https://www.taxtmi.com/caselaws?id=775199 The Appellate Tribunal under SAFEMA at New Delhi dismissed an appeal by the Enforcement Directorate seeking enhancement of penalty imposed under Section 13(1) of FEMA for contravention of Sections 7 & 8 involving failure to realize export proceeds. The Adjudicating Authority had imposed penalty at 100% of the contravened amount. The Tribunal held that Section 13(1) FEMA prescribes maximum penalty of three times the contravention amount but sets no minimum, making penalty imposition discretionary. The Tribunal found the Adjudicating Authority exercised judicious discretion considering case facts and evidence. Despite total penalty reaching 25 crores (200% of contravened amount), the Tribunal criticized the ED for filing enhancement appeals instead of executing recovery orders, especially when respondents were untraceable, making recovery negligible. The Tribunal deemed the imposed penalty adequate and dismissed the appeal. en-us Wed, 09 Jul 2025 00:00:00 +0530 Tue, 22 Jul 2025 08:25:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775199 The Appellate Tribunal under SAFEMA at New Delhi dismissed an appeal by the Enforcement Directorate seeking enhancement of penalty imposed under Section 13(1) of FEMA for contravention of Sections 7 & 8 involving failure to realize export proceeds. The Adjudicating Authority had imposed penalty at 100% of the contravened amount. The Tribunal held that Section 13(1) FEMA prescribes maximum penalty of three times the contravention amount but sets no minimum, making penalty imposition discretionary. The Tribunal found the Adjudicating Authority exercised judicious discretion considering case facts and evidence. Despite total penalty reaching 25 crores (200% of contravened amount), the Tribunal criticized the ED for filing enhancement appeals instead of executing recovery orders, especially when respondents were untraceable, making recovery negligible. The Tribunal deemed the imposed penalty adequate and dismissed the appeal. Case-Laws FEMA Wed, 09 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775199