9911796707
TMI Blog2009 (5) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign buyer was no more in business, this requirement was also not complied with by the appellant. (iii) Even the requirement of the authorized banker to approach RBI for extension of time was not comply with by the appellant so as to take time for realization of export proceeds. (iv) Regarding correspondence between SBI and Barclays Bank the Appellate Board has also goes to show that the payments were made not by the foreign buyer because the goods were found to be faulty and further it also became clear that the matter was settled amicably by the appellant with the foreign buyer. In these circumstances, the Appellate Authority has rightly held the appellant guilty of the provisions contained under Sections 18(2) and 18(3) of the Forei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India, Kanpur, Reserve Bank of India and Indian High Commission, London took steps on the advice rendered by them? (iii) Whether the FERA Appellate Board committed an error in law in holding that no liquidation report was filed by the appellants when the fact remains that the report of the JKR Credit Management Bureau, London clearly stipulates that the buyer company was struck off the Registrar of Companies on 3-1-1989 and was dissolved by notice in London Gazette on 24-1-1989? 3. Various grounds have been taken by the appellant before this Court in assailing the order of the Appellate Tribunal. It is submitted that since the name of the buyer company was struck off from the register of the Registrar of Companies on 3-1-1989 as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmation from Indian High Commission at London in this regard that the foreign buyer was no more in business, this requirement the appellant did not comply. The authorized banker advised the appellant vide its letter dated 28-8-95 to approach RBI for extension of time but he failed to approach the RBI for extension of time for realization of export proceeds. The appellant has not been able to keep the RBI informed of the development in his matter and did not take steps as were expected from a prudent businessmen. 5. It is also argued that the Barclays Bank, London addressed a letter to authorized dealer SBI, Kanpur indicating that the exporter had directly settled the matter of payment and export value had been accounted for to the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g which would have amounted to fraud. 7. Under Section 18(2) and 18(3) of the FERA Act, 1973, an exporter is under an obligation to make reasonable efforts to realize the outstanding export proceeds within the prescribed period and in prescribed manner failing which the presumption is raised against the exporter under Section 18(3) which is rebuttable. Section 18(2) provides as under:- Section 18(2): Where any export of goods....has been made, no person shall, except with the permission of Reserve Bank, do or refrain from doing anything, or take or refrain from taking any action, which has the effect of securing - (A) In a case falling under sub-clause (i) and sub-clause (ii) of clause (a) of sub-section (1) - (a) The payment for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany, I am of the view that the amount of penalty should be reduced from Rs.90,000/- to Rs.60,000/- to achieve the ends of justice. 9. For the reasons mentioned above, the appeal is partly allowed. The amount of penalty is reduced from Rs.90,000/- to Rs.60,000/- where the appellant is directed to deposit the said amount of penalty within 15 days from the date of receipt of this order failing which the respondent may recover the same in accordance with the law. 5. A perusal of this order goes to show that all the submissions made on behalf of the appellant have been dealt with by the Appellate Authority and it shows that, (i) No documents relating to liquidation of foreign buyer company has been filed by the appellant despite his ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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