1995 (12) TMI 430

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....is appeal is directed against the Adjudication Order No. 275/ADJ/94-AD(P) dated 28-10-1994 under which a penalty of Rs. 5,000 has been imposed on the appellant for contravention of section 8(1) of the Foreign Exchange Regulation Act, 1973 ('the Act') on the allegation that the appellant being a person resident in India acquired foreign exchange of US $5,000 and HK $550 from a person other than an ....

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....d by them at the premises of the appellant and the recovery of foreign currency. The document at Sl. No. 2 is the seizure memo. In support of the charge is the statement given by the appellant on 8-4-1994 under section 40 of the Act, which is the document at Sl. No. 3, and, the appellant's letter of 2-5-1994 which is the document Sl. No. 4. In both the documents at Sl. Nos. 3 and 4 of the annexure....

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....nd there is no reason for him to acquire foreign exchange, particularly, in view of the fact, which was also conveyed to the department under the appellant's letter of 2-5-1994, that the appellant's son had sent and is holding in his NRE account all the amounts equivalent to about 5 lakh dollars in fixed deposits. Shri Rana also submitted that the sole reason given by the learned Assistant Directo....

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....tion 8(1) as returned by the learned Assistant Director is totally untenable for the reasons submitted by Shri Rana. I also find no force in Dr. Shamsuddin's plea to sustain the order of confiscation. The seized foreign currency belonged to the appellant's daughter-in-law who is non-resident and as such was entitled to spend in India or to take back with her. As the currency was seized, she has be....