2008 (7) TMI 1105 - AT - FEMA

Summary

Issues:
- Appeal against penalty imposed under the Foreign Exchange Regulation Act, 1973 for non-production of evidence for import of goods.
- Compliance with pre-deposit order for appeal.
- Interpretation of Section 52(2) of the FERA, 1973 regarding pre-deposit of penalty amount for filing an appeal.

Analysis:
The judgment by the Appellate Tribunal for Foreign Exchange in New Delhi pertains to an appeal filed against an adjudication order imposing a penalty for contravention of provisions of the Foreign Exchange Regulation Act, 1973. The penalty was imposed on the appellant company for not producing evidence for import of goods against remittance of foreign exchange. The appellant had moved the appeal along with an application for dispensation from pre-deposit of the penalty amount. The Tribunal had earlier ordered the appellant to deposit 20% of the penalty amount within 60 days, failing which the appeal could be dismissed. Despite multiple adjournments and reminders, the appellant failed to comply with the pre-deposit order.

The Tribunal highlighted the provisions of Section 52(2) of the FERA, 1973, which require appellants to deposit the penalty amount for filing an appeal, unless dispensation is granted under certain conditions. The section allows for the Appellate Board to entertain an appeal even after the prescribed period if sufficient cause is shown, or if the deposit would cause undue hardship. In this case, the appellant did not adhere to the pre-deposit order, despite being given opportunities and opting to make the deposit himself. The Tribunal noted the lack of bona fide on the part of the appellant and concluded that equity did not favor the appellant. As a result, the appeal was dismissed, and the record was directed to be consigned to the Record Room.

In conclusion, the judgment underscores the importance of complying with pre-deposit orders for appeals under the FERA, 1973. It emphasizes the statutory obligation of appellants to deposit the penalty amount unless dispensation is granted, and highlights the consequences of non-compliance, which may lead to dismissal of the appeal.