19. Appeal to Appellate Tribunal—
(1) Save as provided in sub-section
(2), the Central Government
or any person aggrieved by an order made by an Adjudicating Authority, other than those referred to in
sub-section
(1) of section 17, or the Special Director (Appeals), may prefer an appeal to the Appellate
Tribunal:
Provided that any person appealing against the order of the Adjudicating Authority or the Special
Director (Appeals) levying any penalty, shall while filing the appeal, deposit the amount of such penalty
with such authority as may be notified by the Central Government:
Provided further that where in any particular case, the Appellate Tribunal is of the opinion that the
deposit of such penalty would cause undue hardship to such person, the Appellate Tribunal may dispense
with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the realisation
of penalty.
(2) Every appeal under sub-section
(1) shall be filed within a period of forty-five days from the date
on which a copy of the order made by the Adjudicating Authority or the Special Director (Appeals) is
received by the aggrieved person or by the Central Government and it shall be in such form, verified in
such manner and be accompanied by such fee as may be prescribed:
Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of
forty-five days if it is satisfied that there was sufficient cause for not filing it within that period.
(3) On receipt of an appeal under sub-section
(1), the Appellate Tribunal may, after giving the parties
to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming,
modifying or setting aside the order appealed against.
(4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and
to the concerned Adjudicating Authority or the Special Director (Appeals), as the case may be.
1. Subs. by Act 7 of 2017, s. 165, for section 18 (w.e.f. 26-5-2017).
13
(5) The appeal filed before the Appellate Tribunal under sub-section
(1) shall be dealt with by it as
expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within one
hundred and eighty days from the date of receipt of the appeal:
Provided that where any appeal could not be disposed of within the said period of one hundred and
eighty days, the Appellate Tribunal shall record its reasons in writing for not disposing off the appeal
within the said period.
(6) The Appellate Tribunal may, for the purpose of examining the legality, propriety or correctness of
any order made by the Adjudicating Authority under section 16 in relation to any proceeding, on its own
motion or otherwise, call for the records of such proceedings and make such order in the case as it thinks
fit.
20. [Composition of Appellate Tribunal.] Omitted by the finance Act, 2017 (7 of 2017), s. 165
(w.e.f. 26-5-2017).
1
[21. Qualifications, for appointment of Special Director (Appeals).—A person shall not be
qualified for appointment as a Special Director (Appeals) unless he—
(a) has been a member of the Indian Legal Service and has held a post in Grade I of that Service; or
(b) has been a member of the Indian Revenue Service and has held a post equivalent to a Joint
Secretary to the Government of India.]
22. [Term of office.] Omitted by the Finance Act, 2017 (7 of 2017), s. 165 (w.e.f. 26-5-2017).
2
[23. Terms and Condition of service of Special Director of (Appeals).—The salary and
allowances payable to and the other terms and conditions of service of the Special Director (Appeals)
shall be such as may be prescribed.]
24. [Vacancies.] Omitted by the Finance Act, 2017 (7 of 2017), s. 165 (w.e.f. 26-5-2017).
25. [Resignation and removal.] Omitted by s. 165, ibid. (w.e.f. 26-5-2017).
26. [Member to act as Chairperson in certain circumstances.] Omitted by s. 165, ibid.
(w.e.f. 26-5-2017).
3
[27. Staff of Special Director (Appeal).—
(1) The Central Government shall provide the office of
the Special Director (Appeals) with such officers and employees as it may deem fit.
(2) The officers and employees of the office of the Special Director (Appeals) shall discharge their
functions under the general superintendence of the Special Director (Appeals).
(3) The salaries and allowances and other terms and conditions of service of the officers and
employees of the office of the Special Director (Appeals) shall be such as may be prescribed.]
28. Procedure and powers of Appellate Tribunal and Special Director (Appeals).—
(1) The
Appellate Tribunal and the Special Director (Appeals) shall not be bound by the procedure laid down by
the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the principles of natural justice and,
subject to the other provisions of this Act, the Appellate Tribunal and the Special Director (Appeals) shall
have powers to regulate its own procedure.
