Page 120 - ELT_1_1st April 2020_Vol 372_Part

6 EXCISE LAW TIMES [ Vol. 372

“ORDER
In view of my above findings, I hold M/s. Zoom enterprises Ltd., and
their Managing Director Sri Suborno Bose guilty of the charge. In exercise
of powers conferred on me under Section 13(1) of the Foreign Exchange
Management Act, 1999. I impose on them the following amount of penalty.
(1) M/s. Zoom Enterprise Ltd. Rs. 10,00,000/- (Rupees Ten Lakhs)
(2) Sri Suborno Bose Rs. 10,00,000/- (Rupees Ten Lakhs)
The penalty amount so imposed in terms of the provisions of Section
13(1) of the said Act shall be deposited in the office of the Deputy Director,
Directorate of Enforcement, Calcutta by cheques/demand draft issued in
favour of the Chief Enforcement Officer (Admn.), 3rd M.S.O. Building, 6th
floor, C&D Wing, Salt Take, Calcutta 700064 within 45 days from the date
of receipt of this order.”
4. The Company, as well as, the appellant carried the matter in appeal
before the Special Director (Appeals), FEMA & Commissioner of Income-Tax,
Delhi being Appeal Nos. SD(A)/Kol/04/05/112 and SD(A)/Kol/04/05/113.
The appellate authority vide order, dated 13-6-2005 dismissed both the appeals
and was pleased to uphold the decision of the adjudicating authority. After ad-
verting to the admitted facts, the appellate authority proceeded to consider the
requirements of the relevant provisions necessitating submission of Bill of Entry
to effectuate the remittance and complete the import of the goods for which the
remittance was made. The appellate authority observed as follows :-
“7. As per the provisions of Section 10(6) of FEMA, the foreign exchange
acquired from an authorized dealer has to be utilized for the purpose it was
released or otherwise it should have been surrendered to the authorized
dealer. The Regulation 6(1) in the FEMA (Realisation, Repatriation & Sur-
render of Foreign Exchange) Regulation, 2000 issued by RBI on 3-5-2000,
prescribe that the transaction should be completed within a period of sixty
days from the date of acquisition or purchase of foreign exchange. The RBI
has issued a Master Circular No. 7/2004-05, dated 1-7-2004 but the Circular
No. 9 A.P. (DIR Series) (2000-01) issued on 24-8-2000 by the RBI, prescribing
guidelines for the import of goods/currency, is applicable at the relevant
time when the appellant company imported the goods. Certain obligations
and requirements have been prescribed for the purchaser of the foreign ex-
change in Paras A.3 and A. 17. As per para A. 17 (ii), it is obligatory on the
purchaser of foreign exchange for all imports with value exceeding US $
5000, to submit exchange control copy of the bill of entry for home con-
sumption, to the authorized dealer. If such original bill of entry is not sub-
mitted within six months from the date of remittance the authorized dealer
has to report the same to the RBI.
8. In the present case the foreign exchange was remitted on 18-4-2000 and 19-6-
2000 for import of refrigerating machinery, but instead of taking the delivery of the
imported goods, these were warehoused. The management of the company as ar-
gued by the Ld. Counsel, changed hands in October, 2001. As per the requirements
of Section 10(6) of FEMA RBI regulation dated 3-5-2000 and Circular, dated 24-8-
2000, supra the formalities for import have to be completed within six months of
remittance of foreign exchange. If the appellant is unable to comply with these re-
quirements under FEMA and the RBI, necessary approval of the authorized dealer
and the RBI is necessary. Though the imports were made in 2000 but no steps have
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