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2014 (2) TMI 763 - HC - FEMALevy of penalty for contravention of Section 8(3)(4) Foreign Exchange Regulation Act, 1973 (FERA) - respondent-Company had acquired foreign exchange for importing P.P. Dyed Chips. - goods imported by the Company were pigment preparations. - price of pigment preparation could be higher than the price of PP Dyed Chips. - Held that:- it would be difficult to dispute that pigment preparations are a product altogether different from PP Dyed Chips. Pigment preparations, it appears to me are the colouring substance whereas PP Dyed Chips are polypropylene chips which have been subjected to dyeing using a colouring substance for the purpose. Had PP Dyed Chips and pigment preparation being one and the same product there could be no reason for the respondents to place order for PP Dyed Chips instead of pigment preparations. The foreign exchange utilised by the respondents for importing PP Dyed Chips was to the extent of ₹ 87,58,617/-. Considering the value of the goods imported by them, neither penalty imposed upon the Company nor the penalty imposed on its Managing Director, Mr. G.P. Poddar and the Executive Director Mr. A.K. MIttal can be said to be excessive. If at all, the penalty imposed upon them was on the lower side. Therefore, there is no scope for reducing the penalty. - Decided against the appellant.
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