TaxTMI 
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TaxTMI 
2024 (1) TMI 1471
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....o R3 : Mr.AR.L.Sundaresan Additional Solicitor General of India Assisted by Mr.Rajnish Pathiyil (in all W.P's) COMMON ORDER The lis on hand has been instituted questioning the show cause notice dated 11.09.2023 issued under Rule 4(3) of the Foreign Exchange Management(Adjudication Proceedings and Appeal) Rules, 2000 (hereinafter referred to as 'Rules'). 2. The disputed facts between the parties in this case deserves no deeper adjudication in view of the fact that the show cause notice issued under Rule 4(1) and 4(3) are under challenge. 3. The Writ against the show cause notice is not entertainable in a routine manner. A writ would be entertainable if such notice has been issued by an incompetent Authority having no jurisd....
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.... was made by the petitioners to furnish the true copy of such records maintained in the investigation by the complainant. It is not in dispute between the parties that the respondents permitted the petitioners/Authorised Representatives/Lawyers/Chartered Accountants for inspection of the relied upon documents. The Authorised Representatives have inspected the relied upon documents in the Office of the respondents. However, vide letter dated 31.07.2023, the petitioners/company requested the respondents to furnish four more relied upon documents, which were not furnished to them on earlier occasions and relied upon by the Adjudicating Authority. Those relied upon documents are as follows: Sl.No. Date Particulars 1. 02.08.2022 Signed sta....
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....ed 11.09.2023 is liable to be set aside. 9. Mr.P.S.Raman, learned Counsel for the petitioners would further submit that an opportunity of hearing in compliance of principles of natural justice at no circumstances be denied to the petitioners. Such valuable opportunity has been reitereated by the Apex Court in the case of Natwar Singh Vs. Director of Enforcement and anr. reported in 2010 (13) SCC 255. The Hon'ble Supreme Court in Paragaraph No.19 and 20 reproduced the procedures as contemplated under Rule 4 of the Rules for holding of inquiry. 10. Relying on Rule 4, the learned counsel contend that procedures contemplated are structured by the statues and Rules in force. Therefore, the respondents have no discretion to dispense with th....
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....uestion arises whether non-supply of those four relied upon documents to the petitioners caused any prejudice, warranting interference from the hands of this Court. Undoubtedly the procedures enumerated under Rule 4 of the Rules did not speak about furnishing of copies of the relied upon documents to the noticees. In the absence of specified procedures, either under the Statues or in Rules, the Supreme Court in the case of Natwar Singh Vs. Director of Enforcement and anr. reported in 2010 (13) SCC 255 emphasised that documents shall be supplied to the noticees enabling them to defend their case in an effective manner. Furnishing of relied upon documents was considered as part of the compliance of the rules of natural justice and therefore, ....
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....ith the inquiry as contemplated under Rule 4. Therefore, such decision taken before receiving the explanations from the writ petitioners is to be set aside. 17. Mr.AR.L.Sundaresan, learned Additional Solicitor General of India would oppose the said contention by stating that it is an opinion formed by the Authorities based on the materials available on record and further opinion may be formed on receipt of any further explanation from the petitioners with reference to the additional documents, if any as per their request. 18. May that as it be, under Rule 4(1) show cause notice is contemplated and under Rule 4(3) notice of hearing is contemplated. Before proceeding with the adjudication, two notices are contemplated. Rule 4(1) stipulates ....
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....equently supplied to them. 20. In view of the fact that the Adjudicating Authority has considered the materials available on record and formed an opinion an inquiry is to be conducted, it becomes unnecessary to set aside the said order, since the non-supply of the additional four relied upon documents would not vitiate the entire proceedings. But an opportunity is to be provided to the petitioners for submitting their explanations in respect of those four relied upon documents. Thus, on receipt of explanation from the petitioners, in entirety, including for the four additional relied upon documents, the Adjudicating Authority shall take the decision and proceed with the inquiry or drop the same as the case may be based on the materials ava....