TaxTMI 
TaxTMI 
2016 (2) TMI 1107
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....allegedly carried out transaction of US $ 30 million. Office premises of the company and residential premises of Sanjay Sharma and Ole Peter Tollefson were raided in Mumbai on 31-5-2008 and searches carried out under Section 37(3) of Foreign Exchange Management Act, 1999 (FEMA) r/w Section 132 of the Income Tax Act, 1961 and certain documents and Sony laptop were seized. 2. Statement of Sanjay Sharma was recorded under Section 37 of FEMA, 1999 in which he inter alia stated that he had become director of the company on 1-4-2005 and the company was engaged in providing support services for drilling companies and were representing 30 foreign companies. He further stated that on the basis of tenders floated by Indian exploration companies, they used to contact the foreign company for participation in the bidding, the foreign companies used to pay them 1.5% commission depending upon the agreement. Statement of appellant Ole Peter Tollefson was also recorded under Section 37 on 8-7-2008 in which he stated that he was a Norwegian citizen and was director in certain companies which included Norscot Trading (P) Ltd. and Norscot Drilling and Production Pvt. Ltd. both based in India and....
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....100458.34. It is alleged that page No. 34 of the seized documents in respect of details of monthwise payments due to M/s. Norscot Trading (P) Ltd., Mumbai and the monthwise payment made by M/s. Dolfin Drilling Ltd., Scotland for the period November 2003 to August 2004. It has also been alleged during November 2003 to August 2004 total payments of US $ 883748.50 were made to M/s. Dolfin Drilling Ltd., Scotland and were credited to the foreign company account of appellant Ole Peter Tollefson and not to the account of M/s. Norscot Trading (P) Ltd., Mumbai. It has also been alleged that the said payments were made for the services rendered by M/s. Norscot Trading (P) Ltd. and as is evident from the seized page No. 34 of the document the commission was payable to M/s. Norscot Trading (P) Ltd. but was instead credited in the account of appellant Ole Peter Tollefson was never brought to India. Therefore appellant Ole Peter Tollefson has allegedly failed to repatriate the payment of US $ 883748.50 and Euro 111250 received from the overseas parties. The appellant company it is alleged has not taken any steps to repatriate the said amount received from M/s. Dolfin Drilling Ltd., Scotla....
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....eved from the impugned order dated 3-12-2010 the instant appeals have been filed. Appeal No. 05/2011 has been filed on behalf of M/s. Norscot Trading (P) Ltd., Mumbai while Appeal No. 136/2011 has been filed by Ole Peter Tollefson. 8. Since both the appeals have been filed against the common adjudication order and identical grounds have been taken therefore both the appeals are being disposed of by a common order. 9. It has been submitted on behalf of the appellants by Shri Dipendra Kumar, Chartered Accountant, that the total amount of penalties amounting to Rs. 7,20,000/- by both the appellants has already been deposited with the Enforcement Directorate. Submission is that the appellant company is engaged in the business of rendering support services for oil drilling and related businesses. It has been contended that there is no contravention of Section 8 of FEMA. The fact is that the amount of Eruo 111250 had no connection with the appellant company's business and as such was not receivable by the both the appellants from anyone therefore the amount does not fall within the category of "due" to the appellants or "accrued" to the appellant. There was no export of....
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.... address. She has also contended that in the description column it has been written that the articles are in respect of house portal and include marble and granite floor and wall tiles measuring it 890 sq.mt. at the rate of 125 Euro including freight from India. The total has been shown to be 111250 Euro. No Service Tax has been found applicable and it has been duly signed by appellant Ole Peter Tollefson for Norscot Trading (P) Ltd. It has also been written in the invoice in the column of payment that it has to be immediate and the date of invoice is 15-4-2004. Thus, it is clear that the cost of marble and granite floor and wall tiles calculated at the rate of 125 Euro include freight from India which is a proof and evidence to show that factually export was made from India of the articles mentioned in the invoice involving foreign exchange. The statement of the appellant Ole Peter Tollefson that he had invoice for securing loan from bank and in fact no exports were made cannot be believed when there is evidence which has been reduced to writing and has been admitted by the appellant Ole Peter Tollefson. The finding of the Adjudicating Authority that the supply of marble and....
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....o play fraud for purportedly securing bank loan from Spain by Ole Peter Tollefson. It may be pertinent to mention here that the appellant has failed to file any proof to show that he had applied for loan from his bankers in Spain on the basis of the disputed invoice. Had the appellant Ole Peter Tollefson no intention of indulgence in any violation under FEMA there was no requirement of preparing the invoice for the alleged purpose of only securing loan. Further the building material is alleged to have been procured in India, therefore there was no occasion of making the payment in foreign currency from an Indian seller. 13. As has been mentioned earlier in the preceding paragraphs of the judgment that it is not within the scope of this Tribunal to examine the legality of the findings of the Adjudicating Authority in respect of charges relating to transactions of US $ 883748.50 wherein the appellants have been absolved of their liability and charges dropped, because the same has not been assailed by the respondent, Enforcement Directorate by preferring appeal before this Tribunal. However, prima facie I am not convinced with the grounds of dropping of the charges by the Adjudi....