2001 (6) TMI 831 - AT - FEMA

Summary

Issues:
1. Imposition of penalties and confiscation of demand drafts under the Foreign Exchange Regulation Act, 1973.
2. Consideration of appeal ex parte due to non-appearance of the Appellant.
3. Request for dispensation of pre-deposit of penalty amount.
4. Allegations of coercion in recording statements and subsequent retraction by the Appellant.
5. Legal validity of the penalties imposed and corroborative evidence against the Appellant.

Detailed Analysis:

1. The judgment involves penalties imposed on the Appellant for contravening sections 9(1)(b) and 9(1)(d) of the Foreign Exchange Regulation Act, 1973, along with the confiscation of demand drafts. The penalties were imposed based on an Adjudication Order dated 7-4-1985, where penalties of Rs. 25,000 and 20,000 were imposed for the contraventions, and demand drafts worth Rs. 1,15,500 were ordered to be confiscated.

2. The Appellant failed to appear for the hearing despite notice, leading to a request for the appeal to be considered ex parte. The Respondent's submission for an ex parte consideration was accepted due to the lack of communication from the Appellant and the age of the case dating back to 1986.

3. The Appellant requested dispensation of the penalty pre-deposit due to financial constraints. However, the request lacked supporting documents and information on the current financial status, leading to a dismissal recommendation. Despite the lack of substance in the request, the Tribunal decided to proceed with the appeal on its merits rather than dismissing it solely on technical grounds.

4. Allegations of coercion in recording statements and subsequent retraction were raised by the Appellant. The Appellant claimed that the statements were not voluntary and highlighted procedural irregularities in his production before the Magistrate. However, the Tribunal found that the penalties were not solely based on the statements, as there was ample independent evidence corroborating the retracted statements.

5. The judgment analyzed the legal validity of the penalties imposed on the Appellant and the corroborative evidence against him. The Tribunal concluded that the penalties were not excessive considering the nature of the contravention and the amount involved. The appeal was deemed devoid of substance and dismissed based on the evidence and circumstances presented in the case.