https://www.taxtmi.com/caselaws?id=104478 In consignment sales under section 12(2) of the Foreign Exchange Regulation Act, 1947, liability turns on the amount actually payable by the foreign buyer, not the full export value stated in the declaration. The court noted that the declared figure in G.R. 1 forms is only approximate in such transactions, so higher declared value alone does not establish contravention. However, any deduction of consignee's commission or expenses from export proceeds requires prior Reserve Bank permission, because section 12(2)(b) protects the full foreign buyer obligation. On that construction, the exporter avoids liability for the declared excess, but deductions without permission remain impermissible. en-us Mon, 19 Feb 1996 00:00:00 +0530 Wed, 29 Feb 2012 12:14:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104478 In consignment sales under section 12(2) of the Foreign Exchange Regulation Act, 1947, liability turns on the amount actually payable by the foreign buyer, not the full export value stated in the declaration. The court noted that the declared figure in G.R. 1 forms is only approximate in such transactions, so higher declared value alone does not establish contravention. However, any deduction of consignee's commission or expenses from export proceeds requires prior Reserve Bank permission, because section 12(2)(b) protects the full foreign buyer obligation. On that construction, the exporter avoids liability for the declared excess, but deductions without permission remain impermissible. Case-Laws Companies Law Mon, 19 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104478