AI Drafter 
TaxTMI 
TaxTMI 
1999 (11) TMI 906
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....re disposed of on merits by this common order. 2. I have heard the parties. In the first instance I propose to dispose of the Appeal Nos. 420 to 423 of 1993 and Appeal Nos. 425 of 1993 and 426 of 1993 which relate to the charge of contravention of section 9(1)(a) of the Foreign Exchange Regulation Act, 1973, on the allegations as contained in SCN II and SCN IV, respectively. Thereafter, I would proceed to examine the findings in respect of the charges contained in SCNs I & III which is the subject-matter of Appeal Nos. 419 and 424 of 1993. Appeal Nos. 420 to 423 of 1993 3. The allegations on which the charge of contravention of section 9(1)(a) against the appellants is based are that the appellant-firm made payments of Hongkong dol....
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....the customs case, there can be no charge of under-invoicing. In any case, in view of the fact that customs authorities who are the appropriate authority for determining the valuation of import have cleared the goods on acceptance of the invoice value and further that the Adjudicating Officer had nothing on record to prove the valuation other than that declarated in the invoice value, the findings cannot be sustained. It is to be noted that where the charge is based on the valuation of any import, that valuation has to be based on competent evidence so as to substantiate the charge; it cannot be a matter of the statement of the person proceeded against or of any other person. I also find substance in the submission made by the learned counse....
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....counts of expenditure maintained in the diary during the visit together by both the appellants to Bangkok and Hongkong and certain receipts of the goods purchased there. 8. In the course of the earlier proceeding, the learned counsel for the appellant was called upon to explain the expenditure mentioned in the seized diary and make his submission as to how the funds for the amounts spent were arranged by the appellants. The learned counsel filed a statement explaining the position. In this statement, he has tried to show that apart from the foreign exchange availed of by both the appellants under FTS, they had raised further funds to meet the expenditure by selling certain goods which they had taken along with them from India and the rem....
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....ld give by way of gifts such items as blades, razors, etc. 9. In view of the above, I do not find any reason to accept the contention that the findings of the learned Adjudicating Officer in respect of the charge of contravention of section 8(1) on the part of the appellants were incorrect. 10. Shri Jindal, the learned counsel for the appellants, pleaded, in the alternative, that the amount of penalty is excessive having regard to the amount involved in contravention. He pleaded that there is no allegation that the appellants have indulged in hawala payments or that they are regular dealers in illegal transactions in foreign exchange. The items shown as having been purchased by the appellants show that they are petty items of daily us....
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....nauthorised arrangements for raising some extra funds to make the best of their visit abroad. In the circumstance, in my opinion, the ends of justice would be met if the respective amounts of penalty imposed for contravention of section 8(1) on the part of both the appellants are reduced by 50 per cent of that amount. Accordingly, the penalty for contravention of section 8(1) on the appellant in Appeal No. 419 of 1993 is reduced to Rs. 10,000 from Rs. 20,000 and that on the appellant in Appeal No. 424 of 1993 to Rs. 6,000 from Rs. 12,000. 12. In the result, the Appeal Nos. 420 to 423 of 1993 and 425 to 426 of 1993 are allowed and the impugned order holding the appellants' guilty of the charges contained in SCNs II and IV is set aside and....