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2011 (2) TMI 1300 - AT - FEMAViolation of the provisions of Section 9(1)(c) - Imposition of Penalty - Held that:- retracted statement cannot be made the sole basis of imposing penalty in the absence of any other independent corroborative evidence. Apart from that, making the admission of liability to third person is not an acknowledgement of debt, the acknowledgement should be in favour of the person who has a right to recover it - admission made by the appellant to the Director of Enforcement will not fall in the category of acknowledgement of debt giving legal and enforceable right to M/s. Tewin Plastics Ltd., UK - penalty imposed by the Adjudicating Authority for violation of provisions of Sections 14(a) and 18(1) against show cause notice no. 2 is solely based on the retracted statement - Therefore, penalty imposed is not sustainable - However, The penalty of Rs. 50,000/-imposed for acknowledging on the date in favour of M/s. Tewin Plastics Ltd., UK is set aside while remaining part of the order is maintainable - Decided partly in favour of appellant.
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