Contravention of Sections 8(1) and 9(1)(f)(i) of the Foreign ...

Foreign exchange violation - Fake exports, penalty reduced due to delay and circumstances.

Case Laws     FEMA

September 18, 2024

Contravention of Sections 8(1) and 9(1)(f)(i) of the Foreign Exchange Regulation Act, 1973 - receiving foreign exchange payments in 1996-97 through fake export documents without actual exports. Adjudicating Authority imposed penalties of Rs.2 lakhs for Section 8(1) contravention and Rs.3 lakhs for Section 9(1)(f)(i) contravention. Show Cause Notice issued in 2002, over 22 years ago. Appellant deposited Rs.2 lakhs against total penalty of Rs.5 lakhs. Considering case peculiarities and counsel leaving penalty reduction open, Appellate Tribunal reduced total penalty to Rs.2 lakhs, Rs.1 lakh each for Sections 8(1) and 9(1)(f)(i) contraventions. Deposited amount treated as satisfying reduced penalty, no further deposit required.

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