2011 (1) TMI 1549 - HC - FEMA

Summary

Issues involved:
The legality of the show-cause notice issued u/s 13(i) of FEMA for alleged contravention of export realization provisions.

Judgment Details:

Issue 1: Jurisdiction of show-cause notice
- The show-cause notice alleged contravention of Sections 7 & 8 of FEMA regarding export realization.
- The contravention period was during FERA's enforcement, not FEMA's.
- Section 49(3) of FEMA prohibits taking cognizance of FERA offences after two years from FEMA's commencement.
- Offences under FERA continue to be governed by FERA post-repeal.
- The show-cause notice issued after the two-year limit is illegal.
- Citing the Apex Court's interpretation of "cognizance" in a similar case.
- Referring to a Delhi High Court judgment on a similar issue.
- Concluding that the show-cause notice lacks jurisdiction and legality.

Conclusion:
- The writ petition is allowed, quashing the show-cause notice and related proceedings.