9911796707
TMI Blog2001 (6) TMI 838X X X X Extracts X X X X X X X X Extracts X X X X ..... of sections 18(2) and 18(3) of the Foreign Exchange Regulation Act, 1973 read with Central Government Notification No. F-1/67/EC/73/1 and 3 dated 1-1-1974. The appeal is accompanied by an application for dispensation of pre-deposit of the penalty amount for the reason that the appellants firm is not in a position to pre-deposit the amount of penalty. This application also stated that the grounds of appeal be taken as part and parcel of this application. 2. On perusal of the grounds of appeal, it is noted that the entire export proceeds have been received by the appellants firm during the period from 20-8-2000 to 4-4-2001. Having regard to the financial position of the appellants as well as the fact that the entire export proceeds have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,50,000 for their inability to realise the balance export proceeds of US $ 44,000. 4. The appellants submitted that the entire export proceeds have been received though belatedly. They further submitted that they have applied for extension of time upto 31-3-2001. The adjudicating authority proceeded with the matter in haste. Instead they should have waited for a decision of the RBI on the appellants application for extension of time. In any case the impugned order does not make any mention of any act or omission on the part of the appellants that has resulted in non-realisation of the export proceeds. Such act or omission is the essential constituent of the contravention of the sections 18(2) and 18(3). Furthermore, the appellants submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have not taken of reasonable steps to receive or recover the payments of the goods as aforesaid and accordingly be presumed to have contravened the provision of sub-section (2). In this case the buyer is stated to have a financial crunch and there was bad market situation. In these circumstances, the appellants were constrained to make a settlement with the buyer at a lesser amount and this was done with the permission of RBI as a part of the settlement. The appellants have received 13 promissory notes from the buyer, each of US $ 4,000. Out of these 13 promissory notes, 2 had already been received. The appellants stated they were making efforts to realise the remaining promissory notes and the buyers had assured that they would make th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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