(2) The Appellate Tribunal and the Special Director (Appeals) shall have, for the purposes of
discharging its functions under this Act, the same powers as are vested in a civil court under the Code of
Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
1. Subs. by Act 7 of 2017, s. 165, for section 21 (w.e.f. 26-5-2017).
2. Subs. by s. 165, ibid., for section 23 (w.e.f. 26-5-2017).
3. Subs. by s. 165, ibid., for section 27 (w.e.f. 26-5-2017).
14
(d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act,
1872 (1 of 1872), requisitioning any public record or document or copy of such record or document
from any office;
(e) issuing commissions for the examination of witnesses or documents;
(f) reviewing its decisions;
(g) dismissing a representation of default or deciding it ex parte;
(h) setting aside any order of dismissal of any representation for default or any order passed by it
ex parte; and
(i) any other matter which may be prescribed by the Central Government.
(3) An order made by the Appellate Tribunal or the Special Director (Appeals) under this Act shall be
executable by the Appellate Tribunal or the Special Director (Appeals) as a decree of civil court and, for
this purpose, the Appellate Tribunal and the Special Director (Appeals) shall have all the powers of a civil
court.
(4) Notwithstanding anything contained in sub-section
(3), the Appellate Tribunal or the Special
Director (Appeals) may transmit any order made by it to a civil court having local jurisdiction and such
civil court shall execute the order as if it were a decree made by that court.
(5) All proceedings before the Appellate Tribunal and the Special Director (Appeals) shall be deemed
to be judicial proceedings within the meaning of sections 193 and 228 of the Indian
Penal Code (45 of 1860) and the Appellate Tribunal shall be deemed to be a civil court for the purposes
of sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974).
29. [Distribution of business amongst Benches.] Omitted by the Finance Act, 2017 (7 of 2017),
s. 165 (w.e.f. 26-5-2017).
30. [Power of Chairperson to transfer cases.] Omitted by s. 165, ibid. (w.e.f. 26-5-2017).
31. [Decision to be by majority.] Omitted by s. 165, ibid. (w.e.f. 26-5-2017).
32. Right of appellant to take assistance of legal practitioner or chartered accountant and of
Government, to appoint presenting officers.—
(1) A person preferring an appeal to the 1[Special
Director (Appeals)] under this Act may either appear in person or take the assistance of a legal
practitioner or a chartered accountant of his choice to present his case before the 2[Special Director
(Appeals)].
(2) The Central Government may authorise one or more legal practitioners or chartered accountants
or any of its officers to act as presenting officers and every person so authorised may present the case
with respect to any appeal before the 2[Special Director (Appeals)].
[33. Officers and employees etc., to be public servant. — The Adjudicating Authority, Competent
3
Authority and the Special Director (Appeals) and other officers and employees of the Special Director
(Appeals) shall be deemed to be public servants within the meaning of section 21 of the Indian Penal
Code, 1860 (45 of 1860).]
34. Civil court not to have jurisdiction.—No civil court shall have jurisdiction to entertain any suit
or proceeding in respect of any matter which an Adjudicating Authority or the Appellate Tribunal or the
Special Director (Appeals) is empowered by or under this Act to determine and no injunction shall be
granted by any court or other authority in respect of any action taken or to be taken in pursuance of any
power conferred by or under this Act.
35. Appeal to High Court.—Any person aggrieved by any decision or order of the Appellate
Tribunal may file an appeal to the High Court within sixty days from the date of communication of the
decision or order of the Appellate Tribunal to him on any question of law arising out of such order:
1. Subs by Act 7 of 2017, s. 165, for “Appellate Tribunal or the Special Director (Appeals” (w.e.f. 26-5-2017).
2. Subs. by s. 165, ibid., for “Appellate Tribunal or the Special Director (Appeals), as the case may be” (w.e.f. 26-5-2017).
3. Subs. by Act 7 of 2017, s. 165, for section 33 (w.e.f. 26-5-2017).
15
Provided that the High Court may, if it is satisfied that the appellant was prevented by sufficient cause
from filing the appeal within the said period, allow it to be filed within a further period not exceeding
sixty days.
Explanation.—In this section “High Court” means—
(a) the High Court within the jurisdiction of which the aggrieved party ordinarily resides or
carries on business or personally works for gain; and
(b) where the Central Government is the aggrieved party, the High Court within the jurisdiction
of which the respondent, or in a case where there are more than one respondent, any of the
respondents, ordinarily resides or carries on business or personally works for gain.
