2007 (9) TMI 425

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....espondent had confessed to have violated the provisions of Foreign Exchange Regulation Act, 1973 ('FERA' for short) whether the Tribunal was justified in setting aside the penalty levied by the Adjudication Officer ? 2. In this case the premises of the respondent who is the proprietor of M/s. Arabian Maritime Agency was searched on 20-2-1981 wherein incriminating documents were seized. In his s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... engaged in the indenting business as agent for import of brass and copper scrap and in such business the method of accounting followed by the respondent is the normal method of accounting and the said accounts are regularly offered for inspection to the RBI. Relying upon a decision of the Madras High Court in the case of New India Meritime Agencies (P.) Ltd. v. Director [1987] 2 ECC 128, the Trib....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n the form of credit and debit entries and from the said entries it cannot be inferred that the respondent had advanced amounts to foreigners in contravention of FERA. 7. Nothing is brought to our notice that the system of accounting followed by the respondent is not the universally accepted system in such business and it is not disputed that such system of accounting is regularly inspected by ....