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TMI Blog1992 (8) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... ries revealed that during 1980-81, Bismi Tanning Co. (appellant in Appeal No. 130 of 1989) had exported goods valued at US $ 99,753 and that the following export bills were pending realisation: GRI Form No. Date Invoice Value (In U.S. $) Name of Buyer 1. MAE 166103 14-11-1980 10,380.80 Deupaks GmbH, Frankfurt (W. Germany) 2. 191670 25-11-1980 5,016.00 3. 191674 12-12-1980 12,004.80 4. 191996 2-1-1981 14,785.60 5. 191547 13-1-1981 6,400.00 6. 191997 24-2-1981 5,844.80 7. 191673 5-12-1980 16,007.60 8. 612299 14-10-1980 10,800.00 Kascgeshe 9. 191993 18-12-1980 3,614.40 Lederbekiedung, GmbH 10. 191994 18-12-1980 5,099.40 Kolin, W. Germany Kascgeshe 11. MAE 191679 3-11-1980 6,500.00 Lederbekiedung, GmbH Kolin, W. Germany 12. 191672 1-12-1980 3,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s fees for want of funds even though the appellants had obtained the approval of Reserve Bank of India for remitting lawyer's fees of DM 8,000. As regards pending bills concerning Kascgesche Lederbekliedung GmbH Kolin, West Germany, counsel for the appellants submitted that the appellants' lawyer in Germany had filed a case, but the same could not also be pursued by the lawyers due to shortage of funds. The counsel for the appellants further submitted that as the appellants' banker, namely, Lakshmi Vilas Bank, Madras, had stopped credit facilities to the appellants, they could not arrange money for payment of the lawyer's fees in Germany and that meanwhile the appellants came to know that Deupaks had closed its business a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legal actions against the foreign buyers. This gives rise to a vital question whether such an explanation would be acceptable under section 18(2) read with sub-section (3) thereof. In other words, whether the appellants can be said to have refrained from taking steps which had the effect of securing the export proceeds. 9. The Adjudicating Officer concluded as follows: Admittedly the proceeds continue to be outstanding and though some efforts were made by M/s Bismi Tanning Company initially by way of legal proceedings, the same have not been sustained. No doubt M/s Bismi Tanning Company was under severe financial problems but in view of the huge outstandings, they should have made all-out efforts to remit the lawyer's fees for want ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. FERA [1985] 5 ECC 141, observed as follows: The charge against the appellants, as is apparent from the order of the learned Special Director, is that without any general or special permission of the Reserve Bank of India, they refrained from taking necessary steps for realising the full value of the goods exported to the buyer. The steps which the appellants failed to take related to the appointment of an arbitrator for deciding the disputes raised by the buyer as directed by the Reserve Bank of India in their letter dated January 3, 1973. It is not disputed that the appellants took initial steps for getting the disputes decided by an arbitrator. True, reference to the arbitrator was not finalised. But in my judgment it is not because t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealise the export proceeds as the expenses involved for realisation were more than the value of the export proceeds. I, therefore, endorse the conclusion of the Assessing Officer that the appellants should have made all-out efforts to remit the lawyer's fees for the purpose. The appellants have not indicated as to what other efforts were made by them for securing finances for remitting the lawyer's fees after their banker, Lakshmi Vilas Bank, Madras had stopped credit facilities to them. In fact, the appellants' dispute with their banker referred to in the copy of the affidavit filed in the Madras High Court in C.S. 43 of 1984 Lakshmi Vilas Bank Ltd. v. Bismi Tanning Co. does not have any bearing on the issue for the same reason ..... X X X X Extracts X X X X X X X X Extracts X X X X
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