UNION OF INDIA Vs. RAJ PAUL GUPTA

JUDGEMENT

(1.) THIS appeal under Section 54 of the Foreign Exchange Regulation Act, 1973 (hereinafter called the Act), by the Deputy Director, Enforcement Directorate, Jalandhar City, is directed against the order dated 17th May, 1984 passed by the Foreign Exchange Regulation Appellate Board (hereinafter called the Board), whereby the order dated 19th October, 1983 of the Assistant Director, Enforcement imposing penalty of Rs. 2500 on Shri Raj Paul Gupta respondent has been set aside.

(2.) THE respondent Raj Paul Gupta is a legal practitioner at Ludhiana. He and his wife went for a short visit to Bangkok, Hong Kong, and Singapore, etc. , in the year 1979. The brother of the wife of the respondent, Shri Amrit L. Goel, who was residing in U. S. A. remitted US $2500 when the respondent and his wife were in Hong Kong. It is not in dispute that the remittance was made through banking channels as a gesture of love and affection for purchasing articles of gift, and the amount was so utilised. The articles purchased, treated as gifts from Amrit L. Goel, were brought to India and customs duty to the tune of Rs. 4800 was paid by the said respondent at the time of landing at the Delhi Airport.

(3.) A show cause notice was issued to the respondent Raj Paul Gupta by the Assistant Director, Enforcement on 17th July, 1983 alleging that during the year 1979 he acquired foreign exchange US $2500 and failed to surrender the same to an authorised dealer in contravention of the provisions of Section 8 (1) of the Act. The facts stated above were narrated in reply by the respondent Raj Paul Gupta. The Assistant Director, however, held the said respondent guilty of contravention of the provisions of Section 8 (1) of the Act for having acquired foreign exchange and utilising the same without surrendering it to an authorized dealer as required by Section 8 (1) of the Act, and consequently imposed a penalty of Rs. 2500 on him.