2025 (12) TMI 107

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....E-118/MUM/2010 and FPA-FE-120/MUM/2010 filed by M/s G. Tex Inc and Shri Natwarlal Jhanwar respectively against the Order dated 25.02.2010 (Impugned Order) passed by the Special Director, Enforcement Directorate, Mumbai. Penalty of Rs. 30,00,000/- was imposed on the Appellant M/s G. Tex Inc for the contravention of Section 10 (6) of the Foreign Exchange Management Act, 1999 (FEMA) vide the Impugned Order. Penalty of Rs. 7,50,000/- was imposed upon the Appellant Shri Natwarlal Jhanwar for the aforementioned contravention read with Section 42 (1) of FEMA vide the Impugned Order. 2. It is on record that the two related Appeal Nos. FPA-FE- 119/MUM/2010 and FPA- FE-121/MUM/2010 filed by Shri Rajesh Jhanwar and Shri Madhu Sudan Jhanwar respecti....

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....ration of the Appeal No. FPA-FE-118/MUM/2010 which had been dismissed on 06.03.2024 by the Tribunal. The Appeal was dismissed since vide Order dated 11.01.2023, the Appellant was directed to deposit 25% of the penalty amount along with bank guarantee/security for remaining amount of penalty of Rs. 30,00,000/-, which was not timely complied. It was found that instead of getting the fixed deposit in the name of the Respondent Directorate, it was made in the name of one of the Appellant. Since the condition of the pre-deposit had not been complied with, after having been given sufficient time beyond the initial period granted to the Appellant to make the pre-deposit, the Appeal was dismissed on 06.03.2024. Ld. Counsel for the Appellant further....

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....ten to HSBC Bank through the Authorised Dealer Bank as well as to the Shipping Company. Letter was also written to M/s Choitram & Sons, the Consul representative of India at Sierra Leone. They had also approached M/s Intertek International Ltd. who were authorised to do pre-shipment inspection at Sierra Leone. Ld. Counsel informed that the inspection certificate was found to be forged. Ld. Counsel therefore, pleaded that the two Appeals may be allowed. 5. Ld. Counsel for the Respondent argued that the Appellant firm has no case since the remittance had been made abroad yet the imports of copper wire scrap did not take place. The Appellant also failed to surrender the Foreign Exchange to the Authorised Dealer. He further argued that the e....

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....ance to be made abroad even before the consignment had reached the Indian Port. 7. On looking at the efforts made by the Appellant Firm, we find that the person deputed to Sierra Leone was one Shri Kailash Upadhaya from M/s Jams Exim Pvt. Ltd. None of the partners of the Firm travelled to get the amount remitted back. It has also been observed in the Final Order dated 26.11.2024 of this Tribunal that, "We do not find serious efforts to recover the amount from M/s Koya International, rather for that, the appellant should have lodged the claim to recover the amount through Court of Law. The appellant failed to do so." We therefore find that the Appellant firm is liable for imposition of penalty. 8. We find that the copies of the two yea....