1996 (9) TMI 670

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....ce No. HI dated 22-1-1987. 2. Shri J.S. Arora, the learned counsel for the appellant, submitted that even on a bare perusal of the allegations made in the show-cause notice, the charge of contravention of section 9(3) cannot be made out. He further submitted that it is quite clear from a perusal of para 7 of the impugned order where the charge against the appellant has been dis-cussed, that the findings of contravention of section 9(3) are based on the appellant's statements of 27-1-1986 and 17-2-1986. He contended that there is nothing in the said statement to indicate that the appellant has made any such admission. I, therefore, decided to waive the pre-deposit and decided to hear the appeal on merits. This final order disposes of ....

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....ring for the respondents, submitted that the allegation against the appellant is that he paid a sum of Rs. 8.75 lakhs to Wimpy India (P.) Ltd. through Resham Singh Mandeer and Shri Mandeer was paid the equivalent amount in Pound Sterling in lieu of the said payment of Rs. 8.75 lakhs and, thus, it amounts to making remittance of Rs. 8.75 lakhs by the appellant through Resham Singh Mandeer from England to India through unauthorised channels. Dr. Shamsuddin sub-mitted that in this manner the charge of contravention of section 9(3) has been rightly made out and in view of the seizure memo dated 27-1-1986,30-1-1986 and 31-1-1986, particularly the latter, it is clear that the amounts mentioned therein were sent by the appellant through Resham Sin....

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....r on behalf of a person resident outside India and in lieu thereof receives an equivalent foreign exchange outside India from the person on whose behalf or on whose instructions he makes the payment in India. Shri Arora's contention is that not only that there is no evidence of any remittance from a foreign country to India, even the allegations made in the first paragraph of the show-cause notice do not allege that the appellant had remitted or caused to be remitted any amount from England to India. Let us have a look at the allegation on which the charge has been based. The memorandum of show cause recites : "Whereas it appears that during the year 1984-85, on instructions of Shri Kanwaljit Singh Sidhu S/o Sardar Sampuran Sin....

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....ing of contravention of section 9(3) on the part of the appellant. We have seen the copies of the three receipts issued by A.S. Selhi acknowledging the receipt of the amounts from Resham Singh Mandeer. These receipts are of 9-7-1985, 11-7-1985 and 12-7-1985, in respect of the amounts of Rs. 85,000, Rs. 2 lakhs and Rs. 16,000, respectively. The acknowledgement made therein is materially on the same lines. It is, therefore, enough to refer to one of them. The receipt dated 9-7-1985 is as under : "Received with thanks from Mr. Resham Singh Mandeer of London a sum of Rs. 85,000 (Rupees Eighty Five thousand only) vide cheque No. 414441 drawn on State Bank of India, Indraprastha Estate, New Delhi for share application money, subject to R....

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....nd in Pound Sterling as alleged. On the other hand, in his statement of 17-2-1986 he has categorically stated that 'uptil now I have not paid anything to Mr. Resham Singh Mandeer in London'. What he stated was, when approached by Selhi to arrange more funds for Wimpy business in India, to take money from Mandeer and that, accordingly, Mandeer gave money, about Rs. 8 to 9 lakhs, to Selhi of Wimpy India and that till that date Wimpy India had not issued any share to him. If the statements of 27-1-1986 and 17-2-1986 are read together, it is clear that what the appellant stated was that he was expecting 40 per cent share in lieu of the money already given by him in Pound Sterling to Mr. Selhi, and when further money was asked by Selhi h....