2003 (9) TMI 829 - AT - FEMA

Summary

Issues:
1. Contravention of provisions of the Foreign Exchange Regulation Act, 1973.
2. Failure to submit evidence of import.
3. Ex parte proceedings and penalty imposition.
4. Request for dispensation of pre-deposit of penalty.
5. Misplacement of necessary import documents.
6. Health issues of the company director affecting response to show-cause notice.
7. Request for remand of the case back to the Adjudicating Officer.
8. Consideration of fresh opportunity for the appellant to be heard.

Analysis:
The judgment by the Appellate Tribunal for Foreign Exchange, New Delhi dealt with an appeal against an Adjudication Order finding the appellant company guilty of contravening provisions of the Foreign Exchange Regulation Act, 1973, regarding failure to submit evidence of import. The firm had acquired foreign exchange but failed to provide import evidence, leading to a penalty imposition of Rs. 20,40,000. The appellant did not respond to the show-cause notice or attend adjudication proceedings, resulting in an ex parte decision by the Adjudicating Officer.

The appellant's representative argued that the necessary import had been made in time and submitted documents supporting the import claim, explaining the delay in producing them due to office relocation and health issues faced by the company director. The respondent highlighted the absence of a confirmation letter from the appellant's bankers and requested a remand of the case for verification of documents not considered during the initial proceedings.

After considering both parties' submissions, the Tribunal found the import claim crucial and granted the appellant a fresh opportunity to be heard. The impugned order was set aside, and the case was remanded for fresh adjudication from the stage of the show-cause notice. The appellant was directed to appear before the Adjudicating Officer for expedited proceedings, preferably within six months from the order receipt.