The State of Maharashtra vs Baroda Rayon Corporation Ltd.

S.W. Puranaik, J.—This appeal u/s 54 of the Foreign Exchange Regulation Act, 1973 by the State challenges the concurrent orders passed by the Adjudicating Authority viz. the Enforcement Directorate and the Foreign Exchange Regulation Appellate Board (FERA Board) which is the Appellate Authority.

Perusal of both these orders shows that on suspicion that U.S. Dollars 10,000 have been credited by M/s. Baroda Rayon Corporation Ltd. , to an account in Italy an investigation was taken up and proceedings initiated for breach of Sections 9(1)(a) and 14 of the Foreign Exchange Regulation Act, 1973, However the Adjudicating Authority found as a fact that there was no material to show as to in what respect and in what account and for what purpose the amount of 10,000 ''U.S. Dollars was credited to Italy account. The whole ease was based only on suspicion or surmises without any basis. The Adjudicating Officer, therefore, discharged the show-cause notice against the Director Dr. C. Rossi. However he penalised M/s. Baroda Rayon Corporation, the present respondent.

M/s. Baroda Rayon Corporation carried an appeal before the FERA Board which upon hearing both the parties concluded that on the same set of facts and circumstances there was no factual material available to hold any contravention on the part of the respondent Corporation. The FERA Board, therefore, allowed the appeal of the respondent Corporation and set aside the penalty imposed upon it.

It is against this decision of the FERA Board that the State has moved this appeal. On perusal of both these orders, we find that there is no question of law involved in this appeal. The order of the FERA Board is based purely on appreciation of facts and evidence which has been done rightly according to us. The learned Government Pleader was unable to formulate any question of law arising out of this impugned order. It is in these circumstances we see no reason to entertain this appeal u/s 54 of the Foreign Exchange Regulation Act which limits our jurisdiction to only question of law.

Appeal is accordingly dismissed. Interim order, dated 26th July, 1983 is hereby vacated.

No order as to casts.