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TMI Blog2024 (12) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... common order dated 25.02.2010 passed by the Special Director of Enforcement. The penalty of Rs. 30 lakhs has been imposed on M/s G. Tex Inc. and Rs. 7,50,000/- on the appellant Rajesh Jhanwar and the same penalty on the appellant Madhusudan Jhanwar. The penalty was imposed finding contravention of Section 10(6) of the Act of 1999 read with Para 6(1) of the Foreign Exchange Management (Realization, Repatriation and Surrender of Foreign Exchange) Regulation, 2000. The appellants Rajesh Jhanwar and Madhusudan Jhanwar along with Natwarlal Jhanwar were the partners of M/s G. Tex Inc., therefore, taken to be the persons responsible for the conduct of the business and thereby charged in terms of Section 42(1) the Act of 1999 for contravention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther the import was directly routed through M/s Maruti Metal Industries who in turn paid the amount to M/s G. Tex Inc. anticipating receipt of the copper scrap which was not received by M/s G. Tex Inc. or even M/s Maruti Metal Industries which filed five bills of entries on 09.05.2006 with the Customs Authorities at Jawahar Customs House for clearance of the copper scrap. Since the remittance of the foreign exchange was made by M/s G. Tex Inc. even without receipt of the documents by their banker and, therefore, finding the contravention, penalty of Rs. 30 lakhs has been imposed on M/s G. Tex Inc. and Rs. 7.50,000/- each on the Directors. 4. The learned counsel for the appellants submitted that M/s G. Tex Inc. entered into transaction for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the theft of copper scrap. It was not that the appellant did not make any effort but taking into consideration the peculiarity of the facts, the respondents should not have imposed the penalty. It is more so when the appellant Madhusudan Jhanwar had no knowledge for the import of copper scrap and, in fact, he had not played any role in the transaction and for remittance of the amount yet the penalty has been imposed on appellant Madhusudan Jhanwar without any material or to show contravention of Section 10(6) by him. 7. It is further submitted that so far as appellant Rajesh Jhanwar is concerned, after getting the information, he verbally requested Mr. Mahendra Rana of M/s Maruti Metal Industries to get a joint verification with shipping ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oresaid, prayer was made to set aside the order impugned herein and grant relief to the appellant. It is also when M/s Koya International committed fraud against the appellant thus the penalty amount be reduced appropriately if interference in the impugned order is not made to absolve the appellant for alleged contravention of Section 10(6) of the Act of 1999. 10. The appeal has been contested by the respondent. It is submitted that the foreign exchange was remitted to M/s Koya International going contrary to the terms and conditions of the Agreement. The detailed arguments were made which would be dealt with while recording of finding. 11. It is a case where M/s G. Tex made import of copper scrap from M/s Koya International Freetown, Sie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e behest of appellant Rajesh Jhanwar who was mainly looking after the firm M/s G. Tex and made transaction to import the copper scrap. 13. In light of the aforesaid and in view of the judgment of this Tribunal in the case of Joint Director, Directorate of Enforcement, Delhi Vs. Smt. Tara Subba, Director, M/s Subba Microsystem Ltd. &Ors. (Appeal No. RP-FE-78/DLI/2009) dated 01.07.2024, there remains no reasons to impose penalty on appellant Madhusudan Jhanwar when he was not responsible for conduct of the business for import of copper scrap or for remittance of money. The penalty imposed on him is set aside. 14. We further find that appellant Rajesh Jhanwar made efforts to recover the amount though it cannot be said to be serious efforts t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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