2017 (7) TMI 1472

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....es, therefore, the intimation of respondent No.2-Bank, vide e-mail dated 20.03.2017 (Annexure P-5) showing its inability to credit in the account of the petitioner and also issuance of credit confirmation and the Bank Remission Certificate (hereinafter called "BRC"), left it in lurch. Learned counsel for the petitioner submitted that the petitioner being a partnership firm having its office at Gurgaon is engaged in export of readymade garments and in the normal course of business, the said consignment was exported to the buyer M/s Al Khat Al Fizi Trading LLC, Dubai, U.A.E and invoice bearing No.AC/159/16-17 dated 03.11.2016 (Annexure P-1 (collectively) was raised upon the said buyer which was exported by air vide Air Way Bill dated 04.11.....

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....vide its e-mail dated 27.03.2017 (Annexure P-8) informed the petitioner that the said remittance so received showed its inability to credit in the petitioner's account and the credit confirmation and the BRC cannot be issued to them. However, vide e-mail dated 06.04.2017 (Annexure P-9), respondent No.2 also informed the petitioner that they are sending the remittance back to the sender as the Bank was not comfortable with third party transaction as they were not in accordance with the RBI guidelines. It is in this aspect of the matter, the petitioner has invoked the jurisdiction of this Court. In support of his contention, reliance laid upon the Circular Nos.70 dated 08.11.2013 and 100 dated 04.02.2014 issued by the RBI. Para 2 of the....

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....ble order backed by a tripartite agreement should be in place" specified in the abovementioned Circular, it has been decided that this requirement may not be insisted upon in case where documentary evidence for circumstances leading to third party payments/name of the third party being mentioned in the irrevocable order/invoice has been produced. This shall be subject to conditions as under: (i) AD bank should be satisfied with the bona-fides of the transaction and export documents, such as, invoice/FIRC. (ii) AD bank should consider the FATF statements while handling such transaction." He further submitted that the aforementioned clarification, vide circular dated 04.02.2014 was specifically enacted due to the difficulties faced by....

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....on. I have heard learned counsel for the petitioner and appraised the paper book. On conjoint reading of the aforementioned circulars, it is beyond doubt that even RBI guidelines are not absolute embargo existed on the receipt of the third party payment against export made from India as the conditions were imposed only on 08.11.2013 which were relaxed after few months, i.e., on 04.02.2014. The whole purpose of issuing the circular as spelled out is to ensure the remittances against the export received by the exporters, much less to promote the international business and permit third party payments, in case, where the exports are made. There is no ambiguity "before or after" between the period 08.11.2013 to 04.02.2014, thus, for all inte....