Foreign Exchange Regulation Act, 1947

Coca‑Cola Export Corp., a wholly‑owned non‑resident subsidiary of the Coca‑Cola Company, claimed deductions for pro‑rated home‑office expenses and service charges paid in US dollars. The Income‑Tax Officer (ITO) disallowed portions of these deductions and later issued notices under Section 148 of the Income‑Tax Act to …

The Director of Enforcement, under the Foreign Exchange Regulation Act, 1947, issued an ex parte order on May 12, 1967 imposing a Rs.6,000 penalty on Dara Singh for contraventions of sections 4 and 9, with a 45‑day payment deadline. No payment was made and a complaint under section 23F was filed alleging that a copy of…

The Enforcement Directorate imposed a Rs. 3 lakh penalty on two exporters for over‑invoicing export values to obtain import licences under an export promotion scheme. The exporters pleaded guilty and challenged the penalty before the High Court, which held that Section 12(2)(b) of the Foreign Exchange Regulation Act, 1…

The appellant, Assistant C.I.T., challenged the assessee Elecon Engineering's claim that roll‑over premium charges paid on foreign‑exchange forward contracts for a plant‑and‑machinery loan were deductible under Sections 36(1)(iii) or 37 of the Income‑Tax Act. The Tribunal and High Court had held the charges were revenu…

The importer M/s. Ganesh Das Bhojraj claimed exemption from customs duty on green beans under Notification No.129/76-Cus, but the Central Government amended the exemption by Notification No.40/87-Cus, imposing a 25% duty. The importer contended that the 1987 notification, although published in the Gazette of India, was…

The firm P.V. Mohammad Barmay Sons owned three vessels and, without Reserve Bank of India permission, purchased and fitted foreign engines, contravening Sections 5(1)(a) and (b) of the Foreign Exchange Regulation Act, 1947. A raid in 1974 led to a notice, show‑cause proceedings and a penalty of Rs 50,000 imposed under …

The Directorate of Enforcement prosecuted M.C.T.M. Corp. Ltd. and its directors for failing to repatriate foreign exchange held in Malaysia for over fifteen years, alleging contravention of Section 10(1)(a) of the Foreign Exchange Regulation Act, 1947 (FERA) and imposing penalties under Section 23(1)(a). The Appellate …

Toolsidass Jewraj, a jute exporter, entered into contracts for shipment in early 1962 but delayed the shipment to June after prices rose. Before the goods were shipped, it filed shipping bills and G.R. forms that undervalued the FOB price, intending to discount the buyers' profit and remit it covertly. The Additional C…

The Supreme Court examined whether Section 12(2) of the Foreign Exchange Regulation Act, 1947 applies only to sale proceeds of goods exported "for sale" or also to "exports on sale" where the sale is completed before export. The Court held that the phrase "no person entitled to sell or procure the sale of the said good…

The respondent, V.P. Sayed Mohammed, was seized with 28 gold bars at Trichur railway station and charged under s.135(b) of the Customs Act, 1962 read with s.85(ii) of the Gold (Control) Act, 1968. Evidence included the inspector’s seizure report, a ticket collector’s testimony, a goldsmith’s certification that the bars…

The State of Karnataka prosecuted three respondents – two partners and their firm – for allegedly providing a fictitious address of the supplier of a drug, violating sections 18(a)(ii), 18(c) and 18A of the Drugs and Cosmetics Act, 1940. The prosecution relied on an inspector’s report that the address was fictitious, b…

Eastern Chemical and Minerals exported ferro‑silicon under a barter arrangement and, in return, received import licences for pesticides which it later assigned to users for consideration. The company claimed exemption from additional tax under Section 104(1) of the Income‑Tax Act, 1961, relying on Notification No. S.O.…

Minerals and Metals Trading Corporation (M.M.T.C.) acted as the intermediary in a private barter scheme through which Ferro Alloys Corporation exported manganese and chrome concentrates. The parties executed contracts whereby title to the goods passed to M.M.T.C., which issued letters of credit, shipping documents and …

The appellants were charged with violations of the Foreign Exchange Regulation Act, 1947 and the Indian Penal Code section 120‑B. A complaint was filed under the corresponding provisions of the Foreign Exchange Regulation Act, 1973. The trial court dismissed the complaint, holding that the 1947 and 1973 Acts were incon…

The Anti‑Corruption Bureau raided Natwarlal Damodardas Soni's residence and seized 100 gold biscuits of foreign origin concealed in a jacket; the Customs authorities subsequently took possession. Soni, who was absent at the time, was later convicted under sections 135(a) and (b) of the Customs Act, 1962 and the Defence…

The State of Maharashtra charged three men with attempting to smuggle 43 silver ingots out of India, violating the Foreign Exchange Regulation Act, the Imports and Exports (Control) Act and the Customs Act. The accused, who were the driver of a jeep, the driver of a truck and a cleaner, argued that they were unaware of…

M. Venkatraman, a public limited company engaged in tobacco export, remitted part of its sale proceeds to a Singapore party in violation of the Foreign Exchange Regulation Act, 1947 (FERA) and was penalised Rs.35,000. The company claimed a deduction of Rs.2,95,000 as business expenditure/loss in its 1970-71 income‑tax …

The partnership firm of Rai Bahadur Seth Shreeram Durgaprasad exported manganese ore between 1952 and 1958 but failed to repatriate the full foreign‑exchange proceeds, contravening Section 12(2) of the Foreign Exchange Regulation Act, 1947. The Director of Enforcement initiated adjudication proceedings under Section 23…