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TMI Blog2011 (1) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... after the expiry of 2 years of sun set period provided under Section 49(3) - violation has taken place when FERA was in force and therefore under Section 49(3) of FEMA it was necessary for the Directorate Enforcement to take notice of the said violation before 31st May, 2006 i.e. before expiry of sun set period. As the show cause notice was issued in 2009 for violation of provision of FERA the same cannot be set to be within limitation and in accordance with law - Decided in favour of appellant. - Appeal Nos. 176, 197-198/2010 - - - Dated:- 11-1-2011 - Subhash Samvatsar, J. and Shri M.A. Khan Yusufi, Member Shri Vijay Kumar Desai, Advocate, for the Appellant. Shri B. Navin Kumar, ALA, for the Respondent. ORDER The followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -2000 issued further bonus shares taking the various share capital of the company to Rs. 5 crores. 4. On 29th March, 2010 the company issued a letter to Foreign Investment Promotion Board for condonation the violation made by the company of not obtaining permission from RBI. On 24th May, 2002 the Board wrote a letter in reply to the company that they may have to approach RBI for ex-post facto approval. The RBI in return informed the appellant that the offence is not in the provision of FERA and not under FEMA and therefore RBI cannot compound the offence. 5. On 20th May, 2009 a show cause notice was issued to the company and his Directors for alleged violation of Section 6(3)(b) of FEMA read with Regulation 4 of the Foreign Exchange Man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was necessary for Adjudicating Authority to take notice of the offence within 2 years i.e. before 31st May, 2002. 8. Admittedly in the present case the offence has taken place when FERA was in force as it is clearly reflected by the letter of RBI who refused to entertain the application for compounding stating that the violation is under FERA and the provision of compounding was not there under the said Act. The compounding is permissible only under the provisions of FEMA. The show cause notice in the present case is issued on 20th May, 2009 i.e. after the expiry of 2 years of sun set period provided under Section 49(3). Hence, according to learned Counsel for appellant the appeal deserves to be allowed. 9. Shri Naveen Kumar on the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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