2008 (7) TMI 1109 - AT - FEMA

Summary

Issues:
- Appeal against Adjudication Order imposing penalty for contravention of Foreign Exchange Regulation Act, 1973
- Application for dispensation from pre-deposit of penalty amount
- Non-compliance of pre-deposit order by the appellant
- Legal provisions under section 52(2) of FERA, 1973 regarding pre-deposit of penalty amount

Analysis:
The judgment by the Appellate Tribunal for Foreign Exchange, New Delhi pertains to an appeal filed against an Adjudication Order imposing a penalty for contravention of the Foreign Exchange Regulation Act, 1973. The appellant, Mohd. Afsar Ali, was penalized for receiving and making payments to the tune of Rs. 18 lakh without the permission of the Reserve Bank of India. The appeal was also accompanied by an application for dispensation from pre-deposit of the penalty amount. The Tribunal, in its order, highlighted that the appellant failed to comply with the order for pre-deposit despite being given a period of 30 days to do so. The appellant did not appear in the case even after notices were served, indicating a lack of bona fide on his part. The appellant's representative reported the non-compliance and agreed to dismiss the appeal as per the statutory scheme.

The Tribunal referenced section 52(2) of the FERA, 1973, which outlines the requirements for filing an appeal and the pre-deposit of the penalty amount. The provision mandates that an appellant must deposit the sum imposed by way of penalty within 45 days from the date of the order, unless dispensation is granted. The Tribunal noted that despite leniency shown by granting dispensation of 20% of the penalty amount, the appellant failed to comply with the pre-deposit order. The appellant was directed to deposit only 80% of the penalty amount, but he did not do so, indicating a lack of good faith on his part. Consequently, the Tribunal held that the appeal was liable to be dismissed, and an order to that effect was passed, consigning the record of the appeal to the record room.

In conclusion, the judgment underscores the importance of compliance with legal provisions, especially regarding pre-deposit requirements for filing appeals under the FERA, 1973. The Tribunal emphasized the need for appellants to adhere to orders and demonstrate good faith in legal proceedings to avoid dismissal of appeals.