2026 (4) TMI 871

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....)/FEMA/2017-18(CIT)(A) - 35/31 dated 28.05.2019 passed by the Special Director (Appeals), FEMA, New Delhi, whereby the order passed by the Adjudicating Authority, dated 02.11.2017 was confirmed for imposing penalty of Rs. 2 lacs on each appellant for commission of contravention u/s 3(b) of FEMA, 1999 read with Section 42 of FEMA,1999. It is pertinent to mention here that vide order dated 02.04.2024, the appellants were directed to deposit 50% of the penalty amount, while disposing the applications for waiver of the pre-deposit of penalty amount. The said order was duly complied by the appellants and accordingly, the appeals were proceeded for final disposal on merits. 2. As per the allegation in the complaint, the DRI, Mumbai conducte....

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....nts filed the first appeal before Special Director (Appeals), ED. The Special Director (Appeals) dismissed the said appeal vide order dated 28.05.2019. Aggrieved by the said order, appellants filed the present appeals challenging the said two orders dated 02.11.2017 & 28.05.2019. 3. During the arguments, Ld. Counsel for appellants submitted that the whole case is built up by ED on the basis of the fact that they deposited differential amount of customs duty in Customs case investigated by DRI. He contended that there is nothing on record to show that appellants sent any remittance to the foreign based exporters through unknown persons, as alleged. The said presumption is raised by ED without proper investigation in the present case. H....

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....ravention under Section 3(b) of FEMA by appellant company, M/s Vipin Print Services Pvt. Ltd., is hereby maintained. Appellant Vipin Khajuria was the Managing Director of the company and hence, he cannot be exonerated from the liability of the said contravention. 6. However, we are satisfied with the contention of the Ld. Counsel of the appellants Janak Khajuria and Varun Khajuria that they were not managing the day-to-day affairs of the company and were sleeping directors. They have not signed any document at the time of import of consignments or thereafter. Hence, they need to be exonerated from the alleged contravention under Section 3(b) read with Section 42 of FEMA, and accordingly, the appeal no. FPA-FE-45/DLI/2019 & FPA-FE-46/DLI/....