2011 (3) TMI 1284

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....has allowed the Revision petition filed by the respondent-Enforcement - Directorate against the order dated 29-1-2003 passed by the Deputy Director, Enforcement Directorate (Foreign Exchange Management Act), Bangalore. 2. The facts in brief leading to filing of this appeal are as follows : On 9-10-2002, the appellant was found in illegal possession of US $ 20,000. The Deputy Director, Enforcement Directorate after holding an enquiry found the appellant guilty of contravening Section 3(a) of the Act and accordingly passed the order dated 29-1-2003 referred to above by imposing a penalty of Rs. 50,000/- on the appellant under Section 13(1) of the Act; the penalty of Rs. 50,000/- imposed was directed to be adjusted from the seized U....

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....r the appellant is that the maximum penalty that could be imposed under Section 13 of the Act cannot exceed Rs. 2,00,000/- and once any penalty is imposed, question of further confiscating the currency involved in contravention of Section 3(a) of the Act is not permissible in law. Hence, according to the Counsel, the order of the Appellate Tribunal is unsustainable in law. He sought for restoration of the order of the Deputy Director. Sri Urval N. Ramanand, learned Senior Counsel appearing for the respondent supported the impugned order. 6. In the light of the contention urged by the learned counsel for the appellant, the only question of law that would arise for consideration is as to whether the Appellate Tribunal was justified in....

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....o India or shall be retained outside India in accordance with the directions made in this behalf. Explanation. - For the purposes of this sub-section, "property" in respect of which contravention has taken place, shall include.- (a)     deposits in a bank, where the said property is converted into such deposits; (b)     Indian currency, where the said property is converted into that currency; and (c)     any other property which has resulted out of the conversion of that property."                 (Emphasis supplied) 8. Section 13 of the Act speaks of penalties; both the sub-Sec....