The Tax Publishers 2019 TaxPub(CL) 0548 (ATFEMA)

FOREIGN EXCHANGE MANAGEMENT ACT, 1999

Section 19

Where Enforcement Directorate provided numerous opportunities to appellants to defend their case, however, appellants did not avail said opportunities, therefore, imposition of penalty upon appellants was justified.

Appeal to Appellate Tribunal - Appeal against imposition of penalty - Opportunity of hearing not availed of by appellant - Whether imposition of penalty justified

Enforcement Directorate (ED) levied heavy penalty on appellants for contravention of provisions of FEMA. Appellants filed an appeal on the ground that the ED neither heard nor gave any opportunity to them to cross-examine the witnesses, thereby, violated the principles of natural justice. Held: It was apparent that a number of opportunities were given to appellants to appear before the ED and also to cross-examine the witnesses on various dates but they did not avail of these opportunities. The ED had done everything within his powers to facilitate appellants to plead their side of the case as well as to cross-examine. However, appellants did not avail the same with an intention to delay the whole proceedings. Therefore, there was no infirmity in the order, in as much as the principle of natural justice was concerned. Hence, appellants were directed to deposit 50 per cent of the total penalty.

Relied:Virendra Kumar Yadav v. UOI & Ors., Delhi High Court Order, dt. 19-8-2009 : 2010 TaxPub(EX) 0261(Del), Priya Shah v. Enforcement Directorate, Delhi High Court Order, dt. 25-5-2009 : 2009 TaxPub(CL) 0493 (DEL), Mehsana District Cooperative Milk P.U. Ltd. v. Union of India, Supreme Court Order, dt. 31-3-2003 : 2003 TaxPub(EX) 0671 (SC), M/s. DCM Limited v. Municipal Corporation of Delhi & Ors., Delhi High Court Order, dt. 3-4-1998 , Automotive Tyre Manufacturers Association v. The Designated Authority & Ors., Supreme Court Order, dt. 7-1-2011 : 2011 TaxPub(EX) 114 and Kanwar Natwar Singh v. Directorate of Enforcement & Anr., dated 5-10-2010, Civil Appeal No. 8601 of 2010 : 2011 TaxPub(DT) 1129 (SC)

REFERRED :

FAVOUR : Against the appellant

A.Y. :



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