Sections 18 and 20 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The sections in Chapter V that deal with the appellate bodies were reshaped in 2017. Section 18 now names the Appellate Tribunal by reference to another Act's Tribunal. Sections 21, 23 and 27 deal with the Special Director (Appeals), who hears appeals under section 17. Sections 20, 22, 24, 25 and 26 are printed with their old headings only and are shown as omitted. This article explains what the copy consulted prints, and no more.
Section 18 says the Appellate Tribunal constituted under section 12(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 is the Appellate Tribunal for the purposes of this Act from the commencement of Part XIV of Chapter VI of the Finance Act, 2017. Section 21 sets qualifications for a Special Director (Appeals), section 23 leaves salary and service terms to the rules, and section 27 deals with staff. Sections 20, 22, 24, 25 and 26 are omitted, with effect from 26-5-2017.
About this article
This article is based on the consolidated text of the Act consulted (amendments shown up to Act 50 of 2019). Later amendments should be checked. The footnotes in the copy show that sections 18, 21, 23 and 27 were substituted, and sections 20, 22, 24, 25 and 26 omitted, by Act 7 of 2017, s. 165, with effect from 26-5-2017. For the practical side of an appeal, see our guide on appeals under FEMA. If you are weighing an appeal, our legal consultation team can help you plan it.
Section 18: the Appellate Tribunal
Section 18, as substituted: "The Appellate Tribunal constituted under sub-section (1) of section 12 of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976), shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act."
| Element | What the Act says |
|---|---|
| Which Tribunal | The Appellate Tribunal constituted under section 12(1) of the 1976 Act named above |
| From when | On and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017) |
| What it does | Exercises the jurisdiction, powers and authority conferred on it by or under this Act |
| Footnote | Substituted by Act 7 of 2017, s. 165, for section 18 (w.e.f. 26-5-2017) |
Three points follow.
- The Tribunal is borrowed. The Act does not constitute a separate Tribunal; it uses one constituted under another Act. The reference to the 1976 Act is quoted as printed. Check the current law for the corresponding provision of that Act.
- The date comes from another Act. The text refers to the commencement of Part XIV of Chapter VI of the Finance Act, 2017; the copy does not give a date for that commencement, and none is stated here beyond the 26-5-2017 shown in the footnote for the substitution itself.
- Section 2(b) matches. The definition of "Appellate Tribunal" in section 2(b) means the Appellate Tribunal referred to in section 18, and was substituted by the same Act with effect from 26-5-2017. Our article on section 1 and the drafting terms of section 2 lists the authorities named in section 2.
Omitted sections: 20, 22, 24, 25 and 26
The copy prints the following with their old headings and the note of omission, and nothing else:
| Section | Old heading as printed | Status |
|---|---|---|
| 20 | Composition of Appellate Tribunal | Omitted by the Finance Act, 2017 (7 of 2017), s. 165 (w.e.f. 26-5-2017) |
| 22 | Term of office | Omitted by the Finance Act, 2017 (7 of 2017), s. 165 (w.e.f. 26-5-2017) |
| 24 | Vacancies | Omitted by s. 165, ibid. (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) |
This article does not describe what those sections used to say. Printing point: the entry for section 20 reads "Omitted by the finance Act, 2017", with a lower-case "finance"; it is quoted as printed. Because these sections are omitted, definitions such as "Bench", "Chairperson" and "Member" in section 2(d), (f) and (s) still appear in the copy; whether they have any present use is a point to check against the current law.
Section 21: qualifications for a Special Director (Appeals)
Section 21, as substituted (Act 7 of 2017, s. 165, for section 21, w.e.f. 26-5-2017): 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.
Two routes are listed, and a person must satisfy one. The section is a bar ("shall not be qualified ... unless"). The appointment itself is by the Central Government under section 17(1); see our article on section 17.
Section 23: terms and conditions of service
The heading is printed "Terms and Condition of service of Special Director of (Appeals)", and the section was substituted by Act 7 of 2017, s. 165 (w.e.f. 26-5-2017). It says: "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."
- "Prescribed" means prescribed by rules under section 2(x).
- The hook is section 46(2)(e): "the salary and allowances payable to and the other terms and conditions of service of the Special Director (Appeals) under section 23".
- The Act prints no amount and no term. Printing point: the heading reads "Special Director of (Appeals)", which is quoted as printed.
Section 27: staff of the Special Director (Appeals)
The heading is printed "Staff of Special Director (Appeal)" (singular "Appeal"), and the section was substituted by Act 7 of 2017, s. 165 (w.e.f. 26-5-2017). It has three sub-sections:
- (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 shall discharge their functions under the general superintendence of the Special Director (Appeals).
- (3) Their salaries and allowances and other terms and conditions of service shall be such as may be prescribed.
The hook for sub-section (3) is section 46(2)(f): "the salaries and allowances and other conditions of service of the officers and employees of the office of the Special Director (Appeals) under sub-section (3) of section 27". The Act prints no amount.
Example. Suppose someone wants to know who may be appointed to hear appeals under section 17. The answer in the Act is in section 21: a person who has been a member of the Indian Legal Service and held a Grade I post, or a member of the Indian Revenue Service who has held a post equivalent to a Joint Secretary to the Government of India. How the person's pay is fixed is not in the Act; it is for rules under section 46(2)(e).
How the machinery fits together
| Body | Source in the Act | Who appeals to it |
|---|---|---|
| Adjudicating Authority | Section 16 | First instance |
| Special Director (Appeals) | Sections 17, 21, 23, 27 | Appeal against certain Adjudicating Authorities' orders |
| Appellate Tribunal | Section 18 | Appeal under section 19 |
| High Court | Section 35 | Appeal on a question of law from the Tribunal |
For the appeal against the Tribunal, see our article on section 19; the procedure and powers common to the Tribunal and the Special Director (Appeals) are in our article on section 28.
What the Act does not say
- It does not give the date of commencement of Part XIV of Chapter VI of the Finance Act, 2017.
- It does not say how the Tribunal is composed in this Act; section 20 is omitted.
- It does not print any salary, allowance or term.
- It does not describe the old Tribunal arrangements; this article does not either.
Need help understanding the appeal route?
The appellate ladder under the Act has several rungs, each with its own time limit and fee under the rules. Our legal consultation team can help you identify the correct forum for an order and keep to the limits.
Key takeaways
- Section 18 makes the Appellate Tribunal constituted under section 12(1) of the 1976 Act named in it the Appellate Tribunal for this Act, from the commencement of Part XIV of Chapter VI of the Finance Act, 2017.
- Sections 20, 22, 24, 25 and 26 are shown as omitted (w.e.f. 26-5-2017); only their old headings are printed.
- Section 21 sets two routes of qualification for a Special Director (Appeals).
- Sections 23 and 27(3) leave pay and service terms to the rules, under section 46(2)(e) and (f).
- Section 2(b) was substituted to match section 18.
- Heading slips in sections 20, 23 and 27 are flagged, not corrected.
Read next
- Section 17: appeal to the Special Director (Appeals)
- Section 19: appeal to the Appellate Tribunal and pre-deposit of penalty
- Section 28: procedure and powers of the Appellate Tribunal and Special Director
- Appeal Under FEMA: Appellate Tribunal
Disclaimer: Based on a consolidated text of the Foreign Exchange Management Act, 1999 showing amendments up to Act 50 of 2019, as consulted on 2 October 2026. Limits, forms, timelines and procedures are set by rules, regulations and Reserve Bank directions made under the Act; they change from time to time and are not covered here. Later amendments should be checked. This article is general information, not legal advice; check the official text before acting.