AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (4) TMI 1400
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of Section 9 (1) (c) r/w Sections 64 (2) and 68 of FERA 1973 for abetting M/s Arvind International and S/Shri Arvinder Singh and Pankaj Soni. The charges under Section 8 (1) of FERA 1973 r/w Section 64 (2) ibid have been dropped. 2. Ld. Counsel for the Appellant, during the course of the hearing on 21.03.2024, contended that the case against the Appellant is based upon the statements of co-accused Ratinder Pal Singh Bhatia alias Roampy Bhatia and Pankaj Soni. The case made by the Directorate of Revenue Intelligence (DRI) forms the bases of the charges under FERA. It was further argued that the statements of the Appellant under Section 40 of FERA 1973 have not been relied upon. The copies of the statements are on record. 3. It was als....
X X X X Extracts X X X X
X X X X Extracts X X X X
....03.2012 of the High Court of Bombay in the case of Vinod M. Chitalia vs. Union of India. He therefore prayed for dismissal of the appeal. 5. We have considered the rival submissions. It is not disputed that M/s Arvind Internationals, New Delhi imported 27000 pieces of CD-ROMs collectively valued at Rs. 1,24,19,684/- from M/s Shamu Enterprises, Singapore. The CD-ROMs had markings of Padmini Multimedia revealing its origin to be of India in contrast to what had been declared to be from Singapore. The investigations by DRI revealed that import consignment was part of 52,000 pieces of CD-ROMs which had earlier been exported by M/s Harkishan Overseas, New Delhi to M/s Oxford, Singapore at much higher value for claim of export incentive u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er Pal Singh Bhatia alias Roampy Bhatia. 8. On perusal of the statements tendered by the Appellant under Section 40 of FERA, 1973 it is seen that he has accepted being in the business of export in the name of M/s A.D. Exports and also that a Show Cause Notice had been issued to him by the Enforcement Directorate for outstanding export proceeds. He also admitted having introduced one Shri Devender Lal CHA (Customs House Agent) to M/s Sundaram Exports and to M/s Harkishan Overseas. He also stated that he acted as commission agent for purchase of CD-ROMs from M/s Super Cassette to M/s Sundaram Exports. He also knew Shri Ratinder Pal Singh Bhatia alias Roampy Bhatia and Shri Sunny Singh. He stated that the instruction for export of CDROMs we....
X X X X Extracts X X X X
X X X X Extracts X X X X
....there is no prohibition in relying upon statements made under the Customs Act 1962 for the purposes of the adjudication proceedings under the FEMA, more so when reliance is placed upon documents to the complaint made to the Adjudicating Authority. 22. Section 3(b) provides that no person shall make any payment to or for the credit of any person resident outside India in any manner. In the present case, there is a complete absence of any legitimate consideration, such as the supply of goods against which an inward remittance as high as Rs. 75.39 crores was received. Hence, the only possible inference that would arise is that the inward remittance of Rs. 75.39 crores was matched by a hawala transaction involving transaction....
X X X X Extracts X X X X
X X X X Extracts X X X X
....To impose a burden of establishing in an adjudication proceeding, every conceivable link of an unlawful transaction would result in a manifest failure of justice and would defeat the underlying purpose of the Act. The standard of proof in an adjudication proceeding cannot be equated with the rigorous standard in a criminal trial. The poof required in an adjudication proceeding is on a preponderance of possibilities. The Department has discharged the burden cast upon it of proving the breach of Sections 3 (b) and 3 (d)." 10. It is therefore clear that reliance upon the statements recorded under Section 108 of the Customs Act can be placed. Moreover, these statements have been made in the context of the export and import of 40,000 pieces o....