2025 (8) TMI 411

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....anagement Act, 1999 (in short 'FEMA, 1999') to challenge the order dated 21.11.2023 passed by the Adjudicating Authority imposing the penalty on each appellant before us for contravention of Section 7 of the Foreign Exchange Management Act, 1999 read with Regulations 9, 11 & 13 of the Foreign Exchange Management (Export of Goods and Services) Regulations 2000 and Regulations 9,10 & 12 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015, apart from Section 10(6) of FEMA 1999 read with Regulation 6(1) of the Foreign Exchange Management (Realization, Repatriation & Surrender of Foreign Exchange) Regulations, 2000. The total penalty of Rs. 12,03,88,905.87 has been imposed on the appellant company and Rs. 1,20,38,....

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....hearing the parties but to the surprise of the appellants, it sent a letter to the AD Bank to find out actual realization of export proceed against 77 bills and at the same time outward remittance towards the import. The AD Bank informed the Adjudicating Authority that unrealized export bills are 737 but the number of bills were later on reduced to 7 and finally it was disclosed to be 9 by the AD Bank vide its letter dated 14.11.2024. The total unrealized amount towards the export was Rs. 1,27,17,387/-. As against the aforesaid amount, the penalty has been imposed contrary to the provisions of the FEMA, 1999 and, therefore, prayer was made to cause interference in the impugned order. 4. The learned counsel for the appellants further subm....

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....volved for non-realization of the export bills to a sum of Rs. 1,27,17,387/- and outward remittance towards the import for a sum of Rs. 1.50 Crores. The appeals may be decided accordingly. Finding of the Tribunal: 6. We have considered the rival submissions of the parties and perused the record. 7. It is a case where the appellant was served with a show cause notice alleging non-realization of export bills and outward remittance towards the import. The show cause notice was given indicating 737 export bills of which the export proceed was not realized and similarly allegation was also made regarding outward remittance towards the import. The learned Adjudicating Authority called for the report from the AD Bank after closing the hea....

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....ank. If NOC would have been given by the ED, even amount towards outward remittance of import would have been 40 crores and odd and otherwise towards the unrealized export bills to a sum of Rs. 1.27 Crores and odd. The total amount comes to nearly about Rs. 1.68 Crores. Looking to the aforesaid but realizing that the show cause notice for the transaction for the year 2009 to 2015 was issued in the year 2021. It caused difficulty to the appellants to produce the documents regarding non-realization of the export proceed and even outward remittance but finally given by the AD Bank. We find it appropriate to impose the penalty of Rs. 80 lakhs on the appellant company in regard to the contravention of different provisions of the Act and Regulati....