2013 (11) TMI 861 - HC - FEMA

Violation of Sections 8(1) and 8(2) of the Foreign Exchange Regulation Act, 1973 - Confiscation of foreign and Indian currency - Tribunal sustained the confiscation of Foreign Currency but the confiscation of Indian Currency and Indira Vikas Patra Certificates was set aside - Bar of limitation - Held that - The writ application is disposed of by directing the concerned respondents to forthwith refund the proceeds of the Indira Vikas Patra along with further interest that might have accumulated thereon within a fortnight from the date of communication of this order. The Indian Currency and the balance penalty deposited by the petitioner shall also be refunded to the petitioner along with interest as per Section 42 sub-section (3) of the FERA, within the aforesaid period - The petitioner having unnecessarily been dragged to this Court shall be entitled to the costs of this proceedings assessed at 300 GMs to be paid to the petitioner along with the amounts refundable - Decided in favour of appellant.

Summary

Issues:
Implementation of Foreign Exchange Appellate Tribunal order, refund of penalty and seized items, condonation of delay in filing appeal under FEMA.

Implementation of Foreign Exchange Appellate Tribunal Order:
The petitioner sought implementation of an order of the Foreign Exchange Appellate Tribunal in Appeal No. 274 of 1994. The Tribunal had imposed a penalty and confiscated seized currency and certificates. The petitioner filed an appeal under FERA, which was partially allowed, reducing the penalty amount. Despite representations, the balance penalty deposited was not refunded. The Court noted the dismissal of an appeal filed by the Union of India under FEMA, thereby directing the concerned respondents to refund the proceeds of the seized items and penalty within a fortnight.

Refund of Penalty and Seized Items:
The Enforcement Directorate had seized various currencies and certificates from the petitioner's premises. An order of adjudication imposed a penalty and confirmed the confiscation. The Appellate Tribunal partially allowed the appeal, reducing the penalty amount and setting aside the confiscation of certain items. The Court ordered the refund of the seized items, penalty amount, and interest as per FERA provisions within a specified period.

Condonation of Delay in Filing Appeal under FEMA:
The respondents filed a belated appeal under FEMA in the High Court along with an application for condonation of delay. A Special Bench was constituted to decide on the condonation of delay issue, but due to a transfer, the matter was not heard. The Special Bench's judgment clarified that delay exceeding 60 days could not be condoned under the Limitation Act. Subsequently, the Division Bench dismissed the appeal filed under FEMA, emphasizing the need to comply with the Appellate Tribunal's order. The Court directed the refund of the seized items, penalty, and costs to the petitioner.