TaxTMI 
TaxTMI 
2024 (6) TMI 1575
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.... Praveen Kumar Chaudhary 10,000/- Apart from above penalties, foreign currency and Indian currency of Rs. 1,60,000/- recovered and seized from the premises of Shri Bhim Sain was also confiscated u/s. 63 of FERA, 1973. The confiscation/seizure of foreign currency/Indian currency are detailed as under: S. No. Name/Address of the person Foreign Currency 1. Shri Anil Gupta s/o Shri T.R. Gupta, R/o. 20/10 Shakti Nagar, Delhi US$ 109/- 2. Shri Ashwani Fotedar, S/o Shri D.N. Fotedar, E-15, Jangpura Extn., New Delhi US$ 450, UKGBP 240 and Fr. 500/- 3. Shri Praveen Kumar Choudhary, S/o Shri Sohan Lal Choudhary, R/o Cee Bronze Apartment, Balaji Nagar (2nd Street), Madras-14 US$ (TCs) 2590, DM(TCs) 1100, GBP (TCs) 100, F.F. 100 and documents 4. Shri Baljit Singh S/o Shri Arjun Singh, W2L/2/63-A, New Mahavir Nagar, N. Delhi DM 1000, UAE Dh. 200 and US$ 1355 5. Shri Sunil Kumar S/o Shri Trilok Chand Goel, Karawal Nagar, Shiv Vihar, Delhi - 94 DM 2105, Giildars 700 and Indian Currency Rs.50,000/- 2. As per the facts of the case, the business premises of Shri Bhim Sain and Shri Deepak Kumar were searched by the officers of the Enforce....
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.... exchange; that the account had been written on page 1 is as 1205 GBP@ 47.50, 340 GBP @ 45.25, 11000 US$ @ 31.90, 226 US$ @ 31.40, 2300 Can.$ @ 24.00, Can. $ @ 23.90. These have been purchased by him and given to Shri Bhim Sain on 02.12.1992. He further stated that on this page written was 3500, 200 and 500, these amounts are of US$, which he gave to Shri Bhim Sain; While explaining the contents of page 2, he stated that the calculations written were as under:- "2270 GBP @ 47.50 purchased, 2250 Can. $ @ 24.20 purchased, 1000 Can. $ @ 24.20 purchased, 200 Sing. $. @ 8.30 and 700 Sing. $ @ 8.20 purchased, 65 US$ @ 31.40, 8200 US$ @ 31.90 purchased and 250 US$ @ 30.90 purchased." Deepak Kumar further deposed that all these foreign currencies have been given by him to Shri Bhim Sain after purchase. He also stated that he is doing business of foreign exchange with Shri Bhim Sain for the last one year. Shri Bhim Sain gives him Indian currency to purchase the foreign exchange. He purchases foreign exchange at least equivalent to Rs. 20 Lakhs per month and gives to Shri Bhim Sain. He earns a monthly profit of Rs. 8,000/- out of this business; Shri Deepak Kumar in his further st....
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.... than an authorized dealer in foreign exchange, without any previous general or special permission of the Reserve Bank of India; Shri Anil Gupta, a person resident in India, other than an authorized dealer in foreign exchange attempted to sell the aforesaid foreign exchange of US$. 109/- to Shri Bhim Sain/Shri Deepak Kumar, without any previous general or special permission of the Reserve Bank of India; Shri Ashwani Fotedar in his statement dated 02.12.1992 inter-alia stated that he came to the business premises of Shri Bhim Sain to sell the seized foreign exchange US$. 450, UK GBP. 240 and F. FR. 500 to Shri Bhim Sain/ Shri Deepak Kumar. He also stated that earlier on two occasions he had changed currency worth Rs. 3,000/- and Rs. 9,000/-; While explaining the seized foreign currency Shri Ashwani Fotedar stated that he came to Shri Bhim Sain/ Shri Deepak Kumar after contacting on phone to exchange the seized foreign currency which he received from foreigners, who visited his agency for buying tickets to whom he does not know; This reflects that during the year 1992, the said Ashwani Fotedar, a person resident in India, other than an authorized dealer in foreign exchang....
