THEMIS AGENCIES Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal is filed under section 35 of the Foreign Exchange Management Act,1999 ('FEMA' for short) against the order of the Appellate Tribunal for Foreign Exchange dated 8/6/2006. By the said order, the Tribunal reduced the penalty from Rs.6,00,000/- to Rs.2,00,000/- which was levied upon the appellant on the ground that the provisions of Foreign Exchange Regulation Act, 1973 ('FERA' for short) were violated. The appeal was admitted on 11th October, 2006 stating therein that 7 questions of law do arise from the order of the Tribunal dated 8/6/2006. Today, when this appeal is taken up for hearing, by consent of the parties the said 7 questions have been reframed into one question as follows:-

(2.) The appellant, prior to its dissolution in the year, 2005 was a Partnership firm engaged in the business of manufacture and sale of Chloramphenicol Palmitate. The appellant was also a trader dealing in bulk drugs like Chloramphenicol, etc.

(3.) In the year 1998, the appellant obtained foreign exchange from an authorised dealer under the provisions of Foreign Exchange Regulation Act, 1973 ('FERA' for short) with a view to import Chloramphenicol from a party in China. At that time, Chloramphenicol was freely importable.