9911796707
TMI Blog2001 (9) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... Camelon Exports, Jaipur. The appellant exports handicrafts, carpets, durries and garments, etc. The allegation against the appellant was that without any permission from Reserve Bank of India, he took or refrained from taking action which had the effect of securing the export value to the tune of US $42,891 in respect of the exported goods was not received in India and the payments for the imported goods were delayed beyond the prescribed period without any permission of the RBI and thus contravened the provisions of section 18(2) and section 18(3) read with Central Government Notification No. F-1/67/EC. 73/1 and 3 both dated 1-1-1973. In his reply to the show-cause notice, the appellant stated the circumstances in which the said export wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, I impose a penalty of Rs. 1,50,000 (One Lakh Fifty Thousand only) on the noticee company (Shri Neeraj Sharma Prop. of Camelon Exports) under section 51 of the Act for the aforesaid contravention . The learned counsel submitted that there is no finding whatsoever on the action that has been taken by the appellant and the reasonableness thereof. It was contended that the learned adjudicating officer apparently erred in proceedings on the basis of non-realisation of the export proceeds de hors the action taken by the appellant for the realisation of the export proceeds. The learned counsel submitted that the shipment of value of US $34,876.67 was shipped in October, 1994 but it reached in March, 1995 due to port strike at Dubai. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and excessively expensive for foreigners. The learned counsel has drawn our attention to the appellant s reply dated 21-9-2000 wherein the appellant has explained the facts and claimed nothing more could have been done by the company which got merely broke by the time. The learned counsel has also drawn my attention to the written submissions filed with the adjudicating officer, a copy of which is at pages 68-70 of the appellant s paper-book, wherein the steps taken by the appellant has been spelt out in details. In the said written submissions, the appellants had, inter alia, submitted that inspite of their best efforts they are unable to realise the outstanding export proceeds and they have informed the RBI vide their letter dated 15-2-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt has suffered huge losses resulting in closure of his export business. Presently, he is engaged in small time buying house business and is not in a sound financial position to deposit the penalty amount. All his life s savings and earlier business earnings have been liquidated and he is striving to make the two ends meet. Ms. Kapil, therefore, urged for a lenient view in the matter. 4. Shri A.K. Singh, on behalf of the respondents, controverted the submissions made by the appellant s counsel. Shri Singh submitted that the appellant did not apply to the RBI for extension of time. He referred to the Madras High Court judgment in a similar case wherein the Hon ble Court observed that the provisions requiring applications to be made to the RB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly friend. There was delay in the delivery of shipment at its destination on account of port s strike in Dubai over which the appellant did not have any control. The appellants also did not find it feasible to reimport the consignment on account of heavy customs duty. His efforts to find alternative buyer did not yield realisation on account of prevailing local conditions. Nonetheless the fact remains that he did not duly approach RBI for extension of time. It had been held in Samuel Co. v. Foreign Exchange Regulation Appellate Board that the requirement of getting permission from RBI before doing or refraining from doing anything as a result of which the export sale proceeds could not be repatriated is not a mere idle formality. That requi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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