2024 (6) TMI 1581

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..../SKS/VI/13/2010 dated 01.07.2010 passed by Special Director of Enforcement, Enforcement Directorate, New Delhi. In the impugned Order penalties of Rs. 75,00,000/- on the Appellant M/s Shri Jayalaskhmi Tobacco Co. Ltd. and Rs. 25,00,000/- on the Appellant Shri Rayapati Sambasiva Rao were imposed for the contravention of Sections 7(2) and 8 of The Foreign Exchange Management Act, 1999 (FEMA) read with the Regulations 8,9 and 13 of the Foreign Exchange Management (Exports of Goods and Services) Regulations, 2000 (Regulations). This Tribunal vide Order dated 14.01.2011 disposed of the Application for the waiver of Pre-deposit of penalty with directions that the appellants shall deposit 10% of the amount of penalty and furnish guarantee for the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....before the present defaults occurred. The crises happened since the buyer companies, which were Government companies in Bulgaria, ran into difficulties. The buyer companies in Russia also ran into difficulties and were closed. Necessary certificate from the Chamber of Commerce and Industry of the Russian Federation about the closures was also obtained and submitted. Ld. Counsel pleaded that the Appellant Shri Rayapati Sambavisa Rao, resigned from the company on 01.10.2008, and therefore, he cannot be held liable for any alleged contravention of the Act. Ld. Counsel pleaded that the Appeals may be allowed. 5. Ld. Counsel for the Respondent argued that the AD confirmed the details of outstanding Export Bills pending beyond the statutory pe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....303089 AT- 0303090 AT- 0303091 20.09.2000 1,40,910/- 4. AU-801289 20.07.01 40,986/- 5. AV-774041 16.05.02 41,778/- 6. AW-453718 28.06.02 40,048/- 7. AW-453728 24.07.02 36,360/- 8. AW-453813 AW-453814 AW-453815 AX- 06377856 AX- 0642684 07.10.02 2,17,277/- 9. AX-0642695 07.10.02 36,630/- 10. AX-0642766 27.02.03 35,851/- 11. AY-0160353 AY-0160354 13.06.03 18,816/- 16,489/- 12. AY-0983994 AY-0983993 04.02.05 13.03.05 14,029/- 36,673/- 7. Appellants have contended that they made efforts to realize the pending export proceeds. However, due to the financial conditions of the buyers, particularly in Bulgaria and Russia, the pro....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e foreign country may involve heavy cost and an exporter may think that the cost involved for the litigation may exceed the outstanding that is recoverable from the customers to whom the goods were supplied. However, the exporter is expected to take serious effective steps to recover the unrealised export proceeds and must also express their mind to the persons to whom the supplies were made that they will resort to legal proceedings for recovering the amount. In other words, the steps taken by the exporter must sufficiently indicate the defaulter that the exporter is seriously pursuing for the recovery of the unrealised export proceeds. There is no material available to satisfy this Court that the petitioners had taken effectual and emphat....