2008 (7) TMI 1110 - AT - FEMA

Appeal Dismissed: Tribunal Upholds Penalty for Non-Compliance with Foreign Exchange Regulations and Judicial Orders.

The Appellate Tribunal dismissed the appeal against the Adjudication Order imposing a penalty under the Foreign Exchange Regulation Act, 1973, due to the ... - Issues:- Appeal against Adjudication Order imposing penalty for contravention of Foreign Exchange Regulation Act, 1973- Non-compliance with pre-deposit order despite dismissal of Writ Petition- Obligation of appellants to file appeal along with penalty amount unless dispensation grantedAnalysis:The judgment pertains to an appeal filed against an Adjudication Order imposing a penalty for contravention of the Foreign Exchange Regulation Act, 1973. The appellant, Sultan Syed Ibrahim, failed to comply with the pre-deposit order despite the dismissal of a Writ Petition challenging the same. The Member of the Appellate Tribunal highlighted the statutory obligation of appellants to file an appeal along with the penalty amount, unless dispensation is granted. The Tribunal emphasized that the appellant's non-compliance with the order, even after the High Court's decision, demonstrated a lack of bonafide on his part.The Tribunal referred to Section 52(2) of the FERA, 1973, which outlines the procedure for filing an appeal and the requirement of depositing the penalty amount within a specified period. The provision allows for the Appellate Board to entertain appeals beyond the initial period if sufficient cause is shown, and to dispense with the deposit in cases of undue hardship. However, in this case, the appellant did not deposit the penalty amount despite the dismissal of the Writ Petition, indicating a deliberate attempt to evade responsibility under the Act.The Member of the Tribunal, in agreement with the arguments presented by the Respondent's counsel, concluded that the appeal should be dismissed due to the appellant's non-compliance with the statutory scheme regarding the pre-deposit of the penalty amount. The judgment emphasized the importance of adhering to judicial orders and statutory requirements, ultimately leading to the dismissal of the appeal. The record of the appeal was ordered to be consigned to the Record Room, marking the conclusion of the case.