CHAPTER VI
DIRECTORATE OF ENFORCEMENT
36. Directorate of Enforcement.—
(1) The Central Government shall establish a Directorate of
Enforcement with a Director and such other officers or class of officers as it thinks fit, who shall be called
officers of Enforcement, for the purposes of this Act.
(2) Without prejudice to the provisions of sub-section
(1), the Central Government may authorise the
Director of Enforcement or an Additional Director of Enforcement or a Special Director of Enforcement
or a Deputy Director of Enforcement to appoint officers of Enforcement below the rank of an Assistant
Director of Enforcement.
(3) Subject to such conditions and limitations as the Central Government may impose, an officer of
Enforcement may exercise the powers and discharge the duties conferred or imposed on him under this
Act.
37. Power of search, seizure, etc.—
(1) The Director of Enforcement and other officers of
Enforcement, not below the rank of an Assistant Director, shall take up for investigation the contravention
referred to in section 13.
(2) Without prejudice to the provisions of sub-section
(1), the Central Government may also, by
notification, authorise any officer or class of officers in the Central Government, State Government or the
Reserve Bank, not below the rank of an Under Secretary to the Government of India to investigate any
contravention referred to in section 13.
(3) The officers referred to in sub-section
(1) shall exercise the like powers which are conferred on
income-tax authorities under the Income-tax Act, 1961 (43 of 1961) and shall exercise such powers,
subject to such limitations laid down under that Act.
1
[37A. Special provisions relating to assets held outside India in contravention of
section 4.—
(1) Upon receipt of any information or otherwise, if the Authorised Officer prescribed by the
Central Government has reason to believe that any foreign exchange, foreign security, or any immovable
property, situated outside India, is suspected to have been held in contravention of section 4, he may after
recording the reasons in writing, by an order, seize value equivalent, situated within India, of such foreign
exchange, foreign security or immovable property:
Provided that no such seizure shall be made in case where the aggregate value of such foreign
exchange, foreign security or any immovable property, situated outside India, is less than the value as
may be prescribed.
(2) The order of seizure along with relevant material shall be placed before the Competent Authority,
appointed by the Central Government, who shall be an officer not below the rank of Joint Secretary to the
Government of India by the Authorised Officer within a period of thirty days from the date of such
seizure.
(3) The Competent Authority shall dispose of the petition within a period of one hundred eighty days
from the date of seizure by either confirming or by setting aside such order, after giving an opportunity of
being heard to the representatives of the Directorate of Enforcement and the aggrieved person.
1. Ins. by Act 20 of 2015, s. 142 (w.e.f. 9-9-2015).
16
Explanation.—While computing the period of one hundred eighty days, the period of stay granted by
court shall be excluded and a further period of at least thirty days shall be granted from the date of
communication of vacation of such stay order.
(4) The order of the Competent Authority confirming seizure of equivalent asset shall continue till the
disposal of adjudication proceedings and thereafter, the Adjudicating Authority shall pass appropriate
directions in the adjudication order with regard to further action as regards the seizure made under
sub-section
(1):
Provided that if, at any stage of the proceedings under this Act, the aggrieved person discloses the
fact of such foreign exchange, foreign security or immovable property and brings back the same into
India, then the Competent Authority or the Adjudicating Authority, as the case may be, on receipt of an
application in this regard from the aggrieved person, and after affording an opportunity of being heard to
the aggrieved person and representatives of the Directorate of Enforcement, shall pass an appropriate
order as it deems fit, including setting aside of the seizure made under sub-section
(1).
(5) Any person aggrieved by any order passed by the Competent Authority may prefer an appeal to
the Appellate Tribunal.
(6) Nothing contained in section 15 shall apply to this section.]
38. Empowering other officers.—
(1) The Central Government may, by order and subject to such
conditions and limitations as it thinks fit to impose, authorise any officer of customs or any central excise
officer or any police officer or any other officer of the Central Government or a State Government to
exercise such of the powers and discharge such of the duties of the Director of Enforcement or any other
officer of Enforcement under this Act as may be stated in the order.
