Foreign exchange penalty reduced where the challenge focused only on quantum and earlier deposit was treated as full satisfaction.

In a foreign exchange contravention matter under SAFEMA appellate review, the Tribunal considered only whether the monetary penalty should be reduced, as the finding of contravention was not pursued on merits. Taking into account the age of the show-cause notice, the part-payment already made, and the overall circumstances, it scaled down the penalty and treated the amount already deposited as full satisfaction of the reduced liability. No further deposit was required.

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Issues: Whether the penalty imposed for contravention of the foreign exchange law warranted reduction in the circumstances of the case.

Analysis: The appeal arose from a show-cause notice issued long ago and the appellant had already deposited part of the penalty. The challenge to the finding of contravention was not pursued on merits, and the relief sought was confined to reduction of the monetary penalty. Considering the age of the matter, the limited amount already deposited, and the overall circumstances, the Tribunal found it appropriate to scale down the penalty and to treat the amount already deposited as satisfaction of the reduced liability.

Conclusion: The penalty was reduced from Rs. 5 lakhs to Rs. 2 lakhs, with Rs. 1 lakh attributable to each contravention, and the appellant was not required to make any further deposit.

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