Ex parte foreign exchange adjudication set aside and remanded for fresh merits-based reconsideration

Ex parte adjudication under the Foreign Exchange Regulation Act, 1973 may be set aside where the notice and hearing process is disputed and the factual foundation requires reconsideration. The appellant contended that the show cause notice and hearing notice were not served at the correct address, and the record indicated import-related documents, including the bill of entry and customs duty payment, that supported fresh examination of the matter. On that basis, the adjudication order imposing penalty for alleged violation of section 8(3) read with section 8(4) was quashed and the matter remanded for fresh adjudication on merits.

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Issues: Whether the ex parte adjudication order imposing penalty for violation of section 8(3) read with section 8(4) of the Foreign Exchange Regulation Act, 1973 should be set aside and the matter remanded for fresh adjudication.

Analysis: The appellant asserted that the show cause notice and hearing notice had not been served at the correct address and that the proceedings were therefore conducted ex parte. The record also showed materials indicating import of the equipment, submission of the bill of entry to the authorised bank, and payment of customs duty, which supported the plea that the relevant factual foundation required reconsideration. In these circumstances, the matter was treated as one fit for a fresh adjudication on merits.

Conclusion: The adjudication order was quashed and set aside and the matter was remanded for fresh adjudication in light of the proof of import produced by the appellant.

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