International transaction characterisation of domestic divestment of support services business rejected; transaction between resident associated enter...
Minimum Import Price restrictions for Black Pepper, Areca-nuts and Apples upheld; procedural laying failure not fatal, notifications to be placed befo...
Transaction value between related persons requires market-equivalent pricing; importer must prove declared value mirrors ordinary international trade ...
Classification of exported insecticides under export tariff affirmed; reclassification and related penalties set aside and MEIS scrip jurisdiction rec...
Funds remitted by a non-resident investor were treated as investment on repatriation basis because no shares were allotted, part of the money was remitted back, and the company's own records and filings supported that characterisation; Regulation 5(1) therefore applied, not the non-repatriation scheme. Once that position was established, failure to intimate RBI, issue shares, or refund within the prescribed period constituted contraventions under FEMA. The managing director was also liable under the person-in-charge provision because the transactions were directly linked to him and he showed no lack of knowledge or due diligence. Penalty followed despite absence of mens rea, cross-examination was properly refused for want of prejudice, and only the quantum of penalty was reduced.
Funds remitted by a non-resident investor were treated as investment on repatriation basis because no shares were allotted, part of the money was remitted back, and the company's own records and filings supported that characterisation; Regulation 5(1) therefore applied, not the non-repatriation scheme. Once that position was established, failure to intimate RBI, issue shares, or refund within the prescribed period constituted contraventions under FEMA. The managing director was also liable under the person-in-charge provision because the transactions were directly linked to him and he showed no lack of knowledge or due diligence. Penalty followed despite absence of mens rea, cross-examination was properly refused for want of prejudice, and only the quantum of penalty was reduced.
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