The AT set aside penalties of Rs.4,00,000/- and Rs.6,00,000/- ...

Foreign Exchange Management Act Penalties Set Aside as Custom Clearance Agent's Commission Not a FEMA Violation

March 25, 2025

Case Laws FEMA AT

The AT set aside penalties of Rs.4,00,000/- and Rs.6,00,000/- imposed on the appellant under FEMA. Despite allegations that the appellant assisted in preparing forged documents for M/s Prominent Exim's exports, the Tribunal found insufficient evidence to establish contravention of Sections 3(b) and 3(d) of FEMA 1999. The appellant, working as a Custom Clearance Agent, merely processed export documentation and received commission (15% of the 40% DEPB received by Vinod Chitalia). The Tribunal concluded that receiving payment for processing export documents did not constitute a violation of the specified FEMA provisions, and accordingly allowed the appeal.

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The AT set aside penalties of Rs.4,00,000/- and Rs.6,00,000/- ...

Foreign Exchange Management Act Penalties Set Aside as Custom Clearance Agent's Commission Not a FEMA Violation

March 25, 2025

Case Laws FEMA AT

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