2004 (1) TMI 733 - AT - FEMA

Summary

Issues:
Appeals challenging penalty under Foreign Exchange Regulation Act, 1947 for contravention of sections 4(1), 9, 10(1), and 12(2).

Detailed Analysis:

1. Background and Parties Involved:
The appeals stemmed from an order by the Assistant Director of Enforcement under the Foreign Exchange Regulation Act, 1947, against Jajoo Brothers and its partners for various contraventions. Multiple show cause notices were issued, and penalties were imposed on the firm and individual partners.

2. Delay in Disposal and Transfer of Appeals:
The appeals were filed in 1990 but were left pending after 1992. With the enactment of the Foreign Exchange Management Act, 1999, the appeals were transferred to the Appellate Tribunal for Foreign Exchange. Due to delays and administrative challenges, the appeals were finally heard in 2003.

3. Common Pleas and Challenges:
The appellants raised common pleas challenging the evidence relied upon, the fairness of the decision-making process, and the excessive nature of the penalties. They argued that the penalties were already deposited and questioned the validity of the proceedings.

4. Validity of Impugned Findings and Orders:
The key issue for determination was whether the findings and penalties imposed warranted intervention by the Appellate Tribunal. The appellants contended that the evidence against them was insufficient and that they were not involved in the alleged violations.

5. Adjudication and Evidence Consideration:
The Tribunal examined the evidence, including witness statements and documents, to assess the validity of the findings. It was noted that all partners of the firm were served with show cause notices and given an opportunity to be heard.

6. Decision on Penalties:
After reviewing the evidence and arguments, the Tribunal found no grounds to interfere with the penalties imposed. The penalties on Jajoo Brothers and its partners were upheld, as the contraventions of the Act were established, and the partners failed to prove lack of knowledge or due diligence.

7. Final Disposition:
Concurring with the findings and penalties, the Tribunal dismissed all the appeals. Any amounts deposited were to be adjusted towards the penalties, with the remaining balance to be collected promptly.

In conclusion, the Tribunal upheld the penalties imposed under the Foreign Exchange Regulation Act, 1947, against the firm and its partners, dismissing the appeals challenging the findings and orders.