TaxTMI 
TaxTMI 
2009 (11) TMI 338
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.... the conduct of the business of the company during the relevant period. A show cause notice was issued to the respondents, however, they did not file any reply statement. 2.2 The adjudication proceedings were held against the noticees and on close of the enquiry, the noticee-company was found guilty of the charges. The Director was found guilty invoking Section 68(1) of the Act. Hence, a consolidated penalty of Rs. 5 lakhs was imposed on them. The respondents carried the matter in appeal before the Appellate Tribunal for Foreign Exchange, New Delhi in Appeal No. 137 of 2003. The Appellate Tribunal allowed the appeal observing that it could not be stated that the provisions of the Act have been contravened, that even though FERA was replaced by Foreign Exchange Management Act (for short 'FEMA'), the offences stated to have been committed during the period covered by the FERA, proceedings could be initiated under FERA and failure to invoke of FEMA cannot be stated to be illegal and that these respondents' Company has taken sincere steps to realize the proceeds as required by the statute and so, the respondents could maintain appeal. The said order of the Appellate Tribunal has been ....
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....ts that the six months period prescribed in the Central Government notification expired by 22-8-2000 and 23-11-2000 in respect of exports and the FEMA came to effect from 1-6-2000 and that the investigation commenced on 31-7-2001 and the charge under FERA has no enforceability. 5. The adjudicating authority, namely, the Deputy Director of Enforcement had not furnished any reasons on this aspect. However, the Tribunal has handed down a fitting reply stating that it is clear that any offence committed under the repealed Act would continue be governed by the provisions and the repealed Act, as if that Act has not been repealed, subject to the provisions of sub-section (3) of Section 49. Section 49(3) and (4) goes thus:- "49(3) Notwithstanding anything contained in any other law for the time being in force, no court shall take cognizance of an offence under the repealed Act and no adjudicating officer shall take notice of any contravention under Section 51 of the repealed Act after the expiry of a period of two years from the date of commencement of this Act. 49(4) Subject to the provisions of sub-section (3) all offences committed under the repealed Act shall continue to be governe....
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...., if it is stated that he took such steps, it is of no avail. The term "reasonable" has been demonstrated in the Law Lexicon, written by P. Ramanatha Aiyer, reprint in 2004, as follows :- "(i) Reasonable: It would be hard to give an exact definition of the word 'Reasonable', Reason varies in its conclusions according to the idiosyncrasy of the individual and the times and circumstances in which he thinks. The reasoning which built up the old scholastic logic, sounds now like the jingling of a child's toy. But mankind must be satisfied with the reasonableness within reach; and in cases not covered by authority, the verdict of a jury (for the decision of a judge) usually determines what is 'reasonable' in each particular case; but frequently reasonableness "belong to the knowledge of the law, and therefore to be decided by the Courts." (ii) 'Reasonable' means prima facie in law reasonable in regard to those circumstances of which the actor, called upon the act reasonably, knows or ought to know. (iii) Reasonable cannot mean equally convenient or luxurious, though it may not necessarily exclude idea of convenience and comfort. (iv) The expression 'reasonable' is so wide and elasti....
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....time of legislating statute, the Supreme Court has dealt with the legal importance of Sections 10 and 23 of FERA, which are as follows :- "10. Duty of person entitled to receive foreign exchange etc. - (1) No person who has a right to receive any foreign exchange or to receive from a person resident outside India a payment in rupees shall, except with the general or special permission of the Reserve Bank, do or refrain from doing anything or take or refrain from taking any action which has effect of securing - (a) that the receipt by him of the whole or part of that foreign exchange or payment is delayed, or (b) that the foreign exchange or payment ceases in whole or in part to be receivable by him. (2) Where a person has failed to comply with the requirements of sub-section (1) in relation to any foreign exchange or payment in rupees, the Reserve Bank may give to him such directions as appear to be expedient for the purpose of securing the receipt of the foreign exchange or payment as the case may be. 23. Penalty and procedure. - (1) If any person contravenes the provisions of Section 4, Section 5, Section 9, Section 10, Sub-section (2) of Section 12, Section 17, Section 18-....