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TMI Blog2024 (9) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... for the imported books and the subsequent remittance in foreign exchange abroad and the only act committed by the Appellant was that he allowed Shri Kamlesh Shah to use the name of his proprietorships for import of books. HELD THAT:- We observe that the Appellant had the knowledge that Shri Kamlesh Shah had placed orders for the books, effected the consignment imports and made payment of remittances in foreign exchange to give effect to the fraudulent scheme. Further, based on the said recorded statements under Section 40, we are not inclined to believe the assertion of the Appellant that he was not aware that Shri Kamlesh Shah had opened the bank. Moreover, we observe that any inconsistencies in the statement of Shri Kamlesh Shah do not ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent : Mr. Mahip Dutta Prasar and Mr. Rahul Mehta, Advocates ORDER 1. This Order disposes of the Appeal No. FPA-FE-163/MUM/1996 filed by Shri Shivshankar Chunnilal Joshi against the Order No. ADJ/48B/SDE/PKA/96 dated 28.03.1996 passed by Special Director, Enforcement Directorate, Mumbai arising out of Show Cause Notice (SCN) No. T-4/33- B/SDE/JMJ/91. Penalties of Rs. 5 Lakhs and Rs. 3 Lakhs were Imposed vide the Impugned Order on the Appellant for the contravention of Section 8(3) read with (r/w) Section 8(4) and Sections 8(3) r/w 8(4) r/w Section 64 of the Foreign Exchange Regulation Act, 1973 (FERA). Rs. 2 Lakhs was pre-deposited by the Appellant for the total penalty imposed. 2. The Appellant who appeared in person, stated that penalty ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an over-valued invoice. The Ld. Counsel further submitted that the Appellant had the knowledge that Shri Kamlesh Shah had opened the Bank Account through which unauthorised remittances were made abroad in foreign exchange. Therefore, the proprietorships firms facilitated over-invoiced book imports and unauthorised remittances under the guise of legitimate business activities, through which the Appellant gained two percent commission. Despite the Appellants pleadings through which he attempts to dissociate himself and plead ignorance from the fraudulent scheme, there are evidences in the form of financial statements and statements made by the Appellant and other accused persons which uphold the findings of the Adjudicating Authority. Hence, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statement of Shri Kamlesh Shah do not cast doubts on the veracity of the recorded statements and records available before us for drawing inference about the involvement of the Appellant. 7. Based on the materials before us, we do not consider the Appellant to be main mastermind to over-value the imported book consignments and send remittances abroad in foreign exchange for the said import. From the role played by the Appellant in the entire scheme, we hold that the contravention of Section 8(3) r/w Section 8(4) as well as of the said Sections r/w Section 64(2) of FERA are established against the Appellant. 8. In view of the aforementioned discussions, we reduce the total penalty on the Appellant to Rs. 2 Lakhs. We note that Rs. 2 Lakhs has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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