2011 (2) TMI 1297 - AT - FEMA

Tribunal overturns penalty order citing undisclosed evidence violation

The Tribunal set aside an order imposing a penalty for violating Sections 8(1) and 9(1)(a) of FERA, as the appellant was found guilty based on undisclosed ... - Issues: Violation of Section 8(1) and 9(1)(a) of FERA, Evidence Relied Upon, Compliance with Administrative Law PrinciplesIn this case, the appellant challenged an order imposing a penalty for violating Section 8(1) and 9(1)(a) of FERA. The appellant allegedly deposited foreign exchange into a bank account without proper authorization. The Adjudicating Authority found the appellant guilty based on certain documents. However, the appellant argued that these documents were not provided during the show cause notice stage, which is a violation of administrative law principles. The appellant contended that the reliance on undisclosed documents was unjust. The appellant highlighted that the Asstt. Director considered evidence from other cases against the appellant, which is not permissible as each case should be decided based on its own evidence. The Tribunal agreed with the appellant, emphasizing that all materials relied upon for imposing a penalty must be provided to the appellant. As the evidence relied upon was not part of the record and not disclosed during the show cause notice, the Tribunal set aside the impugned order, ruling in favor of the appellant.