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Issues:
- Appeal against Adjudication Order imposing penalty for contravention of Foreign Exchange Regulation Act, 1973 - Violation of principles of natural justice in adjudication proceedings - Effect of acquittal by Criminal Court on departmental proceedings - Acceptance of retracted confession as evidence - Quantification of penalty amount Analysis: 1. The appeal was filed against an Adjudication Order imposing a penalty for contravention of the Foreign Exchange Regulation Act, 1973. The appellant was alleged to have taken delivery of gold biscuits, converted them into Indian Rupees, and paid the money to individuals in India as directed by a Non-Resident, in exchange for a commission. 2. The appellant raised an argument regarding the violation of principles of natural justice in the adjudication proceedings. It was contended that the time provided for preparation and adjournments was insufficient, leading to an ex parte order. However, the Tribunal held that the time granted was reasonable, and repeated adjournments were not entitled under the rules. 3. The appellant also argued that since the Criminal Court had acquitted him of the same charges, the departmental proceedings should not result in conviction. Citing judgments, the appellant claimed that the Tribunal should follow the Criminal Court's findings. However, the Tribunal held that the acquittal in the Criminal Court did not bind the Tribunal, and the confession statement could be relied upon. 4. The issue of accepting a retracted confession as evidence was raised. The respondent argued that the confession could be accepted if true and correct. Citing legal precedents, the Tribunal emphasized the voluntary nature of the statement and the burden on the appellant to prove any vitiating factors, which was not discharged. 5. Regarding the quantification of the penalty amount, the Tribunal noted the difficulty in verifying the exact amount involved. Despite reducing the penalty amount due to lack of concrete evidence, the Tribunal upheld the conviction under the relevant provisions of the Act and reduced the penalty to Rs. 5,00,000 from the initial Rs. 10,00,000. 6. The appeal was partly allowed, and the appellant was given 30 days to deposit the reduced penalty amount, failing which the respondent could recover the same in accordance with the law.
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