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2018 (9) TMI 1150 - AT - FEMAOrder passed u/s 37(A)(3) of FEMA, 1999 - Competent Authority (CA) has confirmed the seizure of mutual funds as equivalent to US $ 16,00,000 held outside India by the appellant - whether as per Section 37(A)(4) proviso, the seizure can be set aside which was confirmed by the impugned order dated 18.05.2018? - Appellate Tribunal’s power - Held that:- CA or Adjudicating Authority has the power to deal with this seizure order only, and not review its own order once passed under Section 37(A)(3). Hence, the contention of the appellant that it has the powers to review, is not borne out by this legal provision. Coming to the Appellate Tribunal’s power, Section 37(A)(5) clearly mentions that any person aggrieved by any order passed by the Competent Authority under Section 37(A)(3) may prefer an appeal to the Appellate Tribunal. Hence, the Appellate Tribunal jurisdiction is limited only to the orders passed by the Competent Authority under Section 37(A)(3). He does not have any original jurisdiction to get into any issues which have not been dealt by the original authority or are subsequent developments to the passing of the order by the Competent Authority. The law is very clear in as much as the Competent Authority has the power only to confirm or otherwise, the seizure done under Section 37(A)(1). The Appellate Tribunal’s powers are only limited to hearing of appeals against these orders. In any case, the adjudication proceedings will have to be gone through as Section 37(A)(4) clearly lays down that the seizure will continue till the disposal of adjudication proceedings. Hence, no merits in the application asking for setting aside the seizure on the above grounds. It is therefore disallowed. Reply be filed in the main appeal within four weeks time and rejoinder within four weeks thereafter.
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