Appeal Dismissed: Penalty Upheld for Under-Invoicing Imports and Evading Customs Duty Under FEMA, 1999.

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....This case involves the contravention of Section 3(b) of the Foreign Exchange Management Act (FEMA), 1999, pertaining to under-invoicing of imports to evade customs duty. The appellant imported goods worth Rs. 6,01,82,311 but declared a lower value of Rs. 1,71,62,087 against 26 Bills of Entry, and paid the differential amount in cash to the supplier in Japan in Indian Rupees. The Directorate of Enforcement (ED) relied on statements recorded under the Customs Act and conducted independent inquiries under FEMA. The key points are: the ED's reliance on Customs Act proceedings was valid as information sharing between agencies is permitted; the appellant's statements over nine months consistently admitted the offenses; the Show Cause Notice was n.........