2005 (2) TMI 819

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....hat there has been no contravention of Sections 8(3) and 8(4) of Foreign Exchange Regulation Act, 1973, penalty of Rs. 5 lakhs on the firm and Rs. 50,000/- each on the partners has been imposed. Mr. Ajay Kumar Sharma, learned counsel for the petitioners submits that the Adjudicating Officer has found only a formal violation of the procedure prescribed under para 7A.20 of Exchange Control Manual, i....

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....- each on the partners. 3. It would be relevant at this stage to reproduce paras (iv) and (v) of 7A.20 of the Exchange Control Manual:-  (iv) In case an importer does not furnish the Exchange Control copy of the Bill of Entry within three months from the date of remittance (or within prescribed period as provided in paragraph 7A.10), the authorised dealer should issue a reminder to the ....

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....ure the Bank was to issue a reminder to the importer asking them to produce Exchange Control copy of Bill of Entry forthwith and if there was still no response, a reminder by registered A.D. post is required to be sent not later than one month from the date of reminder. No provision is made in the Exchange Control Manual with regard to imposition of penalty for non-furnishing of the Exchange Contr....

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....not traceable. However, petitioners had duly furnished the copies of Bills of Lading, Invoices. The photocopy of Exchange Control copy of the Bill of Entry duly carried endorsement by the Customs Authorities of the clearance of the goods. Mr. Sharma also submitted that the Bank itself had failed to comply with the procedure. 7. In this view of the matter, there was hardly any doubt left regardi....