2026 (4) TMI 1802

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....ty (AA) imposed the penalty of Rs. 2,50,000/- on the Appellant for the contraventions of Section 3(a) of the Foreign Exchange Management Act, 1999 (FEMA), vide the Impugned Order. 2. Ld. Counsel for the Appellant submitted that the Appellant was neither the owner or employee of the firm 'Benaras Saree Centre'. During lean hour in absence of his father, he came to the shop to assist his uncle Shri Nasir Ahmed. The Appellant was educated up to class IX. He had never seen/handled any foreign currency. The foreign customer, after selection of his intended purchase of goods, had offered consideration in US $ 10,000 to his uncle. His uncle advised him for taking the customer to any exchange shop for encashment. During that time the tea....

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....l in foreign exchange. Therefore, the Appellant including partners of Banarasi Saree Centre had contravened the provisions of Section 3(a) of FEMA. The reply submitted by the Appellant was after thought, their money changing Licence was cancelled two years back and even in spite of that they were found to be indulging in dealing foreign currency. Hence, the Ld. Adjudicating Authority had righty imposed penalty of Rs. 2,50,000. Therefore, Ld. Special Director (Appeal), Kolkata upheld the Original Order and passed the Order in Appeal No. 535/SD(A)-23/FEMA/2016-17 dated 03.02.2017. 4. Ld. Counsel for the Appellant stated that the Ld. Special Director, (Appeal), FEMA failed to appreciate that after search of the shop no incriminating evidenc....

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....n 12.07.2010 was true and correct. Similarly, Shri Anwar Ahmed Banarasi through his letter dated 28.09.2011 stated that the seized foreign currencies were considerations paid by the foreign tourists for goods purchased. In spite of these lines of defence violation of Section 3(a) of FEMA is established, in the absence of any general or special permission from RBI. Furthermore, in the statement dated 03.01.2011, Shri Banarasi confirmed that the statements of his brother and son were recorded in his presence on 12.07.2010 and the same are correct. The submission of Shri Bandopadhyay, Ld. Counsel that the seized foreign currency belonged to the Bangladeshi present in the shop and was recovered from his person only, is not in line with the stat....