(2) The officers referred to in sub-section
(1) shall exercise the like powers which are conferred on
the income-tax authorities under the Income-tax Act, 1961 (43 of 1961), subject to such conditions and
limitations as the Central Government may impose.
CHAPTER VII
MISCELLANEOUS
39. Presumption as to documents in certain cases.—Where any document—
(i) is produced or furnished by any person or has been seized from the custody or control of any
person, in either case, under this Act or under any other law; or
(ii) has been received from any place outside India (duly authenticated by such authority or
person and in such manner as may be prescribed) in the course of investigation of any contravention
under this Act alleged to have been committed by any person,
and such document is tendered in any proceeding under this Act in evidence against him, or against him
and any other person who is proceeded against jointly with him, the court or the Adjudicating Authority,
as the case may be, shall—
(a) presume, unless the contrary is proved, that the signature and every other part of such
document which purports to be in the handwriting of any particular person or which the court may
reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in
that person’s handwriting, and in the case of a document executed or attested, that it was executed or
attested by the person by whom it purports to have been so executed or attested;
(b) admit the document in evidence notwithstanding that it is not duly stamped, if such document
is otherwise admissible in evidence;
(c) in a case falling under clause
(i), also presume, unless the contrary is proved, the truth of the
contents of such document.
40. Suspension of operation of this Act.—
(1) If the Central Government is satisfied that
circumstances have arisen rendering it necessary that any permission granted or restriction imposed by
this Act should cease to be granted or imposed, or if it considers necessary or expedient so to do in public
17
interest, the Central Government may, by notification, suspend or relax to such extent either indefinitely
or for such period as may be notified, the operation of all or any of the provisions of this Act.
(2) Where the operation of any provision of this Act has under sub-section
(1) been suspended or
relaxed indefinitely, such suspension or relaxation may, at any time while this Act remains in force, be
removed by the Central Government by notification.
(3) Every notification issued under this section shall be laid, as soon as may be after it is issued,
before each House of Parliament, while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in making any
modification in the notification or both Houses agree that the notification should not be issued, the
notification shall thereafter have effect only in such modified form or be of no effect, as the case may be;
so, however, that any such modification or annulment shall be without prejudice to the validity of
anything previously done under that notification.
41. Power of Central Government to give directions.—For the purposes of this Act, the Central
Government may, from time to time, give to the Reserve Bank such general or special directions as it
thinks fit, and the Reserve Bank shall, in the discharge of its functions under this Act, comply with any
such directions.
42. Contravention by companies.—
(1) Where a person committing a contravention of any of the
provisions of this Act or of any rule, direction or order made thereunder is a company, every person who,
at the time the contravention was committed, was in charge of, and was responsible to, the company for
the conduct of the business of the company as well as the company, shall be deemed to be guilty of the
contravention and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to punishment
if he proves that the contravention took place without his knowledge or that he exercised due diligence to
prevent such contravention.
(2) Notwithstanding anything contained in sub-section
(1), where a contravention of any of the
provisions of this Act or of any rule, direction or order made thereunder has been committed by a
company and it is proved that the contravention has taken place with the consent or connivance of, or is
attributable to any neglect on the part of, any director, manager, secretary or other officer of the company,
such director, manager, secretary or other officer shall also be deemed to be guilty of the contravention
and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section—
(i) “company” means any body corporate and includes a firm or other association of individuals;
and
(ii) “director”, in relation to a firm, means a partner in the firm.
43. Death or insolvency in certain cases.—Any right, obligation, liability, proceeding or appeal
arising in relation to the provisions of section 13 shall not abate by reason of death or insolvency of the
person liable under that section and upon such death or insolvency such rights and obligations shall
devolve on the legal representative of such person or the official receiver or the official assignee, as the
case may be:
Provided that a legal representative of the deceased shall be liable only to the extent of the inheritance
or estate of the deceased.
44. Bar of legal proceedings.—No suit, prosecution or other legal proceeding shall lie against the
Central Government or the Reserve Bank or any officer of that Government or of the Reserve Bank or
any other person exercising any power or discharging any functions or performing any duties under this
Act, for anything in good faith done or intended to be done under this Act or any rule, regulation,
notification, direction or order made thereunder.
