9911796707
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Issues:
Violation of section 8(1) and 8(2) of the Foreign Exchange Regulation Act, 1973, imposition of penalties, confiscation of foreign exchange, dispensing with pre-deposit requirement, sufficiency of evidence, validity of confiscation order, applicability of seized documents as evidence, reduction of penalty amount. Detailed Analysis: 1. The appellant challenged an adjudication order imposing penalties for contravention of section 8(1) and 8(2) of the Foreign Exchange Regulation Act, 1973. The penalties were imposed for unauthorized foreign currency transactions and contraventions. The appellant sought dispensation with the pre-deposit requirement, which was granted based on financial evidence provided. 2. The appellant contested the order on various grounds, but the Chairman found that even if some grounds had merit, the findings in the impugned order were supported by evidence and did not warrant a fresh adjudication. The appellant's counsel agreed to proceed with the case without remand to avoid undue harassment. 3. The appellant did not dispute the recovery of foreign exchange by customs officials, which was later confiscated under section 63 of the Act. The appellant failed to prove lawful acquisition and possession of the foreign exchange, leading to a contravention of section 8(1) based on the evidence presented. 4. Regarding a separate charge, the appellant's counsel argued that the findings were based on a retracted statement and insufficient evidence. However, the Chairman held that the evidence, including incriminating documents seized by customs authorities, supported the charge of contravention of section 8(1) related to unauthorized foreign exchange transactions. 5. The Chairman dismissed the charge under section 8(2) due to lack of conclusive evidence but upheld the contravention of section 8(1) based on the material on record. The penalty imposed was reduced from Rs. 70,000 to Rs. 50,000 considering the circumstances and lack of appeal for penalty enhancement by the department. 6. The final decision partially allowed the appeal, upholding penalties and confiscation for contravention of section 8(1) under one charge while reducing the penalty amount for another charge. The appellant was directed to pay the revised penalty amount within 30 days, failing which the respondent could recover the sum as per the law. This judgment by the Foreign Exchange Regulation Appellate Board addressed multiple issues related to unauthorized foreign exchange transactions, sufficiency of evidence, penalty imposition, and confiscation under the Foreign Exchange Regulation Act, 1973. The Chairman's detailed analysis considered the arguments presented, the evidence on record, and legal provisions to arrive at a final decision partially in favor of the appellant.
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