2001 (6) TMI 841

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.... ORDER 1. This is an appeal against the Adjudication Order No. 05/VSI/2001 dated 28-2-2001 passed by the Asstt. Director, Enforcement Directorate, Varanasi imposing a penalty of Rs. 50,000 on the appellant for contravening the provisions of section 18(2) and 18(3) of Foreign Exchange Regulation Act, 1973 ('the Act'). The appeal is accompanied with an application for dispensation of pre-deposit ....

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.... was willing to accept the shipment only if the appellant allowed 30 per cent discount on invoice value. The appellant, therefore, approached the RBI to allow 30 per cent discount as sought by the new buyer on the invoice value as well as extend the date of recovery of sale proceeds. On 29-1-1998, the RBI allowed the appellant to give 30 per cent discount to the new buyer and also extended the dat....

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....ng company about their acceptance and sought confirmation for the delivery. However, the shipping company auctioned the goods immediately after expiry of notice, i.e., 31-1-1998. In these circumstances the appellants were proceeded against for contravening the provisions of section 18(2) and 18(3). The statement of Mohd. Younus was recorded on 12-5-1999 under section 40 of the Act. 4. While hol....

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....With due respect to the learned Adjudicating Officer, I am not inclined to agree with his finding referred to above. The copies of correspondence as brought on record by the appellant clearly show that they have been constantly following the shipping agent and the new buyer to ensure avoidness of auction of goods in terms of notice sent by the shipping agent to them. The fact that the RBI has also....