TaxTMI 
TaxTMI 
2026 (7) TMI 244
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....Sh. J. Rajender Rao (Ex Director of the said company), against the Adjudication Order passed by the Ld. Adjudicating Authority, i.e., the Joint Director, ED, Hyderabad, Zonal Office on 27.10.2020, imposing penalties upon the two appellants herein under the provisions of the Foreign Exchange Management Act, 1999 (FEMA, 1999) as per details given in the table below: Sl. No. Name of noticee Contravention Penalty 1. M/s RA Chem Pharma Ltd. Sec. 7(2) & 8 of FEMA, 1999 read with Regulation 8, 9 & 13 of the FEM (Export of Goods & Services) Regulations, 2000 to the extent of USD 232902.923(Equivalent Rs. 1,19,61,448 100% of the outstanding amount i.e. Rs. 1,19,61,448 2. M/s RA Chem Pharma Ltd. Sec. 7(2) & 8 of FEMA,....
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....mercial shipment. Evidence in support thereof was also submitted. 3. It was also informed during the course of the enquiries that the company was earlier known as IGOR Pharma Chem Pvt. Ltd. and was renamed as M/s R.A. Chem Pharma Ltd. during 2003; that its authorized capital is Rs. 14 crore, of which, the paid-up capital is Rs. 8,50,11,050/-; that it had received FDI of Rs. 3 crore each from Ontario Inc. and M/s Orchem International Trading BV after the merger during the year 2008; that there has been a delay of filling form FC-GPR for which they had approached RBI for compounding and the RBI by letter dated 24.08.2011 compounded the same and imposed a penalty of Rs. 1 lakh. 4. In order to ascertain the pending cases of bills of entry....
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....i (Adjudicating Authority) requiring the Appellant to show cause in writing within 30 days as to why adjudication as contemplated under Section 16(1) of FEMA, 1999 should not be held against the appellant for the aforesaid contravention. 9. Upon receipt of reply to the show cause notice, the Ld. Adjudicating Authority decided to take up the matter for adjudication, and, after hearing the case on merits and taking into account the facts placed before him, passed the impugned Adjudication Order no. JD/AG/04/HYZO/2020, dated 27/10/2020, imposing a penalty of Rs. 4,61,84,337/- on the Appellant u/s 13 of the FEMA, 1999 for the contraventions to the tune of Rs. 4,61,84,337/-. 10. Aggrieved by the said order of the Adjudicating Authority, th....
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....ng Authority, which is not justified; (ii) The appellant received foreign remittance against export invoices through ICICI Bank and, while filing documentation against such foreign remittance received towards export of samples, the concerned employee of the appellant company inadvertently mentioned in the documents filed with the bank the purpose code as 'P0103' which pertains to advances, instead of 'P1008' which pertains to export of samples. On realizing the mistake, the appellant requested the ICICI Bank for change of Purpose Code vide its letter dated 24.08.2016, but no response was received from the ICICI Bank. In their reply the respondent directorate has submitted that the contention of the appellant is without merit and th....