Pre-deposit waiver under FERA turns on delay, agent status, and a materially different appellate scheme.

Full waiver of pre-deposit was warranted in the FERA appeal because the Tribunal had only granted partial dispensation despite a long and unexplained delay of about nine years in issuing the second show cause notice, even though the revenue already had the relevant material from the earlier search and recorded statements. The court held that reliance on a FEMA precedent was misplaced because the appellate scheme under FERA was materially different. It also noted that the appellant acted only as an agent of the principal and that these circumstances were not given due weight. Full dispensation was therefore held to be justified.

---

---

Issues: Whether the appellant was entitled to full dispensation of pre-deposit in the appeal arising from proceedings under the Foreign Exchange Regulation Act, 1973.

Analysis: The Tribunal had restricted dispensation to 85% and required deposit of 15% of the penalty. The challenge was supported by the long and unexplained delay of about nine years in issuing the second show cause notice, although the material facts and statements were already available to the revenue from the earlier search and recorded statements. The Court held that the reliance placed on a decision under the Foreign Exchange Management Act, 1999 was inapposite because the statutory appeal structure under the Foreign Exchange Regulation Act, 1973 was materially different. It was also noticed that the appellant was only an agent of the principal and that the Tribunal had not given due weight to the delay and the appellant's circumstances.

Conclusion: Full waiver of pre-deposit ought to have been granted, and the appeal was allowed.

---