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....came to hum from Bangkok who left the foreign exchange with him and told him that when he comes next, he will collect the same, but he did not come; This relfects that during the year 1992, the said Shri Baljit Singh, a person resident in India, other than an authorized dealer in foreign exchange, otherwise acquired the seized foreign exchange mentioned above, from persons other than authorized dealers in foreign exchange without any previous general or special permission of the Reserve bank of India; It further show that the said Shri Baljit Singh, a person resident in India, other than an authorized dealer in foreign exchange attempted to sell the seized foreign exchange of DM. 1000, UAE Dh. 200 and US$, 1355 to Shri Bhim Sain/ Deepak Kumar, without any previous general or special permission of the Reserve Bank of India; Shri Sunil Kumar in his statement dated 02.12.1992 inter- alia stated that he came to the business premises of Shri Bhim Sain to hand over the bag containing foreign exchange of DM. 2105, Guilders 700 and Indian currency Rs. 50,000/- to Shri Bhim Sain/ Shri Deepak Kumar; It reflects that during the year 1992, the said Shri Sunil Kumar, a person reside....
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....; By otherwise acquiring and attempting to sell the seized foreign exchange of US$ 2590(TCs), DM. 1100(TCs), GBP.(TCS) 100 and FF 100 in the aforesaid manner, the said Shri Praveen Kumar Choudhary appears to have contravened the provisions of Section 8(1) & 8(2) read with Section 64 (2) of the Foreign Exchange Regulation Act, 1973 and has thereby rendered himself liable to be proceeded against under section 50 of the said Act; By otherwise acquiring and attempting to sell the foreign exchange of DM. 1000, UAE Dh. 200 and US$. 1355 in the aforesaid manner, the said Shri Baljit Singh appears to have contravened the provisions the provisions of Section 36. AND WHEREAS by otherwise acquiring and attempting to sell the aforesaid foreign exchange of DM. 2105 and Quilders 700 in the. aforesaid manner, the said Shri Sunil Kumar appears to have contravened the provisions the provisions of Section 8(1) and 8(2) read with Section 64 (2) of the Foreign Exchange Regulation Act, 1973 and has thereby rendered himself liable to be proceeded against under section 50 of the said Act; Show Cause Notice was accordingly issued by Adjudicating Authority to Shri Bhim Sain, Deepak Kumar, Anil Gup....
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....dia in accordance with the directions made in this behalf" "64(2) Whoever attempts to contravene or abets any contravention of. any of the provisions of this Act(other than section 13 clause (a) of section 18, clause (a) of sub-section (1) of section 19, sub-section(2) of section 44 and sections 57 and 58 or of any rule, direction or order8(1) and 8(2) read with Section 64 (2) of the Foreign Exchange Regulation Act, 1973 and has thereby rendered himself liable to be proceeded against under section 50 of the said Act;" Accordingly, show cause notice no. T-4/40-D/93(SCN) dated 30.11.1993 under sections 8(1), 8(2), 63 and 64(2) of the Foreign Exchange Regulation Act, 1973 was issued to the appellants. After going through the replies and the documents on record, the Adjudicating Authority passed the impugned order. Aggrieved by the same, appellants filed the present appeal. 4. Learned Counsel for the appellant submitted that the Adjudicating Authority failed to appreciate the fact that appellant Bhim Sain was working as a Manager of M/s Kamal Stationers and at the time of search no foreign currency was recovered from his possession and the seized Indian Currency of Rs....
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....pointed out that the said statements are also duly corroborated by documentary evidence on record. The fact that Deepak Kumar has not signed his statement dated 02.12.1992 has no ground to set aside the impugned order, as the said statement is also corroborated by other oral and documentary evidence on record. Prayer is accordingly made to dismiss the present appeal being devoid of any merits. 6. After hearing the rival submissions, I have given my thoughtful consideration to the same.On 02.12.1992, during the search of the premises of appellants, Indian Currency of Rs. 1,60,000/- were recovered by officers of ED as mentioned in the Panchnama dated 02.12.1992. On the same day at the spot statement of Bhim Sain was recorded on 02.12.1992, wherein he stated that the said Indian Currency of Rs. 1,60,000/- seized from his shop were the proceeds of foreign currency sold by him on that day. He also admitted the documents seized from the shop are in his own hand writing, being written by him during his business of foreign currency. The details of which is reproduced as under: - "Purchased 27205 US$ @ 31.35, US$ 37 @ 30.80, DM 1080 @ 19.60, FF 1810 @ 5.70, GBP 365 @ 47....