TMI Blog2014 (12) TMI 1225X X X X Extracts X X X X X X X X Extracts X X X X ..... ] we are of the view that the prima facie case for partial waiver of penalty is made out. In this view of the matter, it appears to be appropriate that the appellants be directed to deposit 15% of the amount of penalty imposed against each appellant and further furnished bank guarantee for the balance 85% - Appeal Nos. 219-222/2010 - - - Dated:- 8-12-2014 - Vinay Kumar Mathur, Chairperson and Dr. H.K. Mudgil, Member Shri Ajay Majithia, Advocate, for the Appellant. Shri G.N. Ghosh, ALA, for the Respondent. ORDER [Order per : V.K. Mathur, Chairperson]. - We have heard Shri Ajay Majithia, Advocate for the appellants and Shri G.N. Ghosh, ALA for respondents, Enforcement Directorate on the application for stay and waiver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Act, 1999. 4. The appellants, in response to the show cause notice, submitted their replies and stated that outstanding amount of 06 GRs has been realized and the proceeds in respect of 02 GRs were realized earlier and four foreign inward remittance certificates in proof of the realization were furnished. It was also contended that out of a total impugned amount of US$ 27,08,264.78 an amount of 25,06,359.78 US$ had been realized and the total unrealized amount is 21,905 US$ which is less than 10% of the total amount of export proceeds due. Bank realization certificate in respect of US$ 20,250/- and US$ 3,816/- were also furnished on 9-6-2010. The appellants are reported to have admitted that amounts of US $ 2466.96 and US $ 18164.82 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pre-deposit are being disposed of by a common order. 6. Ld. Counsel for the appellants has submitted that copies of certificate of realization by bank letter dated 17-5-2000, letter of High Commission of India dated 1-2-1994, letter of Chief Manager, Bank of Baroda dated 19-4-1994 and 5-5-1994 and other correspondence has been filed with the memo of appeal. Submission is that substantial realization of export proceeds has been made due to the efforts of the appellants and the same has been taken note by the Adjudicating Officer in the impugned order. The appellants took all possible steps for retrieving the sale proceeds of US $ 2466.96 and US $ 18164.82 against two GRs including approaching the Indian High Commission in Uganda. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cee No. 3 resigned from the post of director of the company on 18-7-2003. Further submission is that the appellants have a prima facie case as the amount involved is not substantial and every possible effort has been made by the appellants for its repatriation but since the buyer could not be traced even with the help of Indian High Commission of Uganda the sale proceeds could not be realized. 7. Further submission is that the appellants are not in a financial position to deposit the amount of penalty under Section 19(1) of the FEMA. They have filed copies of the auditor s report from 31-3-2010 to 31-3-2013 according to which the company is incurring losses which has been indicated by the sign negative in the balance sheet of the last th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led. It was found that export proceeds in respect of two GRs amounting to US $ 20,631.78 alone were pending unrealized. According to the appellants this amount in Indian currency is equivalent to ₹ 4,99,796. This figure has not been disputed by the respondent. The appellants have filed copies of bank certificates confirming realization of export proceeds with regard to six GRs and also have filed correspondence with Indian High Commission at Kampala, Uganda and with their respective banks and also copies of communication sent to the buyers. It appears prima facie that efforts have been made by the appellants but whether they were adequate or not will be considered in depth at the time of final disposal. 10. The fact that the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
