TaxTMI 
TaxTMI 
2025 (9) TMI 408
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....st the Adjudication order dated 08.12.2022 passed by the Deputy Director u/s 17 of FEMA, 1999 imposing penalty of Rs. 24 lakhs. The order was passed in pursuance to the Show Cause Notice served to the appellant showing contravention of Section 10(5) of the Act of 1999 read with Para 8 of the Part B of RBI's Master Direction No. 07/2015-16 dated 01.01.2016. The learned counsel for the appellant submitted that without there being any contravention of Section 10(5) of the Act of 1999 and even Para 8 of the Part B of RBI's Master Direction, penalty has been imposed. Referring to the facts of this case, it is submitted that M/s Sea Bird International (P) Ltd. and Sea Bird Education & Immigration Consultants (P) Ltd. collected money from th....
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....ents for its onwards remittance in foreign exchange and not by the firm. In the light of the aforesaid, a prayer was made to set aside the impugned order. The learned counsel for the respondent contested the appeal. It is submitted that not only there is a contravention of Section 10(5) of the Act of 1999 but even Para 8 of the Part B of RBI's Master Direction. The appellant could not have accepted the payment from a firm or a company for remittance. It should have been by the individual for remittance of foreign exchange. According to him, the appellant received the money from third party though was not authorized and accordingly remittance of foreign exchange was in contravention of Section 10(5) and even Para 8 of the Part B of RBI's ....
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....this Act or of any rule, regulation, notification, direction or order made thereunder, and where the said person refuses to comply with any such requirement or makes only unsatisfactory compliance therewith, the authorised person shall refuse in writing to undertake the transaction and shall, if he has reason to believe that any such contravention or evasion as aforesaid is contemplated by the person, report the matter to the Reserve Bank." "Para 8 of Part B-The Authorized Dealer should ensure that the payment is received out of funds belonging to the person seeking to make the remittances, by a cheque drawn on the Applicant's Bank account or by debit to his account or by Demand Draft / Pay Order. Authorized Dealer may also acc....
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....d if the money was given by a company or a firm then it cannot mean acceptance of money by the authorized dealer in contravention of Section 10(5) of the Act of 1999 read with Para 8 of the Part B of RBI's Master Direction. What has been provided under the provision of aforesaid is that authorized person shall, before undertaking transaction in foreign exchange on behalf of a person to make a declaration which was taken by the appellant. The provision does not bar acceptance of money from the firm or the company. The appellant had taken declaration from each student before remittance of foreign exchange. According to the counsel for the appellant, all required formalities were completed. We find a reference of declaration by students in ....