S.Namachivayam v. The Joint Director

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 04.06.2024

CORAM:

THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN and W.M.P.Nos.20293 & 20301 of 2022 S.Namachivayam ... Petitioner in W.P.

No.21284/2022 A.M.Amiruddin ... Petitioner in W.P.

No.21293/2022 -Vs -

1. The Joint Director, Directorate of Enforcement, Chennai Zonal Office-I, Government of India, 2nd & 3rd Floor, Murugesan Naicker Complex, No.84, Greams Road, Chennai - 600 006.

2. The Deputy Director, Directorate of Enforcement, O/o. The Joint Director, Chennai Zonal Office-I, Government of India, 2nd & 3rd Floor, Murugesan Naicker Complex, No.84, Greams Road, Chennai - 600 006.

... Respondents

Common Prayer: Writ Petitions filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus, forbearing the office of the respondents from taking recovery proceedings under Sec.14 of FEMA, 1999 and rules made thereunder pending disposal of the appeal in No.SD(A)/CHE/14-15/52 & 16 respectively, pending on the file of the Special Director (Appeals) (SZ), FEMA, Chennai. In both W.Ps.

For Petitioner : Mr.Shravan Kochar For Mr.B.Sathishsundar For Respondents : Mr.Rajnish Pathiyil Standing Counsel COMMON ORDER These writ petition have been filed for direction, forbearing the respondents from taking recovery proceedings under Sec.14 of FEMA, 1999 and rules made thereunder pending disposal of the appeal in No.SD(A)/CHE/14-15/52 & 16 respectively, on the file of the Special Director (Appeals) (SZ), FEMA, Chennai.

2.

The petitioner in both petitions are suffered with adjudication orders passed by the second respondent, thereby concluded that the petitioners are guilty of contravention of provision of Section 3(b) of FEMA making payments to various foreign suppliers without the

permission of the Reserve Bank of India to the tune of Rs.98,91,363.83 and Rs.79,83,501/- respectively. Hence, the second respondent had imposed penalty of Rs.9,90,000/- and Rs.8,00,000/- respectively, for the contravention. Aggrieved by the same, the petitioners preferred appeal under form-I before the appellate authority viz., Special Director (Appeals), Commissioner of income tax (Appeals-V), Chennai, on 21.01.2015 & 27.08.2014 respectively. Though the petitioners were heard on personnel hearings, the appellate authority even till today, did not pass any orders on the appeals.

3.

Further, there is no interim order in the appeals obtained by the petitioner. Therefore, the respondent issued demand as per the adjudication order, thereby demanding a sum of Rs.9,90,000/- and Rs.8,00,000/- respectively, from the petitioners. Hence, the petitioners filed the present writ petitions forbearing the respondents from initiating any recovery proceedings as per the demand notice till the disposal of the appeals, which are pending before the appellate authority viz., Special Director (Appeals), Commissioner of income tax (Appeals-V), Chennai.

4.

Heard the learned counsel appearing on either side and perused the material placed before this Court. 5.

The learned Standing Counsel appearing for the respondents submitted that now only the appellate authority viz., the Commissioner of income tax has been assigned appeal jurisdiction under Section 17 of the FEMA and now the appellate authority is acted upon. 6.

In view of the above submission, it is appropriate to issue direction to the appellate authority. Accordingly, the appellate authority viz., the Commissioner of income tax, is directed to dispose the appeals filed by the petitioners within a period of four weeks from the date of receipt of a copy of this Order. Till then, the respondents are directed not to precipitate the issue in pursuant to the demand notice. 7.

With the above directions, both the Writ Petitions stand disposed of. Consequently, connected miscellaneous petitions are also closed. There shall be no orders as to costs. 04.06.2024 Index : Yes/No Speaking/Non Speaking order rts

To

1. The Joint Director, Directorate of Enforcement, Chennai Zonal Office-I, Government of India, 2nd & 3rd Floor, Murugesan Naicker Complex, No.84, Greams Road, Chennai - 600 006.

2. The Deputy Director, Directorate of Enforcement, O/o. The Joint Director, Chennai Zonal Office-I, Government of India, 2nd & 3rd Floor, Murugesan Naicker Complex, No.84, Greams Road, Chennai - 600 006.

3. The Special Director (Appeals), Commissioner of income tax (Appeals-V), Chennai.

G.K.ILANTHIRAIYAN. J, rts and W.M.P.Nos.20293 & 20301 of 2022 04.06.2024