1996 (11) TMI 494 - AT - FEMA

Issues:
1. Multiple appeals filed against adjudication orders imposing penalties for contravention of provisions.
2. Common issues in all appeals arising from similar facts.
3. Dispensing with pre-deposit of penalty for certain appellants.
4. Allegations of contravention of section 9(1)(a) of the Foreign Exchange Regulation Act, 1973.
5. Appellants accused of making payments to non-residents in Indian currency without equivalent banking transactions.
6. Arguments regarding lack of evidence supporting the allegations.
7. Dispute over the nature of payments made and receipt of cheques.
8. Circumstantial evidence presented to prove payments to non-residents.
9. Interpretation of legislative history regarding gifts from non-residents to Indians.
10. Argument on the applicability of general exemption under RBI notification.
11. Analysis of the findings and orders in the adjudication process.
12. Conclusion on the validity of the impugned orders and the abetment charges.

Analysis:
1. The judgment involves multiple appeals challenging penalties imposed for contravention of provisions of the Foreign Exchange Regulation Act, 1973. The appeals stem from similar facts and common issues, leading to a collective disposal.
2. Certain appellants sought dispensation of pre-deposit of penalties, which was granted for some and upheld for others who had already deposited the amounts.
3. The core allegations revolved around the contravention of section 9(1)(a) by making payments to non-residents in Indian currency without corresponding banking transactions, implicating various appellants.
4. Legal arguments centered on the lack of concrete evidence supporting the accusations, with contentions regarding the nature of payments and the receipt of cheques.
5. The appellant's defense emphasized the absence of proof of payments to non-residents and questioned the validity of the findings based on the evidence presented during adjudication.
6. Circumstantial evidence was presented to suggest that payments were indeed made to non-residents, supported by the issuance of cheques from NRE accounts.
7. Interpretation of legislative history regarding gifts from non-residents to Indians played a crucial role in the arguments presented, highlighting the legislative intent behind such transactions.
8. The applicability of a general exemption under an RBI notification was also debated as part of the defense strategy.
9. The judgment scrutinized the findings and orders in the adjudication process, pointing out inconsistencies and errors in the conclusions drawn by the Adjudicating Officer.
10. Ultimately, the impugned orders were deemed untenable, leading to the allowance of all appeals and the directive to refund deposited penalty amounts to the appellants within a specified timeframe.
11. The judgment concluded by setting aside the impugned orders and dismissing the abetment charges due to the lack of sustained contravention findings against the appellants.

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