TaxTMI 
TaxTMI 
1995 (12) TMI 431
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....r No. 03/VSI/93-94 dated 30-4-1993 despatched on 1-5-1993 under which a penalty of Rs. 80,000 has been imposed on Sandeep Kanodia, Proprietor, Kanodia Durrie; for contravention of section 18(2), read with section 18(3), of the Foreign Exchange Regulation Act, 1973. The allegation against the appellant is that he failed to realise the proceeds of exports covered by GRI No. 821196 of the value of DM....
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....shipment was made. On receipt of the bills back the appellant's bank sent the bills on correct address but it was late by about two months with the result that the foreign buyer Wohnwelt Pallen refused to retire the documents. The appellant then located a second buyer, Mobel Lederle, but the appellant's bank did not send the bills to them. The appellant located yet another buyer Afgan Orient Teepi....
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....A careful consideration of the facts would show that the charge of contravention of section 18(2) against the appellant, in the facts and circumstances of the case, is not sustainable either in law or on facts. Since the delivery of the goods exported by the appellant to the foreign buyer had not materialised, there can be no question of realisation of the proceeds of exports of that export. The c....
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....elt Pallen, as they were still interested in the goods. However, the appellant had not made any exports against that advance payment. Similarly, the evidence about the auction of the goods by the shipping company has to be in the possession of the appellant's bank, through whom the documents were sent to the foreign buyer and who had the possession of all the documents. The learned adjudicating au....