2005 (10) TMI 615 - AT - FEMA

Summary

Issues:
Challenge to adjudication order under FERA, 1973 for contravention of provisions of section 8(1) read with section 71(3) - Penalty imposed and foreign currency confiscated - Burden of proof on appellant - Appeal against findings.

Analysis:
The judgment pertains to an appeal challenging an adjudication order under FERA, 1973, where the appellant was penalized for contravening section 8(1) read with section 71(3) of the Act. The appellant was imposed a penalty of Rs. 2,000 and foreign currency of UAE Dhirams 1,000 was confiscated. The appellant was issued a Show Cause Notice to explain the acquisition of foreign currency without proper authorization. The appellant denied ownership of the seized currency, claiming false implication by the police. The respondent argued that the appellant was found in possession of the foreign currency and failed to provide a lawful explanation as per section 71(3) of the Act, placing the burden of proof on the appellant.

The appellant failed to appear at the hearing, and the respondent presented evidence of service. The Tribunal examined the records and submissions, finding no reason to interfere with the adjudicating authority's findings. The judgment upheld the penalty and confiscation, stating the impugned order was free from illegality or infirmity. Consequently, the appeal was dismissed, directing the appellant to pay the penalty within 30 days, failing which the respondent could recover the amount in accordance with the law. The judgment emphasized the burden of proof on the appellant regarding the possession of foreign currency exceeding a specified value, as per the relevant provision of the Act.

In conclusion, the Tribunal affirmed the penalty and confiscation imposed on the appellant for contravening FERA, 1973. The judgment highlighted the importance of providing a lawful explanation for the possession of foreign currency and upheld the burden of proof on the appellant as per the statutory provision. The decision underscored the authority's discretion in adjudicating such matters and the appellant's obligation to comply with the regulatory framework governing foreign exchange transactions.