Foreign exchange penalty proceedings may require remand when ex parte adjudication and later-produced import evidence affect fairness and findings.

Where an adjudication for alleged contravention of foreign exchange remittance rules proceeds ex parte and relevant import evidence is later produced, the proper course is fresh adjudication rather than final affirmation of the penalty. The tribunal noted that the appellant claimed denial of a fair hearing and had filed material, including bank confirmation and a bill of entry, showing utilisation of the remittance for the intended import. As that evidence was not before the adjudicating authority when the penalty order was made, the impugned order was set aside and the matter remanded for reconsideration on the additional record.

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Issues: Whether the adjudication order imposing penalty for contravention of section 8(3) read with section 8(4) of the Foreign Exchange Regulation Act, 1973 should be set aside and the matter remanded in view of the asserted denial of hearing and the additional material produced showing utilisation of the foreign exchange for the intended import.

Analysis: The appeal challenged the ex parte adjudication on the ground that the appellant was not afforded a proper opportunity of hearing and had sought adjournment. It was also brought on record that the bank confirmation and bill of entry, relied upon to show actual import against the remittance, were not before the adjudicating authority when the impugned order was passed. In the light of this material, and the respondent's submission that the new confirmation could appropriately be considered by the adjudicating authority, the record called for further adjudication rather than final affirmation of the penalty order.

Conclusion: The impugned order was set aside and the matter was remanded to the adjudicating authority for fresh adjudication on the basis of the additional evidence.

Ratio Decidendi: Where material evidence relevant to the alleged contravention is produced after the adjudication order and the matter has proceeded ex parte, the proper course is remand for fresh adjudication rather than final disposal on the existing record.

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