1995 (5) TMI 297 - AT - FEMA

Summary

Issues:
1. Imposition of penalties under sections 8(3) and 8(4) of the Foreign Exchange Regulation Act, 1973.
2. Allegation of contravention related to the import of an electronic colour scanner.
3. Prima facie evidence in favor of the appellants.
4. Argument against pre-deposit of penalty amount.
5. Lack of inquiry by the Department to establish correct price.
6. Discrepancies in the Department's case and lack of evidence.
7. Interpretation of recovered documents and letters.
8. Lack of evidence to support the Department's case.
9. Rebuttal of Department's submissions.
10. Commercial nature of the relationship between the supplier and appellant.
11. Findings not based on evidence on record.
12. Setting aside the impugned order.
13. Absence of guilt for contravention.
14. Disposal of appeals and setting aside the impugned order.

The judgment involves appeals against penalties imposed for contravention of the Foreign Exchange Regulation Act. The appellants were penalized for importing an electronic colour scanner at a declared CIF value higher than the actual agreed price. The appellants argued against pre-deposit of the penalty, presenting evidence to support their case. The Department's case lacked inquiry to establish the correct price, with discrepancies in evidence and lack of proof of the alleged contravention. The recovered documents and letters did not support the Department's claims. The judgment found that the findings were not evidence-based and favored the appellants. The commercial nature of the relationship between the supplier and appellant was emphasized, leading to the setting aside of the impugned order. As the first appellant was not found guilty of contravention, the penalties were set aside for both appellants, resulting in the allowance of the appeals.