1. The following order of the Appellate Tribunal for Foreign Exchange is delivered by Shri O.P. Nahar, Chairperson.

2. This is an appeal filed against adjudication order No. SDE/KRB/III/08-10/99 dated 25-11-1999 passed by Special Director, Enforcement Directorate imposing a penalty of Rs. 5 lakhs against the appellant for contravention of under section 9(1)(b) and 9(1)(d) FER Act on the reasons that appellant received and further made payment to different persons in India on the instructions of a person resident outside India named Avtar Singh of Abu Dhabi. In this appeal this Tribunal while disposing off application for dispensation of pre-deposit of the penalty, by order dated 15-9-2005 directed the appellant to make pre-deposit of Rs. 30,000 after dispensing with the remaining amount of penalty. The appellant has complied with this order. Presently this appeal is taken up for final disposal on merits. We have heard Shri Rajesh Gulati, Advocate on behalf of the appellant Shri A.C. Singh, DLA on behalf of respondent. Learned counsel Shri Rajesh Gulati has also filed written submissions which are taken on record.

3. In this appeal a Show Cause Notice No. T-4/3-D/98(SCN-I) dated