2025 (7) TMI 1267

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....FEMA, read with Regulation 9(1) & 13 of Foreign Exchange Management (Export of Goods & Services) Regulations 2000, for failing to realize exports proceeds amounting to Rs. 12,41,89,927/-, and accordingly, penalty of Rs.12,50,00,000/- each was imposed on both the respondents. 2. The facts of the case, are that Complaint was filed by the Assistant Director, Chenai Zonal Office, before the Adjudicating Authority. After going through the allegations, the Special Director issued Show Cause Notice to the Noticees' (herein respondents) for failing to realise the export remittance against 51 invoices of export to Dubai & Jamaica from August 2000 to December, 2000, to extent of Rs.12,41,89,927. On notice, the said Noticee could not be served, and a....

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....on behalf of the appellants for want of effective service in absence of their present whereabouts, and hence, both the respondents were proceeded against ex-parte. It is pertinent to mention here that none appeared on behalf of the appellants even during the adjudication proceedings and ex-parte order was passed against them. 5. After hearing the submissions on behalf of appellant ED, we have given our thoughtful consideration to the same. On reading of Section 13 (1) FEMA it is obvious that the maximum amount of penalty which can be imposed under the Section is three times the amount of contravention involved. From the language of the Section 13(1) FEMA, it is clear that the Section has not prescribed either a fixed amount of penalty or m....