1995 (10) TMI 252 - AT - FEMA

Summary

Issues:
1. Imposition of penalty for contravention of Foreign Exchange Regulation Act.
2. Violation of statutory requirements in adjudication proceedings.
3. Evidence regarding the presence of the appellant's husband during the investigation.
4. Validity of the appellant's statement and corroborating evidence.
5. Justification of penalty imposed by the Adjudicating Officer.

Detailed Analysis:
1. The appeal challenged the penalty imposed on the appellant for receiving a sum of Rs. 2,59,000 without RBI permission, contravening the Foreign Exchange Regulation Act. The appellant did not deposit the penalty and sought a waiver. The Tribunal waived the pre-deposit requirement and proceeded with the appeal on merits.
2. The appellant raised concerns about procedural irregularities in the adjudication proceedings. The Adjudicating Officer initiated oral proceedings without waiting for the appellant's reply to the Show Cause Notice, breaching statutory rules. Despite this, the Tribunal decided not to remand the case, as the Adjudicating Officer had already considered the evidence and the matter was suitable for appellate disposal.
3. The appellant contended that her husband was present in India during the relevant period, supported by documentary evidence of his passport. The Tribunal criticized the Adjudicating Officer for not investigating the husband's presence, which was crucial for the case, as his statement could have been significant evidence.
4. The Tribunal analyzed the voluntariness and truthfulness of the appellant's statement. It found discrepancies and lack of corroboration in the evidence presented. However, based on the fax message, statements of witnesses, and the husband's letter, the contravention of the Act was upheld, disregarding the disputed portion of the appellant's statement.
5. The Tribunal upheld the penalty imposed by the Adjudicating Officer, considering the evidence and circumstances of the case. It dismissed the appeal and directed the appellant to pay the penalty within 30 days, failing which the respondent could recover the amount as per the law.