MIZPAH CHARITABLE TRUST Vs. UNION OF INDIA

JUDGEMENT

(1.) Introduction 1. The petitioner impugns the Notification bearing No.S.O. 1070(E) dtd. 26/4/2013 (hereafter the 'impugned notification') issued by the respondent under Sec. 41 of the Foreign Contribution (Regulation) Act, 2010 (hereafter the 'FCR Act'). The petitioner claims that the impugned notification is ultra vires of the provisions of the FCR Act. In addition, the petitioner also impugns an order dtd. 12/3/2014 (hereafter 'the impugned order') issued by the respondent, whereby the petitioner was advised to pay a penalty of ?11,78,260/- (Rupees Eleven Lakhs Seventy-eight Thousand Two Hundred and Sixty Only) for compounding the offence of delay in filing of the annual returns under the FCR Act, for the financial years 2009-10, 2010-11 and 2011-12. The petitioner contends that the delay in filing an annual return is not an offence punishable under the FCR Act. It is also contended that since the FCR Act came into effect on 1/5/2011, the same cannot be applied to impute commission of an offence prior to that date.

(2.) The questions that fall for consideration before this Court are:

(3.) Mr Manoj V. George, learned counsel appearing on behalf of the petitioner, contended that Chapter-VIII of FCR Act contains provisions relating to 'Offences and Penalties' and there is no provision in the said chapter, which stipulates that the delay in filing an annual return is an offence. Sec. 41 of the FCR Act provides for compounding of certain offences. Since delay in filing the annual return is not an offence, the question of compounding the same does not arise.