2025 (9) TMI 197

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.... were imposed on the respondents as under:- i) On Shri M. Padamchand, Proprietor of M/s Varsha Telecommunication Systems a penalty of Rs. 50,00,000/- was imposed for the contravention of the provisions of Section 10(6) of FEMA, 1999 read with Regulation 6(1) of Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2000 by sending foreign exchange to the extent of US $ 3979273 (23,63,89,843) by making declaration to authorised person regarding the purpose as advance for imports but had not used the foreign exchange so purchased for the stated purpose, nor surrendered it to the authorised person within the specified period. ii) On M. Padamchand, Proprietor of M/s. Varsha Telec....

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....A, read with Regulation 6(1) of Foreign Exchange Management (Realisation, Repatriation & Surrender of Foreign Exchange) Regulations 2000, for failing to realize exports proceeds amounting to Rs. 12,41,89,927/-, by purchasing foreign exchange to the extent of US$ 3979273 (equivalent to Rs. 23,63,89,843) by making a declaration to the authorized person regarding the purpose to import, but had not used the foreign exchange for the said purpose, nor surrendered the same to the authorized person. The said foreign exchange was sent to person resident outside India in contravention of Section 3(b) of FEMA, 1999 by crediting the aforesaid amount without any import. SCN to noticees (herein Respondent No. 2 & 3) M/s Emart Digital Ltd. and its Dire....

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.... for the appellant ED summitted that admittedly respondents have contravened the aforesaid provisions of FEMA. He contended that the respondents have mis-utilized the foreign exchange by sending the same outside India without import of any consignment. Respondent No. 2 remitted the money to the extent of Rs. 4,89,69,850/- into the account of M. Padamchand, the Proprietor of M/s Varsha Telecommunication Systems, which was subsequently remitted outside India in the guise of advance import payment against which no imports took place. M/s Emart Digital Limited acquired assets in the form of foreign exchange outside India by utilizing the said amount, whereas, the penalty of Rs. 10 Lakh imposed on this company and its Director, are on the lower ....