TaxTMI 
TaxTMI 
2023 (6) TMI 1458
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.... the same are illegal, arbitrary and are issued without jurisdiction. Facts of the case 3. Proceedings for violation of the Foreign Exchange Regulation Act, 1973 (hereinafter referred to as 'FERA') were initiated against the Petitioners in relation to import of machinery from Germany. Initially, according to the Petitioners, four memoranda dated 15.03.2003 were issued to them under the FERA. Subsequently, the impugned notices were issued to them on 26.07.2004. 4. According to the Petitioners, the impugned notices have been issued without jurisdiction as the FERA was repealed by the enactment of the Foreign Exchange Management Act, 1999 (hereinafter referred to as 'FEMA') which came into force on 01.06.2000. Relying on Section 49(3)....
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....tive offices and no such Chairman or other person shall be entitled to claim any compensation for the premature termination of the term of his office or of any contract of service. (3) Notwithstanding anything contained in any other law for the time being in force, no court shall take cognizance of an offence under the repealed Act and no adjudicating officer shall take notice of any contravention under Section 51 of the repealed Act after the expiry of a period of two years from the date of the commencement of this Act. (4) Subject to the provisions of sub-section (3) all offences committed under the repealed Act shall continue to be governed by the provisions of the repealed Act as if that Act had not been repealed. ....
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.... not be held to prejudice or affect the general application of Section 6 of the General Clauses Act, 1897 with regard to the effect of repeal." 8. Section 49 of the FEMA clearly states that the FERA is repealed and Section 49(3) provides that no note of any offence can be taken for the violation of the FERA after the expiry of two (2) years from the date of commencement of the FEMA. Further, Section 49(4) provides that all the offences committed under the FERA and which were taken note of within the period prescribed under Section 49(3) shall be governed by the provisions of the FERA. 9. It is relevant to note that the FEMA came into force on 01.06.2000. By virtue of Section 49(3) of the FEMA, no proceedings under the FERA could have ....
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....l 3503 held that proceedings for violation of the FERA will be deemed to be initiated under Section 49(3) of the FEMA from the date of issuance of show cause notice. The relevant paragraphs are extracted below: "17. We have already referred to the decisions in Bhaskaran Pillai (supra) and Naina Maricair (supra) and we are in agreement with the said view. As the language employed in the Rule deals with various steps and Section 49(3) employs the terms 'shall take notice of', the period prescribed has to be computed from the date the contravention is taken notice of by the adjudicating officer. If the said words are not given their requisite meaning and not read in the real context, it would cause violence to the language of the stat....
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....FEMA." 14. Another Division Bench of the Delhi High Court in Binod Agarwal v. Union of India 2006 SCC OnLine Del 1554 expressed a similar view and held as follows: "7. Section 49(3) provides that no cognizance of an offence under the repealed Act would be taken and that no Adjudicating Officer would take notice of any contravention under Section 51 of the repealed Act after the expiry of a period of two years from the date of commencement of the Foreign Exchange Management Act, 1999. Section 49(4) categorically stipulates that an offence committed under the repealed Act would continue to be governed by the provisions of the repealed Act as if that Act had not been repealed. Further, Section 49(5)(a) clearly provides that any not....
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....rovisions of the repealed Act as if that Act has not been repealed. The show-cause notices in the instant case came to be issued in respect of the offences committed by the petitioners prior to the enactment of FEMA i.e. while FERA was in force. Appointment of adjudicators under the proceedings impugned in the writ petition are only to deal with the matters relating to the offences committed prior to the enforcement of FEMA. The said proceedings are saved by subsection (4) of Section 49 of FEMA. Therefore, the writ petition is devoid of merits and is liable to be dismissed." 16. Similarly, in Enforcement Directorate v. M. Kishan Rao 2014 SCC OnLine AP 21, this Court has held as follows: "9. In this case, the violation alleged ag....