TaxTMI 
TaxTMI 
2026 (2) TMI 534
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....s Nos. FPA-FE-62/CHN/2019 filed by M/s Vijeta Marines Pvt. Ltd. (VMPL) and FPA-FE-101/CHN/2023 filed by Shri N. Sreenivas, against the Order No. ADE/SRO/HYZO/02/2019 dated 29.07.2019 (Impugned Order), passed by the Additional Director, Enforcement Directorate, Government of India, Chennai. The Ld. Adjudicating Authority (AA) imposed the cumulative penalty of Rs. 1,01,13,971/- on the Appellant Company comprising of the following: a. Rs. 22,00,000/- for the contravention of Section 8 of the Foreign Exchange Management Act, 1999 (FEMA) read with Regulations 14 (C) of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 to the extent of US $ 10,07,000 (equivalent to Rs. 4,30,00,000/-). b. Rs. 1,13,9....
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.... 248 and Section 250 of the Act of 2013 is reproduced below: CHAPTER XVIII REMOVAL OF NAMES OF COMPANIES FROM THE REGISTER OF COMPANIES "248. Power of Registrar to remove name of company from register of companies. - (1) Where the Registrar has reasonable cause to believe that- (a) a company has failed to commence its business within one year of its incorporation; [or] * * * * * (c) a company is not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under [section 455; or] (d) the subscribers to the memorandum have not paid the subscription which they had ....
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....y to a company registered under section 8. (4) A notice issued under sub-section (1) or sub-section (2) shall be published in the prescribed manner and also in the Official Gazette for the information of the general public. (5) At the expiry of the time mentioned in the notice, the Registrar may, unless cause to the contrary is shown by the company, strike off its name from the register of companies, and shall publish notice thereof in the Official Gazette, and on the publication in the Official Gazette of this notice, the company shall stand dissolved. (6) The Registrar, before passing an order under sub-section (5), shall satisfy himself that sufficient provision has been made for the realisation of all amount d....
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....company." 4. In view of the aforementioned provisions it is clear that Sub- Section (6) of Section 248 read with Section 250 of the Act of 2013 that the liabilities and obligations shall continue and for the purpose sufficient provision has to be made for the discharge of its liabilities. We therefore find that the Appellant Company after imposition of cumulative penalty of Rs. 1,01,13,971/-vide Impugned Order dated 29.07.2019 continues to be liable for the payment of penalty, even after having been struck off. 5. In this regard, the provisions of Section 19(1) of FEMA are reproduced below: "19. Appeal to Appellate Tribunal- (1) Save as provided in sub- section (2), the Central Government or any person aggrieved by an order m....
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.... aforesaid contraventions occurred. I also find that Shri N. Sreenivas had signed the BUY BACK AGREEMENT between M/s Eastward Exim & Shipping Pte Ltd., and VMPL. Shri N. Sreenivas had also signed the invoices raised by VMPL on behalf of VMPL and he is in full knowledge of the pending exports with regard to the advances received. Further during the adjudication proceedings, Shri N. Sreenivas had not provided any material or evidence to substantiate that the alleged contravention took place without his knowledge or that he had exercised all due diligence to prevent such contravention. In as much as the guilt of M/s VMPL has been proved as above, I hold Shri N. Sreenivas, Director of VMPL also guilty of the above- mentioned contraventions in t....
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.... "35. In our considered opinion, penalty is attracted as soon as the contravention of the statutory obligation as contemplated by the Act and the Regulations is established and hence the intention of the parties committing such violation becomes wholly irrelevant. A breach of civil obligation which attracts penalty in the nature of fine under the provisions of the Act and the Regulations would immediately attract the levy of penalty irrespective of the fact whether contravention must be made by the defaulter with guilty intention or not. We also further held that unless the language of the statute indicates the need to establish the presence of mens rea, it is wholly unnecessary to ascertain whether such a violation was intentional or n....