45. Removal of difficulties.—
(1) If any difficulty arises in giving effect to the provisions of this Act,
the Central Government may, by order, do anything not inconsistent with the provisions of this Act for
the purpose of removing the difficulty:
18
Provided that no such order shall be made under this section after the expiry of two years from the
commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each
House of Parliament.
46. Power to make rules.—
(1) The Central Government may, by notification, make rules to carry
out the provisions of this Act.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for,—
(a) the imposition of reasonable restrictions on current account transactions under section 5;
1
[(aa) the instruments which are determined to be debt instruments under sub-section
(7) of
section 6;
(ab) the permissible classes of capital account transactions in accordance with
sub-section (2A) of section 6, the limits of admissibility of foreign exchange, and the prohibition,
restriction or regulation of such transactions;]
(b) the manner in which the contravention may be compounded under sub-section
(1) of
section 15;
(c) the manner of holding an inquiry by the Adjudicating Authority under sub-section
(1) of
section 16;
(d) the form of appeal and fee for filing such appeal under sections 17 and 19;
(e) the salary and allowances payable to and the other terms and conditions of service of the
2
[Special Director (Appeals)] under section 23;
(f) the salaries and allowances and other conditions of service of the officers and employees of the
3
[office of the Special Director (Appeals)] under sub-section
(3) of section 27;
(g) the additional matters in respect of which the Appellate Tribunal and the Special Director
(Appeals) may exercise the powers of a civil court under clause
(i) of sub-section
(2) of section 28;
4
[(gg) the aggregate value of foreign exchange referred to in sub-section
(1) of section 37A;]
(h) the authority or person and the manner in which any document may be authenticated under
clause (ii) of section 39; and
(i) any other matter which is required to be, or may be, prescribed.
47. Power to make regulations.—
(1) The Reserve Bank may, by notification, make regulations to
carry out the provisions of this Act and the rules made thereunder.
(2) Without prejudice to the generality of the foregoing power, such regulations may provide for,—
5
[
(a) the permissible classes of capital account transactions, the limits of admissibility of foreign
exchange for such transactions, and the prohibition, restriction or regulation of certain capital account
transactions under section 6;]
(b) the manner and the form in which the declaration is to be furnished under clause
(a) of
sub-section
(1) of section 7;
1. Clauses (aa) and (ab) shall stand inserted (date to be notified) by Act 20 of 2015, s. 143.
2. Subs. by Act 7 of 2017, s. 165, for “Chairperson and other Member of the Appellate Tribunal and the Special Director
(Appeals) (w.e.f. 26-5-2017).
3. Subs. by s. 165, ibid., for “Appellate Tribunal and the office of the Special Director (Appeals)” (w.e.f. 26-5-2017).
4. Ins. by Act 20 of 2015, s. 143 (w.e.f. 9-9-2015).
5. Clause
(a) shall stand substituted (date to be notified) by s. 144, ibid., to read as under:
“
(a) the permissible classes of capital account transactions involving debt instruments determined under sub-section
(7)
of section 6, the limits of admissibility of foreign exchange for such transactions, and the prohibition, restriction or
regulation of such capital account transactions under section 6;”.
19
(c) the period within which and the manner of repatriation of foreign exchange under section 8;
(d) the limit up to which any person may possess foreign currency or foreign coins under
clause
(a) of section 9;
(e) the class of persons and the limit up to which foreign currency account may be held or
operated under clause
(b) of section 9;
(f) the limit up to which foreign exchange acquired may be exempted under clause
(d) of
section 9;
(g) the limit up to which foreign exchange acquired may be retained under clause
(e) of section 9;
1
[(ga) export, import or holding of currency or currency notes;]
(h) any other matter which is required to be, or may be, specified.
2
[
(3) All regulations made by the Reserve Bank before the date on which the provisions of this section
are notified under section 6 and section 47 of this Act on capital account transactions, the regulation
making power in respect of which now vests with the Central Government, shall continue to be valid,
until amended or rescinded by the Central Government.]
48. Rules and regulations to be laid before Parliament.—Every rule and regulation made under this
Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in
session for a total period of thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, or
both Houses agree that the rule or regulation should
