 to 45 days, but only two officials were sent for 14 days, indicating a discrepancy. As the number of officers sent for training and the duration were less than the acquired and remitted foreign exchange, the impugned order was upheld, and the appeals were dismissed for lack of merit. The appellants were given seven days to deposit the penalty amount; otherwise, the Enforcement Directorate could recover it according to the law.
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